Equity strategies

Carmignac Portfolio China New Economy

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU2295992320

Seize the growth potential of China's New Economy
  • Investing with conviction: Seeking companies in China's New Economy, which benefit from the country's economic transition and long-term reform.
  • Investing with selectivity: Favoring domestic quality companies which have high income visibility, while avoiding those linked to external demand.
Asset Allocation
Equities97.7 %
Other2.3 %
Data as of:  30 Apr 2024.
Risk Indicator
6/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
- 49.2 %
-
-
- 46.5 %
+ 8.9 %
From 31/03/2021
To 29/05/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
- 35.6 %
- 5.2 %
- 22.5 %
Net Asset Value
50.8 €
Asset Under Management
67 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  29 May 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Carmignac Portfolio China New Economy fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  30 Apr 2024.
Fund management team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

Chinese markets bounced back strongly in April: +8.54% for the Hang Seng and +3.20% for the CSI 300 continental index. China had published some encouraging economic data including the Caixin manufacturing index, which stood in expansionary territory at 51.4.The global economy’s resilience helped China to post above-forecast Q1 GDP growth (+5.3% vs 5%) and export growth (+1.5% vs +1%) too. As far as geopolitical tensions go, US Secretary of State Anthony Blinken’s recent visit illustrates an improvement in communications between the two countries.

Performance commentary

The Fund delivered a positive return in April. Our portfolio received a boost from its consumer discretionary stocks such as lifestyle brand MINISO, ebike manufacturer Yadea, Alibaba and Tal Education. DiDi’s share price rose too after the company announced that it would be speeding up its buyback programme in Q2 2024. However, we were somewhat disappointed with our technology stocks, as Daqo New Energy, Gold Circuit Electronics and MediaTek weighed on the Fund’s overall performance.

Outlook strategy

Despite short-term volatility and the structural challenges facing the economy, we still have an optimistic view of Chinese equity markets. We are seeing a slight improvement in certain economic indicators. Foreign demand is heading in the right direction too, and local government stimulus is starting to pay off. The economic transition towards industrial sectors (albeit at the expense of traditional growth-driving sectors such as real estate and the internet) is starting to have a positive effect on exports. However, China’s structural problems remain with domestic consumption barely moving, especially among the middle classes now that house prices have fallen and youth unemployment is high. Selectivity is essential. Our approach is centred around stock selection, with a particular focus on companies’ valuations and fundamentals. We feel sure that our approach, focused on a fundamental analysis and enterprise values, is the best way to generate positive long-term returns on Chinese markets. We remain convinced about the potential for China’s new economy, and in particular the secular trends that we are seeing in artificial intelligence, the green transition and healthcare. Moreover, Chinese authorities have reaffirmed their support for these industries in recent comments. Our portfolio is mostly positioned on companies that are leaders in their fields, and are generating high cash flows to sustain decent margins against the current backdrop of modest growth. We are also keeping significant exposure to Taiwan, mainly through companies along the semiconductor supply chain, which should benefit from the AI cycle. We strengthened our position in Taiwan Semiconductor and opened one in Lotes, which specialises in the design and manufacturing of precision electronic interconnect components and hardware such as CPU brackets.

Performance Overview

Data as of:  29 May 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). Morningstar Rating™ :  © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Source: Carmignac at 30/05/2024

Carmignac Portfolio China New Economy Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Apr 2024.
Asia100.0 %
Total % Equities100.0 %
Asia100.0 %
cnChina
75.2 %
twTaiwan
22.3 %
hkHong Kong
2.4 %

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.

Exposure Data

Data as of:  30 Apr 2024.
Equity Investment Weight95.3 %
Net Equity Exposure112.2 %
Number of Equity Issuers34
Active Share88.9 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.
Fund Management Team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
Through an active conviction and sustainable approach, we focus on domestic companies in China's new economy that can benefit from the country's economic transition and long-term reforms.
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
View Fund's characteristics
The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.
​The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performance is shown net of fees (excluding any subscription fees payable to the distributor). Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor), where applicable. Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.). The reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.