Equity strategies

Carmignac Portfolio Emergents

Luxembourg SICAV sub-fundEmerging marketsSRI Fund Article 9
Share Class

LU1623762413

Grasping the most promising opportunities within the emerging universe
  • A concentrated and high conviction portfolio seeking high alpha generation across the diversified emerging market universe.
  • A Fund focused on selecting high-quality companies that offer attractive long-term growth prospects, with sound financials and sustainable profitability.
Asset Allocation
Equities94.3 %
Other5.7 %
Data as of:  30 Sep 2024.
Risk Indicator
4/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 59.9 %
0.0 %
+ 65.3 %
- 1.6 %
+ 15.1 %
From 26/07/2017
To 08/10/2024
Calendar Year Performance 2023
-
-
-
+ 4.5 %
- 18.2 %
+ 26.9 %
+ 57.0 %
- 10.2 %
- 14.2 %
+ 10.6 %
Net Asset Value
160.08 €
Asset Under Management
424 M €
Market
Emerging markets
SFDR - Fund Classification

Article

9
Data as of:  8 Oct 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. The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.

Carmignac Portfolio Emergents 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 Sep 2024.
Fund management team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

  • Emerging markets rose sharply over the month, driven by China's solid rebound in the wake of optimism generated by Beijing's stimulus measures.

  • The PBOC cut interest rates, lowered reserve requirements ratio (RRR) and announced measures to support the property and equity markets, while indicating its willingness to do more on the fiscal front.

  • The fact that some of the measures announced are directly targeted at the market is a signal that the government is finally addressing economic issues and equity markets problems properly. The Central Bank is offering RMB 800 billion in subsidized loans to investors and companies themselves to buy equities.

  • In the wake of the coordinated announcements by the Chinese authorities, the Chinese equities markets rebounded strongly, making Chinese markets the best performing equity markets year-to-date.

  • In Latin America, Mexican markets rebounded slightly, while Brazil was down, penalized by a rise in central bank interest rates and continued weakness in agricultural commodity prices.

Performance commentary

  • Against this backdrop, the fund delivered a positive performance over the month, in line with its reference indicator.

  • Our Chinese holdings made a significant contribution to performance, benefiting from the PBOC's support measures. Consumer discretionary stocks, such as VIPshop, JD.com, Anta Sports and Haier Smart Home, posted the best performances over the month.

  • In India, we benefited from the strong performance of bank Kotak Mahindra, as well as real estate company Nexus, operating shopping malls across the country.

  • Nevertheless, we were disappointed by the underperformance of South Korean markets, with Samsung Electronics not immune to this, worrying investors about its ability to meet its third-quarter targets.

  • Lastly, our portfolio of Latin American equities underperformed slightly over the period, without penalizing the fund's overall performance.

Outlook strategy

  • Emerging economies should benefit from long-term structural trends: artificial intelligence, relocation of production chains, new commodity cycles.

  • We welcome these major announcements by the Chinese government, which are very positive for the Chinese and emerging equities markets overall.

  • Although the Chinese government's recent announcements do not seem sufficient, on their own, to turn the Chinese economy around, this is a major turning point, as President Xi has shown that he is now putting the economy as a top priority.

  • However, at this stage, we feel it is still too early to change our medium- to long-term views on the Chinese economy. And we maintain our selective and cautious view given the global economic slowdown and the US presidential election.

  • Given our expectations of a political turnaround on the one hand, and the impossibility of “timing” such a change on the other, we have adopted a neutral stance on China, with an equal weight allocation, focused on stock picking opportunities. Our China exposure is around 25%.

  • We are closely monitoring each Chinese position and its valuation, our objective being to remain disciplined in position sizing. We are selectively trimming some positions that rebounded a lot, and where the valuation argument became less compelling. For other stocks, we are maintaining our positions.

  • We are maintaining a concentrated portfolio with balanced exposure, combining high-visibility quality stocks (Asian Tech, India) with companies in less attractive markets whose valuations are clearly attractive, especially when corporate governance gives us confidence (China, Brazil).

Performance Overview

Data as of:  8 Oct 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.​From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 10/10/2024

Carmignac Portfolio Emergents Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
Asia80.7 %
Latin America18.2 %
Eastern Europe1.1 %
Total % Equities100.0 %
Asia80.7 %
cnChina
23.8 %
inIndia
20.9 %
krSouth Korea
14.9 %
twTaiwan
13.0 %
hkHong Kong
3.5 %
myMalaysia
2.5 %
sgSingapore
2.0 %

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 Sep 2024.
Equity Investment Weight94.3 %
Net Equity Exposure94.3 %
Number of Equity Issuers36
Active Share83.7 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
For over 30 years, Carmignac has been a pioneer in emerging markets. The combination of our fundamental financial analysis and our extra-financial approach, strengthened over the years, enables us to navigate emerging markets through our dedicated strategy.
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, 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.

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