Diversified strategies

Carmignac Portfolio Emerging Patrimoine

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU0592698954

An all-inclusive, sustainable Emerging Market solution
  • Accessing a rich and heterogenous universe of EM bonds, equities, and currencies in a sustainable manner.
  • Offering portfolio diversification by exploiting decorrelations between regions, sectors and asset classes.
Asset Allocation
Bonds60 %
Equities34.3 %
Other5.7 %
Data as of:  30 Apr 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 40.0 %
+ 38.6 %
+ 31.0 %
- 5.5 %
+ 5.7 %
From 31/03/2011
To 23/05/2024
Calendar Year Performance 2023
+ 5.3 %
+ 0.2 %
+ 9.8 %
+ 7.3 %
- 14.4 %
+ 18.6 %
+ 20.4 %
- 5.2 %
- 9.6 %
+ 7.8 %
Net Asset Value
140.0 €
Asset Under Management
366 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  23 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 Emerging Patrimoine 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] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager

Abdelak Adjriou

Fund Manager

Market environment

Emerging markets gained ground in April (+1.73% in EUR), unlike developed markets. The main push came from China, where the Hang Seng was up 8.54% and the CSI 300 mainland index 3.20%. 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 also post above-forecast Q1 GDP growth (+5.3% vs 5%). As far as geopolitical tensions go, US Secretary of State Anthony Blinken’s recent visit illustrates an improvement in communications between the two countries. Elsewhere in Asia, India’s markets were up (BSE SENSEX 30 +2.10% in EUR) and South Korea’s were down (Kospi -3.54% in EUR). In Latin America, Mexican (-2.57% for the Mexico IPC) and Brazilian (-4.12% for the Bovespa) markets also fell in April.

Performance commentary

The Fund posted a slightly negative performance in April. Our equity component greatly benefitted from Chinese markets’ rally. Shares in DiDi rose after the ride-hailing company announced that its buybacks would accelerate in Q2 2024. Our selection of Chinese consumer discretionary stocks such as MINISO, JD.com and Haier Smart Home also helped shore up the Fund. We were somewhat disappointed with our top Latin American holdings, which include Eletrobras and Grupo Banorte. At a bond level, we suffered from our exposure to Mexican and Japanese local debt, as well as Ukraine’s external debt. However, we benefitted from holding PEMEX corporate bonds and Ecuadorian external sovereign debt. Our management of emerging market currencies had a neutral impact on performance over April as a whole. Exposure to the Chilean peso helped, but our positioning on the Chinese yuan worked against us.

Outlook strategy

We remain optimistic for emerging market assets in 2024. The vast emerging world presents numerous opportunities across all regions and asset classes. The latest macroeconomic indicators suggest that manufacturing activity has bottomed out in the United States, the Eurozone and China. This is a big support factor for commodity-producing countries, especially in Latin America. We also take a positive view of Asian economies, particularly South Korea and Taiwan, which should benefit from the new AI cycle. On the fixed income side, at a local debt level we remain focused on countries like Mexico, where the rate-cutting cycle has started and is likely to continue. We are also long on Brazil where real interest rates are still very high. We are long on emerging market debt denominated in hard currencies, but have been taking profits on our best performing positions, such as those in Ecuador and Romania, since the beginning of the year. We are keeping modified duration close to 240 basis points and continuing to protect the portfolio with index hedges. The global economic recovery continues to support commodities such as copper and oil, which should benefit emerging market debt and the currencies of emerging commodity-producing countries. We therefore have positive expectations for the Brazilian real, Chilean peso and Kazakhstani tenge, as well as certain Asian currencies such as the won, as AI should lift the South Korean economy. We are leaving equity exposure at around 25%, with significant exposure to Asian markets and, in particular, Korean and Taiwanese technology stocks as the artificial intelligence theme is leading to sustained growth in demand for semiconductors and electronic components. During the month we closed our position in Beike, a Chinese company that specialises in real estate deals and related services. We also took profits on MINISO (China) following its rally, and increased our exposure to Vipshop.

Performance Overview

Data as of:  23 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.Until 31/12/2012, the reference indicators' equity indices were calculated ex-dividend. Since 01/01/2013, they have been calculated with net dividends reinvested. Until 31/12/2021, the reference indicator was 50% MSCI Emerging Markets index, 50% JP Morgan GBI - Emerging Markets Global Diversified Index. The performances are presented using the chaining method.​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 26/05/2024

Carmignac Portfolio Emerging Patrimoine Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Apr 2024.
Asia79.8 %
Latin America18.6 %
Eastern Europe1.6 %
Total % Equities100.0 %
Asia79.8 %
cnChina
23.2 %
krSouth Korea
20.8 %
twTaiwan
16.5 %
inIndia
12.5 %
hkHong Kong
3.1 %
myMalaysia
2.0 %
sgSingapore
1.8 %

Key figures

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

Exposure Data

Data as of:  30 Apr 2024.
Equity Investment Weight34.3 %
Net Equity Exposure24.8 %
Active Share89.2 %
Modified Duration2.3
Yield to Worst8.0 %
Average RatingBBB-
Yield to Maturity & Yield to Worst : Calculated at the fixed income bucket level.

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

Abdelak Adjriou

Fund Manager
Our aim is to bring together our best emerging market investment ideas in a single Fund.
[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.
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.