Carmignac P. Emergents
January 2024
Portfolio News
| Carmignac P. Emergents F EUR Acc | -5.0% | +9.8% | -22.8% | +35.8% |
| Performance reference indicator | -3.0% | +6.1% | -11.5% | +11.0% |
Markets Review
- In January, emerging markets started the year in negative territory against a backdrop of increased US-China tensions.
- In China, the PBOC cut its Reserve Requirement Ratio (RRR) by 50 basis points in order to ease financial conditions. However, this wasn’t enough to lift the markets that were down again impacted by weak economic data combined with increased US-China tensions due to concerns regarding headlines about Trump’s potential coming back and that he has discussed with advisers the possibility of imposing a flat 60% tariff on all Chinese imports. Moreover, US government introduced a drafted version of "Biosecure Act" bill in the US House of Representatives, proposing to restrict federally funded medical providers from using foreign adversary biotech companies of concern.
- Finally, after a solid end of the year, Latin American markets ended the month in negative territory, due to profit taking and weak economic data across the world.
Performance Review
TOP 3 CONTRIBUTORS
Excellent rebound of our biggest position Taiwan Semiconductor and our Indian names.
- TAIWAN SEMICONDUCTOR (Tech) - Taiwan
- ICICI LOMBARD (Insurance) - India
- NEW ORIENTAL (Education) - China
TOP 3 DETRACTORS
Weakness of our Chinese consumer and healthcare stocks against a backdrop of increasing US-China tensions. Weakness of Samsung despite solid results.
- SAMSUNG ELECTRONICS (Tech) - S. Korea
- JD.COM (eCommerce) - China
- EHANG (Industry) - China
Notable portfolio moves
- New positions: -
- Reinforcements: Kotak Mahindra (India), Samsung Electronics (S. Korea), Eletrobras (Brazil)
- Reductions: New Oriental (China), Haier (China), Didi (China)
- Positions sold: Sungrow (China)
- Number of holdings: 35 (target range 35/55)
Positioning as of 31/01/2024
Breakdown of the fund by SGD alignment
Our portfolio is currently structured around 4 major socially responsible investment (SRI) themes that are central to our process:
Strategy Reminder
INVESTMENT OBJECTIVES
Performance objective:
- The fund aims to outperform its reference indicator over a recommended investment horizon of 5 years.
Sustainable objective:
- 100% of investments (ex-cash holdings) in emerging companies that derive a substantial part of their revenues or capital expenditures from goods & services related to business activities which align positively with SDGs, or have operations aligned with SDGs (source: Factset)
- Carbon intensity 50% lower than the ref. indicator (tons of CO2 per million USD revenues, converted to euros).
STRATEGY BENEFITS:
- A 9-year track record with Xavier Hovasse as lead PM, and Haiyan Li-Labbé nominated co-PM in January 2021, both with 20+ year industry experience in emerging markets.
- A diversified portfolio, with a selective exposure to the Asian markets, an increased allocation to LatAm and through companies with attractive valuations.
- SFDR Article 9 Strategy with a fully integrated SRI & low carbon approach, awarded the French government’s SRI label in 2019 and the Belgium Towards Sustainability label in 2020.
- A portfolio with a positive environmental and social contribution, 100% of assets (excl. cash) invested in companies whose revenues or capital expenditures or operations are positively aligned United Nations Sustainable Development Goals (SDG) and a carbon footprint 70% lower than the MSCI EM NR Index (as of 31/01/2024).
- High conviction and active approach: 35 to 55 stocks on average, high active share (>85%).
- An effective portfolio diversification tool and a source of performance, proven by a solid track record (1st quartile among peers since launch), 4 Star Ranking, and a solid AUM of 1.2 bn € (end of January 2024).
*Reference indicator: MSCI EM (USD) (NR reconverted into EUR). 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. The fund presents a risk of capital loss. *F EUR Acc share class, ISIN code: LU0992626480. Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell individual securities. Source: Carmignac, MSCI, Morningstar 29/12/2023 Carmignac Portfolio Emergents obtained the French and Belgian SRI Labels: https://www.lelabelisr.fr/en/ ; https://www.towardssustainability.be/ ; https://www.febelfin.be/fr. Other investment restrictions apply. Please refer to the fund documentation for a complete description of the fund. 1 Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. For more information please refer to EUR-lex.
*F EUR ACC share class. Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.
Carmignac Portfolio Emergents
Grasping the most promising opportunities within the emerging universeDiscover the fund pageCarmignac Portfolio Emergents F EUR Acc
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 4/7
- SFDR - Fund Classification**
- Article 9
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **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.
Main risks of the fund
Fees
- Entry costs
- We do not charge an entry fee.
- Exit costs
- We do not charge an exit fee for this product.
- Management fees and other administrative or operating costs
- 1,32% of the value of your investment per year. This estimate is based on actual costs over the past year.
- Performance fees
- 20,00% when the share class overperforms the Reference indicator during the performance period. It will be payable also in case the share class has overperformed the reference indicator but had a negative performance. Underperformance is clawed back for 5 years. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
- Transaction Cost
- 0,37% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
Annualised Performance
| Carmignac Portfolio Emergents | 6.4 | 3.9 | 1.7 | 19.8 | -18.2 | 25.5 | 44.9 | -10.3 | -14.3 | 9.8 |
| Reference Indicator | 11.4 | -5.2 | 14.5 | 20.6 | -10.3 | 20.6 | 8.5 | 4.9 | -14.9 | 6.1 |
| Carmignac Portfolio Emergents | - 4.7 % | + 7.6 % | + 6.2 % |
| Reference Indicator | - 2.4 % | + 3.0 % | + 5.5 % |
Source: Carmignac at 28 Mar 2024.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).
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Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.
This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.
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.
Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.
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In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.co.uk, or upon request to the Management Company, or for the French Funds, at the offices of the Facilities Agent at BNP PARIBAS SECURITIES SERVICES, operating through its branch in London: 55 Moorgate, London EC2R. This document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. FP Carmignac ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.
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