Carmignac

Carmignac P. Emergents - February 2023 Update

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Portfolio News

Performance - F EUR ACC shareclass - Cumulative returns (%)

February 202320223 years5 years
Carmignac P. Emergents-4,6%-14,4%+18,5%+18,5%
Performance reference indicator-4,2%-14,9%+6,6%+4,7%

* MSCI EM NR (USD) dividends net dividend reinvested

China - including Hong Kong. Excluding derivative positions Carmignac's portfolios are subject to change at any time. Data are rebased to 100% for Sector & Country positioning. Source: Carmignac, 28/02/2023

Market Review

  • Emerging market equities dropped in February as US 10-year real yields soared.

  • All sectors were hit hard but Internet and e-commerce in particular, along with cyclical sectors due to the stronger dollar and rise in long term yields, which dragged some commodity prices down.

  • Chinese markets fell the sharpest, mainly due to the resurgence of geopolitical tension with the United States, which weighed on market sentiment. Economic indicators showed a gentle recovery in the consumer and services sectors. Earnings announcements didn’t inspire much enthusiasm but did suggest an encouraging upward trend.

  • Mexico continued to outperform after publishing some brighter economic data, while the other Latin American and Middle Eastern countries were affected by the appreciation of the dollar and weakness of commodity prices.

Performance Review

  • TOP 3 CONTRIBUTORS

    Good resistance of some Chinese & Mexican stocks

    • MINISO (Cons. Disc.) - China

    • GRUPO BANORTE (Finance) - Mexico

    • LENOVO (Tech) - China

  • TOP 3 DETRACTORS

    Weakness of Chinese and Korean consumer and tech names

    • ALIBABA (Cons. Disc.) - China

    • ELETROBRAS (Clean Energy ) - Brazil

    • JD.COM (Cons. Disc. ) - China

Notable portfolio moves

  • New positions:

  • Reinforcements: Didi Global (China), Taiwan Semiconductor (Taiwan), Banorte (Mexico)

  • Reductions: ISA CTEEP (Brazil), Hapvida (Brazil)

  • Positions sold:

  • Number of holdings: 37 (target range 35/55)

Positioning

Carmignac
Source: Carmignac, 28/02/2023

Breakdown of the fund by SDG alignment

Our portfolio is currently structured around 4 major socially responsible investment (SRI) themes that are central to our process:

Carmignac
Source: Carmignac, MSCI ESG Research, FactSet, 28/02/2023. To produce this chart, we map portfolio companies whose revenues are at least 50% aligned with one of the nine selected UN Sustainable Development Goals (SDGs). Company revenue data is provided by Factset. These results are provided for illustrative purposes and are not a guarantee of future results. For more information, please see For more details: https://sdgs.un.org/goals

Strategy reminder

  • INVESTMENT OBJECTIVES

    Performance objective:

    • The fund aims to outperform its reference indicator (MSCI EM (USD) NR, reconverted into EUR) over a recommended investment horizon of 5 years.

    Sustainable objective:

    • 100% of investment in emerging companies that derive the majority of their revenues or capital expenditures from goods & services related to business activities which align positively with SDGs (ex-cash holdings, source: Factset)

    • Carbon intensity 50% lower than the ref. indicator (tons of CO2 per million USD revenues, converted to euros).

  • STRATEGY BENEFITS

    • A 8-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 invested in companies whose revenues or capital expenditures are positively aligned with at least 1 of 9 targeted United Nations Sustainable Development Goals and a carbon footprint 62% lower than the MSCI EM NR Index (as of 28/02/2023).

    • 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), 5 Star Ranking, and a solid AUM of 1.2 bn € (end of Feb 2023).

    Carmignac Portfolio Emergents obtained the French and Belgian SRI Labels: www.lelabelisr.fr ; www.towardssustainability.be ; www.febelfin.be.

    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

  • Xavier Hovasse
    Fund Manager
    Head of Emerging Equities

    Xavier Hovasse is a Fund Manager and Head of Emerging Equities. Xavier joined Carmignac in 2008 as an analyst specialized in Latin America, and was appointed Fund Manager in 2011. Prior to that, he spent nine years at BNP Paribas Asset Management as an analyst and Manager of Emerging and Global equities. He graduated from ESCP-EAP Paris and is a CFA Charter holder since 2004.

  • Haiyan Li-Labbé
    Fund Manager

    Haiyan Li-Labbé is a Fund Manager with a focus on the Greater China markets within the Emerging Equities team. Haiyan joined Carmignac in 2011. She started her career in 2001 at Société Générale Investment Banking and was the responsible Analyst on Asian convertible bonds. Between 2004 and 2011, she was a Fund Manager and Head of Asian Projects at ADI Alternative Investments and OFI AM. Haiyan holds a Master’s degree in French from Beijing’s Foreign Languages University, and a Master’s degree from Ecole Supérieure de Commerce de Paris (ESCP).

Carmignac Portfolio Emergents

Grasping the most promising opportunities within the emerging universe

Visit the fund page

Carmignac Portfolio Emergents A EUR Acc

ISIN: LU1299303229

Recommended minimum investment horizon

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Main risks of the Fund

EQUITY: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.

EMERGING MARKETS: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest.

CURRENCY: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.

DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund presents a risk of loss of capital.

Carmignac Portfolio Emergents A EUR Acc

ISIN: LU1299303229
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (YTD)
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Year to date
Carmignac Portfolio Emergents A EUR Acc - -4.12 % +1.08 % +18.94 % -18.75 % +24.90 % +43.84 % -10.95 % -14.80 % +9.22 % +2.12 %
Reference Indicator - -5.99 % +14.51 % +20.59 % -10.27 % +20.61 % +8.54 % +4.86 % -14.85 % +6.11 % +9.32 %

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3 Years 5 Years 10 Years
Carmignac Portfolio Emergents A EUR Acc -5.30 % +6.28 % -
Reference Indicator -0.95 % +4.67 % -

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Source: Carmignac at 30/08/2024

Entry costs : 4,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
Exit costs : We do not charge an exit fee for this product.
Management fees and other administrative or operating costs : 1,97% 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.
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