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.
Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
+ 5.8 %
+ 5.5 %
+ 1.4 %
+ 18.8 %
- 18.6 %
+ 24.7 %
+ 44.3 %
- 10.8 %
- 15.7 %
+ 9.5 %
Net Asset Value
167.3 €
Asset Under Management
909 M €
Market
Emerging markets
SFDR - Fund Classification
Article
9
Data as of: 30 Apr 2024.
Data as of: 13 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.
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 delivered a positive return but trailed its reference indicator slightly. Our Chinese equity portfolio accounted for much of the strategy’s gains. Consumer discretionary stocks including MINISO, JD.com, Haier Smart Home, and Anta Sports trended upwards. Our industrial name, DiDi, also performed excellently after announcing that its share buybacks would accelerate in Q2 2024. Although Hyundai Motor held up well, our South Korean allocation weighed on the Fund’s performance, largely through semiconductor company Samsung Electronics and battery manufacturer LG Chem. Latin American markets’ weak performance in April was rather disappointing. Our Fund suffered from its positions in Brazilian utilities providers Eletrobras and Equatorial Energia, and its top Mexican holdings Grupo Banorte and Vesta.
Outlook strategy
We remain optimistic for emerging markets over the rest of 2024. The vast emerging world presents numerous opportunities across all regions and sectors, as valuations are attractive. The Chinese authorities’ stimulus is starting to pay off despite structural problems. We are keeping a significant allocation to Chinese markets, taking advantage of market inefficiencies and the upside potential for consumer companies with strong balance sheets and valuations that do not fully reflect their underlying fundamentals or growth prospects. Nearly all of the Chinese companies in our Fund are leaders in their field, with high cash flows to sustain decent margins against the current backdrop of weak growth. 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. We are remaining exposed to Latin America, and Mexico in particular, which is benefitting from structural trends such as reindustrialisation in North America. We are positioned on industrial real estate company Vesta in Mexico. Although we remain optimistic for emerging markets over the rest of 2024, we have reduced our regional bets to protect ourselves from geopolitical risks – most notably those attached to the US presidential election. The Fund is therefore focusing on its stock selection, concentrating its portfolio on growth and discounted stocks, with a particular emphasis on valuations and sustainability criteria.
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.
The Fund is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law.
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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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.