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
+ 9.6 %
+ 0.6 %
+ 1.4 %
+ 4.0 %
- 14.8 %
+ 23.9 %
+ 32.8 %
+ 3.2 %
- 18.9 %
+ 18.0 %
Net Asset Value
282.3 €
Asset Under Management
3 672 M €
Market
Global market
SFDR - Fund Classification
Article
8
Data as of: 30 Apr 2024.
Data as of: 14 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.
April was a difficult month for equities and bonds due to higher-than-anticipated US inflation and persistently solid growth. This led the markets to lower their expectations of imminent rate cuts at the Federal Reserve, pushing up bond yields and pressurising share prices. The month also brought announcements of Q1 results. Although most companies beat forecasts, the markets were more willing than usual to punish those who fell short. Investors are trying to decide whether earnings growth justifies the rise in prices over the last six months. European equities have held up better than their US peers, benefitting from brighter growth prospects and a less worrisome inflation trend. However, Japanese equities underwent a correction after posting gains in each of the five previous months. The wider spread between the interest rates of Japan and other developed countries exerted downside pressure on the yen and raised concerns about the effect of imported inflation on domestic demand. Chinese equities rallied strongly, brought to life initially by government stimulus, then a slight improvement in sentiment and their particularly attractive valuations.
Performance commentary
The Fund posted a negative performance, trailing its reference indicator. The main drag was Meta, the parent company of Facebook and Instagram. Although its results were good, the company is planning to raise spending and, in particular, accelerate investment in generative AI, reviving concerns about Meta’s ability to control its costs. Technology stocks as a whole suffered. These included AI players like AMD, Microsoft and Nvidia. However, we are still taking a constructive approach to growth in the semiconductor industry and the beneficiaries of this theme. The other sector to struggle in April was finance, with UBS and Block notable fallers. The Fund did benefit from the appreciation of Danish giant Novo Nordisk, which leads the booming market for obesity treatments, and Chinese markets’ rally through positions in DiDi and Alibaba.
Outlook strategy
The beginning of the year was good for equity markets due to the global economic recovery and expectations of monetary easing. However, volatility has now reared its head as the markets look to strike a balance between economic growth and concerns about high inflation and interest rates. We think the economic recovery will continue, but with greater divergence between central banks’ respective monetary policies. Financial markets’ trajectory will therefore be less predictable. Moreover, valuations are currently high, leaving little room for disappointment. We are therefore adjusting our portfolio gradually, in preparation for more volatile conditions. After benefitting greatly from the AI and obesity themes, we have taken profits and reallocated the proceeds to better quality, more defensive stocks in different sectors. In IT, we are diversifying our semiconductor exposure to companies that offer predictable growth at a reasonable price. In healthcare, we are taking profits on investments in the GLP-1 giants and diversifying with a similar strategy.
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
April was a difficult month for equities and bonds due to higher-than-anticipated US inflation and persistently solid growth. This led the markets to lower their expectations of imminent rate cuts at the Federal Reserve, pushing up bond yields and pressurising share prices. The month also brought announcements of Q1 results. Although most companies beat forecasts, the markets were more willing than usual to punish those who fell short. Investors are trying to decide whether earnings growth justifies the rise in prices over the last six months. European equities have held up better than their US peers, benefitting from brighter growth prospects and a less worrisome inflation trend. However, Japanese equities underwent a correction after posting gains in each of the five previous months. The wider spread between the interest rates of Japan and other developed countries exerted downside pressure on the yen and raised concerns about the effect of imported inflation on domestic demand. Chinese equities rallied strongly, brought to life initially by government stimulus, then a slight improvement in sentiment and their particularly attractive valuations.