Carmignac

Carmignac Portfolio Grandchildren celebrates its four-year anniversary

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Carmignac Portfolio Grandchildren  - a global equity fund invested in developed markets through a sustainable approach  - is celebrating its fourth anniversary. This milestone provides a chance to reflect upon the fund's key defining characteristics.

A Fund focusing on “Compounders”

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*Stocks we own today and have held since the Fund’s launch (65% of the portfolio). Portfolio composition may change over time. Source: Carmignac, Factset, as of 31/05/2023

Compounders are high-quality companies that choose to reinvest their earnings sustainably to generate future growth. By investing in compounders, the Fund aims to benefit from profitable business models over the long term. By ploughing capital back into their business instead of paying dividends, compounders create additional growth engines, for example through innovation or product development, which allows the company to live on over economic cycles and generations.

We can observe from the graph above that those compounders in the portfolio since launch have generated higher average earnings per share than the MSCI World, reflecting potential better profitability over the long term. In this way, the Fund benefits from the compounding effect.

An experienced portfolio management team

Carmignac Portfolio Grandchildren is managed by two experienced fund managers: Mark Denham and Obe Ejikeme. With 33 and 20 years of investment experience respectively, they collectively manage more than more than €1 billion of assets under management. Their complementary expertise – Mark Denham is known for his fundamental approach and Obe Ejikeme for his quantitative analysis – enables the Fund to benefit from a robust process to unearth compounders.

A non-benchmarked high-conviction portfolio

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Thanks to its structured and quantifiable process, Carmignac Portfolio Grandchildren identifies companies that possess the ability not only to grow their earnings consistently over time but also to effectively execute their strategies due to their operational excellence. This enables us to build up strong convictions while optimising the weight of our positions based on the economic cycle to form a concentrated portfolio of 41 stocks with an active share of 86% (at the end of May 2023).

Eli Lilly, Colgate, SAP and L’Oréal, for example, have demonstrated their resilience by adapting their business model to changes in their environment over time. Their ability to adapt and continue to invest, even in difficult times, makes them major players in their sectors. In our view, this ability can also lead them to maintain their position in the future.

A sustainable global equity Fund

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By investing in compounders, Carmignac Portfolio Grandchildren aims to achieve long-term outcomes, building a legacy not only for the investors themselves but one that can be passed on from one generation to the next.

With this objective of transmission through the generations, we are convinced that, as investors, it is our responsibility to create value for our clients through a sustainable approach, and to have a positive footprint for future generations. We strive to identify firms generating positive change based on the Sustainable Development Goals (SDGs) defined by the United Nations.

The Fund also aims to reduce its carbon emissions relative to its reference indicator (MSCI WORLD, USD, Reinvested Net Dividends).

A long-term investment solution

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Fund’s launch: 31/05/2019. Performance net of fees as of 31/05/2023. *MSCI World (USD, Reinvested net dividends). **Morningstar category average (Global Large-Cap Growth Equity).

On its fourth anniversary, Carmignac Portfolio Grandchildren has posted solid annualised net performance since launch, outperforming its reference indicator and its category. This puts the Fund in the top quartile since the start of 2023, over 1 year, 3 years and since launch. This positive performance is underpinned by the sound business models of the companies in which the Fund invests, which generate positive underlying results over the long term. A further example of the benefits of compounding.

Carmignac Portfolio Grandchildren is a fund designed to withstand different market situations over the long term. Given the economic slowdown taking shape, the Fund appears to be well positioned thanks to its focus on quality companies that are generating positive and foreseeable cash flows regardless of economic growth.

Carmignac Portfolio Grandchildren

A global, high-conviction equity fund for long-term investors

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Carmignac Portfolio Grandchildren A EUR Acc

ISIN: LU1966631001

Recommended minimum investment horizon

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Main risk 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.

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 Grandchildren A EUR Acc

ISIN: LU1966631001
2019 2020 2021 2022 2023 2024 (YTD)
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Year to date
Carmignac Portfolio Grandchildren A EUR Acc +15.47 % +20.28 % +28.38 % -24.16 % +23.04 % +15.46 %
Reference Indicator +15.49 % +6.33 % +31.07 % -12.78 % +19.60 % +11.33 %

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3 Years 5 Years 10 Years
Carmignac Portfolio Grandchildren A EUR Acc +10.05 % - -
Reference Indicator +11.72 % - -

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Source : Carmignac at 28/03/2024

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 : 1,70% 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 : 0,26% 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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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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The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.

  • In France, Luxembourg, Sweden: The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital. The Funds’ prospectus, KIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management.

  • 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.

  • In Switzerland: the prospectus, KIDs and annual report are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, Nyon Branch / Switzerland, Route de Signy 35, 1260 Nyon.

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