Carmignac

Carmignac P. Emergents: October 2022 Update

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Portfolio News

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

Oct 2022YTD1 year3 year
Carmignac P. Emergents-2,2%-17,9%-22,7%+14,8%
Reference Indicator-4,0%-18,8%-19,9%-1,4%

Reference indicator: MSCI EM (Reinvested net dividends)

As of 31/10/2022. 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.

Market Review

  • Emerging markets were down in October, underperforming developed markets, due to the fall of Asian markets and more specifically Chinese markets.

  • Chinese equities went down following the CCP Congress where Xi Jinping reinforced its grip on the party leadership, with the nomination of 4 new members to the Standing Committee, all with close ties to Xi. Markets reacted negatively to the fact that there was no change in zero-Covid policy or an appeasement on Taiwan.

  • China also suffered from increased geopolitical tensions, with a new round of sanctions from the Biden administration on semiconductor companies.

  • Asian Equities were also weak amid higher US rates. On the contrary, Latin America and EMEA (commodity exporters) performed much better supported by OPEC+ announcement of a 2 million barrel/day cut.

  • Another key highlight of the month was Brazil’s strength after the results of the Presidential elections, with the victory of the leftist Lula and the regional elections, with center and right-wing majority in the Congress. The result was seen as market friendly, as it leads lower the political risk premium on deeply undervalued Brazilian assets.

Performance Review

  • TOP 3 CONTRIBUTORS

    • BANORTE (Finance) - Mexico

    • SAMSUNG ELECTRONICS (Tech) - S. Korea

    • B3 BOLSA (Finance) - Brazil

  • TOP 3 DETRACTORS

    • JD.COM (Cons. Disc.) - China

    • HK EXCHANGES & CLEARING (Tech.) - Hong Kong

    • ENN ENERGY (New Energy) - China

Notable portfolio moves

  • New positions:

  • Reinforcements: Eletrobras (Brazil), B3 Bolsa (Brazil), Mercadolibre (Brazil), Banorte (Mexico), BEIKE (China), Lenovo (China)

  • Reductions: JD.com (China)

  • Positions sold: VIPSHOP (China), Wuxi Biologics (China), Full Truck Alliance (China)

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

Positioning

Positioning as of 30/09/2022

Carmignac

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

Breakdown of the fund by SDG alignment

Carmignac

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. Data as of 31/10/2022. Source: Carmignac, 31/10/2022

Strategy reminder

  • INVESTMENT OBJECTIVES

    • Performance objective: The fund aims to outperform its reference indicator over a recommended investment horizon of 5 years.

    • Sustainable objective: 50% of investment in emerging companies that derive the majority of their revenues from goods & services related to business activities which align positively with SDGs (source: Factset).

  • STRATEGY BENEFITS

    • A 7-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 Chinese 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, 72% of assets invested in companies whose revenues are positively aligned with at least 1 of 9 targeted United Nations Sustainable Development Goals.

    • 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 1.1 bn € (end of October 2022).

  • 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.

Carmignac Portfolio Emergents

Grasping the most promising opportunities within the emerging universe

Visit the fund page

Carmignac Portfolio Emergents F EUR Acc

ISIN: LU0992626480
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 (YTD)
?
Year to date
Carmignac Portfolio Emergents F EUR Acc +6.45 % +3.92 % +1.73 % +19.76 % -18.22 % +25.53 % +44.91 % -10.29 % -14.35 % +9.79 % +5.43 %
Reference Indicator +11.38 % -5.23 % +14.51 % +20.59 % -10.27 % +20.61 % +8.54 % +4.86 % -14.85 % +6.11 % +4.42 %

Scroll right to see full table

3 Years 5 Years 10 Years
Carmignac Portfolio Emergents F EUR Acc -4.74 % +7.63 % +6.17 %
Reference Indicator -2.43 % +2.96 % +5.46 %

Scroll right to see full table

Source: Carmignac at 28/03/2024

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.

Carmignac Portfolio Emergents F EUR Acc

ISIN: LU0992626480

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.

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.

Morningstar Rating™ : © Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Access to the Funds may be subject to restrictions regarding certain persons or countries. This material is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the material or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not access this material. Taxation depends on the situation of the individual. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. 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, 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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