Equity strategies

Carmignac Portfolio Emergents

SICAVEmerging marketsSRI Fund Article 9
Share Class

LU0992626480

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.
Asset Allocation
Equities95.5 %
Other4.5 %
Data as of:  29 Feb 2024.
Risk Indicator
4/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 73.8 %
+ 90.0 %
+ 42.2 %
- 16.9 %
+ 10.6 %
From 15/11/2013
To 15/03/2024
Calendar Year Performance 2023
+ 6.4 %
+ 3.9 %
+ 1.7 %
+ 19.8 %
- 18.2 %
+ 25.5 %
+ 44.9 %
- 10.3 %
- 14.3 %
+ 9.8 %
Net Asset Value
173.8 €
Asset Under Management
351 M €
Market
Emerging markets
SFDR - Fund Classification

Article

9
Data as of:  15 Mar 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.

Carmignac Portfolio Emergents fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  29 Feb 2024.
Fund management team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

Emerging markets were up sharply in February, in contrast to January, which was a trickier month. Share indices (+6.9% for the Hang Seng, +9.6% for the CSI 300) benefitted from new stimulus by the Chinese government, which lowered its 5-year interest rates by another 25 basis points. China also celebrated its lunar new year, pushing consumer spending and tourism back up to pre-Covid levels. Tourist spending was 7.7% higher than it was over the same period of 2019, reaching CNY 632.7bn (EUR 81.5bn). However, looking at the economic data, the NBS manufacturing indicator was in contraction territory (49.1 in February after 49.2 in January) for the fifth month in a row, showing that the country has yet to resolve its structural problems. India’s annual inflation fell to 5.1% in January. Its manufacturing indicator gained 2.4% over November and 3.8% over December. In this context, the Nifty 50 returned +1.2% over the month. South Korea’s economy continued to benefit from US-China tensions and the buzz surrounding AI stocks, as the KOSPI index gained 6.5%.

Performance commentary

The Fund delivered a positive return, and beat its reference indicator. China’s lunar new year and economic stimulus pushed local markets into the black, having a positive impact on our Chinese portfolio. In the consumer discretionary sector, we benefitted from the performance of New Oriental Education and Anta Sports Products, as well as Vipshop whose earnings were much better than expected. In South Korea, Hyundai shares leapt at the beginning of the month thanks to strong global sales in January, despite the weak US vehicle market. Samsung Electronics also gained ground early in the month, as did its semiconductor peers. In Latin America, local indices were down slightly. However, careful stock selection meant our portfolio delivered a neutral performance over February. More specifically, Eletrobras offset the poor fortunes of Equatorial Energia and MercadoLibre in Brazil. In Mexico, industrial real estate firm Vesta was down, but financial group Banorte stopped our South American portfolio from reporting a loss or bucking the Fund’s upward trend.

Outlook strategy

We remain optimistic for emerging markets in 2024. The vast emerging world presents numerous opportunities across all regions and sectors, as valuations are attractive. China remains weak, with a struggling real estate market and only mild improvement in domestic consumer spending. However, Chinese authorities’ monetary and fiscal stimulus is starting to pay off. 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. We took advantage of Chinese markets’ rally to reduce our exposure to China, closing positions in WuXi Biologics and online services specialist Meituan. Elsewhere in Asia, we are keeping our top holdings in the technology sector (Taiwan Semiconductor, Samsung Electronics), which are receiving impetus from the artificial intelligence trend. During the month, we increased our exposure to the Indian market and, in particular, its banking sector through private bank Kotak Mahindra, which we strengthened as valuations had returned to reasonable levels. Lastly, we keep strengthening Latin American countries that are benefitting from structural trends such as reindustrialisation in North America and economic developments including the rise in commodity prices. We are positioned on industrial real estate company Vesta in Mexico, and infrastructure company Eletrobras in Brazil. Carmignac Emergents still has a concentrated portfolio with exposure balanced between growth and discounted stocks, and with a particular emphasis on valuations and sustainability criteria.

Performance Overview

Data as of:  15 Mar 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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.
Source: Carmignac at 19/03/2024

Carmignac Portfolio Emergents Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Feb 2024.
Asia76.3 %
Latin America22.0 %
Eastern Europe1.7 %
Total % Equities100.0 %
Asia76.3 %
cnChina
27.5 %
krSouth Korea
18.7 %
inIndia
13.1 %
twTaiwan
10.0 %
hkHong Kong
3.0 %
myMalaysia
2.1 %
sgSingapore
1.9 %

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.

Exposure Data

Data as of:  29 Feb 2024.
Equity Investment Weight95.5 %
Net Equity Exposure95.5 %
Number of Equity Issuers34
Active Share87.6 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
For over 30 years, Carmignac has been a pioneer in emerging markets. The combination of our fundamental financial analysis and our extra-financial approach, strengthened over the years, enables us to navigate emerging markets through our dedicated strategy.
View Fund's characteristics
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 information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performance is shown net of fees (excluding any subscription fees payable to the distributor). 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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
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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