Diversified strategies

Carmignac Portfolio Emerging Patrimoine

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU0592698954

An all-inclusive, sustainable Emerging Market solution
  • Accessing a rich and heterogenous universe of EM bonds, equities, and currencies in a sustainable manner.
  • Offering portfolio diversification by exploiting decorrelations between regions, sectors and asset classes.
Asset Allocation
Bonds60.3 %
Equities32.6 %
Other7.1 %
Data as of:  29 Feb 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 37.4 %
+ 49.4 %
+ 25.5 %
- 8.0 %
+ 4.5 %
From 31/03/2011
To 15/03/2024
Calendar Year Performance 2023
+ 5.3 %
+ 0.2 %
+ 9.8 %
+ 7.3 %
- 14.4 %
+ 18.6 %
+ 20.4 %
- 5.2 %
- 9.6 %
+ 7.8 %
Net Asset Value
137.4 €
Asset Under Management
372 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
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 Emerging Patrimoine 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

Abdelak Adjriou

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 performance, in line with its reference indicator. Our equity component benefitted from Chinese markets’ rally. Our consumer discretionary stocks such as Anta Sports and Vipshop were up. The government’s recent discussions about tutoring and teaching support measures also helped our education specialist New Oriental, which performed well over the month. In South Korea, Hyundai Motor’s announcement of solid results, with an improvement in vehicle sales despite a weak automotive market in the United States, led the share price to rise, making this position the biggest contributor to the Fund’s monthly performance. At a fixed income level, our external debt holdings also raised performance considerably, especially in Africa. Our long position on Egypt was particularly profitable following the IMF’s various comments on the funds that it will be disbursing. Our exposure to Ecuadorian debt added to performance, as did our selection of Mexican bank bonds. At a foreign exchange level, our management of the South Korean won proved a little costly.

Outlook strategy

We remain optimistic for emerging markets in 2024. The vast emerging world presents numerous opportunities across all regions and asset classes. Disinflation and the end of the Federal Reserve’s and ECB’s rate-hiking cycle are a big help to emerging market assets early in 2024. However, a few systemic risks remain: China’s jittery real estate sector (and therefore economy); and geopolitical uncertainties. In the short term, these uncertainties call for active management through a combination of equity and credit hedges to protect the portfolio if the economy slows too much. On the fixed income side, we remain long on the debt and currencies of economies with high real interest rates and of commodity exporting countries like Brazil, Mexico, Colombia and South Africa. During the month we strengthened our positions on Chinese local debt given that disinflationary pressures are mounting and the markets are expecting rate cuts. At government bond level, we still prefer manufacturing countries that will benefit from nearshoring, i.e. the repatriation of production chains to nearer, more stable countries (Romania, Mexico). However, we think that the market has now fully priced in the possibility of central banks cutting interest rates in 2024, which is why we have taken profits on our bond positions, reducing the portfolio’s overall duration. Although we still have high exposure to the euro (the Fund’s base currency), we increased exposure to certain emerging market currencies, especially undervalued commodity-based currencies including the Brazilian real and Chilean peso, and certain Asian currencies such as the won, as the South Korean economy should benefit from the AI boom. In addition to the EM currencies mentioned above, we are still long on the Japanese yen as we think it remains undervalued. We nudged our equity exposure up to around 22%, increasing exposure to Korean markets and, in particular, Asian technology stocks as the artificial intelligence theme is leading to sustained growth in demand for semiconductors and electronic components. We also took advantage of Chinese equity markets’ rally to reduce our exposure to China, closing positions in biotech leader WuXi Biologics and online services specialist Meituan. We increased our exposure to the Indian market and, in particular, its banking sector through private bank Kotak Mahindra as valuations had returned to reasonable levels.

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.Until 31/12/2012, the reference indicators' equity indices were calculated ex-dividend. Since 01/01/2013, they have been calculated with net dividends reinvested. Until 31/12/2021, the reference indicator was 50% MSCI Emerging Markets index, 50% JP Morgan GBI - Emerging Markets Global Diversified Index. The performances are presented using the chaining method.​From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 19/03/2024

Carmignac Portfolio Emerging Patrimoine Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Feb 2024.
Asia76.6 %
Latin America21.9 %
Eastern Europe1.6 %
Total % Equities100.0 %
Asia76.6 %
krSouth Korea
21.7 %
cnChina
21.5 %
twTaiwan
15.0 %
inIndia
11.8 %
hkHong Kong
3.0 %
myMalaysia
2.0 %
sgSingapore
1.7 %

Key figures

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

Exposure Data

Data as of:  29 Feb 2024.
Equity Investment Weight32.6 %
Net Equity Exposure22.4 %
Active Share91.8 %
Modified Duration2.2
Yield to Worst5.0 %
Average RatingBBB-

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

Abdelak Adjriou

Fund Manager
Our aim is to bring together our best emerging market investment ideas in a single Fund.
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
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.
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.