Equity strategies

Carmignac Portfolio China New Economy

Luxembourg SICAV sub-fundEmerging marketsSRI Fund Article 8
Share Class

LU2295992676

Seize the growth potential of China's New Economy
  • Investing with conviction: Seeking companies in China's New Economy, which benefit from the country's economic transition and long-term reform.
  • Investing with selectivity: Favoring domestic quality companies which have high income visibility, while avoiding those linked to external demand.
Asset Allocation
Equities90.9 %
Other9.1 %
Data as of:  29 Nov 2024.
Risk Indicator
6/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
- 50.4 %
0.0 %
0.0 %
- 28.7 %
+ 6.9 %
From 31/03/2021
To 09/12/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
- 35.3 %
- 4.6 %
- 22.0 %
Net Asset Value
49.58 €
Asset Under Management
59 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  9 Dec 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. The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.

Carmignac Portfolio China New Economy 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:  31 Oct 2024.
Fund management team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

  • After rebounding strongly in September, Chinese markets fell back slightly in October amid uncertainty over the application of new measures in China and the forthcoming US elections.

  • The markets were highly volatile, due to concerns over the US elections.

  • The month started with a public holiday to mark Golden Week. Nevertheless, consumer data were mixed during this festive week.

  • On the economic front, manufacturing indicators such as the NBS and Caixin were in the expansion territory for the first time in six months.

  • China unveiled an ambitious public debt plan, involving the issue of nearly €300 billion of special bonds, to revitalise its slowing economy, with a particular focus on the property and banking sectors.

Performance commentary

  • Against this backdrop, the fund delivered a positive performance over the month, significantly outperforming its reference indicator.

  • The main contributor to performance was EHang, which saw its share price rise on the back of the success of their first eVTOL pilotless flight in Brazil and the granting of important certifications for their test flights.

  • Our portfolio of technology stocks also benefited the strategy, including TSMC, Daqo New Energy and Lotes.

  • However, we were somewhat penalised by our portfolio of consumer discretionary stocks, particularly New Oriental Education. The shares fell on the back of disappointing second-quarter revenue forecasts, although first-quarter results were better than expected.

Outlook strategy

  • We remain constructive on Chinese markets given the Chinese governments coordinated efforts, however we remain a cautious positioning, waiting for more clarity on the fiscal easing measures and the US presidential election results.

  • Although the Chinese government's recent announcements do not seem sufficient, on their own, to turn the Chinese economy around, this is a major turning point, as President Xi has shown that he is now putting the economy as a top priority.

  • If the rumours about the promise to recapitalise the major banks and the issue of central government bonds are indeed confirmed, this could constitute the ‘big stimulus’ that the markets have been waiting for for several months and call into question investors' extremely negative stance.

  • However, at this stage, we feel that it is still too early to change our medium- to long-term views on the Chinese economy. And we remain cautious given the global economic slowdown and the US presidential election. Indeed, a Trump election victory could have a negative impact on the Chinese markets.

  • We are closely monitoring each of our Chinese positions and their valuation, with the aim of remaining disciplined in sizing our positions. We have taken profits on some of our Chinese positions, which have rebounded strongly in recent days, and for which the valuation argument has become less attractive.

  • Over the month, we took profits in Beike, a property services company, as well as in Daqo New Energy, which specialises in the manufacture of components for solar panels.

Performance Overview

Data as of:  9 Dec 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.The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.
Source: Carmignac at 11/12/2024

Carmignac Portfolio China New Economy Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Nov 2024.
Asia95.6 %
North America4.4 %
Total % Equities100.0 %
Asia95.6 %
cnChina
66.5 %
twTaiwan
28.2 %
hkHong Kong
0.9 %

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 Nov 2024.
Equity Investment Weight90.9 %
Net Equity Exposure90.9 %
Number of Equity Issuers35
Active Share88.3 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.
Fund Management Team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
Through an active conviction and sustainable approach, we focus on domestic companies in China's new economy that can benefit from the country's economic transition and long-term reforms.
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
View Fund's characteristics

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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.