Equity strategies

Carmignac Portfolio Emerging Discovery

Luxembourg SICAV sub-fundEmerging marketsSRI Fund Article 8
Share Class

LU0336083810

Crossing frontiers to discover small and mid-cap gems
  • Capturing small- and mid-cap equity opportunities from both emerging countries and less covered frontier markets.
  • Seeking out cash-generative companies with solid balance sheets and high growth perspectives.
Key documents
Asset Allocation
Equities96.7 %
Other3.3 %
Data as of:  30 Sep 2024.
Risk Indicator
4/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 108.6 %
+ 72.6 %
+ 39.0 %
+ 7.7 %
+ 27.3 %
From 14/12/2007
To 14/10/2024
Calendar Year Performance 2023
+ 13.1 %
+ 3.0 %
+ 3.8 %
+ 17.9 %
- 8.9 %
+ 10.0 %
- 0.2 %
+ 25.5 %
- 22.4 %
+ 12.7 %
Net Asset Value
2085.81 €
Asset Under Management
130 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  14 Oct 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 Emerging Discovery 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:  30 Sep 2024.
Fund management team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Amol Gogate

Amol Gogate

Fund Manager

Market environment

  • Emerging markets rose sharply over the month, driven by China's solid rebound in the wake of optimism generated by Beijing's stimulus measures.

  • The PBOC cut interest rates, lowered reserve requirements ratio (RRR) and announced measures to support the property and equity markets, while indicating its willingness to do more on the fiscal front.

  • The fact that some of the measures announced are directly targeted at the market is a signal that the government is finally addressing economic issues and equity markets problems properly. The Central Bank is offering RMB 800 billion in subsidized loans to investors and companies themselves to buy equities.

  • In the wake of the coordinated announcements by the Chinese authorities, the Chinese equities markets rebounded strongly, making Chinese markets the best performing equity markets year-to-date.

  • In Latin America, Mexican markets rebounded slightly, while Brazil was down, penalized by a rise in central bank interest rates and continued weakness in agricultural commodity prices.

Performance commentary

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

  • India, our main geographical allocation, provided strong performance for the fund. We benefited from our participation in the IPO of Premier Energies, India's second largest solar module manufacturer.

  • In China, the stimulus measures supported the valuations of our stocks Vipshop, Yadea and Jiumajiu.

  • Finally, our portfolio of Taiwanese equities disappointed slightly over the period. Fears about the potential benefits of AI penalised shares in Gold Circuit Electronics and Lotes, which operate in the semiconductor industry.

Outlook strategy

  • We remain constructive on emerging small and mid-cap stocks due to encouraging macro-economic indicators, particularly in Latin America and Southeast Asia, where the Fund is mainly positioned.

  • The vast emerging universe offers us numerous opportunities across all geographic areas and sectors. India remains our main geographic allocation and an excellent domestic market for finding long-term growth stocks.

  • We maintain significant exposure to stocks linked to artificial intelligence, notably companies in the semiconductor value chain in Taiwan and Korea, such as Gold Circuit Electronics and Lotes.

  • Given the global economic slowdown, we are striving to reduce the risks in the portfolio by increasing diversification

  • During the month, we participated in the IPO of Premier Energies, a specialist in the manufacture of Indian solar modules. We also initiated new Indian positions, notably in P.N Gadgil Jewellers, an Indian jewellery company, as well as in Home First Finance, a provider of financing for affordable housing.

Performance Overview

Data as of:  14 Oct 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.​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 15/10/2024

Carmignac Portfolio Emerging Discovery Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
Asia79.0 %
Latin America10.7 %
Middle East5.2 %
Africa2.0 %
Eastern Europe1.4 %
North America1.1 %
Europe0.6 %
Total % Equities100.0 %
Asia79.0 %
inIndia
47.3 %
cnChina
9.4 %
vnVietnam
6.2 %
twTaiwan
6.1 %
krSouth Korea
4.6 %
idIndonesia
3.7 %
phPhilippines
1.3 %
thThailand
0.5 %

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:  30 Sep 2024.
Equity Investment Weight96.7 %
Net Equity Exposure97.5 %
Number of Equity Issuers81
Active Share96.9 %

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] Amol Gogate

Amol Gogate

Fund Manager
We seek to select the most attractive companies in the universe of emerging small and mid-caps and underexploited frontier markets through a socially responsible investment approach.
[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.