Diversified strategies

Carmignac Portfolio Emerging Patrimoine

Luxembourg SICAV sub-fundEmerging marketsSRI Fund Article 8
Share Class

LU0992631647

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
Bonds56.6 %
Equities38.2 %
Other5.2 %
Data as of:  31 Oct 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 50.7 %
+ 41.7 %
+ 19.2 %
- 0.3 %
+ 5.3 %
From 15/11/2013
To 07/11/2024
Calendar Year Performance 2023
+ 5.9 %
+ 0.8 %
+ 10.5 %
+ 8.0 %
- 13.8 %
+ 19.2 %
+ 21.1 %
- 4.6 %
- 9.0 %
+ 8.2 %
Net Asset Value
150.72 €
Asset Under Management
339 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  7 Nov 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:  31 Oct 2024.
Fund management team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager

Abdelak Adjriou

Fund Manager

Market environment

  • After a strong rebound in September, emerging equities markets fell back slightly in October amid uncertainty over the implementation of new measures in China and the upcoming US elections.

  • Market anticipation of a potential Trump victory drove US yields higher and the dollar stronger, weighing on emerging assets and growth-sensitive sectors in particular.

  • Chinese markets were highly volatile, due to concerns over the US elections. In terms of economic data, the Golden Week consumer figures were mixed. However, at the end of the month, China released positive indicators, such as the manufacturing PMI (NBS and Caixin), which was in the expansion zone for the first time in six months. Retail sales also rose, exceeding market expectations.

  • In Latin America, political instability and volatile commodity and agricultural prices continued to have a negative impact on local markets.

  • On the currency front, the US dollar strengthened, driven by resilient data implying a slower Fed easing cycle and the increased likelihood of a Trump victory. Conversely, this weighed on emerging market currencies.

Performance commentary

  • Against this backdrop, the fund declined, but outperformed its reference indicator.- In our equities portfolio, despite the good performance of TSMC, we were penalized by the underperformance of South Korean markets, notably through our positions in Samsung Electronics and Hyundai Motor.- On the bond side, while our investments in local debt weighed on performance (Brazil, Hungary), our investments in external debt in emerging countries made a positive contribution. In particular, we benefited from our allocation to Argentine sovereign debt, which proved resilient, being less vulnerable to the US election risk. - Finally, on the currency front, while we suffered from the weakness of certain emerging currencies (Brazilian real, Chilean peso), we benefited from our increased exposure to the US dollar, which we strengthened ahead of the US elections.

Outlook strategy

  • Against a backdrop of a soft landing for the economies and inflation continuing its gradual decline, we remain constructive on emerging markets and maintain a moderate level of modified duration, at around 400 basis points at the end of the period.

  • On the other hand, we believe that the US elections, and in particular a possible victory for D. Trump, could be a source of volatility for emerging markets. This is why, ahead of the major unpredictable event of the US elections, we have reduced the portfolio's overall risk, by reducing our allocation to certain emerging currencies and local debt (Mexico) and lowering our exposure to equities.

  • On the fixed income side, we have increased our exposure to real rates and the US dollar, in particular through steepening strategies in the United States, where the longest maturities are likely to be the most affected, particularly in the context of a Trump presidency.

  • On the equities side, we are also maintaining an overall cautious positioning, with a moderate allocation to China and a balanced exposure, combining high-visibility quality stocks (Asian Tech, India) counterbalanced by companies in less attractive markets but with attractive valuations. We have also reduced our main geographical bets to hedge the portfolio against the geopolitical risks resulting from the US election. The Fund therefore relies primarily on stock selection , with financial health and company valuations our main considerations for the portfolio construction.

  • On credit, we maintain our positive, albeit cautious, bias due to high valuations, and maintain a substantial level of hedging on Itraxx Xover to protect the portfolio from the risk of widening spreads.

  • Finally, we remain cautious on currencies, with increased exposure to the USD and a reduced allocation to EM currencies. However, we are maintaining a selective exposure to central bank currencies that are less accommodative in the context of Fed monetary easing and Chinese stimulus measures (Brazilian real, Turkish lira).

Performance Overview

Data as of:  7 Nov 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 09/11/2024

Carmignac Portfolio Emerging Patrimoine Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  31 Oct 2024.
Asia82.9 %
Latin America16.0 %
Eastern Europe1.1 %
Total % Equities100.0 %
Asia82.9 %
krSouth Korea
20.7 %
twTaiwan
20.7 %
cnChina
17.6 %
inIndia
17.0 %
hkHong Kong
2.9 %
myMalaysia
2.4 %
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:  31 Oct 2024.
Equity Investment Weight38.2 %
Net Equity Exposure26.5 %
Active Share90.9 %
Modified Duration3.7
Yield to Maturity7.4 %
Average RatingBBB-
Yield to Maturity (YTM) is the estimated annual rate of return expected on a bond if held until maturity and assuming all payments made as scheduled and reinvested at this rate. For perpetual bonds, the next call date is used for computation. Note that the yield shown does not take into account the FX carry and fees and expenses of the portfolio. The portfolio’s YTM is the weighted average individual bonds holdings' YTMs within the portfolio.

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.

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