Equity strategies

Carmignac Portfolio China New Economy

SICAVEmerging 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
Equities95.1 %
Other4.9 %
Data as of:  29 Feb 2024.
Risk Indicator
6/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
- 51.7 %
-
-
-
- 15.6 %
From 31/03/2021
To 27/03/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
- 35.3 %
- 4.6 %
- 22.0 %
Net Asset Value
48.3 €
Asset Under Management
62 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  27 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 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:  29 Feb 2024.
Fund management team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

Chinese 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. Also, in the education sector, discussions were held over the relaxation of certain restrictions on personal tutoring and support services, with the aim of meeting growing demand for quality educational content. 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. On the geopolitical front, tensions with the United States show no signs of easing, further eroding sentiment about China.

Performance commentary

The Fund delivered a positive return, beating its reference indicator. Two of our top holdings, Tal Education and New Oriental Education, rose sharply at the beginning of the month, benefitting from new government bills targeting the education system. These are aimed at improving the quality of services and satisfying the public’s various educational needs. More generally, our selection of consumer discretionary stocks raised the Fund’s performance considerably, mainly through our positions in Vipshop and Anta Sports. Growth sectors such as technology also climbed steeply after borrowing conditions were relaxed. We therefore note the rise of Daqo New Energy, Gold Circuit Electronics, and semiconductor foundry leader Taiwan Semiconductor, which continued to benefit from a flourishing market.

Outlook strategy

Despite short-term volatility and the structural challenges facing the economy, we still have an optimistic view of Chinese equity markets. However, strong stock selection remains is essential in the present climate. We are being cautious in the consumer sector given the economic slowdown as well as the lack of a more ambitious stimulus plan, and we do not expect Chinese consumer spending to pick up for several quarters to come. At a macroeconomic level, we are seeing signs of improvement on the back of government stimulus, although they remain limited. We are not expecting any major changes in geopolitical tensions, and are keeping on our toes given Donald Trump’s comments and, in particular, his intention to slap a 60% customs tariff on Chinese goods if he wins a second term. Beyond all these macroeconomic and geopolitical considerations, as selective investors we focus on companies’ fundamentals and valuations. We feel sure that our approach, centred around a fundamental analysis and enterprise values, is the best way to generate positive long-term returns on Chinese markets. We remain convinced about the potential for China’s new economy, and in particular the secular trends that we are seeing in artificial intelligence, the green transition and healthcare. Moreover, Chinese authorities have reaffirmed their support for these industries in recent comments. Our portfolio is mostly positioned on companies that are leaders in their fields, and are generating high cash flows to sustain decent margins against the current backdrop of modest growth. During the month, we increased our Taiwanese market exposure to harness the AI theme, taking positions on companies that are part of the semiconductor supply chain, especially Taiwan Semiconductor and MediaTek. We strengthened our position in Wiwynn, a Taiwanese specialist in the research, development and distribution of servers for large data centres and Cloud service providers.

Performance Overview

Data as of:  27 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 28/03/2024

Carmignac Portfolio China New Economy Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Feb 2024.
Asia100.0 %
Total % Equities100.0 %
Asia100.0 %
cnChina
76.9 %
twTaiwan
19.1 %
hkHong Kong
4.0 %

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 Weight95.1 %
Net Equity Exposure108.7 %
Number of Equity Issuers37
Active Share85.0 %

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
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.