Equity strategies

Carmignac Portfolio Emerging Discovery

SICAVEmerging 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
Data as of:  29 Feb 2024.
Risk Indicator
4/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 84.2 %
+ 71.3 %
+ 17.9 %
+ 12.5 %
+ 21.6 %
From 14/12/2007
To 27/03/2024
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
1842.4 €
Asset Under Management
107 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 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:  29 Feb 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 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 return but trailed its reference indicator slightly. Indian equity markets were up, with economic data encouraging. Our financial positions such as PB Fintech, which remained on the ascendency after announcing very good results in late January, and KFIN Technologies were profitable. Our allocation to the industrial sector also added to performance through Inox India and Jyoti CNC Automation. Growing demand for electronic components such as semiconductors further benefitted our technology portfolio, which includes Chicony Electronics and Gold Circuit Electronics in Taiwan. However, our involvement in the IPO for India’s Entero Healthcare Solutions was somewhat disappointing, as the company started on a whimper. In Latin America, Mexico’s Fibra Terrafina and BBB Foods raised the Fund’s overall performance.

Outlook strategy

We still have an optimistic view of emerging market small and mid-caps due to some encouraging macroeconomic data, especially in Latin America and South-East Asia on which the Fund is focused. Macroeconomic uncertainties abound, but some excellent investment opportunities can be found in a multitude of highly diverse themes ranging from domestic consumer spending to IT services and commodities. India remains our heaviest regional weighting and is an excellent local market in which to find long-term growth stocks, especially in the consumer, finance and new technology sectors, although we have to be aware of overpricing. Given what is at stake with artificial intelligence, we are maintaining our exposure to the semiconductor market through companies such as Gold Circuit Electronics, a Taiwanese IT parts manufacturer. The vast emerging world presents numerous opportunities across all regions and sectors. We set the bar high for the management teams of companies in which we invest, and prefer businesses that are generating enough cash to finance their own growth. However, we will not hesitate to invest in companies and countries that may not catch the eye, provided that we are convinced of the medium- and long-term prospects. Our investments in Vietnam are a good example of this. The Vietnamese economy’s rapid growth creates numerous investment opportunities. However, it is extremely difficult for non-citizens to invest in that country. We made a few changes to the portfolio during the month, to refocus on our strongest convictions. We signed up to the IPO for Entero Healthcare Solutions, an Indian healthcare products distribution platform.

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.​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 28/03/2024

Carmignac Portfolio Emerging Discovery Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  29 Feb 2024.
Asia79.9 %
Latin America10.6 %
Middle East4.8 %
Eastern Europe4.0 %
Africa0.5 %
Europe0.3 %
Total % Equities100.0 %
Asia79.9 %
inIndia
46.5 %
cnChina
9.1 %
twTaiwan
8.4 %
krSouth Korea
5.6 %
idIndonesia
3.7 %
vnVietnam
2.9 %
phPhilippines
2.2 %
thThailand
0.9 %
sgSingapore
0.6 %

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 Weight101.2 %
Net Equity Exposure101.5 %
Number of Equity Issuers53
Active Share98.0 %

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.