Calendar Year Performance 2014Calendar Year Performance 2015Calendar Year Performance 2016Calendar Year Performance 2017Calendar Year Performance 2018Calendar Year Performance 2019Calendar Year Performance 2020Calendar Year Performance 2021Calendar Year Performance 2022Calendar Year Performance 2023
+ 10.2 %
- 0.4 %
+ 1.4 %
+ 4.2 %
- 14.6 %
+ 24.2 %
+ 33.1 %
+ 3.6 %
- 18.7 %
+ 16.2 %
Net Asset Value
232.00 CHF
Asset Under Management
3 877 M €
Market
Global market
SFDR - Fund Classification
Article
8
Data as of: 31 Oct 2024.
Data as of: 3 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.
October was a volatile month for markets, with equities (in local currencies) moving lower after a strong rally since the beginning of the year.
The equity correction occurred despite robust economic data in the US, including strong consumption and employment figures. Inflation data further complicated the situation, with September’s core CPI coming in hotter than expected.
The third-quarter earnings season kicked off with strong results from the banking sector. However, guidance from tech companies was more mixed, contributing to market volatility.
Chinese equities experienced a significant rally at the start of the month in response to government stimulus measures. However, the momentum waned later due to a lack of detailed information regarding fiscal stimulus.
Performance commentary
Against this backdrop, the fund posted a slightly positive performance, in line with its reference indicator.Nvidia rose sharply, buoyed by comments from its supplier TSMC regarding the growing demand for artificial intelligence chips, and the investment prospects of its main customers (Microsoft, Alphabet, Meta and Amazon).Alphabet and Amazon also reported satisfactory results. Alphabet benefited from its cloud activities and from increased subscriptions to YouTube and Google One, while Amazon saw its cost-cutting efforts bear fruit and materialise in the financial statements.However, we were penalised by our healthcare stocks, in particular Elevance and Centene. Elevance saw its share price fall as a result of the downward revision of its annual forecasts, caused by the increase in costs linked to the Medicaid healthcare programme. Centene experienced some turbulence on the stock market, but this did not affect its long-term prospects.
Outlook strategy
While we agree that consensus EPS growth expectations are overly optimistic, the economic conditions are robust enough to prevent an earnings collapse justifying a constructive view on equities.
The portfolio combines stocks with high earnings and relatively high valuations on one side, and stocks with lower growth but high visibility and attractive valuations on the other.
TSMC is the largest holding in our fund. The shares offer a unique combination of an attractive cyclical backdrop—characterized by under-shipping demand—valuation in line with the 5-year average, and being a key beneficiary of AI advancements.
Despite strong fundamentals, tech stocks have underperformed since their peak in July, now presenting more attractive valuations. Demand for AI remains robust, with clear signs of accelerating revenues from AI-related activities. We have reinforced our positions in undervalued stocks.
We are gradually increasing our exposure to small and mid-cap companies, which provides an excellent opportunity to diversify our portfolio. Among these, Elite Material, a Taiwanese company specializing in the production of copper-clad laminates.
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 Fund is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law.
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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Market environment