Diversified strategies

Carmignac Portfolio Emerging Patrimoine

SICAVEmerging 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
Bonds63.9 %
Equities34.1 %
Other2 %
Data as of:  28 Mar 2024.
Risk Indicator
3/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 50.2 %
+ 54.4 %
+ 30.2 %
- 2.9 %
+ 6.3 %
From 15/11/2013
To 12/04/2024
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
150.2 €
Asset Under Management
372 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  12 Apr 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:  29 Mar 2024.
Fund management team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager

Abdelak Adjriou

Fund Manager

Market environment

Emerging equity markets were up in March, as were global markets as a whole. However, Chinese markets were stable. Early in the month, the government announced it would be targeting 5% growth over the year and trying to cap the deficit at 3% of GDP, but its optimism failed to convince investors. China continues to face structural problems despite a slight improvement in certain economic indicators. For example, the NBS manufacturing PMI rose, and inflation of +0.7% put an end to five months of deflation. At a bond level, there were a large number of central bank meetings in the emerging world. Most of these central banks adopted a slightly more hawkish tone. Although they cut interest rates further in Latin America, they are expected to scale back their easing or take a break in the coming months. Although the local debt index (in euro) was flat in March, emerging market debt denominated in hard currencies continued to perform well, largely because spreads narrowed by 24 basis points.

Performance commentary

The Fund delivered a positive return, beating its reference indicator. We benefited from our exposure to the artificial intelligence theme through Taiwan Semiconductor and Samsung Electronics. Our selection of Chinese stocks, including JD.com, MINISO and Anta Sports, was also profitable. However, our Brazilian holdings (Eletrobras) were somewhat disappointing. At a fixed income level, our selection of emerging market debt denominated in hard currencies continued to generate a positive return. The main sources of performance in this segment were Argentina, Ecuador and Romania. The contribution from emerging market debt denominated in local currency was smaller, with Mexico and Poland the pick of the bunch. In contrast, our long positioning on Hungarian bonds weighed on performance, as did our currency strategies, especially those involving exposure to the Mexican peso and Japanese yen.

Outlook strategy

We remain optimistic for emerging market assets in 2024. The vast emerging world presents numerous opportunities across all regions and asset classes. The latest macroeconomic indicators suggest that manufacturing activity has bottomed out in the United States, the Eurozone and China. This is a big support factor for commodity-producing countries, especially in Latin America. We also take a positive view of Asian economies, particularly South Korea and Taiwan, which should benefit from the new AI cycle. At a fixed income level, we remain long on emerging market debt denominated in hard currencies, but have been taking profits on our best performing positions since the beginning of the year. We have reduced our Eastern European positions, especially those on Hungarian bonds, as the market has already priced in a number of future rate cuts. In terms of local debt, we particularly like Mexico where we are anticipating further rate cuts from the central bank, and Brazil as the market’s terminal rate for the country still looks too high. We are keeping modified duration close to 240 basis points and continuing to protect the portfolio with index hedges. We are leaving equity exposure at around 22%, with significant exposure to Asian markets and, in particular, Korean and Taiwanese technology stocks as the artificial intelligence theme is leading to sustained growth in demand for semiconductors and electronic components. We took advantage of the Chinese share rally to reduce our exposure to China, and increased our exposure to the Indian market by opening a position on property company Macrotech Developers. Although we still have high exposure to the euro (the Fund’s base currency), we increased exposure to the currencies of commodity producing countries, including the Brazilian real and Chilean peso, and certain Asian currencies such as the Korean won.

Performance Overview

Data as of:  12 Apr 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 16/04/2024

Carmignac Portfolio Emerging Patrimoine Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Asia78.1 %
Latin America20.2 %
Eastern Europe1.7 %
Total % Equities100.0 %
Asia78.1 %
cnChina
21.8 %
krSouth Korea
21.4 %
twTaiwan
16.0 %
inIndia
12.8 %
hkHong Kong
2.7 %
myMalaysia
1.9 %
sgSingapore
1.5 %

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:  28 Mar 2024.
Equity Investment Weight34.1 %
Net Equity Exposure22.5 %
Active Share90.1 %
Modified Duration2.4
Yield to Worst4.6 %
Average RatingBBB

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.