Grasping the most promising opportunities within the emerging universe
A concentrated and high conviction portfolio seeking high alpha generation across the diversified emerging market universe.
A Fund focused on selecting high-quality companies that offer attractive long-term growth prospects, with sound financials and sustainable profitability.
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
+ 5.8 %
+ 5.2 %
+ 1.4 %
+ 18.8 %
- 18.6 %
+ 24.7 %
+ 44.7 %
- 10.7 %
- 15.6 %
+ 9.5 %
Net Asset Value
1172.83 €
Asset Under Management
908 M €
Market
Emerging markets
SFDR - Fund Classification
Article
9
Data as of: 28 Jun 2024.
Data as of: 25 Jul 2024.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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.
The MSCI EM index in EUR gained 5.3% in June as Taiwanese and Korean technology companies involved in the AI revolution rallied, and Indian stocks were strong after national elections.
Latin American markets were down, with Mexico declining after election results, and Lula spooking the markets amid fears of a deterioration in public finances in Brazil.
Chinese markets backtracked on the previous weeks’ rally due to gloomy economic data and concerns about the US elections.
Performance commentary
The Fund delivered a positive return but significantly lagged its reference indicator.
This underperformance mainly stemmed from our high exposure to Latin America,
and to the disappointing performance of our Chinese holdings, despite solid fundamentals and decent results. We took profits on stocks that had performed well, such as New Oriental, but this was not enough.
Our overexposure to Mexico and Brazil weighed on performance as these markets trailed global EM indices.
However, our Taiwanese and Korean technology stocks (TSMC and Hyundai) and our Indian holdings (ICICI Lombard) rose significantly.
Outlook strategy
Emerging market economies should benefit from long-term structural trends: artificial intelligence, nearshoring and the new commodities supercycle.
We continue to hold a concentrated yet balanced portfolio of quality stocks that either offer good visibility (Asian tech, India) or are trading at very attractive valuation levels (China, Mexico, Brazil).
We added two new Taiwanese positions to our portfolio during the month to make up for our underweighting of the country and diversify our exposure to the AI value chain: Elite Material and Lite-On.
We remain confident about our current portfolio and top ten positions, feeling relaxed about their fundamentals, governance and valuations.
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.
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Market environment