Flash Note

Carmignac

Building the world of tomorrow with Carmignac Portfolio Grandchildren

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A global study has revealed that 82% of the surveyed asset management companies use environmental, social, and governance (ESG) data in their investment process, primarily for performance reasons or due to client demands1.

At Carmignac, we are convinced that by integrating ESG analysis into our investment processes, we are able to achieve better long-term performance. We also ensure that our actions contribute positively to the environment and society. This philosophy applies particularly for our Carmignac Portfolio Grandchildren fund.

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Long-term trends impacting the world of tomorrow

For several years, concerns related to ESG issues have been gaining more and more ground within public opinion and investors. The physical consequences of our current lifestyles, such as climate change, depletion of natural resources, pollution, and biodiversity decline, are being felt. In financial markets, these issues can also have an impact on asset valuation. Indeed, respect for human rights, working conditions, and carbon footprint can influence a company's activity and reputation, ultimately affecting its valuation.

As long-term investors, we aim to identify trends that can influence the world of tomorrow. According to us, four major trends seem to stand out in particular:

  • Carmignac
    Healthcare

    Coping with a growing and aging population by providing appropriate care to improve living conditions.

  • Carmignac
    Renewable energies

    Fighting climate change by developing green energies to reduce carbon emissions.

  • Carmignac
    Sustainable industrialisation

    Responding to a constantly growing demand while innovating in terms of production and infrastructure to take into account environmental, social, and governance aspects.

  • Carmignac
    Sustainable cities and communities

    Improve cities and communities to meet the growing population by providing sustainable facilities.

We strive to address these issues through Carmignac Portfolio Grandchildren.

Carmignac Portfolio Grandchildren, a solution to address today's and tomorrow's main challenges

Carmignac

Carmignac Portfolio Grandchildren aims to accompany savers and investors in building and preserving a sustainable capital for future generations. In order to achieve this transmission objective, the Fund fully integrates an extra-financial approach into its investment process. This is reflected in the definition of the investment universe, which excludes companies in the energy sector, including coal, oil, and gas. We also apply ethical exclusions, banning controversial weapons, conventional weapons, tobacco, adult entertainment, gambling, and alcohol. Additionally, we exclude companies with an ESG rating of CCC according to MSCI.

Carmignac Portfolio Grandchildren also aims for 100% sustainable investments, focusing particularly on companies aligned with the United Nations Sustainable Development Goals (SDGs). Companies can have an impact on society and the environment through the products they sell and the services they offer. The SDGs can serve as a guide to help investors understand how their investments can contribute to shaping positive and significant externalities.

A sustainable objective based on the United Nations SDGs

Within Carmignac Portfolio Grandchildren, we aim to invest in the Sustainable Development Goals (SDGs), which we believe address the major trends we identify:

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    Good health and well-being
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    Affordable and clean energy
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    Industry, innovation and infrastructure
  • Carmignac
    Sustainable cities and communities

In a context where health becomes a major issue driven by population growth and aging, Carmignac Portfolio Grandchildren invests in companies in the sector that seek to innovate in order to offer accessible healthcare solutions to all, such as Novo Nordisk, for example.

The transition to renewable energies and their accessibility are essential in the face of climate change. That is why we focus on companies that help fight against and adapt to global warming.

We are still in a period of strong industrial expansion, but we see a growing need for solutions that address both growth and environmental challenges. Therefore, Carmignac Portfolio Grandchildren invests in companies that innovate in order to reduce not only their own carbon footprint, but also that of their sector and other industries.

  • Kingspan: building a better future through sustainable buildings

    The urban population continues to grow. In 2007, cities accounted for over 50% of the world's population. By 2030, this proportion is expected to reach 60%, and 70% by 20502. Cities must therefore be able to adapt to this influx of population and meet the needs of residents, while also ensuring the development of sustainable and environmentally friendly urban spaces.

    Kingspan is an Irish company in the industrial sector, specializing in building insulation issues. It is committed to achieving net zero emissions goals by focusing on the well-being of individuals and the planet. The company focuses on researching new solutions that allow building owners to reduce their resource consumption. This includes the treatment and management of wastewater, the use of natural lighting, and improving insulation.

    This approach allows Kingspan to address the various challenges related to the need for sustainable cities and communities in the face of ever-increasing urbanization.

Carmignac Portfolio Grandchildren is committed to addressing the challenges of major trends that will shape the world of tomorrow by focusing on carefully selected Sustainable Development Goals (SDGs), while maintaining a low carbon footprint. By adopting an extra-financial approach, the Fund supports investors and savers in building and preserving sustainable capital. This approach allows the fund to be classified as Article 9 under the SFDR regulation, demonstrating its objective of making a positive contribution to the environment and society, and leaving a sustainable world for future generations.

1Why and How Investors use ESG information: Evidence from a Global Survey by Amel-Zadeh and George Serafeim; Financial Analysis Journal (2018).
2Source: United Nations, 2023.

Carmignac Portfolio Grandchildren

An intergenerational Fund focused on quality, sustainable companies

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Carmignac Portfolio Grandchildren A EUR Acc

ISIN: LU1966631001

Recommended minimum investment horizon

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Main risk of the Fund

EQUITY: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.

CURRENCY: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.

DISCRETIONARY MANAGEMENT: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund presents a risk of loss of capital.

Carmignac Portfolio Grandchildren A EUR Acc

ISIN: LU1966631001
2019 2020 2021 2022 2023 2024 (YTD)
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Year to date
Carmignac Portfolio Grandchildren A EUR Acc +15.47 % +20.28 % +28.38 % -24.16 % +23.04 % +16.99 %
Reference Indicator +15.49 % +6.33 % +31.07 % -12.78 % +19.60 % +18.54 %

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3 Years 5 Years 10 Years
Carmignac Portfolio Grandchildren A EUR Acc +3.82 % +12.09 % -
Reference Indicator +8.65 % +12.62 % -

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Source: Carmignac at 31/10/2024

Entry costs : 4,00% of the amount you pay in when entering this investment. This is the most you will be charged. Carmignac Gestion doesn't charge any entry fee. The person selling you the product will inform you of the actual charge.
Exit costs : We do not charge an exit fee for this product.
Management fees and other administrative or operating costs : 1,70% of the value of your investment per year. This estimate is based on actual costs over the past year.
Performance fees : 20,00% when the share class overperforms the Reference indicator during the performance period. It will be payable also in case the share class has overperformed the reference indicator but had a negative performance. Underperformance is clawed back for 5 years. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.
Transaction Cost : 0,26% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.
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CARMIGNAC GESTION 24, place Vendôme - F-75001 Paris - Tel: (+33) 01 42 86 53 35 Investment management company approved by the AMF. Public limited company with share capital of € 13,500,000 - RCS Paris B 349 501 676.

CARMIGNAC GESTION Luxembourg - City Link - 7, rue de la Chapelle - L-1325 Luxembourg - Tel: (+352) 46 70 60 1 Subsidiary of Carmignac Gestion - Investment fund management company approved by the CSSF Public limited company with share capital of € 23,000,000 - RCS Luxembourg B 67 549.