Flash Note
Building the world of tomorrow with Carmignac Portfolio Grandchildren
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Length
5 minute(s) read
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.
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:
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HealthcareCoping with a growing and aging population by providing appropriate care to improve living conditions.
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Renewable energies
Fighting climate change by developing green energies to reduce carbon emissions.
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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.
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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 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
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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.
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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 A EUR Acc
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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
| 2019 | 2020 | 2021 | 2022 | 2023 |
2024 (YTD) ? Year to date |
|
|---|---|---|---|---|---|---|
| Carmignac Portfolio Grandchildren A EUR Acc | +15.47 % | +20.28 % | +28.38 % | -24.16 % | +23.04 % | +23.87 % |
| Reference Indicator | +15.49 % | +6.33 % | +31.07 % | -12.78 % | +19.60 % | +27.44 % |
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| 3 Years | 5 Years | 10 Years | |
|---|---|---|---|
| Carmignac Portfolio Grandchildren A EUR Acc | +6.01 % | +12.52 % | - |
| Reference Indicator | +11.12 % | +13.37 % | - |
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Source: Carmignac at 29/11/2024
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