FR0011147446
- 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.
To 29/08/2024
Article
Carmignac Emergents 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: 31 Jul 2024.![[Management Team] [Author] Hovasse Xavier](https://carmignac.imgix.net/uploads/NextImage/0001/18/%5BManagement-Team%5D-%5BAuthor%5D-Hovasse-Xavier-1.png?auto=format%2Ccompress&fit=fill&w=3840)
Xavier Hovasse
![[Management Team] [Author] Li-Labbe Haiyan](https://carmignac.imgix.net/uploads/NextImage/0001/18/Haiyan-Li-Labbe.jpg?auto=format%2Ccompress&fit=fill&w=3840)
Haiyan Li-Labbé
Performance commentary
Against this backdrop, the fund delivered a negative performance for the month.
The fund was penalized by the disappointing performance of its Chinese portfolio (Miniso, Didi and Anta Sports).
Our AI related tech holdings were also negatively impacted by uncertainties over AI trade (Taiwan Semiconductor, Elite Material and Lite-On.
Despite the drop in the share price, TSMC's posted solid results, with an upward revision of sales forecasts for the full year.
Finally, we benefited from the excellent performance of our Indian portfolio with the appreciation of our stocks ICICI Lombard, Dabur India and Embassy REIT.
Outlook strategy
Emerging markets continue to benefit from supportive structural trends such as the boom of artificial intelligence, nearshoring, and new commodity cycle.
Nevertheless, in the short term, we remain somewhat cautious given the the global economic slowdown and the upcoming presidential election in the US.
We maintain a concentrated portfolio with a balanced exposure, combining quality growth companies with high visibility (Taiwan, India, Southeast Asia ) counterbalanced by stocks in less attractive markets trading at very low valuations (China, Mexico and Brazil)
We see the sell-off as a potential entry point to some stocks that were trading at high multiples such as India. In the sell off, we added to India, taking advantages of attractive entry points.
We remain confident in our current portfolio and our top ten holdings, for which we are very comfortable with company fundamentals, governance and valuations.
Performance Overview
Data as of: 29 Aug 2024.Carmignac Emergents Portfolio overview
Below is an overview of the composition of the portfolio.Geographical Breakdown
Data as of: 31 Jul 2024.| Asia | 78.2 % |
| Latin America | 20.1 % |
| Eastern Europe | 1.7 % |
| Total % Equities | 100.0 % |
 China | 23.2 % |
 India | 18.4 % |
 South Korea | 17.0 % |
 Taiwan | 13.2 % |
 Hong Kong | 2.8 % |
 Malaysia | 2.2 % |
 Singapore | 1.6 % |
Key figures
Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.Exposure Data
Data as of: 31 Jul 2024.The strategy in a nutshell
Discover the Fund’s main features and benefits through the words of the Fund Managers.Xavier Hovasse
Haiyan Li-Labbé
For over 30 years, Carmignac has been a pioneer in emerging markets. The combination of our fundamental financial analysis and our extra-financial approach, strengthened over the years, enables us to navigate emerging markets through our dedicated strategy.
Xavier Hovasse
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Market environment
Over the month of July, emerging markets went down, suffering from fears of a more severe-than-expected economic slowdown in the United States.
In this environment, the Chinese, Latin American and South Korean markets declined, at the exception of India that went up.
The Chinese Communist Party's Third Plenum did not adopt any major measures to support the economy.
China cut its one-year medium-term lending facility (MLF) rate by 20 basis points to 2.2%. However, these measures were not enough to support the Chinese markets.
Latin American markets also declined due to political uncertainties and the weakness of agricultural commodity prices since the beginning of the year.