Carmignac Portfolio Asia Discovery
Luxembourg SICAV sub-fundEmerging marketsSRI Fund Article 8LU0807689582
- Capture the growth potential of Asian markets beyond China, thanks to a rigorous investment process focusing on quality companies, with sustainable profitability.
- Capitalise on the expertise of a seasoned investment team to unlock hidden opportunities through a small and mid-cap bias, a segment often neglected by research analysts and consequently overlooked by investors.
To 21/11/2024
Article
Carmignac Portfolio Asia Discovery 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: Oct 31, 2024.![[Management Team] [Author] Amol Gogate](https://carmignac.imgix.net/uploads/NextImage/0001/18/206d57f4169601a1b5be4a1556a54ff4db7b53d8.png?auto=format%2Ccompress&fit=fill&w=3840)
Amol Gogate
Performance commentary
Against this backdrop, the fund performed very well, posting a positive return, unlike its reference indicator, which declined.
Our selection of Indian stocks once again made a strong contribution to the strategy's performance. In particular, we benefited from our participation in the IPO of Waaree Energies, India's leading manufacturer of solar panels, during which its share price rose by more than 80%.
Our portfolio also benefited from our positions in Latin America with BBB Foods, and in the Middle East with Salik, which operates Dubai's toll roads, and Parkin PJSC, a public parking provider.
We were, however, somewhat disappointed by our investments in China and South Korea over the period, which posted disappointing performances no impact on the fund's overall good performance.
Outlook strategy
We remain constructive on emerging small and mid caps due to encouraging macroeconomic indicators, particularly in Latin America and South-East Asia, where the Fund is mainly positioned. Nevertheless, we believe that a possible victory by D. Trump represents a risk for emerging markets.
The vast emerging universe offers us numerous opportunities across all geographic areas and sectors. India remains our main geographic allocation and an excellent domestic market for finding long-term growth stocks.
We maintain significant exposure to stocks linked to artificial intelligence, notably companies in the semiconductor value chain in Taiwan and Korea, such as Gold Circuit Electronics and Lotes.
Given the global economic slowdown, we are striving to reduce the risks in the portfolio by increasing diversification
During the month, we participated in the IPO of Waaree Energies, India's leading solar panel manufacturer, and also took new positions in Hyundai Motor and Taiwan's Sinbon Electronics, a global manufacturer of cable assemblies and connectivity.
Performance Overview
Data as of: Nov 21, 2024.Carmignac Portfolio Asia Discovery Portfolio overview
Below is an overview of the composition of the portfolio.Geographical Breakdown
Data as of: Oct 31, 2024.| Asia | 78.4 % |
| Latin America | 10.6 % |
| Middle East | 5.7 % |
| Africa | 2.2 % |
| Eastern Europe | 1.6 % |
| North America | 1.0 % |
| Europe | 0.5 % |
| Total % Equities | 100.0 % |
 India | 46.1 % |
 China | 8.6 % |
 Taiwan | 6.9 % |
 Vietnam | 5.9 % |
 South Korea | 4.7 % |
 Indonesia | 4.4 % |
 Philippines | 1.3 % |
 Thailand | 0.6 % |
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: Oct 31, 2024.The strategy in a nutshell
Discover the Fund’s main features and benefits through the words of the Fund Managers.Amol Gogate
We seek to select the most attractive companies in the universe of emerging small and mid-caps and underexploited frontier markets through a socially responsible investment approach.
Market environment
After a strong rebound in September, emerging markets experienced a slight decline in October, driven by uncertainty surrounding new measures in China and the upcoming US elections.
Market expectations of a potential Trump victory led to an increase in US yields and a stronger dollar, which negatively impacted emerging markets and growth-sensitive sectors.
Chinese markets were highly volatile due to concerns over the US elections. Economic data from the Golden Week showed mixed results. However, by the end of the month, China released some positive indicators, including the manufacturing PMI (NBS and Caixin), which entered the expansion zone for the first time in six months. Additionally, retail sales rose, surpassing market expectations.
In India, rising interest rates and oil prices exerted pressure on the markets, leading to a retreat.
In Latin America, political instability and fluctuating commodity and agricultural prices continued to adversely affect local markets.