Carmignac Investissement Latitude: Letter from the Fund Manager - Q1 2026

Author(s)

Frédéric LEROUX

Published on

20 April 2026

Read time

2 minute(s) read

-1.87%

Performance of Carmignac Investissement Latitude (A EUR acc) in the first quarter of 2026 compared with -0.42% for its reference indicator².

+42.26%

Performance of Carmignac Investissement Latitude¹ (A EUR acc) over 3 years vs. +28.35% for its reference indicator and +19.33% for its peers.

1st quartile

Carmignac Investissement Latitude is ranked first quartile within its Morningstar Category¹ for its performance over 1, 3, 5 and 10 years.

During the first quarter of 2026, Carmignac Investissement Latitude posted a performance of -1.87%, underperforming its reference indicator, which declined by -0.42%².

Market environment

The central event of the past quarter was, of course, the war in Iran, notably due to its impact on oil prices following the blockage of the Strait of Hormuz. Market reactions, aside from the surge in oil prices, which rose by 80% over the course of five days, remained relatively contained.

In equity markets, between the eve of the Iranian attack and the market trough, U.S. equities declined by 9%, European equities by 13%, and emerging markets by 15%. Over the same period, 10-year yields rose by 50 basis points in the United States and 45 basis points in Europe, while the U.S. dollar appreciated by 3.5% against the euro. At the same time, inflation increased by 0.9% in the United States and 0.8% in Europe.

Markets did not, however, panic and began to recover at the first signs of a potential truce or an end to the conflict.

Concerns observed in March were gradually offset by very strong corporate earnings growth prospects. The decline in equity indices, combined with upward revisions to earnings expectations, led to a notable compression in price-to-earnings ratios, encouraging investors to re-enter the market despite an uncertain geopolitical backdrop.

How did we fare in this context?

This period was not particularly favourable for Carmignac Investissement Latitude. Whilst the fund was appropriately positioned to mitigate the impact of the market downturn, there was only partial success in benefiting from this phase of decline, which was marked by elevated volatility.

This market correction took place against a backdrop of a structural rise in oil prices, whose volatility was largely driven by statements from the U.S. President. This exogenous environment created a highly binary dynamic, making it difficult to maintain strong convictions in defensive positions.

As a result, in March, Carmignac Investissement Latitude’s reference indicator declined by -2.40%, while the fund limited its loss to -1.84%, significantly reducing the drawdown of the master fund, notably thanks to strong gains from hedging strategies implemented on the Nasdaq, the S&P 500, and the Kospi.

Over the full quarter, Carmignac Investissement Latitude posted a decline of -1.87%, compared with -0.42% for its reference indicator.

Outlook

In the coming months, the portfolio manager will consider the willingness of market participants to anticipate a swift resolution of the conflict in Iran, as well as a normalization of economic trends, characterized by contained inflation and relatively solid growth. This scenario reflects a context in which policymakers appear reluctant to take the risk of a recession that could potentially trigger a debt crisis.

However, the portfolio manager will also factor in inflationary risks linked to supply chain disruptions, particularly due to the blockage of the Strait of Hormuz, as well as the growing reluctance of the rest of the world to finance U.S. deficits. This dynamic is expected to translate, over time, into higher interest rates and a weaker U.S. dollar.

In this environment, equity hedges will be adjusted to enable a more targeted allocation toward U.S. assets and the dollar, with the objective of offering unitholders the best possible risk-return profile.

¹EUR Flexible Allocation - Global.
²Reference indicator : 50% MSCI AC World NR index + 50% €STR Capitalized index.

Carmignac Investissement Latitude A EUR Acc

ISIN: FR0010147603

Recommended minimum investment horizon: 5 years

Risk indicator*: 3/7

SFDR - Fund Classification**: Article 8

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. The SFDR classification of the Funds may change over time.

Main risks 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.

Interest Rate: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.

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. Please refer to the Fund’s prospectus to view the exhaustive list of risks.

Fees

ISIN: FR0010147603

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: 1.80% of the value of your investment per year. This estimate is based on actual costs over the past year.

Performance fees: 20.00% max. of the outperformance once performance since the start of the year exceeds that of the reference indicator and if no past underperformance still needs to be offset. 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: 0.33% 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.

Performance

ISIN: FR0010147603


Carmignac Investissement Latitude	−1.9	+16.9	+10.2	+13.2	+2.1	−6.2	+27.0	+9.1	−16.1	+0.3
Reference Indicator	−0.4	+5.1	+14.2	+10.5	−6.6	+12.9	+1.8	+28.9	−4.8	+8.9


Carmignac Investissement Latitude	+12.5%	+5.8%	+5.6%
Reference Indicator	+8.7%	+6.0%	+8.2%

Source: Carmignac at 31 Mar 2026.
Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The Fund presents a risk of loss of capital.
The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged.

Reference Indicator: 50% MSCI AC World NR index + 50% €STR Capitalized Index. Rebalancing Frequency: Quarterly

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