Carmignac P. Emergents - February 2023 Update

Published on
22 March 2023
Read time
5 minute(s) read

Portfolio News

Performance - F EUR ACC shareclass - Cumulative returns (%)

Carmignac P. Emergents-4,6%-14,4%+18,5%+18,5%
Performance reference indicator-4,2%-14,9%+6,6%+4,7%
  • MSCI EM NR (USD) dividends net dividend reinvested
China - including Hong Kong. Excluding derivative positions Carmignac's portfolios are subject to change at any time. Data are rebased to 100% for Sector & Country positioning.
Source: Carmignac, 28/02/2023

Market Review

  • Emerging market equities dropped in February as US 10-year real yields soared.

  • All sectors were hit hard but Internet and e-commerce in particular, along with cyclical sectors due to the stronger dollar and rise in long term yields, which dragged some commodity prices down.

  • Chinese markets fell the sharpest, mainly due to the resurgence of geopolitical tension with the United States, which weighed on market sentiment. Economic indicators showed a gentle recovery in the consumer and services sectors. Earnings announcements didn’t inspire much enthusiasm but did suggest an encouraging upward trend.

  • Mexico continued to outperform after publishing some brighter economic data, while the other Latin American and Middle Eastern countries were affected by the appreciation of the dollar and weakness of commodity prices.

Performance Review

TOP 3 CONTRIBUTORS

Good resistance of some Chinese & Mexican stocks

  • MINISO (Cons. Disc.) - China

  • GRUPO BANORTE (Finance) - Mexico

  • LENOVO (Tech) - China

TOP 3 DETRACTORS

Weakness of Chinese and Korean consumer and tech names

  • ALIBABA (Cons. Disc.) - China

  • ELETROBRAS (Clean Energy ) - Brazil

  • JD.COM (Cons. Disc. ) - China

Notable portfolio moves

  • New positions:

  • Reinforcements: Didi Global (China), Taiwan Semiconductor (Taiwan), Banorte (Mexico)

  • Reductions: ISA CTEEP (Brazil), Hapvida (Brazil)

  • Positions sold:

  • Number of holdings: 37 (target range 35/55)

Positioning

Source: Carmignac, 28/02/2023

Breakdown of the fund by SDG alignment

Our portfolio is currently structured around 4 major socially responsible investment (SRI) themes that are central to our process:

Source: Carmignac, MSCI ESG Research, FactSet, 28/02/2023. To produce this chart, we map portfolio companies whose revenues are at least 50% aligned with one of the nine selected UN Sustainable Development Goals (SDGs). Company revenue data is provided by Factset. These results are provided for illustrative purposes and are not a guarantee of future results. For more information, please see For more details: https://sdgs.un.org/goals

Strategy reminder

Performance objective:

  • The fund aims to outperform its reference indicator (MSCI EM (USD) NR, reconverted into EUR) over a recommended investment horizon of 5 years.

Sustainable objective:

  • 100% of investment in emerging companies that derive the majority of their revenues or capital expenditures from goods & services related to business activities which align positively with SDGs (ex-cash holdings, source: Factset)

  • Carbon intensity 50% lower than the ref. indicator (tons of CO2 per million USD revenues, converted to euros).

  • A 8-year track record with Xavier Hovasse as lead PM, and Haiyan Li-Labbé nominated co PM in January 2021, both with 20+ year industry experience in emerging markets.

  • A diversified portfolio, with a selective exposure to the Asian markets, an increased allocation to LatAm and through companies with attractive valuations.

  • SFDR Article 9 Strategy with a fully integrated SRI & low carbon approach, awarded the French government’s SRI label in 2019 and the Belgium Towards Sustainability label in 2020.

  • A portfolio with a positive environmental and social contribution, 100% of assets invested in companies whose revenues or capital expenditures are positively aligned with at least 1 of 9 targeted United Nations Sustainable Development Goals and a carbon footprint 62% lower than the MSCI EM NR Index (as of 28/02/2023).

  • High conviction and active approach: 35 to 55 stocks on average, high active share (>85%).

  • An effective portfolio diversification tool and a source of performance, proven by a solid track record (1st quartile among peers since launch), 5 Star Ranking, and a solid AUM of 1.2 bn € (end of Feb 2023).

Carmignac Portfolio Emergents obtained the French and Belgian SRI Labels: www.lelabelisr.fr ; www.towardssustainability.be ; www.febelfin.be.

The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information

Xavier Hovasse

Xavier Hovasse is a Fund Manager and Head of Emerging Equities. Xavier joined Carmignac in 2008 as an analyst specialized in Latin America, and was appointed Fund Manager in 2011. Prior to that, he spent nine years at BNP Paribas Asset Management as an analyst and Manager of Emerging and Global equities. He graduated from ESCP-EAP Paris and is a CFA Charter holder since 2004.

Haiyan Li-Labbé

Haiyan Li-Labbé is a Fund Manager with a focus on the Greater China markets within the Emerging Equities team. Haiyan joined Carmignac in 2011. She started her career in 2001 at Société Générale Investment Banking and was the responsible Analyst on Asian convertible bonds. Between 2004 and 2011, she was a Fund Manager and Head of Asian Projects at ADI Alternative Investments and OFI AM. Haiyan holds a Master’s degree in French from Beijing’s Foreign Languages University, and a Master’s degree from Ecole Supérieure de Commerce de Paris (ESCP).

Carmignac Portfolio Emergents

Grasping the most promising opportunities within the emerging universeVisit the fund page

Carmignac Portfolio Emergents A EUR Acc

ISIN: LU1299303229
Recommended minimum investment horizon
5 years
Risk indicator*
4/7
SFDR - Fund Classification**
Article 9

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.

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.Emerging Markets: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest.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.

Performance

ISIN: LU1299303229
Carmignac Portfolio Emergents1.118.9-18.824.943.8-10.9-14.89.24.8-0.5
Reference Indicator14.520.6-10.320.68.54.9-14.96.114.7-1.3
Carmignac Portfolio Emergents+ 3.0 %+ 8.3 %+ 4.1 %
Reference Indicator+ 2.4 %+ 8.3 %+ 5.4 %

Source: Carmignac at 31 Mar 2025.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

Reference Indicator: MSCI EM NR index

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Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.

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For Carmignac Portfolio Long-Short European Equities: Carmignac Gestion Luxembourg SA in its capacity as the Management Company for Carmignac Portfolio, has delegated the investment management of this Sub-Fund to White Creek Capital LLP (Registered in England and Wales with number OCC447169) from 2nd May 2024. White Creek Capital LLP is authorised and regulated by the Financial Conduct Authority with FRN : 998349.

Carmignac Private Evergreen refers to the Private Evergreen sub-fund of the SICAV Carmignac S.A. SICAV – PART II UCI, registered with the Luxembourg RCS under number B285278.