Carmignac Portfolio Tech Solutions: Letter from the Fund Manager - Q2 2025

Author(s)

Kristofer BARRETT

Published on

17 July 2025

Read time

2 minute(s) read

+22.5%

Q2 performance of Carmignac Portfolio Tech Solutions (F EUR Acc) vs. +14.5% for its reference indicator.

+10.6%

Performance of Carmignac Portfolio Tech Solutions (F EUR Acc) since launch¹, vs. +6% for its reference indicator².

+3.9%

Year-to-date performance of Carmignac Portfolio Tech Solutions (F EUR Acc) vs. -1.4% for its reference indicator.

During the second quarter of 2025, Carmignac Portfolio Tech Solutions (F EUR Acc) delivered a robust return of +22.5%, significantly outperforming its reference indicator, which posted a gain of +14.5%. Year-to-date, the Fund has achieved a positive performance of +3.9%, in contrast to a -1.4% decline recorded by its reference indicator.

Market environment

The second quarter was characterized by heightened volatility, with a sharp drawdown, a swift rebound, and record-setting highs.

Markets opened the quarter under pressure after the announcement on April 2 by President Trump regarding broad tariffs. The move triggered a sharp selloff, pushing U.S. equities into bear market territory, with declines exceeding 19% from February peaks. However, sentiment quickly reversed when the administration paused the tariffs for 90 days on April 9, sparking a dramatic V-shaped recovery.

By the end of June, the technology sector rebounded sharply from volatility earlier in the year and outperformed broader equity indices. This rally was driven primarily by large-cap technology and AI-related stocks, especially in the semiconductor space, where Nvidia, Microsoft, and Broadcom emerged as key performance leaders. The pickup in semiconductor names also benefitted emerging markets, primarily Taiwan and South Korea, with names like TSMC rebounding c.40% from its April trough, benefitting from surging demand for advanced chips and AI accelerators.

Performance review & positioning

During the quarter, the Fund outperformed its reference indicator, driven primarily by strong stock selection in our Industrial Tech & Digital Infrastructure and Tech Materials buckets. Our Korean and Taiwanese semiconductor names, Elite Materials, TSMC and SK Hynix were among our largest contributors throughout the quarter, demonstrating the benefits of diversification across the Asian technology value chain which supported our performance during the recovery phase.

Our biggest reinforcements were in Alphabet and MediaTek, both names in which we have a high conviction -which were bought on weakness. MediaTek, was added based on its repositioning from a leading chip design house specializing in smartphone application processors to a broader AI enabler including cutting edge AI. Additionally, the company is less geopolitically sensitive compared to Nvidia or TSMC.

Within the theme of datacentres, we increased our weight to electricity related industrials on weakness following DeepSeek’s developments in January. Namely Schneider Electric and Eaton involved in electrification and cooling systems, as well as initiating a position in Vertiv.

Finally in the software space, sub-sector in which we are structurally underweight, we initiated new positions in Salesforce, SAP and Adobe on the back of recent weakness in these names.

Outlook

Trump’s mandate introduced uncertainty and volatility while fiscal discipline under a Republican leadership looks unlikely. In this environment, we favour tech names with strong pricing power and robust balance sheets—companies that can absorb inflationary pressures and perform even if interest rates stay elevated. We also believe that overall, technological innovation continues to advance, largely independent of political shifts.

The sharp market drawdown allowed us to increase our weight in many of our large US and Taiwanese Tech names as well as software names we had not held since launch, and benefitted from the upside from their trough in early April. We see their current valuations as a buying opportunity and see this period as a growth inflection point we have actively taken part in.

In a market environment influenced by political rhetoric, our strategy remains focused on identifying the tech companies at the forefront of innovation that offer indispensable products and services. We look for those technology companies that have a dominant position within the value chain and benefit from high barriers to entry across geographies and market cap.

¹Fund launched on 21/06/2024. ²MSCI AC World Information Technology 10/40 Capped NR index.

Carmignac Portfolio Tech Solutions F EUR ACC

ISIN: LU2809794576

Recommended minimum investment horizon: 5 years

Risk indicator*: 5/7

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. **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.

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.

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.

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: LU2809794576

Entry costs: We do not charge an entry fee.

Exit costs: We do not charge an exit fee for this product.

Management fees and other administrative or operating costs: 1.15% of the value of your investment per year. This estimate is based on actual costs over the past year.

Performance fees: 20.00% when the share class overperforms the Reference indicator during the performance period. It will be payable also in case the share class has overperformed the reference indicator but had a negative performance. Underperformance is clawed back for 5 years. 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: 0.35% 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: LU2809794576


Carmignac Portfolio Tech Solutions	+3.9	+6.5
Reference Indicator	−1.4	+7.5


Carmignac Portfolio Tech Solutions	+10.2%	-	+10.3%
Reference Indicator	+6.3%	-	+5.9%

Source: Carmignac at 30 Jun 2025.
Date of 1st NAV : 21/06/2024.
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: MSCI AC World Information Technology 10/40 Capped 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.

This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents.

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