Dare to invest in emerging markets

Emerging markets (EM) have historically been associated with volatility, governance concerns and macroeconomic risks, leading many investors to overlook their potential. As a result, EM remain underinvested in many global portfolios, despite signs of renewed recent momentum. Far from being homogeneous, EM offer a diverse set of opportunities, where active managers and selective stock pickers can generate appealing risk adjusted returns, to make the most of these new dynamics, if they know where to look.

Against this backdrop, Carmignac Portfolio Emergents is designed to capture these new dynamics together with the long-term growth potential of EM through a high-conviction, actively managed approach focused on identifying mispriced growth opportunities among quality companies with structural growth drivers.

EM have changed profoundly. They are no longer just a cyclical play on global growth, commodities or developed-market demand. Today, the EM universe is becoming more self-sufficient, more diversified and increasingly central to global innovation, supply chains and domestic consumption.

This creates a striking paradox: EM are becoming increasingly central to global growth, innovation and geopolitics, yet currently remain underallocated in global portfolios, while still offering stronger earnings growth at significantly lower valuations compared to their developed market peers.

We seek to invest in companies exposed to the most powerful long-term growth trends shaping emerging markets. Today, this includes beneficiaries of:

We focus on businesses with a strong competitive advantage, high returns on capital, robust free cash flow generation and attractive long-term growth prospects. Importantly, these opportunities are sought across the entire EM universe, from Asia to Latin America, allowing the portfolio to adapt as leadership evolves across countries, sectors and themes.

One of the key differentiators of Carmignac Portfolio Emergents is the team's ability to remain disciplined, even when markets become euphoric.

The portfolio managers continuously reassess both the fundamentals and the valuation of every position. Winning positions are actively managed, profits are taken when valuations become stretched, and capital is redeployed into new opportunities where risk-reward profiles are more attractive. This philosophy applies equally to stock selection and portfolio implementation.

The team's objective is not simply to participate in market rallies, but to generate sustainable alpha through stock selection, country allocation and position sizing. This discipline extends to every aspect of portfolio construction: dynamic position sizing with active profit taking, as well as risk management and diversification.

Emerging markets are increasingly characterised by a widening gap between winners and losers. We believe this environment is particularly favourable for active managers.
Rather than hugging the benchmark, Carmignac Portfolio Emergents is built around high-conviction ideas supported by deep fundamental research.

We are not managing the portfolio around a commitment to momentum. We remain fundamentally bottom-up investors focused on identifying mispriced growth companies with strong fundamentals, attractive valuations and long-term structural growth drivers.

This philosophy is reflected in the portfolio's overall risk-adjusted performance profile. In 2025, the fund has delivered an information ratio of approximately 1.1 and an overall capture ratio of around 1.2, demonstrating our ability to participate in rising markets while remaining mindful of downside risks. More broadly, we focus heavily on generating positive asymmetry: when our investments are successful, we aim to capture meaningful upside, while ensuring that unsuccessful positions remain appropriately sized and controlled.