Carmignac Portfolio Grande Europe

August saw fairly solid returns across most major asset classes, with the MSCI Europe up around 1%.

Resilient activity data helped returns: the eurozone composite PMI reached a flash 51.1 in August, driven by manufacturing.

European politics added further volatility, the French prime minister called a vote of no confidence in his minority government scheduled for 8 September, after he was unable to muster support for budget cuts.

In August, the fund posted negative returns in both absolute and relative terms.

Technology was the primary detractor, as several major firms reported earnings that either fell short of expectations or included cautious forward guidance, weighing on sector performance.

The Healthcare sector also underperformed relative to our reference indicator with Alcon being the main detractor. The company faced pressure from disappointing revenue figures, revised guidance, and concerns around tariffs.

In contrast, Novo Nordisk and Zealand Pharma were standout performers, rebounding strongly after prior weakness. Both companies, which specialize in treatments for weight-related conditions, delivered impressive returns of +15% and +27% respectively in August.

The Industrials sector which we reinforced in the recent months was the biggest relative contributor.

Prysmian which has been a contributor to the Fund for the past few months continued its strong momentum, capitalizing on robust demand in electrification and digital infrastructure.

In August, we initiated a new position in Novonesis, a leading producer of food ingredients and enzymes, capitalizing on a meaningful market pullback that presented an attractive entry point.

We also trimmed exposure to momentum-driven names, realizing gains in UBS, BBVA, Nordnet, and Prysmian following a period of strong performance.

Conversely, we increased our allocation to SPIE, which experienced a sell-off amid political tensions in France. We believe the downside risk is limited, given the company’s primary revenue exposure is in Germany.

As investor focus shifts back to the fragility of the global economy and the looming threat of tariffs, sentiment may turn more cautious.

In this environment, high-quality companies stand out, supported by robust financials, resilient earnings, and compelling long-term growth prospects.

This backdrop creates an attractive entry point for long-term investors, particularly as markets refocus on fundamentals and earnings visibility becomes increasingly valuable.