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Breaking down European stereotypes: Carmignac Portfolio Patrimoine Europe

Author(s)
Keith NEY,Mark DENHAM
Published on
May 3, 2022
Read time
4 minute(s) read

Keith Ney and Mark Denham speak about their successful European multi-asset Fund and reveal how they plan to tackle challenges ahead while keeping intact their long-term investment themes.

The Fund has just been named the Best Balanced Fund in Europe by Lipper? To what do you attribute this success?

MD: Carmignac Portfolio Patrimoine Europe was launched in 2017 to provide investors with a moderate risk sustainable solution in a constantly changing European environment. Over the last four years, in spite of a very volatile context, the Fund has managed to minimize market declines and to participate in the upward phases, even in the eventful year of 2020 or the beginning of 2022. We carry out in-depth analysis on our investments without losing sight of possible overlap risks. Consequently, our risk management strategies have contributed positively to the fund's performance since its launch. The wide range of available tools has been useful in mitigating both the downside risks and generating positive gross performance. However, over the long term, it is securities selection that has contributed most significantly to the positive performance of the Fund, and we are fine with it!

The Fund is based on the "Patrimoine" philosophy, characterised by an agile, multi-asset class and long-term approach. What makes Carmignac Portfolio Patrimoine Europe different from the flagship Carmignac Patrimoine?

KN: Indeed, sharing the same philosophy does not mean investing in the same manner. Carmignac Portfolio Patrimoine Europe was not created to be a carve-out of Carmignac Patrimoine. Alongside not having the same investment universe, which significantly influences the management, the Funds also differ in terms of securities selection in both equity and fixed income. Consequently, the overlap between the funds is low, as well as their correlation, which makes them complementary in an investor portfolio.

Looking ahead, what are the biggest risks and how do you plan to tackle them?

KN: The Russo-Ukrainian conflict and associated economic sanctions induce a stagflation risk, i.e., an economic slowdown coupled with high inflation. The scarcity of available commodities could lead to major disruptions in supply chains, with negative effects on growth and further price increases. While the economic outlook for 2022 was already pointing to a slowdown in the pace of growth and resilient inflation, this conflict is amplifying economic trends that we had incorporated into our investment strategy. Although Europe is particularly affected by this geopolitical crisis, a strong fiscal response by governments is expected and could benefit some sectors such as renewable energy.

Speaking of these promising sectors, could you tell us more about your long-term investment opportunities?

MD: In the past, the Fund has been exposed to forward-looking sectors such as Healthcare, Technology, and Renewable energy. Our approach to Europe is therefore very selective and based on a robust process. In the current environment, we remain committed to our core holdings, which are winners in their respective fields, but we also make some adjustment. Thanks to the risk management strategies, we could build exposure to these promising sectors without increasing the short-term risk level of the fund.

Carmignac Portfolio Patrimoine Europe in a nutshell

The Fund was launched in 2017 to provide investors with a moderate risk sustainable investment solution in a constantly changing European environment. The Fund is characterised by an agile, multi-asset class and long-term approach. The Fund's ambition is to find pockets of promising stocks within the European equity and bond markets, while adapting to different market configurations and to bear markets in particular. Exposure to the equity markets can therefore vary from 0% to 50% of the portfolio and we, as portfolio managers, have the possibility of modifying this exposure at any time, which enables us to react quickly and effectively when, in our opinion, economic, political or social conditions so require.
34%
Performance since launch compared to 19% for the reference indicator1.
1st quartile
Within its Morningstar category2 for its performance.
1st Place
Best Fund over 3 years in Europe by Lipper Fund Award 20223.
1 40% STOXX Europe 600 (Reinvested net dividends) + 40% ICE BofA All Maturity All Euro Government + 20% ESTER capitalised. Quarterly rebalanced. Until 31/12/2021, the reference indicator was 50% STOXX Europe 600, 50% BofA Merrill Lynch All Maturity All Euro Government Index. Performances are presented using the chaining method. Launch date: 29/12/2017. Source: Carmignac 31.03.2022. Performance for share class A eur acc. 2 Morningstar category „EUR Moderate Allocation“. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager. The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. **Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).** Morningstar Rating™ : © 2022 Morningstar, Inc. All Rights Reserved. 3 Lipper Methodology: https://www.lipperfundawards.com/Methodology

Carmignac Portfolio Patrimoine Europe

Fund built to take advantage of Europe’s many sectors and opportunities.
Visit the Fund Page

Carmignac Portfolio Patrimoine Europe A EUR Acc

ISIN: LU1744628287
Recommended minimum investment horizon
3 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.
Credit: Credit risk is the risk that the issuer may default.
The Fund presents a risk of loss of capital. Please refer to the Fund’s prospectus to view the exhaustive list of risks.

Performance

ISIN: LU1744628287
Carmignac Portfolio Patrimoine Europe+3,8+4,9+7,3+2,1−12,7+9,5+13,9+18,7−4,8
Reference Indicator+4,3+8,3+5,1+9,5−11,0+10,2+2,4+16,4−4,8
Carmignac Portfolio Patrimoine Europe+6,9 %+0,9 %+4,4 %
Reference Indicator+8,2 %+3,3 %+4,3 %

Source: Carmignac at Oct 30, 2026.
Date of 1st NAV : 29/12/2017.
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: 40% MSCI Europe NR index + 40% ICE BofA All Maturity All Euro Government index + 20% €STR Capitalized Index. Rebalancing Frequency: Quarterly

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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. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. Morningstar Rating™ : © 2021 Morningstar, Inc. All Rights Reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Access to the Funds may be subject to restrictions regarding certain persons or countries. This material is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the material or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not access this material. Taxation depends on the situation of the individual. The Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. Company. The risks, fees and ongoing charges are described in the KIID (Key Investor Information Material). The KIID must be made available to the subscriber prior to subscription. The subscriber must read the KIID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital.
The Funds’ prospectus, KIIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management. Investors have access to a summary of their rights in French, English, German, Dutch, Spanish, Italian at section 6 of "regulatory information page" on the following link :https://www.carmignac.com/en_US
Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.
In Switzerland: the prospectus, KIIDs and annual report are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Paris, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon.