Carmignac Portfolio Grandchildren: 2022 end of summer update
YTD Performance Review
The skyrocketing inflation, exacerbated by the war in Ukraine, has led Central banks in developed countries to aggressively tighten their monetary policy. The end of the multi-year ultra-accommodating era has pushed interest rates higher, leading to a significant contraction in equity markets’ valuations.
After years of outperformance, long-duration stocks which are more sensitive to rising rates were the most impacted by this environment, chief among them companies in the technology sector, which valuation sometimes relied more on expected growth rather current or historical profitability.
The broad-based market drawdown led us to record a negative performance since the beginning of the year. Carmignac Portfolio Grandchildren A EUR Acc lost -19.42%, underperforming its reference indicator1 (-7.02%).
Notable portfolio moves – last few months
Throughout the year, we have continued to tilt the portfolio more defensively, by increasing the size of positions in the healthcare and staple sectors and reducing the sizing of our most cyclical positions.
NEW POSITIONS / REINFORCEMENT
- Strengthening of high-conviction names like Microsoft, Thermo Fisher, Novo Nordisk
- Increase of defensiveness through the strengthening of staple names Colgate-Palmolive and Procter & Gamble, technology names Alphabet and ServiceNow, as well as healthcare names Align Technology, Resmed and Stryker
POSITIONS SOLD / REDUCED
- Profit taking on: Compass, Elevance Health, LVMH
- Reduction of: Lululemon, Sensata Technologies, Transunion, Zoetis
- We sold names which we believe should not benefit from the post pandemic environment, such as Electric Arts, Paypal and Walt Disney.
Outlook
- The Fed and the ECB look committed to reign inflation at the expense of growth.
While inflation is thus likely to stabilize/moderate once Central banks accomplish the bulk of the tightening, recession risks are increasing, especially in Europe, where increasing gas prices are weighing on companies and consumers. - Consequently, we continue to optimize the portfolio for the next leg up in equity markets, by both reducing cyclicality and increasing defensiveness.
We sold names which we believe would not benefit from the post pandemic environment, such as Electric Arts, PayPal and Walt Disney. - Our focus remains on identifying and owning profitable companies with high return on capital. These companies, we believe, are in a good position to deliver results over a five year or longer time horizon.
- Among core convictions, we note healthcare names Novo Nordisk and Eli Lilly. Within the diabetes segment and the nascent obesity opportunity, these companies enjoy a healthy competition which pushes both players to innovate their products and offering. A dynamic which finds fertile ground as there is plenty of room for both companies in a wide addressable market.
Carmignac Portfolio Grandchildren
A global, high-conviction equity fund for long-term investorsAccess the fund pagePerformance
| Carmignac Portfolio Grandchildren | 15.5 | 20.3 | 28.4 | -24.2 | 23.0 | 21.9 | -9.7 |
| Reference Indicator | 15.5 | 6.3 | 31.1 | -12.8 | 19.6 | 26.6 | -9.7 |
| Carmignac Portfolio Grandchildren | + 7.0 % | + 9.9 % | + 10.8 % |
| Reference Indicator | + 8.3 % | + 13.1 % | + 11.6 % |
Source: Carmignac at Apr 30, 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 World NR index
Carmignac Portfolio Grandchildren A EUR Acc
- 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
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Carmignac Portfolio Grandchildren: Letter from the Fund Managers
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Carmignac Investissement: Letter from the Fund Manager
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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The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com/en, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.
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