Main detractors to 2025 performance:
- Our style bias: The rotation away from “quality” companies into value and domestic stocks has been the main driver of underperformance versus the reference indicator. It has been the 2nd largest drawdown for European quality in the past 25 years.
- Consumer Staples: In 2025, companies like Unilever and Beiersdorf faced consumer resistance. Falling inflation and anticipated rate cuts drove investors toward cyclicals and higher growth names rather than defensive names.
- Healthcare: Despite strong performance from Galderma and Merus, the sector has been a detractor due to the poor performance of GLP-1 actors like Novo Nordisk and Zealand Pharma.
Main contributors to 2025 performance:
- Technology: ASML and Bechtle, one of our new positions, have been key contributors to the performance as we have actively managed these positions throughout the year.
- Industrials: Our largest sector weight has been a contributor in absolute terms, led by Prysmian and our recent addition, Kion, benefiting from strong electrification and automation trends.
Outlook / Positioning
- We begin the year with consensus forecasts calling for 15% earnings growth in Europe. While this optimism is familiar, similar projections have been made for several years, the reality is that aggregate European profits have been flat for the past three years.
- Our approach remains consistent: rather than chasing broad market trends, we focus on high-quality companies with strong fundamentals, differentiated business models, and aligned with sustainability that we believe have been oversold during the recent rotation away from international and defensive names. These businesses offer resilience, attractive valuations, and the potential for sustainable returns, qualities that matter most when the market growth may disappoint.
- In 2025, we repeated what we did in 2022, the last time this type of market reversal took place. We have bought new stocks that score well on our filters and have presented natural entry points.
Top picks
- L’Oreal: We remain constructive on L’Oréal for 2026, underpinned by its innovation leadership, premium positioning, financial strength, and sustainability credentials. Strong ongoing momentum in the U.S. and what we see as a gradual turnaround in China should support robust growth.
- ASML: The sole supplier of the most critical technology in semiconductor manufacturing. Its lithography systems are indispensable for advanced AI chips, creating an unmatched moat. With expanding margins and high-margin recurring service revenues, ASML offers compelling exposure to long-term semiconductor growth with strong earnings visibility.
Top sectors
- AI beneficiaries: AI-driven digitalization is fueling demand for intelligent infrastructure, automation, and enterprise software where Schneider, Siemens, and SAP are clear structural winners. Schneider and Siemens capitalize on AI-enabled energy management and industrial automation, while SAP integrates AI into analytics and cloud solutions to enhance stickiness and unlock upsell opportunities.
- Healthcare: An attractive entry point at current lows, supported by diversification across life sciences, consumer health, and pharma. Structural demand, innovation, and defensive characteristics position the sector for resilient growth.
FP Carmignac European Leaders A GBP INC
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 6/7
- SFDR - Fund Classification
- Article -
*Risk Scale from the KIID (Key Investor Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.
Main risks of the fund
Fees
- Maximum subscription fees paid to distributors
- 0.00%
- Redemption Fees
- 0.00%
- Conversion Fee
- -
- Ongoing Charges
- 0.89%
- Management Fees
- 0.81% MAX
- Performance Fees
- -
Footnote
Performance
| FP Carmignac European Leaders | 2.1 | 13.9 | -14.8 | 13.9 | 6.7 | 5.8 |
| Reference Indicator | 0.6 | 16.7 | -7.6 | 14.8 | 1.9 | 26.2 |
| FP Carmignac European Leaders | + 8.7 % | + 4.5 % | + 4.9 % |
| Reference Indicator | + 13.9 % | + 9.7 % | + 9.8 % |
Source: Carmignac at 31 Dec 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 Europe ex UK NR index
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.
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.
Reference to certain securities and financial instruments is for illustrative purposes to highlight stocks that are or have been included in the portfolios of funds in the Carmignac range. This is not intended to promote direct investment in those instruments, nor does it constitute investment advice. The Management Company is not subject to prohibition on trading in these instruments prior to issuing any communication. The portfolios of Carmignac funds may change without previous notice. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.
Morningstar Rating™ : © 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.
The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. 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, 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.
In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.com/en-gb, or upon request to the Management Company, or for the French Funds, at the offices of the acilities Agent, Carmignac UK Ltd, 2 Carlton House Terrace, London, SW1Y 5AF. This document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. FP Carmignac ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.
In Switzerland: the prospectus, KIDs and annual report are available at www.carmignac.com/en-ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, Nyon Branch / Switzerland, Route de Signy 35, 1260 Nyon.
The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in English on the following links: UK ; Switzerland ; France ; Luxembourg ; Sweden.
For Carmignac Portfolio Long-Short European Equities: Carmignac Gestion Luxembourg SA in its capacity as the Management Company for Carmignac Portfolio, has delegated the investment management of this Sub-Fund to White Creek Capital LLP (Registered in England and Wales with number OCC447169) from 2nd May 2024. White Creek Capital LLP is authorised and regulated by the Financial Conduct Authority with FRN : 998349.
Carmignac Private Evergreen refers to the Private Evergreen sub-fund of the SICAV Carmignac S.A. SICAV – PART II UCI, registered with the Luxembourg RCS under number B285278.