Carmignac Portfolio Tech Solutions: Letter from the Fund Manager - Q3 2025

Author(s)

Kristofer BARRETT

Published on

21 October 2025

Read time

3 minute(s) read

+15.88%

Q3 performance of Carmignac Portfolio Tech Solutions (I USD Acc) vs. +11.93% for its reference indicator.

+36.61%

Year-to-date performance of Carmignac Portfolio Tech Solutions (I USD Acc) vs. +25.07% for its reference indicator.

+41.15%

Performance of Carmignac Portfolio Tech Solutions (I USD Acc) since launch¹, vs. +30.38% for its reference indicator².

During the third quarter of 2025, Carmignac Portfolio Tech Solutions (I USD Acc) delivered a robust return of +15.88%, significantly outperforming its reference indicator, which posted a gain of +11.93%. Year-to-date, the Fund has achieved a positive performance of +36.6%, compared to a +25.1% for its reference indicator.

Market environment

In the third quarter, equity markets surged, supported by the Federal Reserve’s monetary policy easing, reduced trade tensions following agreements between the US and Europe/Japan, the passage of the One Big Beautiful Bill Act in the United States, and a broadly solid corporate earnings season. Investors largely chose to overlook signs of a moderate economic slowdown in the United States and Europe, persistent inflation above central bank targets, widening public deficits, and ongoing geopolitical tensions.

By the end of September, the technology sector was a standout performer, continuing its strong momentum from earlier in the year. The sector led the S&P 500 index and the Nasdaq Composite surged 11.2% reaching record highs, buoyed by the ongoing enthusiasm around artificial intelligence (AI). The momentum was sustained by significant investments from hyperscalers, robust corporate earnings, and a surge in deals and partnerships across the infrastructure and cloud computing sectors.

Emerging markets outperformed, driven by strong performance in Asia. Chinese indices rebounded sharply after a prolonged period of underperformance, supported by new stimulus measures from Beijing, and a renewed appetite for Chinese tech. Korean equities also benefited from growing investor interest in AI and computing infrastructure, and from announcements of structural reforms in the country—particularly in corporate governance.

In contrast, European markets underperformed over the period, weighed down by a weaker-than-expected macroeconomic environment, the appreciation of the euro, tariffs, and heightened political uncertainty, notably in France.

Performance review & positioning

During the third quarter, the Fund outperformed its reference indicator, driven primarily by strong stock selection in our Industrial Tech & Digital Infrastructure and Tech Materials buckets. US big tech with names like Nvidia and Broadcom were among our largest contributors. Similarly, in Taiwan semiconductor foundry, TSMC and printed circuit board components, Elite Material and Lotes made a significant contribution. TSMC reported a 61% year on year surge in Q2 profits, reaching a record high and beating market expectations.

In the Cloud & Software space, Alphabet was among our best performers driven by a 14% year on year revenue surge, with Google cloud revenues up 32%. The company benefited from the continued expansion of its cloud operations, accelerated integration of AI across its businesses and a benign outcome in an antitrust case. Performance across our different themes have demonstrated the benefits of diversification across the tech value chain and across regions.

Over the quarter we continued building our position in Mediatek, which we initiated towards the end of Q2 and continued building our positions in the cloud & software space, on which we were previously structurally underweight. We continued building our position in Salesforce and initiated new positions in Gitlab, Atlassian and Twilio. These companies generate large cash flows and have the ability to invest in the AI space. Within this bucket, we also increased our weighting in Alphabet, which was beneficial to us over the quarter and following the uptick in performance, we started crystallising profit.

In the Tech Materials space, we initiated a position in Nitto Boseki, whose materials are used in servers for their exceptional thermal and mechanical stability within the AI value chain.
To undertake these changes, we exited the positions in Applied Materials and Innodata on risks relating to China sales, we trimmed names that performed well like Astera Labs and we sold out of small positions held in Vertiv and Oracle.

Outlook

The macroeconomic environment remains favourable for equity markets. Central banks are maintaining broadly accommodative monetary policies, US growth could accelerate in 2026, and the earnings outlook for next year remains encouraging. However, with US indices at historic highs, valuations appear elevated. That said, these levels, although stretched, do not in themselves constitute a factor for correction. We remain particularly attentive to two factors: the evolution of real interest rates and the dynamics of investment in AI. Both currently show no signs of immediate risk but warrant close monitoring.

Investment in AI continues to grow at a sustained pace: spending by the major players in the sector “hyperscalers” is expected to grow by nearly 50% in 2025 and then by 20% in 2026³, supported by innovation and the considerable productivity gains it generates. In addition, new players should be adding to compute capex, such as Oracle, Coreweave, or Xai.

However, some less profitable technology segments are now showing signs of excess. We therefore favour a balanced approach: geographical diversification, vigilance on valuations and a focus on profitable companies, which are often still immune to the excesses of enthusiasm surrounding AI.

¹Fund launched on 21/06/2024. ²MSCI AC World Information Technology 10/40 Capped NR index. ³Carmignac, 30/09/2025.

Carmignac Portfolio Tech Solutions I USD Acc

ISIN: LU2809794659

Recommended minimum investment horizon: 5 years

Risk indicator*: 6/7

SFDR - Fund Classification**: Article 9

*Risk Scale from the KIID (Key Investor 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.

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.

Emerging Markets: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest.

Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.

The Fund presents a risk of loss of capital. Please refer to the Fund’s prospectus to view the exhaustive list of risks.

Fees

ISIN: LU2809794659

Maximum subscription fees paid to distributors: -

Redemption Fees: -

Conversion Fee: -

Ongoing Charges: 0.96%

Management Fees: 1.00% MAX

Performance Fees: 20.00% of the outperformance to the reference indicator over the year. Performance fee is not charged until previous underperformance is offset

Footnote

Performance

ISIN: LU2809794659


Carmignac Portfolio Tech Solutions	+36.6	+3.3
Reference Indicator	+25.1	+4.2


Carmignac Portfolio Tech Solutions	+44.3%	-	+31.0%
Reference Indicator	+29.3%	-	+23.1%

Source: Carmignac at 30 Sep 2025.
Date of 1st NAV : 21/06/2024.
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: MSCI AC World Information Technology 10/40 Capped NR index

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