FP Carmignac Global Equity Compounders: Letter from the Fund Managers - Q2 2025
FP Carmignac Global Equity Compounders A GBP Acc delivered a performance of +5% in the second quarter of 2025, in line with its comparator benchmark.
Market environment during the period
The second quarter of 2025 was marked by sharp volatility across developed markets as investors navigated escalating tariff tensions and geopolitical concerns in the Middle East. Markets opened the quarter on a sour note with the US administration’s unexpected "Liberation Day" tariff announcement on April 2, which sparked a significant correction. The scale of the proposed measures led to a sharp selloff in both equities and bonds. However, the subsequent decision to suspend most of the new tariffs for 90 days—excluding those on China—quickly reassured markets. This policy reversal, combined with ongoing strength in hard economic data, set the stage for a strong rebound.
Developed market equities posted robust gains over the quarter, driven largely by renewed investor confidence and a solid earnings season. The US led the recovery, with large-cap technology names—particularly the ‘Magnificent 7’—powering growth stock outperformance. European equities, by contrast, delivered more moderate gains, especially when compared to the strength of the first quarter, but still attracted meaningful inflows from global investors seeking to rebalance portfolios away from concentrated US exposures.
How did we fare in this context?
During the second quarter of 2025, the fund slightly underperformed its reference indicator. The Information Technology and Communication Services sectors—primarily composed of large-cap technology companies—together represent approximately 34% of the benchmark. Although the fund maintained an underweight position in these sectors, by about 6–8% relative to the benchmark, our disciplined stock selection delivered strong results, as a result, this allocation was a net positive contributor to overall performance.
Microsoft, our largest holding at 9% of the portfolio, led the way with a +22% gain and was the fund’s top contributor. The company’s Q1 results reinforced the substantial long-term potential of artificial intelligence (AI). Azure, Microsoft’s hyperscaler business, saw revenue growth accelerate to 35%, with AI-related demand accounting for roughly half of this growth.
Nvidia also posted strong performance, rising 33% as continued demand for AI infrastructure supported its leadership in the sector. However, the standout performer this quarter was Oracle, whose shares surged 44%. This was driven by upbeat quarterly results and forward-looking guidance highlighting an expected 70% revenue growth next year in its hyperscaler unit, Oracle Cloud Infrastructure (OCI), following 50% growth in the past year.
Healthcare remained one of the weaker segments of the market during the second quarter, which weighed on our performance given the fund’s sizeable exposure to the sector. Investor sentiment was dampened by repeated statements from the U.S. administration indicating its intent to control healthcare costs—primarily through drug price regulation—and by proposed budget cuts to publicly funded research institutions such as the NIH. These developments have introduced a high degree of uncertainty across the sector.
The most impacted sub-sector has been Life Sciences tools and equipment providers, particularly those linked to research and development (R&D). Companies like Thermo Fisher and Danaher, which supply essential equipment for R&D processes, came under significant pressure. Thermo Fisher, for instance, saw its share price decline by 24% during the period. Despite these headwinds, we have retained our positions in these names. We believe the risks are now largely priced in, and we expect a near-term rebound in manufacturing-related revenues, particularly driven by a recovery in demand for bioprocessing equipment.
Vertex Pharmaceuticals, a biopharma name in the portfolio, declined 15% on concerns around potential U.S. drug price controls and new tariff risks on imported medicines. However, we viewed the pullback as a buying opportunity. Vertex specializes in niche therapies, where pricing pressure is likely to be limited, and it benefits from U.S.-based manufacturing, which mitigates trade-related risks.
Outlook & positioning
In the months ahead, one of the most pivotal macro considerations remains the potential implementation of new tariffs following the delay. The outcome and magnitude of any such measures continue to cast a cloud of uncertainty over global markets and are weighing on investor sentiment.
We made several adjustments to the portfolio during the quarter. In Healthcare, we increased our positions in McKesson and Cencora—two leading pharmaceutical distributors that benefit from the structural growth in drug volumes, supported by demographic shifts and broader access to healthcare. These additions were funded by a reduction in our holding in Intuitive Surgical, where the valuation—now approaching 70 times this year’s earnings—appears to fully reflect its growth potential.
In Financials, while many balance sheet-driven institutions still fall short of our fundamental and sustainability criteria, UBS has emerged as a notable exception. The bank has made meaningful progress in integrating Credit Suisse, and recent regulatory clarity from the Swiss government regarding capital requirements has reduced uncertainty. This has allowed investors to refocus on UBS’s core strength—its global wealth management franchise—which remains attractively valued relative to peers.
Although our portfolio has limited direct exposure to companies significantly impacted by tariff changes, we remain attentive to the broader economic implications. In this environment, we continue to prioritize high-quality, secular growth companies with resilient earnings and strong revenue visibility. We believe these businesses are best equipped to navigate uncertainty while delivering compelling long-term returns.
FP Carmignac Global Equity Compounders
FP Carmignac Global Equity Compounders A GBP ACC
- Recommended minimum investment horizon
- 5 years
- Risk indicator*
- 5/7
- 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
- -
- Redemption Fees
- -
- Conversion Fee
- -
- Ongoing Charges
- 0.75%
- Management Fees
- 0.67% MAX
- Performance Fees
- -
Footnote
Performance
| FP Carmignac Global Equity Compounders | −1.8 | +17.6 | +21.0 | −19.0 | +22.6 | +23.0 |
| Reference Indicator | +0.1 | +20.8 | +16.8 | −7.8 | +22.9 | +19.8 |
| FP Carmignac Global Equity Compounders | +12.4% | +9.6% | +11.0% |
| Reference Indicator | +13.6% | +12.2% | +13.5% |
Source: Carmignac at 30 Jun 2025.
Date of 1st NAV : 15/05/2020.
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 World NR index