Carmignac Portfolio Tech Solutions: Letter from the Fund Manager - Q4 2025

Author(s)

Kristofer BARRETT

Published on

January 27, 2026

Read time

3 minute(s) read

+7.7%

Q4 performance of Carmignac Portfolio Tech Solutions (F EUR Acc) vs. +4.1% for its reference indicator¹.

+29.4%

2025 performance of Carmignac Portfolio Tech Solutions (F EUR Acc) vs. +14.8% for its reference indicator.

1st quartile

Carmignac Portfolio Tech Solutions is ranked 1^st quartile in its Morningstar category² since launch³.

During the fourth quarter of 2025, Carmignac Portfolio Tech Solutions delivered a strong return of +7.66%, outperforming its reference indicator, which gained +4.12%. In 2025, the Fund achieved a strong performance both in absolute and relative terms, returning +29.41%, compared to +14.76% for its reference indicator.

Market environment

In 2025, equity markets delivered solid overall gains despite a volatile start to the year. The early months were marked by uncertainty surrounding Chinese competition in artificial intelligence (AI), trade tensions, and the timing of interest-rate cuts, triggering episodes of sharp but short-lived sell-offs. From the April lows, markets rebounded strongly through year-end, supported by resilient global growth, fiscal stimulus announcements across several regions, and interest-rate cuts by major central banks, all of which boosted valuations and risk appetite.

U.S. markets remained buoyant throughout the year, underpinned by continued enthusiasm around AI. This 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.

European and Emerging Markets outperformed U.S. equities. In Europe, declining inflation, improving macroeconomic conditions, and the announcement of a German fiscal stimulus package supported equity performance. Emerging Markets benefited from a weakening U.S. dollar and renewed investor interest. Notably, Taiwan and South Korea posted strong gains, driven by their exposure to the semiconductor sector and, in South Korea’s case, post-election optimism.

How did we fare in this context?

Over the fourth quarter, stock selection was once again the largest driver of outperformance. In the Tech Materials space, our exposure to Taiwanese and South Korean semiconductors took the lead. Both TSMC and SK Hynix were among our top contributors as they are large suppliers in the manufacturing of chips and the wider AI ecosystem.

Performance in both the fourth and third quarters was consistent and demonstrated how we have been able to deliver strong outperformance during 2025.

In 2025, we saw a few highlights across the technology / AI value chain. Not only have we seen strong performance in the Tech Materials space with names like TSMC and SK Hynix, but also with other components of the AI value chain like Elite Materials, the Taiwanese company that produces the copper clad laminates for circuit boards. The stock price was up over 150% over the year.

Over the year we have also benefitted from our stock selection in names in Industrial Tech & Infrastructure, connectivity and networking space as well as contract manufacturers like Amphenol and Celestica. Our holdings in data centre related names were also strong with Comfort Systems one of our top contributors, which specializes in data centre construction and maintenance. In the fourth quarter we exited both Celestica and Comfort Systems due to valuation concerns.

Cloud & Software was an area we had mixed returns in. nevertheless, Alphabet was our largest performance driver there. The company went from being written off by the market as an AI loser, to becoming an AI winner with the successful release of Gemini and the success of their TPU enabling machine-learning models -which run faster and more efficiently. They have demonstrated innovation and strong execution in the AI space, proving to be a credible competitor to the likes of Microsoft and their support of ChatGPT, but also Nvidia in the Infrastructure space. While overlooked versus the other Magnificent Seven’s earlier in the year, Alphabet posted the strongest performance among them.

Outlook

Looking ahead to 2026, we expect market dispersion to increase further, both within the technology sector and relative to the broader equity market, as faster and increasingly reversible investor arbitrage amplifies volatility. In this environment, performance will depend on being positioned on the right side of disruption, including cases of internal disruption within the technology complex, particularly in hardware. We are therefore becoming more selective in our AI hardware exposure, focusing on high-quality companies that benefit from the ongoing capex cycle without facing excessive pressure on free cash flow or profitability from overly aggressive investment plans. We also prioritise companies that are relatively immune to internal technological disruption while still offering valuations that remain reasonable relative to their growth prospects. Within this framework, SK Hynix and TSMC continue to stand out as attractive long-term opportunities.

At the same time, we are building exposure to companies that are, in our view, wrongly perceived as AI casualties, particularly within software. While AI implementation is advancing rapidly in specific areas such as coding, we believe that, for most enterprises, AI will be deployed on top of existing software stacks and that adoption will remain gradual rather than disruptive in the near term. This underpins our increased exposure to established software platforms such as Salesforce, ServiceNow, GitLab and Atlassian, a positioning that currently remains contrarian relative to prevailing market sentiment.

¹MSCI AC World Information Technology 10/40 Capped NR index.
²Equity Sector Technology.
³Fund launched on 21/06/2024.

Carmignac Portfolio Tech Solutions F EUR ACC

ISIN: LU2809794576

Recommended minimum investment horizon: 5 years

Risk indicator*: 5/7

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. **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: LU2809794576

Entry costs: We do not charge an entry fee.

Exit costs: We do not charge an exit fee for this product.

Management fees and other administrative or operating costs: 1,15% of the value of your investment per year. This estimate is based on actual costs over the past year.

Performance fees: 20,00% when the share class overperforms the Reference indicator during the performance period. It will be payable also in case the share class has overperformed the reference indicator but had a negative performance. Underperformance is clawed back for 5 years. The actual amount will vary depending on how well your investment performs. The aggregated cost estimation above includes the average over the last 5 years, or since the product creation if it is less than 5 years.

Transaction Cost: 0,35% of the value of your investment per year. This is an estimate of the costs incurred when we buy and sell the investments underlying the product. The actual amount varies depending on the quantity we buy and sell.

Performance

ISIN: LU2809794576


Carmignac Portfolio Tech Solutions	+29,4	+6,5
Reference Indicator	+14,8	+7,5


Carmignac Portfolio Tech Solutions	+29,4%	-	+23,3%
Reference Indicator	+14,8%	-	+14,8%

Source: Carmignac at Dec 31, 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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