Equity strategies

Carmignac Portfolio China New Economy

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU2295992676

Seize the growth potential of China's New Economy
  • Investing with conviction: Seeking companies in China's New Economy, which benefit from the country's economic transition and long-term reform.
  • Investing with selectivity: Favoring domestic quality companies which have high income visibility, while avoiding those linked to external demand.
Asset Allocation
Equities95.7 %
Other4.3 %
Data as of:  28 Jun 2024.
Risk Indicator
6/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
- 52.1 %
0.0 %
0.0 %
- 49.3 %
- 4.9 %
From 31/03/2021
To 11/07/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
- 35.3 %
- 4.6 %
- 22.0 %
Net Asset Value
47.89 €
Asset Under Management
65 M $
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  11 Jul 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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.

Carmignac Portfolio China New Economy fund performance

Take a look at the Fund's performance supported by our Fund managers’ market commentary and strategy insight.

Our monthly comments

Data as of:  28 Jun 2024.
Fund management team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

  • Chinese markets were down in June, with the CSI 300 mainland index shedding -2.35% and the Hang Seng -0.53%.
  • They backtracked on the previous weeks’ rally due to gloomy economic data and concerns about the US elections.
  • The Caixin manufacturing and services indices both sit in expansion territory. However, industrial output is down year-on-year.
  • The yuan weakened against hard currencies (EUR, USD).

Performance commentary

  • The Fund posted a negative performance over the month

  • as our Chinese consumer (Miniso, VIPShop) and new technology (Daqo New Energy, Tuya) stock picks fared badly.

  • However, our Taiwanese investments along the semiconductor value chain (TSMC, Mediatek and Wiwynn) performed extremely well.

Outlook strategy

  • Despite short-term volatility and the structural challenges facing the economy, we still have an optimistic view of Chinese and Taiwanese equity markets.

  • China’s structural problems remain, with domestic consumption struggling to recover, especially among the middle classes now that house prices have fallen and youth unemployment is high.

  • We remain convinced about the potential for China’s and Taiwan’s new economies and, in particular, the secular trends that we are seeing in artificial intelligence, the green transition and healthcare.

  • We feel sure that our approach, focused on a fundamental analysis and enterprise values, is the best way to generate positive long-term returns on Chinese markets.

  • Our portfolio is mostly positioned in Chinese companies that are generating high cash flows (Miniso, New Oriental) and Taiwanese firms active in the semiconductor value chain and likely to benefit from the AI revolution.

  • During the month we took profits on stocks that had performed well, such as Tencent Music. Conversely, we increased exposure to Taiwan through a position in Elite Material, a Taiwanese company specialised in the processing of basic materials for the printed circuit board industry.

Performance Overview

Data as of:  11 Jul 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). 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.
Source: Carmignac at 13/07/2024

Carmignac Portfolio China New Economy Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Jun 2024.
Asia100.0 %
Total % Equities100.0 %
Asia100.0 %
cnChina
71.8 %
twTaiwan
26.9 %
hkHong Kong
1.3 %

Key figures

Below are the key figures for the Fund, which will give you a clearer idea of the Fund's management and equity positioning.

Exposure Data

Data as of:  28 Jun 2024.
Equity Investment Weight95.7 %
Net Equity Exposure108.1 %
Number of Equity Issuers34
Active Share90.0 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Manager.
Fund Management Team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
Through an active conviction and sustainable approach, we focus on domestic companies in China's new economy that can benefit from the country's economic transition and long-term reforms.
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager
View Fund's characteristics
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.
​The information presented above is not contractually binding and does not constitute investment advice. Past performance is not a reliable indicator of future performance. Performance is shown net of fees (excluding any subscription fees payable to the distributor). Investors may lose some or all of their capital, as the capital in the UCI is not guaranteed. Access to the products and services presented herein may be restricted for some individuals or countries. Taxation depends on the situation of the individual. The risks, fees and recommended investment period for the UCI presented are detailed in the KIDs (key information documents) and prospectuses available on this website. The KID must be made available to the subscriber prior to purchase.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.