Equity strategies

Carmignac Portfolio China New Economy

Luxembourg SICAV sub-fundEmerging marketsSRI Fund Article 8
Share Class

LU2427321117

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
Equities95.8 %
Other4.2 %
Data as of:  30 Sep 2024.
Risk Indicator
6/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
- 28.1 %
0.0 %
0.0 %
0.0 %
+ 4.8 %
From 31/12/2022
To 08/10/2024
Calendar Year Performance 2023
-
-
-
-
-
-
-
-
- 13.0 %
- 19.3 %
Net Asset Value
71.91 $
Asset Under Management
61 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  8 Oct 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:  30 Sep 2024.
Fund management team
[Management Team] [Author] Li-Labbe Haiyan

Haiyan Li-Labbé

Fund Manager

Market environment

  • Over the month of September, Chinese markets rose sharply following the Chinese government's announcements of a series of measures aimed at countering China’s economic slowdown and boosting market sentiment.

  • Negative retail sales data (2.1% vs. 2.5% expected) and disappointing industrial production data (4.5% vs. 4.8% expected) forced the authorities to initiate the stimulus plan so eagerly awaited by the markets.

  • Three areas of stimulus has been announced: monetary easing, support for the real estate sector and support to the Equity markets.

  • One of the main measures is a 50-basis point cut in the reserve requirement ratio (RRR) for banks, freeing up 1 trillion RMB in liquidity.

  • Also, the PBoC has decided to align the existing mortgage loan rates with the new ones, reducing them by an average of 50 bps.

  • Finally, non-bank financial institutions are allowed to use “swap facilities” to obtain liquidity on the markets.

Performance commentary

  • Against this backdrop, the fund delivered a positive performance, albeit below its reference indicator.

  • In particular, we benefited from a solid rebound in our Chinese investments, led by our consumer discretionary stocks Pinduoduo, Tal Education and VIPshop.

  • We were also supported by our investments in shared mobility company Didi and online and offline real estate platform Beike.

  • However, the lag versus our reference indicator was due to our high exposure to Taiwan, for diversification reasons, and also to our stock picking choices.

  • In fact, the main beneficiaries of these measures were state-owned companies, listed on domestic markets (A share markets), with opaque corporate governance, which we do not hold in the portfolio.

Outlook strategy

  • We welcome the Chinese government's major announcements, which are very positive for China's equities markets.

  • Although the Chinese government's recent announcements do not seem sufficient, on their own, to turn the Chinese economy around, this is a major turning point, as President Xi has shown that he is now putting the economy as a top priority.

  • If the rumours about the promise to recapitalize the major banks and the issuance of central government bonds are confirmed, this could provide the “big stimulus” the markets have been waiting for several months, and challenge investors' extremely negative stance on China.

  • However, at this stage, we feel it is still too early to change our medium- to long-term views on the Chinese economy. And we maintain our selective and cautious view given the global economic slowdown and the US presidential election.

  • We are closely monitoring each of our Chinese positions and their valuation, our aim being to remain disciplined in calibrating our positions. We have taken profit on some of our Chinese positions which have rebounded strongly in recent days, and for which the valuation argument has become less attractive.

  • We are closely monitoring each Chinese position and its valuation, our objective being to remain disciplined in position sizing. We are selectively trimming some positions that rebounded a lot, and where the valuation argument became less compelling. For other stocks, we are maintaining our positions.

  • At the beginning of the month, we had increased our exposure to Chinese stocks with very attractive valuations (Pinduoduo VIPshop). This decision has proved to be beneficial in the wake of the strong rebound we saw at the end of the month.

Performance Overview

Data as of:  8 Oct 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 10/10/2024

Carmignac Portfolio China New Economy Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  30 Sep 2024.
Asia97.2 %
North America2.8 %
Total % Equities100.0 %
Asia97.2 %
cnChina
69.8 %
twTaiwan
26.5 %
hkHong Kong
0.9 %

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:  30 Sep 2024.
Equity Investment Weight95.8 %
Net Equity Exposure95.8 %
Number of Equity Issuers32
Active Share85.5 %

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.