Equity strategies

Carmignac Portfolio Emerging Discovery

SICAVEmerging marketsSRI Fund Article 8
Share Class

LU0992630086

Crossing frontiers to discover small and mid-cap gems
  • Capturing small- and mid-cap equity opportunities from both emerging countries and less covered frontier markets.
  • Seeking out cash-generative companies with solid balance sheets and high growth perspectives.
Key documents
Asset Allocation
Equities95.1 %
Other4.9 %
Data as of:  28 Mar 2024.
Risk Indicator
4/7
Recommended Minimum Investment Horizon
5 years
Cumulative Performance since launch
+ 95.2 %
+ 92.4 %
+ 20.5 %
+ 13.1 %
+ 15.7 %
From 15/11/2013
To 18/04/2024
Calendar Year Performance 2023
+ 6.2 %
- 0.5 %
+ 21.2 %
+ 24.1 %
- 6.9 %
+ 5.2 %
+ 6.5 %
+ 20.0 %
- 17.2 %
+ 10.9 %
Net Asset Value
195.2 £
Asset Under Management
107 M €
Market
Emerging markets
SFDR - Fund Classification

Article

8
Data as of:  18 Apr 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

Carmignac Portfolio Emerging Discovery 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:  29 Mar 2024.
Fund management team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Amol Gogate

Amol Gogate

Fund Manager

Market environment

Emerging markets were up in March (+2.4% for the MSCI EM in euro), as were global markets as a whole. However, Chinese markets were stable. Early in the month, the government announced it would be targeting 5% growth over the year and trying to cap the deficit at 3% of GDP, but its optimism failed to convince investors. China continues to face structural problems despite a slight improvement in certain economic indicators. For example, the NBS manufacturing PMI rose to 50.8 in March from 49.1 in February, and inflation of +0.7% put an end to five months of deflation. India’s healthy economy points to growth of 6.5%, so local markets continued to perform well. Another beneficiary of geopolitical tension, the South Korean market also made up ground (+3.0% for the KOSPI in euro), largely thanks to its technology companies. In Latin America, the Mexican economy continues to benefit from the nearshoring of US production chains, and its manufacturing PMI remains in expansionary territory (52.2). Mexico’s local CPI was up 6.5% in euro.

Performance commentary

The Fund delivered a positive return, and beat its reference indicator. Our stock picks such as Indian manufacturing company Jyoti Automation and hotel chain Juniper Hotels raised the Fund’s performance considerably. However, a few of our Indian positions, including Entero Healthcare, Sterling & Wilson Renewable and PB Fintech, were somewhat disappointing. Across the Atlantic, Mexico continues to benefit from the nearshoring of US production chains, and this reflected in share prices once again. Our positions in Fibra Terrafina and BBB Foods, for example, appreciated in March. On frontier markets, Kaspi was up too, making one of the biggest contributions to performance. This Kazakh banking company develops innovative products and services through its Kaspi.kz app for consumers and Kaspi Pay app for retailers, the most popular mobile apps in Kazakhstan.

Outlook strategy

We still have an optimistic view of emerging market small and mid-caps due to some encouraging macroeconomic data, especially in Latin America and South-East Asia on which the Fund is focused. The vast emerging world presents numerous opportunities across all regions and sectors. Macroeconomic uncertainties abound, but some excellent investment opportunities can be found in a multitude of diverse themes ranging from domestic consumer spending to IT services and commodities. India remains our heaviest regional weighting and is an excellent local market in which to find long-term growth stocks, especially in the consumer, finance and new technology sectors, although we have to be aware of overpricing. We trimmed our Indian exposure during the month, taking profits after several months of excellent performance. Given what is at stake with artificial intelligence, we are maintaining our exposure to the semiconductor market through companies such as Gold Circuit Electronics, a Taiwanese IT parts manufacturer. Elsewhere, we are keeping significant Latin American exposure to diversify the portfolio and take advantage of secular trends such as nearshoring to Mexico, and rising commodity prices, which benefits commodity-producing countries like Brazil. We increased our Brazilian exposure during the month, opening a position on aircraft manufacturer Embraer, a global aviation leader specialised in regional and business jets.

Performance Overview

Data as of:  18 Apr 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.​From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested.
Source: Carmignac at 20/04/2024

Carmignac Portfolio Emerging Discovery Portfolio overview

Below is an overview of the composition of the portfolio.

Geographical Breakdown

Data as of:  28 Mar 2024.
Asia76.1 %
Latin America13.1 %
Middle East5.6 %
Eastern Europe4.8 %
Africa0.8 %
Europe0.3 %
Total % Equities100.6 %
Asia76.1 %
inIndia
42.4 %
cnChina
10.2 %
twTaiwan
7.6 %
krSouth Korea
6.0 %
idIndonesia
4.1 %
vnVietnam
3.0 %
phPhilippines
1.9 %
thThailand
1.0 %

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 Mar 2024.
Equity Investment Weight94.5 %
Net Equity Exposure93.4 %
Number of Equity Issuers53
Active Share98.3 %

The strategy in a nutshell

Discover the Fund’s main features and benefits through the words of the Fund Managers.
Fund Management Team
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, Fund Manager
[Management Team] [Author] Amol Gogate

Amol Gogate

Fund Manager
We seek to select the most attractive companies in the universe of emerging small and mid-caps and underexploited frontier markets through a socially responsible investment approach.
[Management Team] [Author] Hovasse Xavier

Xavier Hovasse

Head of Emerging Equities, 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.
Carmignac Portfolio is a sub-fund of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive.