[Header] [About us] [Our approach] Focus

Our approach

[Medallion] [About us] [Our approach] Management approach

To meet our clients’ long-term wealth management objectives, we implement a conviction based management approach within a streamlined management team and a deliberately narrow range of funds. Our fund managers are experts in their respective fields. Each morning, they exchange their views and site visit reports in order to develop the investment strategy.

 

To anticipate rather than suffer from market changes

Our principles


Since Carmignac’s creation in 1989, our investment methodology has been underpinned by three fundamental principles. Our Fund managers and analysts apply these principles on a daily basis, thereby contributing to our long-term success and continued growth.

1. Conviction-based management approach
By remaining uncorrelated from market indices, our fund management benefits from maximum flexibility in investment decision-making. We create portfolios that are true to our convictions, unconstrained by sector and geographic limits.

  • Specialist and dedicated asset managers, who thrive on group discussion
  • Fund managers with local knowledge and experience
  • Conviction-based management on a human scale, rather than index-linked management determined by mathematical models
  • A long-term vision
     

2. A concentrated range of Funds
Since launch, Carmignac has remained faithful to a core principle: manage only a few Funds, but do it well. We strive to ensure that the range is focused on flagship products.

Each new Fund is the result of our internal expertise combined with the identification of new investment opportunities for our clients. Our management style and adherence to this principle, is the cornerstone of our success.

  • 27 Funds (18 investment strategies)
  • EUR 50 billion in assets under management (Source: Carmignac at 30/09/2018)
     

3. Cross-fertilisation of ideas
Our management approach favours teamwork, idea sharing and cultural and geographic diversity. It is a real shared venture.

The management team boasts a wealth of expertise: macroeconomics, equity markets, bonds and currencies. The daily exchange of viewpoints and knowledge is essential. Each manager benefits from the team’s combined input, which enhances their individual experience and convictions.

  • 42 Fund managers and analysts
[Divider] [About us] [Our approach] Our principles

Our practices


Two practices fully reflect our management style, going hand in hand with our principles.

1. Morning meetings

Each morning, analysts and managers come together to assess the macro and microeconomic environment. The exchange of viewpoints is essential; it enables the team to study each market and each stock not only from one single perspective, but to draw on combined expertise.

This daily exchange of collective insight ensures the team can be suitably responsive to market conditions, and allows us to constantly monitor the effectiveness of our investment strategy.

  • Macroeconomic analysis

    - Analysis of economic cycles by geographic area

    - Monitoring of macroeconomic indicators (market indices, interest rates, currencies, etc.)

  • Market analysis

    - Detection of periods of risk appetite and aversion by country and asset class

    - Quantitative analysis by the Cross Asset team that studies volatility, correlation and technical analysis

  • Microeconomic analysis

    - Analyst reports by sector, country and asset class

    - Exchanges between managers and analysts regarding their company visits

    - Analyses of publications from research bureaus

  • Investment decisions

    - The management team defines a key macroeconomic scenario with major long-term structural trends

    - Monitoring the effectiveness of the investment strategy

    - Highlighting growth opportunities by: asset class, sector, theme and security

    - Investment decisions made by each Fund manager

2. Site visits

Nearly 1,500 visits each year. Worldwide.

Investment decisions are made only after we have conducted thorough research. This includes conducting visits to company offices, commercial premises, facilities and production sites.

Our Fund managers meet with management teams and staff to gain a clear view of how the companies operate. We insist on having the highest quality information available to guide our investment choices.

Execution


  • Risk management

    Careful monitoring of risks lies at the heart of our investment process. We believe that managing risk is inseparable from the search for performance.

    We pay close attention to identifying, quantifying and analysing the risks related to our management approach. The Risk Management team is responsible for monitoring the risk profile of every portfolio.

  • Trading Desk

    Overview

    The trading desk ensures we comply with our obligation to act in the best interests of our clients when executing orders made on the basis of our investment decisions:
    - Best selection
    - Best execution
    - Global geographic coverage
    - Across all asset classes

    Best selection

    The obligation to select and assess counterparties, intermediaries and brokers that will guarantee the best result when executing orders sent on behalf of our clients.

    Best execution

    The counterparties, intermediaries and brokers we have selected have an obligation to guarantee the best result when executing our orders:
    - Best price
    - Costs
    - Speed
    - Probability of execution

    Nevertheless, Carmignac remains responsible for best execution with respect to the processing of certain transactions carried out on the market.