Performance Review 2006
Performance Review 2007
Performance Review 2008
Performance Review 2009
Performance Review 2010
Simon Pickard: "Carmignac Emergents posted an annual performance of +30.93%, finishing well ahead of its indicator (+24.45%). At the end of 2010, Brazil, India and China accounted for 37.7% of the portfolio. While our focus is on long-term domestic growth in emerging countries, we do not neglect sectors more dependent on the global economy. For example, two thirds of the portfolio is invested in consumer goods, infrastructure and finance with the remaining third devoted to commodity-based companies and worldwide leaders in technology. In a year marked by heavy inflation fears, this positioning proved wise, with the Fund benefiting from its key positions in major companies specialising in commodities, and an annual contribution to performance of 7.9% for materials and 4.32% for energy."
Performance Review 2011 - Year-to-Date
Simon Pickard: "Year to date up to 30 June emerging markets underperformed developed markets, with the MSCI Emerging Markets dropping 7.88% compared with -4.34% for the MSCI World in Euro. The Fund performed in line with the performance indicator with -7.02%, being able to close the gap in underperformance performance during the first trimester, given the recovery of the consumer sector in the second quarter."
Performance since 2006
Investment Process and Strategy – How does the Fund Manager invest?
Simon Pickard: "The fund is managed on a discretionary basis with an asset allocation bias towards emerging market equities. However, it does not rule out investment in emerging market debt.
The objective of the Fund is to outperform its performance indicator while keeping volatility below the level of this indicator. The performance indicator is the following index: the Morgan Stanley emerging markets index, the MSCI Emerging Markets Free, converted into euro.
The investment strategy consists in selecting securities which offer the best growth potential without restriction in terms of allocation by geographical zone, sector or type and size of security. Subject to the regulatory limits, at least 60% of the assets of Carmignac Emergents is permanently exposed to equities."
Investment Outlook
Simon Pickard: "Looking forward, as the developed market growth falters and the peak in inflation is confirmed in emerging markets (China) we anticipate a strong return of investor flows back into emerging market assets that have much stronger fundamentals than developed market assets. Countries such as China and India should be the countries to benefit the most from a more accommodating monetary policy which in turn will benefit their consumer and infrastructure sectors in which we are invested. The differential in growth and particularly internal demand will continue to benefit equities in emerging market over the long term compared to developed market economies and their domestically orientated industries."
