Withstanding market challenges for five years: a celebration of our UK OEIC range

Published on
13 June 2024
Read time
3 minute(s) read

Since we entered the UK market in 2012, we have continued to build and develop our propositions to meet the needs of our investors. One of our main priorities was to provide our clients with easy and convenient access to our investment strategies through a UK domiciled wrapper, available across the multitude of platforms they may use, and we successfully launched our range of OEIC funds in 2019.

Five years have passed since then, marked by several geopolitical events that have influenced investment markets. From emerging, global, and European markets, our equity and fixed income strategies have proven their ability to seize long-term opportunities, regardless of the different conditions influencing market behaviour.

To celebrate this, our Fund Managers highlight one of the key challenges they have faced over the past 5 years* and describe how our Funds have remained resilient.

*For all OEIC Funds except FP Carmignac Global Equity Compounders.

FP Carmignac Emerging Markets

Emerging Market Equities

FP Carmignac European Leaders

European Equities

FP Carmignac Global Bond

Global Fixed Income

FP Carmignac Global Equity Compounders

Global Equities

Navigating through emerging markets

We have invested in emerging markets since the creation of Carmignac in 1989 and this conviction has become stronger during the last decades, despite the many challenges faced in over 30 years. Since the launch of FP Carmignac Emerging Markets, the Fund faced a hostile top-down environment, first with the Russia Ukraine war that led to a sharp increase in commodity prices and the strong rally in oil and gas companies to which we had no exposure in the Fund. In the aftermaths of the invasion, higher commodities prices led to higher inflation, forcing central banks to raise interest rates. This proved detrimental to the performance of growth companies, that tend to be long duration assets, at the benefit of value names. Our Fund has a quality growth bias suffered from the combination of these two factors.

Thanks to our disciplined investment process and tailor-made tools, we were able to identify these changes and reacted very quickly by deploying more capital to Latin America, and by increasing the weighting of quality companies that were trading with very depressed valuations. This efficient risk management has allowed our strategy to outperform not only its comparator benchmark, but also its peers over the past 24 months and over the past 5 years, our investment horizon.

Our conviction for emerging markets keeps getting stronger through the years and we will continue to find attractive investment opportunities in this universe.

+55.9%cumulative performance since launch versus +18.4% for its comparator benchmark1.
100%of investments are aligned with the UN SDGs2.
1st quartilefor its performance over 5 years within its Morningstar category3.
1Comparator benchmark: MSCI EM NR Index. 2United Nations Sustainable Development Goals. 3Morningstar category: EAA Fund Global Emerging Markets Equity.

LAUNCHED ON 15 MAY 2019

FP Carmignac Emerging Markets

Searching growth opportunities in emerging-market equitiesDiscover more about the Fund

Unlocking Europe’s potential

In our search for quality and innovative companies that demonstrate long-term profitability, Europe’s healthcare sector has presented a promising investment opportunity since the launch of FP Carmignac European Leaders. As bottom-up, active and conviction driven investors, we see the healthcare sector as rich in diverse businesses with European companies being global leaders. From core pharma companies to biotech innovators, we also invest in B2B suppliers of products and services to other healthcare companies as well as medical technology companies which by nature will have a more consumer focused profile.

One of our strongest convictions has been treatment for diabetes and obesity. By 2030 over 1.2 billion adults will be obese4, and currently over 500 million people worldwide are living with diabetes, 5 times more than in 19805. We believe that the obesity market has the potential to reach $100bn in peak sales by the early 2030s and positioned ourselves early in this trend, investing in Novo Nordisk - the Global leader and pioneer in obesity treatments - since the launch of our Fund.

Our search for attractive and sustainable trends in Europe continues unabated, and we will continue to look for quality companies across innovative sectors.

+80.3%cumulative performance since launch versus +56.6% for its comparator benchmark6.
35%weight of healthcare in our portfolio.
10.8%contribution of Novo Nordisk since launch.
4Obesity Atlas, 2023. 5WHO, The Lancet, 2021. 6Comparator benchmark: MSCI Europe Ex UK Net Total Return USD.

LAUNCHED ON 15 MAY 2019

FP Carmignac European Leaders

A high-conviction, bottom-up European Ex-UK Equity strategyDiscover more about the Fund

A time-tested global macro fixed income solution

Since its launch, FP Carmignac Global Bond has offered a flexible allocation to rates, credit, and currencies, the main drivers of its performance. One of the main highlights of the last few years came in 2022, a remarkable one for fixed income markets and the Fund. Despite the challenging market conditions during this period, the Fund's drawdown was relatively contained and its year-end performance for 2022 was -2.5%, compared to -11.8% for its comparator benchmark7. We achieved that by strategically minimizing exposure to corporate credit and risky assets globally, using high levels of hedges, due to tight credit spreads before the Federal Reserve's rate. Active currency management, particularly focusing on the USD, also helped mitigate this drawdown.

FP Carmignac Global Bond will continue to combine flexibility with an opportunistic and active unconstrained philosophy to harness macroeconomic trends across the fixed income world.

+12.41%cumulative performance since launch versus -9.6% for its comparator benchmark7.
-2.5%realized performance in 2022 vs -11.8% for its comparator benchmark7.
4.1%fund’s 3-year volatility compared to 6.7% for its comparator benchmark7.
7Comparator benchmark: JP Morgan Global Government Bond Index (coupons reinvested).

LAUNCHED ON 15 MAY 2019

FP Carmignac Global Bond

A global, flexible and macroeconomic approach to fixed income marketsDiscover more about the Fund

Quality over time

For an equity fund, particularly one focused on quality, time is a significant asset that allows companies to benefit from the compounding effect. Indeed, thanks to their strong fundamentals and innovative abilities, quality companies have been able to adapt to market changes and remain competitive over time.

Over the past few years, FP Carmignac Global Equity Compounders has experienced only one challenging situation, mainly due to the resurgence of inflation, which led to higher interest rates and a decline in the valuations of our investments. This sector rotation weighed on quality, but the Fund managed to navigate this period swiftly and resume its upward trajectory, as evidenced by its performance since the end of 2022. Furthermore, the inflationary pressure seems to be gradually deflating, resulting in the diminishing headwind on quality stocks.

Our approach is set to remain resilient over the long term, aiming to help investors build sustainable capital that will benefit not only themselves, but also future generations.

4stars Morningstar.
100%sustainable investments in the portfolio (excluding cash).
43companies in the portfolio, reflecting conviction-based management.
Source: Carmignac, Morningstar as of 31/05/2024. Morningstar Rating™: © 2024 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.

LAUNCHED ON 15 MAY 2020

FP Carmignac Global Equity Compounders

A global, high-conviction equity fund for long-term investorsDiscover more about the Fund

FP Carmignac Emerging Markets A GBP ACC

ISIN: GB00BK1W2P36
Recommended minimum investment horizon
5 years
Risk indicator*
6/7
SFDR - Fund Classification
Article -

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.

Main risks of the fund

Equity: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.Emerging Markets: Operating conditions and supervision in "emerging" markets may deviate from the standards prevailing on the large international exchanges and have an impact on prices of listed instruments in which the Fund may invest.Currency: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.

Fees

ISIN: GB00BK1W2P36
Maximum subscription fees paid to distributors
0,00%
Redemption Fees
0,00%
Conversion Fee

-

Ongoing Charges
0.95%
Management Fees
0,87% EXT
Performance Fees

-

Footnote

Performance

ISIN: GB00BK1W2P36
FP Carmignac Emerging Markets13.663.0-15.6-9.57.2
Reference Indicator8.814.7-1.6-10.03.6
FP Carmignac Emerging Markets- 5.9 %+ 7.8 %+ 9.0 %
Reference Indicator- 2.2 %+ 3.2 %+ 4.3 %

Source: Carmignac at 28 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

FP Carmignac European Leaders A GBP ACC

ISIN: GB00BJHPHZ49
Recommended minimum investment horizon
5 years
Risk indicator*
6/7
SFDR - Fund Classification
Article -

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.

Main risks of the fund

Equity: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.Currency: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.

Fees

ISIN: GB00BJHPHZ49
Maximum subscription fees paid to distributors
0,00%
Redemption Fees
0,00%
Conversion Fee

-

Ongoing Charges
0.89%
Management Fees
0,81% EXT
Performance Fees

-

Footnote

Performance

ISIN: GB00BJHPHZ49
FP Carmignac European Leaders18.227.113.9-14.813.9
Reference Indicator8.87.516.7-7.614.8
FP Carmignac European Leaders+ 4.9 %+ 11.5 %+ 12.6 %
Reference Indicator+ 6.1 %+ 7.7 %+ 8.8 %

Source: Carmignac at 28 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

FP Carmignac Global Bond A GBP ACC HGD

ISIN: GB00BJHQ2J63
Recommended minimum investment horizon
2 years
Risk indicator*
3/7
SFDR - Fund Classification
Article -

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.

Main risks of the fund

Credit: Credit risk is the risk that the issuer may default.Interest Rate: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates.Currency: Currency risk is linked to exposure to a currency other than the Fund’s valuation currency, either through direct investment or the use of forward financial instruments.Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.

Fees

ISIN: GB00BJHQ2J63
Maximum subscription fees paid to distributors
0,00%
Redemption Fees
0,00%
Conversion Fee

-

Ongoing Charges
0.70%
Management Fees
0,62% EXT
Performance Fees

-

Footnote

Performance

ISIN: GB00BJHQ2J63
FP Carmignac Global Bond5.86.60.0-2.54.3
Reference Indicator3.70.60.6-11.80.5
FP Carmignac Global Bond+ 0.7 %+ 2.0 %+ 2.5 %
Reference Indicator- 3.8 %- 2.1 %- 1.7 %

Source: Carmignac at 28 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

FP Carmignac Global Equity Compounders A GBP ACC

ISIN: GB00BMGLBK75
Recommended minimum investment horizon
5 years
Risk indicator*
6/7
SFDR - Fund Classification
Article -

*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time.

Main risks of the fund

Equity: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization.Liquidity: Temporary market distortions may have an impact on the pricing conditions under which the Fund might be caused to liquidate, initiate or modify its positions.Discretionary Management: Anticipations of financial market changes made by the Management Company have a direct effect on the Fund's performance, which depends on the stocks selected.
The Fund presents a risk of loss of capital.

Fees

ISIN: GB00BMGLBK75
Maximum subscription fees paid to distributors
0,00%
Redemption Fees
0,00%
Conversion Fee

-

Ongoing Charges
0.90%
Management Fees
0,82% EXT
Performance Fees

-

Footnote

Performance

ISIN: GB00BMGLBK75
FP Carmignac Global Equity Compounders23.122.6-19.021.0
Reference Indicator19.822.9-7.816.8
FP Carmignac Global Equity Compounders+ 21.7 %+ 8.1 %+ 14.0 %
Reference Indicator+ 20.9 %+ 10.1 %+ 15.1 %

Source: Carmignac at 28 Jun 2024.
​Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor).

MARKETING COMMUNICATION. Please refer to the KIID/prospectus of the fund before making any final investment decisions.
This material was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd and is being distributed by Carmignac Gestion Luxembourg in the UK. This material may not be reproduced, in whole or in part, without prior authorisation from the Management Company. This material does not constitute a subscription offer, nor does it constitute investment advice. This material is not intended to provide, and should not be relied on for, accounting, legal or tax advice. This material has been provided to you for informational purposes only and may not be relied upon by you in evaluating the merits of investing in any securities or interests referred to herein or for any other purposes. The information contained in this material may be partial information and may be modified without prior notice. They are expressed as of the date of writing and are derived from proprietary and non-proprietary sources deemed by Carmignac to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Carmignac, its officers, employees or agents. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding possible entrance fees charged by the distributor). The return may increase or decrease as a result of currency fluctuations, for the shares which are not currency-hedged. 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. Access to the Funds may be subject to restrictions regarding certain persons or countries. This material is not directed to any person in any jurisdiction where (by reason of that person’s nationality, residence or otherwise) the material or availability of this material is prohibited. Persons in respect of whom such prohibitions apply must not access this material. Taxation depends on the situation of the individual. The Fund is not registered for retail distribution in Asia, in Japan, in North America, nor is it registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Fund has not been registered under the US Securities Act of 1933. The Fund may not be offered or sold, directly or indirectly, for the benefit or on behalf of a «U.S. person», according to the definition of the US Regulation S and FATCA. Company. The risks, fees and ongoing charges are described in the KIID (Key Investor Information Material). The KIID must be made available to the subscriber prior to subscription. The subscriber must read the KIID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Fund presents a risk of loss of capital. The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in English at the following link (paragraph 6 “Summary of investor rights”): https://www.carmignac.co.uk/en_GB/article-page/regulatory-information-1788. In the United Kingdom, the prospectus, KIID and annual reports are available at www.carmignac.co.uk, or upon request to the Management Company. FP CARMIGNAC ICVC (the “Company”) is an Investment Company with variable capital incorporated in England and Wales under registered number 839620 and is authorised by the Financial Conduct Authority (the “FCA”) with effect from 04/04/2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorized and regulated by the Financial Conduct Authority. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, England, CM1 3BY, UK (Registered in England and Wales under No 4162989). Carmignac Gestion, an investment management company approved by the AMF and Carmignac UK Ltd, authorised and regulated by the Financial Conduct Authority in the UK, have been appointed as a Sub-Investment Managers of the Company. Carmignac UK Ltd is incorporated in England and Wales (Registered in England and Wales under No 14162894) at 2 Carlton House Terrace, London, SW1Y 5AF.