Flash Note

Carmignac

FP Carmignac Global Equity Compounders celebrates its three-year anniversary

  • Published
  • Length
    4 minute(s) read

FP Carmignac Global Equity Compounders  - a global equity fund invested in developed markets through a sustainable approach - is celebrating its third anniversary. This milestone provides a chance to reflect upon the fund's key defining characteristics.

Jump to a section on the page

A Fund focusing on “Compounders”

Carmignac
*Stocks we own today and have held since the Fund’s launch (65% of the portfolio). Portfolio composition may change over time. Source: Carmignac, Factset, as of 31/05/2023

Compounders are high-quality companies that choose to reinvest their earnings sustainably to generate future growth. By investing in compounders, the Fund aims to benefit from profitable business models that reinvest their earnings internally to finance their future growth. By ploughing capital back into their business instead of paying dividends, compounders create additional growth engines, for example through innovation or product development, which allows the company to live on over economic cycles and generations.

We can observe from the graph above that compounders in the portfolio since launch generate higher average EPS than the MSCI World, reflecting potential better profitability over the long term. In this way, the Fund benefits from the compounding effect.

An experienced portfolio management team

FP Carmignac Global Equity Compounders is managed by two experienced fund managers: Mark Denham and Obe Ejikeme. With 31 and 19 years of investment experience respectively, they manage more than £770 million of assets under management between them. Their complementary expertise – Mark Denham is renowned for his fundamental approach and Obe Ejikeme for his quantitative analysis – enables the Fund to benefit from a robust process to unearth compounders.

A non-benchmarked high-conviction portfolio

Carmignac
The trademarks and logos do not imply any affiliation with or endorsement by the respective entities.

Thanks to its structured and quantifiable process, FP Carmignac Global Equity Compounders identifies companies that possess the ability not only to grow their earnings consistently over time but also to effectively execute their strategies due to their operational excellence. This enables us to build up strong convictions while optimising their weight based on the economic cycle to form a concentrated portfolio of 41 stocks with an active share of 85% at the end of June 2023.

Eli Lilly, Colgate, SAP or L’Oréal – for examples – have demonstrated their resilience by adapting their business model to changes in their environment over time. Their ability to adapt and continue to invest, even in difficult times, makes them major players in their sectors. The same ability can also lead them to maintain their position in the future.

A sustainable global equity Fund

Carmignac

By investing in compounders, FP Carmignac Global Equity Compounders aims to achieve
long-term outcomes and therefore build a legacy not only for the investors themselves, but also one that can be passed on from one generation to the next.

With this objective of transmission through the generations, we are convinced that, as investors, it is our responsibility to create value for our clients through a sustainable approach, and to have a positive footprint for future generations. We strive to identify firms generating positive change based on the Sustainable Development Goals (SDGs) defined by the United Nations.

The Fund also aims to reduce its carbon emissions relative to its reference indicator (MSCI WORLD, USD, Reinvested Net Dividends).

A long-term investment solution

On its third anniversary, FP Carmignac Global Equity Compounders has posted a solid annualised net performance since launch, outperforming its Morningstar category, which puts the Fund in the top quartile since the start of 2023, over 1 year, 3 years and since launch. This positive performance is underpinned by the sound business models in which the Fund invests, which generate positive underlying results over the long term, a further example of the benefits of compounding.

FP Carmignac Global Equity Compounders is a fund designed to withstand different market situations over the long term. Given the economic slowdown taking shape, the Fund appears to be well positioned thanks to its focus on quality companies that are generating positive and foreseeable cash flows regardless of economic growth.

FP Carmignac Global Equity Compounders

A global, high-conviction equity fund for long-term investors

Discover the fund page

FP Carmignac Global Equity Compounders A GBP ACC

ISIN: GB00BMGLBK75

Recommended minimum investment horizon

Lower risk Higher risk

Potentially lower return Potentially higher return

1 2 3 4 5 6 7
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.

FP Carmignac Global Equity Compounders A GBP ACC

ISIN: GB00BMGLBK75
2019 2020 2021 2022 2023 2024 (YTD)
?
Year to date
FP Carmignac Global Equity Compounders A GBP ACC - +23.05 % +22.62 % -19.02 % +20.98 % +11.83 %
Reference Indicator - +19.85 % +22.94 % -7.83 % +16.81 % +6.73 %

Scroll right to see full table

3 Years 5 Years 10 Years
FP Carmignac Global Equity Compounders A GBP ACC +8.32 % - -
Reference Indicator +9.22 % - -

Scroll right to see full table

Source: Carmignac at 30/04/2024

Maximum subscription fees paid to distributors : 0,00%
Redemption Fees : 0,00%
Ongoing Charges : 0.90%
Conversion Fee : -
Management Fees : 0,82%
Performance Fees : -
Thank you for taking the time to provide your feedback, appreciated.

Latest insights

Marketing communication. Please refer to the KID/KIID, prospectus of the fund before making any final investment decisions. This document is intended for professional clients.

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. The reference to a ranking or prize, is no guarantee of the future results of the UCIS or the manager.

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.

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 Funds are not registered for retail distribution in Asia, in Japan, in North America, nor are they registered in South America. Carmignac Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Funds have not been registered under the US Securities Act of 1933. The Funds 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. The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital.

The Funds’ prospectus, KIDs, NAVs and annual reports are available at www.carmignac.com, or upon request to the Management Carmignac Portfolio refers to the sub-funds of Carmignac Portfolio SICAV, an investment company under Luxembourg law, conforming to the UCITS Directive. The French investment funds (fonds communs de placement or FCP) are common funds in contractual form conforming to the UCITS or AIFM Directive under French law.

  • In France, Luxembourg, Sweden: The risks, fees and ongoing charges are described in the KID (Key Information Document). The KID must be made available to the subscriber prior to subscription. The subscriber must read the KID. Investors may lose some or all their capital, as the capital in the funds are not guaranteed. The Funds present a risk of loss of capital. The Funds’ prospectus, KIDs, NAV and annual reports are available at www.carmignac.com, or upon request to the Management.

  • In the United Kingdom: the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.co.uk, or upon request to the Management Company, or for the French Funds, at the offices of the Facilities Agent at BNP PARIBAS SECURITIES SERVICES, operating through its branch in London: 55 Moorgate, London EC2R. This document was prepared by Carmignac Gestion, Carmignac Gestion Luxembourg or Carmignac UK Ltd. 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 FCA with effect from 4 April 2019 and launched on 15 May 2019. FundRock Partners Limited is the Authorised Corporate Director (the “ACD”) of the Company and is authorised and regulated by the FCA. Registered Office: Hamilton Centre, Rodney Way, Chelmsford, Essex, CM1 3BY, UK; Registered in England and Wales with number 4162989. Carmignac Gestion Luxembourg SA has been appointed as the Investment Manager and distributor in respect of the Company. Carmignac UK Ltd (Registered in England and Wales with number 14162894) has been appointed as a sub-Investment Manager of the Company and is authorised and regulated by the Financial Conduct Authority with FRN:984288.

  • In Switzerland: the prospectus, KIDs and annual report are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland), S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Montrouge, Nyon Branch / Switzerland, Route de Signy 35, 1260 Nyon.

The Management Company can cease promotion in your country anytime. Investors have access to a summary of their rights in English on the following links: UK ; Switzerland ; France ; Luxembourg ; Sweden.