Quality and sustainable investment are closely intertwined, with certain studies even suggesting that three quarters of the outperformance of ESG strategies can be directly attributed to the quality factor1. However, although the correlation is significant, the causal relationship between the two does not appear to be clearly established. At Carmignac, we firmly believe that quality and sustainable investment are two sides of the same coin that mutually strengthen each other in a virtuous cycle.
For over 20 years, Mark Denham, co-manager of the fund, has asserted that long-term performance relies solely on the ability to select companies with the best prospects. These companies, which Mark refers to as 'quality', must meet specific criteria:
They must be able to generate high and stable profits over time, which they can
reinvest to sustain their growth trajectory.
They must also have a positive impact on the environment and society.
This conviction has been quantified through a detailed investment process. Over time, this process has been enriched by adapting to the increasing availability of extra-financial data. However, the initial philosophy of excluding the worst-performing companies and rewarding the most promising on financial and extra-financial criteria has remained unchanged.
Quality companies generally have healthy balance sheets, stable cash flows and lower debt levels.
Moreover, they possess ample resources to invest in and adapt to evolving market conditions, such as emerging technologies, regulatory changes, and shifting consumer expectations. Consequently, they face a lower risk of their business model becoming outdated or obsolete.
Carmignac P. Grandchildren is an equity fund that has capitalised on the process established by Mark two decades ago. This Article 9 fund, launched 5 years ago, offers a distinctive approach by investing in quality companies across the developed world. As an all-round fund, it is distinguished by:
Concentrated exposure to quality companies across developed countries | 43 portfolio holdings |
A clear and coherent sustainable framework, enabling you to have a clear understanding of your investments | 100% of our investments are aligned with the UN SDGs (ex-cash) |
Reducing greenhouse gas emissions | < 50% Carbon emissions than its benchmark |
Total transparency on both the financial and non-financial dimensions of the portfolio | 3 ESG reporting at your disposal |
Exposure to companies capable of generating high returns on their investments | 23% Return on equity of the fund compared to 14% for the MSCI World |
Outstanding long-term performance | +89% vs 87% for the MSCI World over the last 5 years |
A recognised sustainable approach |
*https://www.lelabelisr.fr/en/;
https://www.towardssustainability.be/; https://www.febelfin.be/fr; Socially Responsible Investment, https://www.carmignac.fr/fr_FR/nous-connaitre/investissement-socialement-responsable-isr-1252. SRI and Febelfin labels obtained in January and February 2020 respectively. SFDR fund classification: Article 9 from 1 January 2022. Sustainable Finance Disclosure Regulations (SFDR) 2019/2088. For more information, please refer to EUR-lex..
Past performance is not necessarily indicative of future performance. Returns may increase or decrease according to currency fluctuations for equities that are not hedged against currency risk. Performance is net of fees (excluding any entry fees charged by the distributor).
*Risk Scale from the KID (Key Information Document). Risk 1 does not mean a risk-free investment. This indicator may change over time. **The Sustainable Finance Disclosure Regulation (SFDR) 2019/2088 is a European regulation that requires asset managers to classify their funds as either 'Article 8' funds, which promote environmental and social characteristics, 'Article 9' funds, which make sustainable investments with measurable objectives, or 'Article 6' funds, which do not necessarily have a sustainability objective. For more information please refer to https://eur-lex.europa.eu/eli/reg/2019/2088/oj.
Carmignac Portfolio Grandchildren | 15.5 | 20.3 | 28.4 | -24.2 | 23.0 |
Reference Indicator | 15.5 | 6.3 | 31.1 | -12.8 | 19.6 |
Carmignac Portfolio Grandchildren | + 5.9 % | + 12.8 % | + 13.9 % |
Reference Indicator | + 10.1 % | + 12.7 % | + 13.8 % |
Source: Carmignac at 31 Jul 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 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.
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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.
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