Carmignac launches global equity fund in UK

Carmignac, an independent European asset manager, has launched FP Carmignac Global Equity Compounders, a UK-domiciled global equity fund, reaffirming its commitment to the UK market. This adds to the firm’s range of six UK OEICs (Open Ended Investment Companies) launched in 2019.

This new fund aims to help today’s investors build wealth for the future generations. It is designed to provide investors with capital growth over a long-term horizon, focusing on high-quality companies worldwide, with sound financials, sustainable profitability and reinvestment.

FP Carmignac Global Equity Compounders is managed by Mark Denham, head of European Equities and Obe Ejikeme, fund manager within the Cross-Asset team. They declare: “Increasing life expectancy and major societal change have meant many investors are reconsidering how their investments can work for the benefit of their children and grandchildren. Our long-term investment approach aims to address these intergenerational investment goals.”

The investment objective of the fund is to achieve capital growth over a period of at least five years. The fund seeks to achieve this by investing directly in shares of global “compounders”, defined as companies with high sustainable profitability that reinvest profits for future growth. These characteristics of the underlying company should be rewarded over the long-term, and this is why the fund invests in those with high barriers to entry with a resilience to technological disruption. There is no predetermined focus on business sector or geography, although concentrations will naturally emerge through stock selection.

Maxime Carmignac, managing director, UK Branch: “One year on from the promising launch of Carmignac’s OEIC range, we are delighted to enhance our offering for the UK market. FP Carmignac Global Equity Compounders marks another significant milestone for Carmignac’s UK proposition, a key growth area for Carmignac.”

In addition, the fund seeks to invest sustainably and implements a socially responsible investment approach. At each stage of the investment process, the fund managers integrate ESG criteria and aim for a low carbon portfolio.