Carmignac makes China New Economy equity strategy available to European investors
Carmignac is launching a fund for European investors aiming at replicating its China New Economy equity strategy, which is to date only available in France.
This strategy returned an attractive performance of +93 per cent in 2020, compared to +19 per cent for its reference indicator (MSCI Daily TR Net China USD, converted into EUR), and +27 per cent for its Morningstar Greater China Equity category. Thanks to this performance, the strategy ranked first in its category.
The fund which implements a socially responsible approach is managed by Haiyan Li-Labbé, a seasoned portfolio manager focusing on the Greater China equity markets, and who is already co-managing the emerging flagship equity fund, Carmignac Emergents. Li-Labbé has a strong expertise and track record in investing in Greater China with high contribution of Chinese stock selection to all Carmignac equity portfolios. Her deep local knowledge and her strong ties to understand domestic dynamics allows her to identify the companies displaying the most attractive and sustainable long-term growth prospects within the Chinese New Economy.
The reference to the Chinese “New Economy" reflects the manager's desire to invest in sustainable growth themes and sectors of the Greater China economy. Notably, this includes sectors linked to "sustainable" consumption, healthcare, education, low-carbon energy and technological innovation, such as e-commerce, and Internet which benefit from the increasing purchasing power and improving living standards of Chinese households. The Fund also seeks to minimise its environmental impact by reducing its carbon footprint by 5 per cent annually and is classified under Article 8 of the SFDR EU.
Li-Labbé says: “Carmignac has developed a strong expertise on emerging and Chinese markets since its inception in 1989. Since then, we have been concentrating our efforts on selecting Chinese equities that display attractive long-term growth opportunities. The Chinese equity market has changed dramatically as the local economic base has moved from being mainly export-industry-led to focusing on innovation. The Carmignac China New Economy fund is investing with a high level of selectivity to identify high potential companies with a focus on sustainability. Our investment philosophy aims at allowing our clients benefit from the country’s economic growth and long-term structural trends.”
As of today, the fund Carmignac Portfolio China New Economy is registered in Austria, Belgium, France, Germany, Italy, Luxembourg, Spain, Sweden, Switzerland and the United Kingdom.