Carmignac's Responsible Investment Approach - Sandra Crowl, CAIA Stewardship Director
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P R O F E S S I O N A L S O N LY
Carmignac’s
Responsible Investment Approach
Sandra Crowl, CAIA
Stewardship Director
Carmignac, a pioneer in sustainable EM debt
Fixed income funds account for 20.3% of all sustainable funds in Europe
compared to 51.1% of equity funds
Sustainable fixed income funds account for 14.4% of the overall fixed income fund
universe compared to 21.6% of the comparable equity funds in its own universe
Within the sustainable fund space, EM Sovereign debt funds represent 6% of fixed
income funds (€30bn AuM out of €495bn AuM of fixed income funds) and 1.2% of
all sustainable funds in Europe
Source: Morningstar, July 2021
PROFESSIONALS ONLY 2
Joseph
MOUAWAD Fund ID Card
Fund manager
• Inception Date: 31 July 2017
WHY THIS STRATEGY? • AuM: € 103 m as of 30/06/2021
• Reference Indicator: JP Morgan GBI –
1. Aims to capture EM bond market opportunities with a sustainable approach Emerging Markets Global Diversified
whatever the market conditions Composite Unhedged EUR Index*
2. Prolonged period of very low/negative interest in DM sovereigns while
• Category: Global Emerging Market Bond
EM bonds offer much higher yields
3. Cheap valuations in EM bonds as many EM assets have not recovered their • SFDR Fund Classification: Article 9
pre-crisis levels while the dollar multi-year cycle supports the asset class
• Stars:
3Y KEY METRICS
Annualized Performance +12.28% Sortino Ratio 1.73
Sharpe Ratio 1.25 Average Rating BBB-
Source: Carmignac, 28/06/2021. A & F Share Class EUR Acc. *Bloomberg code: JGENVUEG
Risk Scale from the KIID (Key Investor Information Document). Risk 1 does not mean a risk-free investment.
This indicator may change over timeThe reference to a ranking or prize, is no guarantee of the future results of the UCITS or the manager.
EUR Global Emerging Market Bond. Morningstar Direct © 2021 Morningstar, Inc. All Rights Reserved. Citywire Fund Manager Ratings measure performance across
all the funds run by a given manager. The ratings take account of a three-year performance record and are updated every month. Citywire takes into account career
moves. In order to be rated, a fund manager will need to beat his or her benchmark over a three-year period.
(The absolute return methodology is slightly different – please refer to Citywire FM Ratings’ FAQ webpage). Past performance is not necessarily indicative of future
PROFESSIONALS ONLY 3 performance. The return may increase or decrease as a result of currency fluctuations
Performances are net of fees (excluding applicable entrance fee acquired to the distributor
Why Investing in EM Debt with Carmignac?
AN EXPERIENCED HIGHLY FLEXIBLE SUSTAINABLE
MANAGEMENT TEAM INVESTMENT PROCESS OBJECTIVE
The management team The ‘Systematic This Strategy’s
has been in place at the Signals’ monitoring by sustainable objective*
helm of the EM Debt the management team through rules based,
strategy since launch as allows to cover this proprietary ESG rating,
well as Carmignac Ptf large investment is to invest in
Emerging Patrimoine universe countries that are
since 09/2015 The Strategy seeks to making progress in
demonstrating both benefit from market some or all the three
strong absolute and upturns while limiting Environment, Social
relative performance drawdowns, and offers and Governance
great diversification dimensions
ATTRACTIVE RISK REWARDS FOR EM BOND PICKERS
Source: Carmignac, April 2021
*SFDR fund category : Article 9
PROFESSIONALS ONLY 4
01 02
Highly Flexible Investment Process 03
TOP-DOWN BOTTOM-UP
Economic context analysis Issuer analysis
SYSTEMATIC SIGNALS
Impact on EM Fixed Income markets ESG Bond picking
ASSESSMENT
HANDS-ON ANALYSIS
Determination of the Fund’s overall
Beta, and specific Beta to EM FX, EM
Rates & EM Credit
Source: Carmignac
PROFESSIONALS ONLY 5
Measurable ESG Objectives: Proprietary Emerging 03
Market Sovereign Impact Scoring System
WHAT? WHY? HOW?
• Numerical scoring system that goes from 1 • Allows to identify the causes of poor- • Each of E,S & G components is the average
(Bad) to 5 (Good) with 3 as a neutral point. performance for countries under of their sub-components. If a sub-
difficulties and vice-versa. component has a Static and Dynamic score
• Country score composed of the equally they are averaged before being included in
weighted average of the three components • Methodology that contrasts with the component average calculation.
E, S, and G. industry practice as competitors tend to
assign a high ESG score to the more • Fund score is then aggregated as the
developed countries weighted average of the country score and
the exposure of the positions.
• Lack-of-quality information in Emerging
Market Debt. Plus, available information
tends to focus on static country situations
and not on their trajectories
ESG = Environment, Social & Governance.
All the funds and underlying issuers are not concerned by this statement. For more details, please refer to:
https://www.carmignac.com/en_US/responsible-investment/in-practice-4744
PROFESSIONALS ONLY 6 Source: Carmignac, 31/01/2021Measurable ESG Objectives: Proprietary Emerging 03
Market Sovereign ESG Scoring System
ESG scoring system at CEMD’s level
% % Weighted
Expo Expo Average
>3 >2.6 Fund Score
Sov +
Quasi-Sov 91% 100% 3.42
Debt
Proprietary
ESG Score
• Sovereign and quasi sovereign
positions >60% of funds assets
• Sustainable objective portfolio
rules for these assets
1) 60% of the fund above a score of 3
2) 90% of the fund above to a score of 2.6
3) Average exposure weighted score above 3
Credit Rating
For illustrative purpose, composition of the portfolio may vary at any time
Source: Carmignac, July 2021
PROFESSIONALS ONLY 7Measurable ESG Objectives: Proprietary Emerging 03
Market Sovereign ESG Scoring System
Proprietary EM Sovereign ESG Indicators
ENVIRONMENT SOCIAL GOVERNANCE
Capturing investment in climate Long-term social improvements Credit Worthiness, Rule of Law, institution
mitigation and sustainable development that drive growth and stability & regulatory quality and control of
corruption
CO2 per capita GDP per capita PPP1
Share of Renewables Life expectancy Ease of doing business
GINI2 Fiscal Position
Education Debt as years of Revenue Position
Current Account Position
MANUAL ADJUSTMENT FACTOR 3 THAT MANAGEMENT TEAM CAN USE TO CORRECT
ON AN AD HOC BASIS EACH OF THE E, S, AND G FACTORS FOR A COUNTRY
1. Gross domestic Product per capita purchasing power parity
2. GINI: Inequality index developed by Conrado GINI.
3. While the management team is aiming at having a transparent and thus relatively simple index, there are aspects that are not captured.
Typically, these would be the impact of recent events not yet reflected in the data or that the data available does not cover fully the situation
PROFESSIONALS ONLY 8 Source: Carmignac, March 2021Proprietary EM Sovereign ESG Scoring System:
Environment Pillar E
• The Environmental aspect aims at capturing what
are countries doing to mitigate the impact of
Element Index Comments
climate change and how sustainable is the
CO2 per capita Our World In Data – Static + Dynamic
country’s development
Oxford University
• The Environmental factor enables us to find Share of Share of Renewables in Dynamic
countries that are taking steps to reduce the Renewables total installed capacity – We take into account
impact of climate change on their people BNEF (Bloomberg New Large Hydro in
Energy Finance) renewables
• Furthermore, an immediate impact of energy
importers substituting fossil fuels to renewables
is a positive impact on the Trade Balance
Source: Carmignac, December 2020
PROFESSIONALS ONLY 9Proprietary EM Sovereign ESG Scoring System:
Social Pillar S
• Looking at the investment’s countries are making to
Element Index Comments
improve their Human Capital which means improving the GDP Per IMF Dynamic
health of the population and the level of education Capita PPP
Life Life expectancy at birth of Dynamic only, we
• Furthermore, we look at changes in inequality, captured Expectancy both sexes – World Bank take the change in the
by the GINI, to see if growth is spread over rather than life expectancy of a
captured by a few country vs the world
average
• Improving the Human Capital is related to higher quality GINI GINI coefficient – World Bank Static and Dynamic
growth and economic diversification Education PISA (Reading, Maths, Dynamic
Science) – OECD and if too
• Looking at dynamic aspects for education and life little data or missing Litteracy
expectancy allow to better capture the performance of Rate – World Bank
countries regardless of their existing wealth
Source: Carmignac, December 2020
PROFESSIONALS ONLY 10Proprietary EM Sovereign ESG Scoring System:
Governance Pillar G
• Governance should capture how well set-up is the
government for delivering long term growth: this will
mean looking at the macro-economic set-up as well as the Element Index Comments
‘rule of law’ Ease of Doing Ease of doing business – Dynamic
Business World Bank Captures contract
• Rule of Law is included in sub-indexes of the ease of enforcement metrics
doing business index compiled by the World Bank
Fiscal Position Fiscal Deficit - IMF Static and Dynamic
• Improving the ease of doing business will imply making Debt as Years of Gross Debt to GDP and Static and Dynamic
sure that there is access to energy for companies, to Revenue Position Revenue to GDP – IMF
making it easier and faster to start a company
Current Account Current Account to GDP Static and Dynamic
Position – IMF
• Use of the IMF data for the fiscal deficit, debt to GDP and
current account to GDP in order to further quantify the
macro prudential regime.
Source: Carmignac, December 2020
PROFESSIONALS ONLY 11Chile vs Russia Case Study:
A Similar Score for Two Different Political Systems
CHILE RUSSIA
CO2 per Capita 3.00 2.00
Share of Renewables 4.00 3.00 CHILE
Adjustment*
ENVIRONMENT 3.50 2.50
Life Expectancy 2.00 3.00
GDP Per Capita PPP 3.00 3.00
GINI Coefficient 3.50 3.00
Education 4.00 3.00 CHILE
Adjustment*
SOCIAL 3.13 3.00
Ease of Doing Business 3.00 4.00
Fiscal Position 3.00 5.00 RUSSIA
Debt Position 2.50 4.00
Current Account Position 2.50 3.50
Adjustment*
GOVERNANCE 2.75 4.13
TOTAL 3.13 3.21
Source: Carmignac, December 2020
PROFESSIONALS ONLY 12China Case Study:
ESG Rating 3.34 | A+ Credit Rating
CO2 per Capita 2.00
Share of Renewables 5.00
Adjustment*
ENVIRONMENT 3.50
Life Expectancy 3.00
GDP Per Capita PPP 5.00
GINI Coefficient 2.50
Education 3.00
Adjustment*
SOCIAL 3.38
Ease of Doing Business 5.00
Fiscal Position 1.50
Debt Position 2.50
Current Account Position 3.50
Adjustment*
GOVERNANCE 3.13 Chinese sovereign bonds are well suited
TOTAL 3.34 with regards to our ESG framework
Source: Carmignac, December 2020
PROFESSIONALS ONLY 13Saudi Arabia Case Study:
ESG Rating 2.68 | A Credit Rating
CO2 per Capita 2.50
Share of Renewables 1.00
Adjustment*
ENVIRONMENT 1.75
Life Expectancy 2.00
GDP Per Capita PPP 3.00
GINI Coefficient
Education 3.00
Adjustment* -0.50
SOCIAL 2.16
Ease of Doing Business 5.00
Fiscal Position 3.50
Debt Position 3.00
Current Account Position 5.00
Adjustment*
GOVERNANCE 4.13
‘Bad’ rating for Saudi sovereign bonds
TOTAL 2.68
with regards to our ESG framework
Source: Carmignac, December 2020
PROFESSIONALS ONLY 14Corporate Bond Approach to Socially Responsible Investment1
EMERGING CORPORATE BOND UNIVERSE2
≈ 697 issuers
Liquidity Financial Rating Spread
Macro INVESTABLE UNIVERSE ACCORDING TO FINANCIAL CRITERIA Micro
≈ 318 issuers
Level Level
Exclusions Controversies
SUSTAINABLE EMERGING CORPORATE
BOND UNIVERSE
≈ 254 issuers
1: All the funds and underlying issuers are not concerned by this statement.
For more details, please refer to:
https://www.carmignac.com/en_US/responsible-investment/in-practice-4744
2: Universe: JPM CEMBI Index (USD).
Portfolio composition may vary overtime.
PROFESSIONALS ONLY 15 Data as of 30/09/2020. Source: Carmignac, October 2020Carmignac’s firm-wide fund exclusions policy
Our exclusions Firm-wide hard restrictions
policy (transactions are prohibited and blocked on trading tools)
- Controversial weapon manufacturers that produce products that do not comply with
treaties or legal bans*
Our exclusion list contains
companies and sectors - All Tobacco producers + wholesale distributors and suppliers with revenues over 5%
that are excluded due to from such products
their activities or their - Thermal coal miners with over 10% revenues or 20 million tonnes from extraction
business norms. - Power generators that produce more CO2 than the defined threshold**
- Adult entertainment and pornography producers and distributers with over 2%
This policy applies to all revenues from such product
funds where Carmignac
- International Global Norms violations including OECD Business Principle, ILO
acts as an investment Principles, UNGC Principles , EU, UN or OFAC sanctions
manager.
*Companies that do not comply with: 1) The Ottawa Treaty (1997) which prohibits the use, stockpiling, production and transfer of anti-personnel mines; 2) The
Convention on Cluster Munitions (2008) which prohibits the use, stockpiling, production and transfer of cluster munitions; 3) The Belgian Loi Mahoux, the ban
on uranium weapons; 4) The Chemical Weapons Convention (1997) which prohibits the use, stockpiling, production and transfer of chemical weapons; 5) The
Treaty on the Non-Proliferation of Nuclear Weapons (1968), which limits the spread of nuclear weapons to the group of so-called nuclear weapons states (USA,
Russia, UK, France and China); 6) Biological Weapons Convention (1975) which prohibits the use, stockpiling, production and transfer of biological weapons
**In line with the 2 ◦ C scenario suggested by the IEA or new coal/nuclear build or Gas>30%, Coal >10%, Nuclear >30% revenues if CO2 data not available
Please refer to Carmignac’s exclusion policy for further detail
Exclusion lists are updated on a quarterly basis
Source: Carmignac, October 2020
For more information, please see our Exclusion Policy available on our website: www.carmignac.co.uk/en_GB/responsible-investment/policy
PROFESSIONALS ONLY 16Carmignac’s proprietary ESG research system, START
Integrates ESG research throughout the investment process
We compare a We gather large Companies are Our analysts use
Collect
Rank
Analyse
Group
company vs. its quantities of raw ranked within their their in-depth
peers to decide on data from ESG peer group company and
which have similar specialised sources based on industry
significant such as company financially material knowledge and
stakeholders. We reported data and ESG metrics to quantitative and
then group these controversies. This provide a baseline qualitative analysis
companies by data is quantitative rating to provide unique
region and size to automatically of A-E insights and input
constitute our own transferred into
ESG peer groups START
START’s output
• Rating of A (best) to E (worst)
• Supporting comment to
Key components: qualify rating
1. Proprietary ESG peer groups including regional and market cap considerations • Forward-looking outlook
2. Both machine and human input assessment
3. Inclusion of impact assessment
The proprietary ESG system START combines and aggregates market leading data providers ESG indicators . Given the
lack of standardisation and reporting of some ESG indicators by public companies, not all relevant indicators can be
taken into consideration. START provides a centralised system whereby Carmignac’s proprietary analysis and insights
related to each company are expressed, irrespective of the aggregated external data should it be incomplete.
For more information, please refer to our website: https://www.carmignac.co.uk/en_GB/responsible-investment/in-
PROFESSIONALS ONLY 17 practice-4744
Source: Carmignac, October 2020START in practice
Company Name and Ticker
GICS Sector
Proprietary ESG Industry
Analyst commentary
Analyst Name
Date
Flag for family firm
The proprietary ESG system START combines and aggregates market leading data providers ESG indicators .
Given the lack of standardisation and reporting of some ESG indicators by public companies, not all relevant
indicators can be taken into consideration. START provides a centralised system whereby Carmignac’s
proprietary analysis and insights related to each company are expressed, irrespective of the aggregated
PROFESSIONALS ONLY 18 external data should it be incomplete.START* ESG indicators and output rating
ESG Indicators START output rating
We analyse and compare each company against 31 identifiable and Each company is given a rating of A-E which reflects our
relevant sustainable metrics analysts’ view of firm ESG risk
Environmental Social Governance Rating Definition
Carbon Emissions –Direct & First % Audit Committee A Manages their risk effectively that have financial impact and
% Employee Satisfaction
Tier Indirect (tonnes CO2e) Independence communicates with investors
Carbon Intensity- Direct & First Tier Compensation Committee
Employee Turnover B Flaws in management system led & working on improvement
Indirect (tonnes CO2e/USD mn) Independence
following recent financial impact controversies.
Flaring of Natural Gas Nomination Committee
Female Managers
Involvement C Aware of future risks but do not have adequate systems to
Average Employee Training Long Term Objective-Linked manage impact of future financial material risk.
Total Energy Use/Revenues
Hours Executive Compensation
D Do not understand & no action taken on recent controversies.
Renewable Energy Use Ratio Lost Time Due to Injury Rate Independent Board Members
Management doesn’t understand and not addressing risk
Energy Use Total Employee Fatalities Average Board Tenure
Total Waste / Revenues Chief Executive Salary Gap % Board Gender Diversity E Not aware of the risk they are facing and has no management
Waste Recycled /Total Waste % Gender Pay Gap Highest Remuneration Package plan in place. Faced with controversies and has no plans
Accidental Spills % Customer Satisfaction Board Size
Sustainability Compensation
Water Use / Revenues
Incentives
Water Recycled
Fresh Water Withdrawal Total
*The proprietary ESG system START combines and aggregates market leading data providers ESG indicators . Given
the lack of standardisation and reporting of some ESG indicators by public companies, not all relevant indicators can
be taken into consideration. START provides a centralised system whereby Carmignac’s proprietary analysis and
insights related to each company are expressed, irrespective of the aggregated external data should it be
incomplete.
Source: Carmignac, October 2020
For more information, please refer to our website: https://www.carmignac.co.uk/en_GB/responsible-investment/in-
PROFESSIONALS ONLY 19 practice-4744Carmignac’s Engagement Policy
Engagement Process
Research & identify financially
In addition to active voting, Carmignac commits to engagement with companies to raise material ESG themes
awareness of ESG controversies or issues.
Monitoring
Portfolio managers, analysts and the ESG team collaborate to engage actively with the
investee companies.
Define SMART* engagement
objectives
There are five types of engagement:
1. ESG risks Dialogue with companies
2. Thematic engagement
3. Impact engagement
4. Controversial behaviours engagement Result
5. Proxy voting decisions engagement
Reporting
*Specific; Measurable; Achievable; Realistic; Timely
The proprietary ESG system START combines and aggregates market leading data providers ESG indicators . Given the lack of standardisation and reporting of
some ESG indicators by public companies, not all relevant indicators can be taken into consideration. START provides a centralised system whereby Carmignac’s
proprietary analysis and insights related to each company are expressed, irrespective of the aggregated external data should it be incomplete.
PROFESSIONALS ONLY 20 Source: Carmignac, October 2020
For more information, please see our Engagement Policy and Reports: https://www.carmignac.com/en_US/responsible-investment/policyCommitting to Collaboration and Affiliations
Highest PRI rating achieved 2018 2019 2020
Strategy & Governance Our score A A+ A+
(S&G)
Median* A A A
Signature date: 01/12/19
Listed Equity- Our score A A+ A+
Incorporation
Median B B A
Signature date: 05/01/2020
Listed Equity- Active Our score A B A
Ownership
Median B B B
Signature date: 05/01/2020
Signature date: 14/06/12 Signature date: 27/10/19 Sovereign, supra, agency Our score B C A
(SSA)
Median B B B
Fixed Income- Corporate Our score B B A
Financial
Median B B B
Date:: 02/01/19
Fixed Income - Corporate Our score B B A
Non-Financial
Median B B B
*Median across PRI Signatories
Source: RHS PRI August 2020. For more information regarding the UN PRI please refer to:
www.unpri.org/reporting-and-assessment/how-investors-are-assessed-on-their-reporting/3066.article
PROFESSIONALS ONLY 21 For more information regarding our affiliations, please refer to our website:
https://www.carmignac.co.uk/en_GB/responsible-investment/our-approach-4743Carmignac Portfolio EM Debt:
1st decile over Multiple Periods
Return in the Global Emerging Market Bond category Sharpe ratio in the Global Emerging Market Bond category
+18.3% +37.9% +37.7% +32.3% 2.9 2.5 1.8 1.3
2nd percentile 1st percentile 1st percentile 1st percentile 4th percentile 1st percentile 1st percentile 1st percentile
1st quartile
2nd quartile
3rd quartile
4th quartile
1Y 2Y 3Y Since launch 1Y 2Y 3Y Since launch
Source: Carmignac, Morningstar. © 2021 Morningstar, Inc - All rights reserved, as at 31/05/2021.
Returns in EUR. Sharpe ratio calculated using weekly returns. Risk-free rate: Daily capitalized EONIA. 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. Carmignac Portfolio EM Debt W EUR Acc (ISIN: LU1623763734) is in the Alt – Long/Short
Credit Morningstar category but will be moved to the Global Emerging Markets Bond category at the beginning of February 2020, hence results
PROFESSIONALS ONLY 22 have been simulated in this category.Main Risks of Carmignac Portfolio EM Debt
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.
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.
Credit
Credit risk is the risk that the issuer may default.
The Fund presents a risk of loss of capital
A EUR Share class.
Risk Scale from the KIID (Key Investor Information Document). Risk 1 does not mean a risk-free investment.
This indicator may change over time.
PROFESSIONALS ONLY 23Appendix PROFESSIONALS ONLY 24
Evolution of Maximum Drawdown and Recovery Periods
Carmignac P. EM Debt: Maximum Drawdown MS Fixed Income Categories Max DD vs Returns
MDD: -13.2% MDD: -20.1% Carmignac Portfolio 40%
Recovery: 156d Recovery: 157d
40% 140 EM Debt
35%
30%
130 30%
20%
120 25%
10%
20%
0% 110
Global Bond 3-year
-10% Global EM Bond Morningstar 15% Return
100
Morningstar Category average
-20% 10%
Category average
90 EUR Flexible Bond
-30% 5%
Morningstar
-40% 80 Category average
0%
07/17 01/18 07/18 01/19 07/19 01/20 07/20 01/21
-30% -25% -20% -15% -10% -5% 0%
CEMD Drawdown CEMD Performance
Maximum DD
Source: Carmignac, Morningstar. © 2021 Morningstar, Inc - All rights reserved, as at 31/05/2021.
PROFESSIONALS ONLY 25An Experienced Management Team
GLOBAL FIXED INCOME CREDIT
Rose OUAHBA Pierre VERLÉ
Head of Fixed Income Head of team
Keith NEY Alexandre DENEUVILLE
Julien CHERON EM DEBT
Florian VIROS
Joseph
Eliezer BEN ZIMRA MOUAWAD
EMERGING EQUITIES
James
Guillaume RIGEADE BLANNING Xavier HOVASSE
Head of team
Haiyan LI
EURO FIXED INCOME
Amol GOGATE
Marie-Anne ALLIER
Aymeric GUEDY G10 FIXED INCOME RISK MANAGEMENT
Guillaume HUTEAU
Michael MICHAELIDES
Front Office Risk Manager
Source: Carmignac,
Management team as of 01/07/2021.
PROFESSIONALS ONLY 26 The Fund's Management Team may change over the Fund's lifespan.Why Investing in EM Debt?
1 Financial Repression 2 Market Timing 3 Large Investment Universe
in $ bn
EMD 30% of the global bond universe
Carmignac P. EM Debt YTM
7% 12000 with China as 2nd biggest bond market!
6% Change in Fed
treasury holdings 10000
5%
Federal budget
8000
4% deficit change
3% 6000
JPMorgan GBI Global Index YTM Local Sovereign
2%
4000
1%
0% 2000
USD Corporate
ICE BofA Euro Broad Market Index YTM
-1% USD Sovereign
0
11/17 11/18 11/19 11/20 07 08 09 10 11 12 13 14 15 16 17 18
Source: Carmignac, Refinitiv,
Left: 05/07/2021
Middle: October 2020
PROFESSIONALS ONLY 27 Right: JPMorgan, 2018Risk Management
MAIN CONSTRAINTS* RISK MONITORING RISK CONTROL
Modified Duration Within the management team Independent control team through
portfolio managers
-4 +10
Evaluating the portfolio's behaviour using
a wide range of tools (ex-ante volatility, Monitoring of exposures, investment limits
Convertible Bonds correlations, factor decomposition, (regulatory, prospectus, internal), portfolio
0% 10% simulations) allows the calibration of VaR monitoring, historical stress tests
positions
Distressed Government Bonds
0% 15%
Distressed Corporate credit
0% 5%
Credit Derivatives Instruments
0% 50%
For illustrative purpose only.
Source: Carmignac
PROFESSIONALS ONLY 28 *gross limitsCarmignac Portfolio EM Debt: 3Y Correlation figures with largest
funds in the Morningstar category
EM Dbt Abs Rt A
Aviva Investors
Flexible Bond A
EM Debt A EUR
Sécurité A EUR
Dbt Y-Acc-USD
JPM GBI Index
Emerging Mkt
Diversified TR
Em Mkts Bd I
Carmignac P.
Carmignac P.
Carmignac P.
Schroder ISF
Credit A EUR
Carmignac
JPM EMBI
Dis USD Q
USD Acc
EUR Acc
Fidelity
Global
USD
Acc
Acc
Acc
Carmignac Pf EM Debt A EUR Acc 100%
Carmignac Sécurité A EUR Acc 74% 100%
Carmignac Pf Flexible Bond A EUR Acc 66% 85% 100%
Carmignac Pf Credit A EUR Acc 66% 82% 88% 100%
Aviva Investors Em Mkts Bd I USD Acc 66% 61% 62% 54% 100%
Schroder ISF EM Dbt Abs Rt A Dis USD Q 50% 25% 14% 17% 61% 100%
Fidelity Emerging Mkt Dbt Y-Acc-USD 72% 66% 66% 61% 95% 65% 100%
JPM EMBI Global Diversified TR USD 66% 61% 60% 53% 98% 64% 96% 100%
JPM GBI Index 79% 60% 55% 53% 70% 67% 73% 71% 100%
Source: 26/06/2021. Carmignac, Morningstar. © 2021 Morningstar, Inc - All rights reserved. Correlation
figures calculated using weekly returns in Euro, taking the oldest share class of the largest active funds
included in the Global Emerging Markets Bond Morningstar category.
PROFESSIONALS ONLY 29Carmignac Portfolio EM Debt: Current Positioning
Modified duration FX Net Exposure Key Figures*
9.2
Total -4 +10
Asia 49%
Local debt (in basis points) 339
Cash & equivalents 7.0%
DM -118
EUR 40%
Asia 363
EMEA -14
Average YTM 4.97%
Latin America 108 EMEA 18%
External debt 330
Average maturity 13.7 years
Asia -10 Latam 16%
EMEA 179 Average rating BBB-
Latin America 161
Yen 4%
Corporate Credit -1
DM -102
USD -28%
Asia 28
EMEA 22
Portfolio composition may be changed anytime without notice.
Latin America 51 Source: Carmignac as of 05/07/2021
YTM: yield to maturity
PROFESSIONALS ONLY 30 DM: Developed MarketsCarmignac Portfolio EM Debt – The EM FI Team
Joseph Mouawad| Fund Manager James Blanning| Analyst
Since 2015 Since 2016
Carmignac, Fund Manager – EM Debt & Currencies Carmignac, Paris – EM Analyst
2013-2015 2015 - 2016
Caxton, London, UK – Portfolio Manager Nomura Investment Bank, London, UK – Analyst, Delta One & Stock
2008 - 2013 Loan Trading Teams
Deutsche Bank, London, UK – Head of EM Structured Fixed Income 2014 - 2015
Trading Nomura Investment Bank, Paris, France – Interest Rates Junior
2007 – 2008 Sales, Hedge Fund Team
JP Morgan, London, UK – Interest Rates Derivatives Trading 2014
2005- 2007 MSc in Quantitative Finance, Cass Business School, City University,
Barclays Capital, London, UK – Fixed Income Quantitative Analytics London, UK
2006 2013
-Masters in Applied Math and Multidisciplinary Engineering, Ecole BA in Economics and Finance, University of Exeter, UK
Centrale, Paris, France
-Masters in Financial Mathematics, Dauphine University & ENSAE,
Paris, France
Source: Carmignac
Information about the staff teams is only informative.
PROFESSIONALS ONLY 31Für Werbezwecke. Dieses Dokument ist für professionelle Kunden bestimmt. Diese Unterlagen dürfen ohne die vorherige Genehmigung der Verwaltungsgesellschaft weder ganz noch in Auszügen reproduziert
werden. Diese Unterlagen stellen weder ein Zeichnungsangebot noch eine Anlageberatung dar. Diese Unterlagen stellen keine buchhalterische, rechtliche oder steuerliche Beratung dar und sollten nicht als solche
herangezogen werden. Diese Unterlagen dienen ausschließlich zu Informationszwecken und dürfen nicht zur Beurteilung der Vorzüge einer Anlage in Wertpapieren oder Anteilen, die in diesen Unterlagen genannt
werden, oder zu anderen Zwecken herangezogen werden. Die in diesen Unterlagen enthaltenen Informationen können unvollständig sein und ohne vorherige Mitteilung geändert werden. Sie entsprechen dem
Stand der Informationen zum Erstellungsdatum der Unterlagen, stammen aus internen sowie externen, von Carmignac als zuverlässig erachteten Quellen und sind unter Umständen unvollständig. Darüber hinaus
besteht keine Garantie für die Richtigkeit dieser Informationen. Dementsprechend wird die Richtigkeit und Zuverlässigkeit dieser Informationen nicht gewährleistet und jegliche Haftung im Zusammenhang mit
Fehlern und Auslassungen (einschließlich der Haftung gegenüber Personen aufgrund von Nachlässigkeit) wird von Carmignac, dessen Niederlassungen, Mitarbeitern und Vertretern abgelehnt.
Die Wertentwicklung der Vergangenheit ist keine Garantie für die zukünftige Wertentwicklung. Die hier dargestellte Performance des Fonds beinhaltet alle jährlich auf Fondsebene anfallenden Kosten. Um den
dargestellten Anlagebetrag von EUR 100 zu erreichen, hätte ein Anleger bei Erhebung eines Ausgabeaufschlags von 4% 104 EUR aufwenden müssen. Eventuell beim Anleger anfallende Depotgebühren würden das
Anlageergebnis mindern. Die Rendite von Anteilen, die nicht gegen das Währungsrisiko abgesichert sind, kann infolge von Währungsschwankungen steigen oder fallen. Die Bezugnahme auf bestimmte Werte oder
Finanzinstrumente dient als Beispiel, um bestimmte Werte, die in den Portfolios der Carmignac-Fondspalette enthalten sind bzw. waren, vorzustellen. Hierdurch soll keine Werbung für eine Direktanlage in diesen
Instrumenten gemacht werden, und es handelt sich nicht um eine Anlageberatung. Die Verwaltungsgesellschaft unterliegt nicht dem Verbot einer Durchführung von Transaktionen in diesen Instrumenten vor
Veröffentlichung der Mitteilung. Die Portfolios der Carmignac-Fondspalette können ohne Vorankündigung geändert werden.. Der Verweis auf ein Ranking oder eine Auszeichnung, ist keine Garantie für die
zukünftigen Ergebnisse des OGAW oder des Managers. Risiko Skala von KIID (Wesentliche Anlegerinformationen). Das Risiko 1 ist nicht eine risikolose Investition. Dieser Indikator kann sich im Laufe der Zeit
verändern. Die empfohlene Anlagedauer stellt eine Mindestanlagedauer dar und keine Empfehlung, die Anlage am Ende dieses Zeitraums zu verkaufen. Morningstar Rating™ : © 2021 Morningstar, Inc. Alle Rechte
vorbehalten. Die hierin enthaltenen Informationen: sind für Morningstar und/oder ihre Inhalte-Anbieter urheberrechtlich geschützt; dürfen nicht vervielfältigt oder verbreitet werden; und deren Richtigkeit,
Vollständigkeit oder Aktualität wird nicht garantiert. Weder Morningstar noch deren Inhalte-Anbieter sind verantwortlich für etwaige Schäden oder Verluste, die aus der Verwendung dieser Informationen
entstehen. Der Zugang zu den Fonds kann für bestimmte Personen oder Länder Einschränkungen unterliegen. Diese Unterlagen sind nicht für Personen in Ländern bestimmt, in denen die Unterlagen oder die
Bereitstellung dieser Unterlagen (aufgrund der Nationalität oder des Wohnsitzes dieser Person oder aus anderen Gründen) verboten sind. Personen, für die solche Verbote gelten, dürfen nicht auf diese Unterlagen
zugreifen. Die Besteuerung ist von den jeweiligen Umständen der betreffenden Person abhängig. Die Fonds sind in Asien, Japan und Nordamerika nicht zum Vertrieb an Privatanleger registriert und sind nicht in
Südamerika registriert. Carmignac-Fonds sind in Singapur als eingeschränkte ausländische Fonds registriert (nur für professionelle Anleger). Die Fonds wurden nicht gemäß dem „US Securities Act“ von 1933
registriert. Gemäß der Definition der US-amerikanischen Verordnung „US Regulation S“ und FATCA dürfen die Fonds weder direkt noch indirekt zugunsten oder im Namen einer „US-Person“ angeboten oder verkauft
werden. Die Risiken, Gebühren und laufenden Kosten sind in den wesentlichen Anlegerinformationen (Key Investor Information Document, WAI/KID) beschrieben. Die wesentlichen Anlegerinformationen müssen
dem Zeichner vor der Zeichnung ausgehändigt werden. Der Zeichner muss die wesentlichen Anlegerinformationen lesen. Anleger können einen teilweisen oder vollständigen Verlust ihres Kapitals erleiden, da das
Kapital der Fonds nicht garantiert ist. Die Fonds sind mit dem Risiko eines Kapitalverlusts verbunden. Für Deutschland: Die Prospekte, WAI und Jahresberichte des Fonds stehen auf der Website www.carmignac.de
zur Verfügung und sind auf Anforderung bei der Verwaltungsgesellschaft bzw. Für Osterreich: Die Prospekte, KID und Jahresberichte des Fonds stehen auf der Website www.carmignac.at zur Verfügung und sind auf
Anforderung bei der Erste Bank der österreichischen Sparkassen AG OE 01980533/ Produktmanagement Wertpapiere, Petersplatz 7, 1010 Wien, erhältlich. Carmignac Portfolio bezieht sich auf die Teilfonds der
Carmignac Portfolio SICAV, einer Investmentgesellschaft luxemburgischen Rechts, die der OGAW-Richtlinie oder AIFM- Richtlinie entspricht. Bei den Fonds handelt es sich um Investmentfonds in der Form von
vertraglich geregeltem Gesamthandseigentum (FCP), die der OGAW-Richtlinie nach französischem Recht entsprechen. Copyright: In dieser Präsentation enthaltene Daten sind ausschließliches Eigentum der
jeweiligen Eigentümer laut Angabe auf jeder Seite.
CARMIGNAC GESTION CARMIGNAC GESTION Luxembourg
24, place Vendôme - F - 75001 Paris City Link - 7, rue de la Chapelle - L-1325 Luxembourg
Tél : (+33) 01 42 86 53 35 - Tel : (+352) 46 70 60 1
Von der AMF zugelassene Portfolioverwaltungsgesellschaft Tochtergesellschaft der Carmignac Gestion.
Aktiengesellschaft mit einem Grundkapital von 15.000.000 Euro - Handelsregister Paris B 349 501 676 Von der CSSF zugelassene Investmentfondsverwaltungsgesellschaft
Aktiengesellschaft mit einem Grundkapital von 23.000.000 Euro - Handelsregister Luxembourg B67549
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