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Our approachOur management approach

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To meet our clients’ long-term wealth management objectives, we implement a conviction based management approach within a streamlined management team and a deliberately narrow range of funds. Our fund managers are experts in their respective fields. Each morning, they exchange their views and site visit reports in order to develop the investment strategy.

 

To anticipate rather than suffer from market changes

Our principles


Three fundamental principles have underpinned our investment method since the company was created in 1989. Our managers and analysts put them into practice on a daily basis, thereby contributing to the success and growth of Carmignac.

1. Conviction based - management approach
Decorrelated from market indices, our fund management favours maximum flexibility in investment decisions. We create portfolios that are true to our convictions, unconstrained by sector and geographic limits.

  • Responsible and specialised asset managers, who thrive on group discussion
  • Fund managers on the ground
  • Conviction-based management on a human scale, rather than index-linked management determined by mathematical models
  • A long-term vision  

2. A narrow range
Since its launch, our company has remained faithful to the same principle: manage only a few Funds, but do it well. We strive to ensure that the range is concentrated on flagship products.

Each new Fund is the result of our internal expertise combined with the identification of new investment opportunities for our clients. Compliance with this principle, style and adherence to this principle, is the cornerstone of our management style's success.

  • 26 Funds (17 investment strategies)
  • EUR 61 billion in assets under management (Source: Carmignac at 30/06/2017)
     

3. Cross-fertilisation
Our management approach favours teamwork, idea sharing and cultural and geographic diversity. It is a real shared venture.

The management team boasts a wealth of expertise: macroeconomy, equity markets, bonds and currencies. The daily exchange of viewpoints and knowledge is essential. Each manager benefits from the team’s combined input, which enhances their individual experience and convictions.

  • 39 fund managers and analysts
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Our practices


Two practices fully reflect our management style, going hand in hand with our principles.

1. Morning meetings

Each morning, analysts and managers come together to assess the macro and microeconomic contexts. The exchange of viewpoints is essential; it enables the team to study each market and each stock not only from one single perspective, but to draw on combined expertise.

This daily exchange ensures the team can be suitably responsive to market conditions. It allows us to constantly monitor the relevance of our investment strategy.

  • Macroeconomic analysis

    - Analysis of economic cycles by geographic area

    - Monitoring of macroeconomic indicators (market indices, interest rates, currencies, etc.)

  • Market analysis

    - Detection of periods of risk appetite and aversion by country and asset class

    - Quantitative analysis by a cross-asset team that studies volatility, correlation and technical analysis

  • Microeconomic analysis

    - Analysts’ reports by sector, country and asset class

    - Exchanges between managers and analysts regarding their company visits

    - Analyses of publications from research bureaus

  • Investment decision

    - The management team defines a key macroeconomic scenario with major long-term structural trends

    - It monitors the relevance of the investment strategy

    - It highlights growth opportunities by: Asset class, Sector, Theme, Security

    - Investment decisions made by each manager

2. Site visits

Nearly 1,500 visits each year. Worldwide.

Our investment decisions are made after we have thoroughly researched the companies, whose offices, commercial premises, facilities and production sites we visit.

Our fund managers meet with management teams and staff to gain a clear view of how the companies operate. We have high quality information to guide our investment choices.

Execution


  • Risk management

    Careful monitoring of risks lies at the heart of the investment process. It is inseparable from the search for performance.

    We pay close attention to identifying, quantifying and analysing the risks related to our management approach. The Risk Management team monitors portfolios’ risk profiles

  • Trading Desk

    In summary

    The trading desk ensures that we comply with our obligation to act in the best interests of our clients when executing orders made on the basis of our investment decisions:
    - Best selection
    - Best execution
    - Global geographic coverage
    - Across all asset classes

    Best selection

    The obligation to select and assess counterparties, intermediaries and brokers that will guarantee the best result when executing orders sent on behalf of our clients.

    Best execution

    The counterparties, intermediaries and brokers we have selected have an obligation to guarantee the best result when executing our orders:
    - Best price
    - Costs
    - Speed
    - Probability of execution

    Nevertheless, Carmignac remains responsible for best execution with respect to the processing of certain transactions carried out on the market.