Edouard Carmignac is preparing to launch his first new fund in four years, reported Citywire this week.
Edouard Carmignac is preparing to launch his first new fund in four years, reported Citywire this week. The legendary French fund manager, whose firm, Carmignac Gestion, manages EUR55billion in AUM, has decided to launch an emerging market variant of the firm’s flagship fund – Patrimoine – a mixed equity and bond fund, first launched in 1989. Over five years, the EUR23billion fund has delivered 43.3 per cent returns. The Carmignac Emerging Patrimoine fund will also be composed of equities and bonds and will be managed by Simon Pickard (equity) and Charles Zerah (fixed income). Responsibilities of hedging the UCITS fund against risk will fall to Frederic Leroux. Commenting at a recent press conference in Paris, Carmignac said the fund would be for investors interested in emerging markets, but who might not be “prepared for their volatility”. It’s understood that the fixed income part of the portfolio will invest in both government and corporate emerging market debt. “As in the Patrimoine fund, the equity component can be hedged,” said Carmignac. “In particular, we think local currency emerging debt will be a growing market.” The firm said that even though it expected inflationary pressures in the short-term, it was optimistic in its stance on China, India and Indonesia. The Reserve Bank of India has, this week, just raised interest rates to 6.5 per cent to combat inflation, whilst China’s inflation rate, as of December 2010, was 4.6 per cent.
