Patrimoine - Combining Resilience & Long-term Growth

PATRIMOINE

Combining resilience & long-term growth

The 30-year history of Patrimoine has been built on anticipating big secular growth trends, and hands-on management style. Front-running the Emerging Market and commodities theme of the 1990s, increasing equity exposure coming out of the 2008 crisis, and cutting exposure sharply during summer 2011 were all fundamental to our success.

We have always emphasised resilience in down markets, while aiming to capture upside in strong markets.

A wide-ranging, highly flexible portfolio comprised of equities, bonds and currencies. Equity exposure can be between zero and 50%, while a modified duration approach to bonds spans from -4 to +10. Our managers have the tools to weather different market conditions.

Key long-term investment themes

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At least 50% of the portfolio is in bonds at all times

The team has an unconstrained mandate and can range from sovereigns in developed and emerging markets as well as across the entire credit spectrum.

Cross-capital structure for best portfolio mix

David and Rose benefit from the input on three levels to build an optimal asset allocation: Cross asset team provides global macro, technical and quantitative analysis; the Strategic Investment Committee frames convictions and Front Office Risk Management optimizes portfolio construction and calibrates positions.

But in recent years our performance was lacklustre. Management is now in the hands of David Older and Rose Ouahba, who’s hands-on approach has changed the fortunes of the fund. The pair work together to decide on optimal asset allocation. The focus is a combination of bottom-up selection with a top-down overlay.

Asset allocation decisions and risk management have proved themselves in times of market stress.

In equities, the main secular theme is long-term growth, especially in tech, healthcare and consumption, with a strong focus on stock picking. Older has strongly reinforced the proprietary research capability of the equity team.

SOURCE: Citywire Discovery, as at 30.09.2020. Performance is based on total return in EUR calculated gross of tax, bid to bid, ignoring the effect of initial charges and with income reinvested at the ex-dividend date. Average manager is the based upon the managers tracked globally in Citywire's Mixed Assets - Flexible EUR sector. Past performance is not necessarily indicative of future performance. The Fund presents a risk of loss of capital. Fund over calendar years: 0.7% for 2015, 3.9% for 2016, 0.1% for 2017, -11.3% for 2018 an 10.6% over 2019. The return may increase or decrease as a result of currency fluctuations. Calendar performances of the Fund’s reference indicator (50% MSCI ACWI (USD) (Reinvested net dividends) +50% Citigroup WGBI All Maturities(EUR)): 8.3% for 2015, 8.0% for 2016, 1.5% for 2017, -0.1% for 201 and 18.2% for 2019.

A compact and closely-knit team with a highly flexible approach is key to our long term success, allowing for a cross-asset investing structure that sets us apart from our competitors.

ADVERTISING MATERIAL. For professional investors only. Source: Carmignac, Citywire 30/09/2020 Carmignac Patrimoine is a common fund in contractual form (FCP) conforming to the UCITS Directive under French law. Risk Scale from the KIID (Key Investor Information Document) from 1 (lowest risk) to 7 (highest risk). Risk 1 does not mean a risk-free investment. This indicator may change over time. The Funds may have specific investment limits, as mentioned in their respective prospectuses. The Fund aims to outperform its reference indicator over a period exceeding three years. The composite reference indicator is comprised as follows: 50% MSCI AC WORLD NR (USD) index, and 50% Citigroup WGBI All Maturities index calculated with coupons reinvested. The Fund presents a risk of loss of capital. Main risks of Carmignac Patrimoine - EQUITY: The Fund may be affected by stock price variations, the scale of which is dependent on external factors, stock trading volumes or market capitalization. INTEREST RATE: Interest rate risk results in a decline in the net asset value in the event of changes in interest rates. CREDIT: Credit risk is the risk that the issuer may default. 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. This content may not be reproduced, in whole or in part, without prior authorisation from the management company. This content does not constitute a subscription offer, nor does it constitute investment advice. Access to the Fund may be subject to restrictions with regard to certain persons or countries. The Fund is not registered in North America, in South America, in Asia nor is it registered in Japan. The Funds are registered in Singapore as restricted foreign scheme (for professional clients only). The Fund has not been registered under the US Securities Act of 1933. The Fund may not be offered or sold, directly or indirectly, for the benefit or on behalf of a "U.S. person", according to the definition of the US Regulation S and/or FATCA. The Fund presents a risk of loss of capital. The risks and fees are described in the KIID (Key Investor Information Document). The Fund's prospectus, KIIDs and annual reports are available at www.carmignac.com, or upon request to the Management Company. The KIID must be made available to the subscriber prior to subscription. ● In Switzerland, the Fund’s respective prospectuses, KIIDs and annual reports are available at www.carmignac.ch, or through our representative in Switzerland, CACEIS (Switzerland) S.A., Route de Signy 35, CH-1260 Nyon. The paying agent is CACEIS Bank, Paris, succursale de Nyon/Suisse, Route de Signy 35, 1260 Nyon. ● In the United Kingdom, the Funds’ respective prospectuses, KIIDs and annual reports are available at www.carmignac.co.uk, or upon request to the Management Company, or for the French Funds, at the offices of the Facilities Agent at BNP PARIBAS SECURITIES SERVICES, operating through its branch in London: 55 Moorgate, London EC2R. This material was prepared by Carmignac Gestion and/or Carmignac Gestion Luxembourg and is being distributed in the UK by Carmignac Gestion Luxembourg UK Branch (Registered in England and Wales with number FC031103, CSSF agreement of 10/06/2013). Carmignac Gestion – 24 place Vendôme – F-75001 Paris. Tel: (+33) 01 42 86 53 35 – Investment management company approved by the AMF – Public limited company with share capital of € 15,000,000 – RCS Paris B 349 501 676. Carmignac Gestion Luxembourg – City Link – 7, rue de la Chapelle – L-1325 Luxembourg – Tel: (+352) 46 70 60 1 – Subsidiary of Carmignac Gestion – Investment fund management company approved by the CSSF – Public limited company with share capital of €23,000,000 – RC Luxembourg B 67 549.

Patrimoine: long term resilience and diversification