Benefits of Investing in European Equities
**Carmignac Portfolio Patrimoine Europe: A Balanced, Socially Responsible Fund**
The Carmignac Portfolio Patrimoine Europe (ISIN: LU1744628287) is a multi-asset, actively managed fund that aims to deliver resilient performance through a balanced approach to investing in European equities, corporate and government bonds, with limited currency risk.
The fund's methodology, similar to that of long-standing funds like Carmignac Portfolio Grande Europe, has been refined over the past 18 years. It employs a diversified asset allocation strategy, with 34.7% in bonds, 31.9% in money market instruments, 25.8% in equities, and 7.6% in cash/equivalents. This diversified allocation is designed to build a resilient portfolio that can quickly adapt to changing market conditions.
Within equities, the fund has a pronounced tilt toward healthcare, industrials, and information technology, with significant exposure also to financials, consumer staples, and consumer discretionary sectors. Top holdings include Novo Nordisk, ASML Holding, SAP, Siemens, Hermès International, Unilever, Demant, Schneider Electric, Dassault Systèmes, and Beiersdorf. This reflects a focus on innovative, quality companies with strong fundamentals.
The fund's strategy is characterized by dynamic asset allocation, allowing it to respond to macroeconomic or market shifts. This "all-weather" approach aims to provide stability and growth across different market environments.
Performance-wise, the fund has demonstrated strong outperformance versus its reference indicator. In Q2 2025, the fund’s F EUR Acc share class returned +4.9%, significantly outperforming its reference indicator, which declined by -0.4% over the same period. For the first half of 2025, the fund gained +6.2% versus a -3.0% decline in its reference indicator. Over three years, the fund has delivered a cumulative return of +21.1%, compared to +13.9% for its reference indicator.
The fund's socially responsible approach is essential for the fund to invest in lucrative companies with long-term prospects, according to Keith Ney. This approach is applied across all asset classes, including equities, corporate, and government bonds. At least 50% of the fund is permanently allocated to fixed-income securities. The strategy offers a balanced relationship between long-term equity and bond selection and the management of downside risks.
The Carmignac Portfolio Patrimoine Europe is an Article 8 SRI multi-asset fund under the EU Disclosure Regulation, with a focus on making a positive contribution to society and minimizing the fund's environmental footprint. While the fund’s official documentation highlights a focus on innovation and quality, there is no explicit mention of a dedicated ESG (Environmental, Social, and Governance) integration strategy or exclusion policies in the available summaries. Investors seeking robust, explicit ESG integration may wish to review the fund’s full prospectus or contact the asset manager for details.
The fund offers investors an attractive risk-return profile, rated by Morningstar with a maximum of five stars. It has high flexibility in the weighting of individual asset classes, with the equity share fluctuating between 0 and 50%. Despite a volatile environment over the past three years, the fund has managed to minimize market downturns and participate in subsequent upturns, even in 2020. One of the main return drivers of the fund is the bottom-up stock selection. The bond selection in the Carmignac Portfolio Patrimoine Europe focuses on mispriced or improving corporate cash flows and government bonds, considering inflation and political prospects.
In summary, Carmignac Portfolio Patrimoine Europe is a balanced, socially responsible fund that aims to deliver resilient performance through a flexible and adaptable investment strategy. Its strong outperformance versus its reference indicator, combined with its focus on innovation, quality, and socially responsible investing, makes it an attractive option for investors seeking a balanced multi-asset fund with a focus on long-term growth.
The Carmignac Portfolio Patrimoine Europe allocates a significant portion of its fund to fixed-income securities, reflecting its focus on socially responsible investing for lucrative companies with long-term prospects. This approach enables the fund to invest in various asset classes, including other finance sectors, and manage downside risks through dynamic asset allocation.
