How to assess our approach to technology sector equities since the launch of Carmignac Portfolio Tech Solutions?
2024 was a very successful year for the technology sector, which made a major contribution to global growth1. While the start of 2025 was much more complex, marked in particular by high volatility in equities, our approach to the sector stood out from its comparator benchmark2.
AT THE HEART OF A RAPID TRANSFORMATION
The strength of the technology sector is undeniably its capacity for innovation. Indeed, the last few decades have been marked by major revolutions that have made their mark on every stage of our daily lives and shaped our world in a lasting way.
Another encouraging factor, suggesting that the sector’s momentum will not slow down any time soon, is the earnings forecast.
For 2025, the technology stocks in the S&P 500 index show the second biggest rise in earnings forecasts at +15.9%, but also the biggest rise in revenue forecasts at +11.8%3. Semiconductors continue to play a key role in the sector’s performance as a central element in the technology value chain, making them a strategic segment for investors.
Let’s now take a closer look at the different themes that segment the industry. Artificial intelligence (AI) is the one that undeniably stands out from the others, particularly with the emergence of generative AI. This theme is embedded within wider secular trends such as cyber security, cloud computing, software and infrastructure that are shaping today’s technology landscape. But AI is spreading far beyond the frontiers of technology and permeating across different industries.
From a macroeconomic perspective, the start of the year was marked by the Trump administration’s announcements on tariffs, disrupting equity markets, and US stocks in particular. Expectations of rising inflation, uncertainty over US policy and competition from Chinese artificial intelligence models triggered a rotation from growth stocks to value stocks, providing an attractive entry point for technology companies.
MORE THAN A CONVICTION, A PHILOSOPHY
+44%
of performance for the Fund over 1 year, compared with +29% for its comparator benchmark
>18
years of experience in equity management for the Fund Manager.
100%
of investment aimed at aligning with the United Nations’ Sustainable Development Goals.
OUR STRATEGY IN A NUTSHELL
“Now that technology is accelerating at a faster pace, we aim to capitalise on the significant impact it is having on global equity markets.”
Kristofer BARRETT
Head of Global Equities, Fund Manager
At Carmignac, we believe that technology is more than a sector. We want to be part of the next industrial revolution. That’s why in 2024 we launched Carmignac Portfolio Tech Solutions, a global equity fund focused on technology-related stocks.
What criteria do we look for in a technology company? As well as diversifying our investments along the value chain, we look for companies that occupy a dominant position in the value chain and have high barriers to entry across all geographical regions and in terms of market capitalisation. It is important to us that they invest in research and development so that they can continue to innovate and remain competitive over time. It is also important that they produce goods that are essential to the economy to remain relatively unaffected by any market trends. Finally, we also take into account the quality of management, which we believe is a reliable indicator of the sustainability of a business.
While we focus our convictions on companies that know how to differentiate themselves, we do not invest at any price. It is important to identify companies with profitable growth at the right price through in-depth fundamental analysis.
OUR LONG-TERM OUTLOOK
We believe that technology is an attractive investment opportunity, driven in particular by advances in AI, and that recent market turbulence have created sources of investment opportunities.
We have a focus within our Carmignac Portfolio Tech Solutions fund on specific themes that we believe offer real insight and impact on industries: industrial technology and infrastructure, tech materials, cloud and software, climate technology, and health and wellness.
While the majority of the companies that meet our strict selection criteria are based in the United States, we are nevertheless convinced that the technological revolution, particularly in AI, needs Asia. On this continent, we are particularly interested in Taiwan.
Aiming for long-term performance cannot be achieved without integrating a sustainable vision. This is why we are seeking to make a positive contribution to society and the environment through alignment with the United Nations’ Sustainable Development Goals.
Carmignac Portfolio Tech Solutions, a fund designed for investors wishing to take advantage of the opportunities offered by the technology theme over the long term by taking part in the sector’s innovations, while being mindful of its sustainable footprint.