Carmignac China New Economy

• In April, markets experienced significant volatility in the wake of the announcement of higher-than-expected US tariffs, leading to a correction in developed and emerging equity markets.• Against this backdrop, the Chinese and Taiwanese markets fell sharply. • Tensions between China and the United States intensified (145% tariffs on Chinese products and 125% tariffs on US products) before easing at the end of the period, with talks between the two countries getting underway. • China, Japan and South Korea met at the beginning of the period to discuss the establishment of a free trade zone in response to US trade offensives. • Xi Jinping also visited Malaysia, Cambodia and Vietnam, where he concluded a number of trade agreements aimed at strengthening cooperation in the region. • On the macroeconomic front, Chinese GDP growth reached 5.4%, above economists' average forecast of 5.2%, thanks to a surge in exports ahead of the announcement of tariffs. • At the end of the period, the Chinese authorities announced further measures to support the Chinese economy (particularly consumers), but these were not enough to revive the Chinese markets, which ended the month in negative territory. • In Taiwan, the United States indicated its desire to reduce its technological dependence on Asia, leading to a partnership between Intel and TSMC to relocate chip manufacturing facilities to the United States.

• In this context, the fund posted a negative performance, in line with its reference indicator.• After an excellent start to the year, Chinese AI specialist Tuya fell sharply in April. However, it remains well on track for 2025. • Our Chinese consumer discretionary stocks also suffered from the hostile environment for Chinese equities, as illustrated by the declines in JD.com, VIPSHOP and Didi. • Our Taiwanese portfolio, positioned in the artificial intelligence value chain (TSMC, Gudeng Precision), weighed on the fund over the period.

• We remain constructive on China, given the shift in perception. Markets recognise that geopolitical tensions are hurting China but will not destroy it.• Furthermore, technological advances, particularly in AI and productivity, should provide further stimulus to the economy. • However, in the short term, we are maintaining a cautious stance due to uncertainties surrounding the tariffs imposed by the Trump administration, their impact on the Chinese economy and uncertainties surrounding government support measures. • In response to US protectionist measures, the Chinese government appears determined to protect its interests and implement restrictive measures in retaliation for the tariff sanctions. • While the Chinese government's announcements do not appear sufficient on their own to turn the economy around, this is a major shift, as President Xi Jinping has signalled that he is now placing Chinese consumers, innovation and technological progress at the heart of his priorities. • We are closely monitoring each of our Chinese positions and their valuations, with the aim of remaining disciplined in our position sizing. • During the month, we strengthened our position in Tencent after a sharp decline at the beginning of the month and slightly reduced our position in EHang.