Carmignac Investissement Latitude

The announcement of US trade agreements with major countries including Japan and EU, alongside the passage of the One Big Beautiful Bill Act, provided greater clarity on policy direction.

Equity markets responded positively with US and EM Asia outperforming.

US second-quarter earnings season began strongly, with results exceeding expectations and boosting market confidence, pushing US equities higher.

Technology stocks outperformed again in July, with the “Magnificent Seven” delivering strong earnings and revenue growth versus broader market

European equities underperformed in July, as European tech firms warned of long-term growth risks from US trade policy and consumer sectors struggled with weak demand from China.

Emerging market equities outperformed thanks to strong performance from Greater China, Korea, and Taiwan—driven by improved Chinese economic sentiment, AI investment momentum, and higher metal prices.

In July, the fund delivered a positive performance, in line with its reference indicator.

Our exposure to technology stocks was a key driver of this performance, notably through major U.S. tech names such as Nvidia, Alphabet, and Meta.

Additionally, our geographic diversification into emerging markets—through key players in the artificial intelligence value chain such as TSMC and Elite Material—also supported the fund’s positive momentum.

We also benefited from the strong performance of select financial stocks, including Block, UBS, and S&P Global during the period.

Conversely, our healthcare allocation weighed negatively on performance, impacted by Novo Nordisk’s downward revision of its growth guidance, and by Centene’s withdrawal of its full-year earnings forecast.

We were somewhat penalized by our equity market hedges; however, our cautious positioning on the U.S. dollar proved beneficial.

The fund’s overall positioning remains broadly unchanged, with a continued focus on profitable growth companies, while maintaining a disciplined approach to valuations.

In the artificial intelligence sector, we maintain a high level of exposure, driven by accelerating investment from hyperscalers and the sustained momentum of technological innovation. Our allocation remains balanced between component manufacturers (particularly in Asia) and AI applications, with a preference for high-potential niche players. Following the sector’s strong recent performance, we took partial profits on selected positions.

In the aerospace segment, demand continues to grow faster than global GDP, while production constraints are extending the lifespan of existing aircraft fleets. We increased our exposure to capture this trend, notably by reinitiating a position in Airbus, supported by encouraging signals across the supply chain.

Within the consumer theme, our approach remains selective and diversified. We combine positions in leading global e-commerce platforms with niche companies, particularly in the luxury goods and automotive components segments. This positioning limits our exposure to traditional distribution chains while capturing differentiated growth drivers.

We continue to maintain a cautious stance on equity markets and have hedged a significant portion of our U.S. dollar exposure.