Carmignac Portfolio Grandchildren

• 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 absolute terms, though it remained below its reference indicator.• The Industrials sector which we reinforced in the recent months was the biggest relative contributor.
• Prysmian continued its strong momentum, capitalizing on robust demand in electrification and digital infrastructure. The company posted strong Q2 results with solid organic growth and margins.
• Comfort Systems surged around 22% in July after reporting strong backlog growth, indicating solid future demand, and announcing a surprise dividend hike that boosted investor confidence.
• The technology sector remained strong in July, led by Microsoft and Nvidia. Microsoft benefited from cloud and AI momentum, while Nvidia soared on record data centre revenues and its leadership in AI hardware.
• The underperformance relative to our benchmark was primarily driven by the Healthcare and Consumer sectors.
• Novo Nordisk has named a new CEO and issued a profit warning, lowering its sales and profit outlook due to weaker U.S. growth for its key drugs.
• Align Technology, a company specializing in clear aligners, lost around 30% in July after reporting minimal growth in shipments, signalling stagnation in its core product demand.
• In the Consumer Discretionary sector, Ferrari, Hermès, and Adidas underperformed in July, as investors feared that new U.S. tariffs could impact consumer demand.

• Our macroeconomic framework continues to advocate for a defensive approach to equity markets.• During the month, we made some adjustments to our portfolio. We continued building our position in Alcon post recent underperformance.
• We have considerably reduced our position in Adyen, and also in Oracle following its strong run-up over the past couple of months.
• The healthcare sector is currently trading at a historic discount, despite its ongoing capacity for innovation. Although recent uncertainty regarding tariffs and U.S. healthcare policy has put pressure on the sector, greater clarity on these issues could trigger a recovery. For this reason, we maintain a significant portion of the fund invested in the sector.
• Novo Nordisk was one of our key convictions last year, but we significantly trimmed the position in H2 2024. Despite recent underperformance, we remain focused on the long-term GLP-1 potential. Given current valuations, we’re holding our existing stake but did not add during the drawdown.
• We maintain relatively low exposure around 93% as we aim to use any price weakness to add to existing names.