Carmignac Portfolio Merger Arbitrage Plus

• In a general context of renewed calm and confidence in the markets, the Merger Arbitrage strategy performed well in July. The HFRX Merger Arbitrage Index rose 0.86% in dollar terms over the month.• The tightening of spreads in July was driven by a stream of positive news. Firstly, the merger between Hess and Chevron was officially completed on July 18, 2025, marking the end of a process that began in October 2023. The merger had been significantly delayed by arbitration proceedings initiated by ExxonMobil concerning a right of first refusal on the Stabroek block in Guyana.
• Another significant development, in a context of easing tensions between China and the United States, the Chinese antitrust authorities approved the Ansys/Synopsis deal.
• On another note, bid improvements remain a positive trend. Olo, which accepted an offer from Thomas Bravo earlier this month, appears to have rejected a significantly higher offer from a third party. Chart Industries also benefited from an offer from Baker Hughes that was significantly higher than that of Flowserve.
• Finally, the completion of a large number of transactions led to an overall tightening of spreads.
• There were few negative surprises in July, the main one being the European Union's announcement of an in-depth investigation into the acquisition of Covestro by Abu Dhabi National Oil.
• M&A activity remained robust, with a surge in announcements at the end of the month.
• Mega-deals made a welcome return, with three transactions worth over $10 billion, including the takeover of Norfolk Southern by Union Pacific for more than $80 billion.
• A total of 26 new transactions were announced during the month. Private equity confirmed its active comeback, accounting for 22% of announced deals.

• The fund posted a positive performance during the month.• The main positive contributors to performance were: HESS, Ansys and OLO.
• The main detractors from performance were: Covestro, Banca Generali and WNS.

• The fund's investment rate is 96%, down from the previous month following the completion of a number of transactions.• We will be able to reinvest the portfolio over the coming weeks thanks to new deals announced at the end of the month.
• With 52 positions in the portfolio, diversification remains satisfactory.
• 2025 continues to look much more promising than 2024 thanks to a more favourable antitrust environment for M&A activity worldwide: the change of administration in the US following Trump's election, the publication of the Draghi report in Europe recommending the emergence of national champions to face global competition, regulators in the UK being pushed by politicians to prioritise economic activity, and the Japanese market continuing to open up to foreign capital.
• Although instability linked to the Trump administration's trade war and geopolitical tensions slowed the recovery in the first half of the year, the announcements made at the end of July and the increasing number of bidding wars give us cause for optimism for the second half of the year.