Carmignac Portfolio Credit

-US data sent mixed signals, with job creation figures disappointing the market in July, as well as significant downward revisions to job creation in the previous two months. At the same time, consumer and producer price data accelerated more than expected, while second-quarter GDP was revised upward to +3.3%.
-Jerome Powell's dovish tone at Jackson Hole emphasized the growing risks to the labor market and reinforced expectations of a rate cut in September, tempering the Federal Reserve's meeting minutes, which highlighted the risk of rising inflation.
-In Europe, signs of improvement appear to be materializing, with leading indicators pointing to economic expansion in August thanks to a rebound in manufacturing activity.
-In France, the announcement of a confidence vote and the risk of the government falling if no agreement is reached on the proposed budget austerity plan for the 2026 fiscal year have led to a bearish trend on French sovereign debt, whose yield is now close to that of Italian sovereign debt.
-As a result, yield curves steepened on both sides of the Atlantic during the month. In the United States, the movement was pronounced, with the 2-year rate falling by -34 basis points, compared with -14 basis points for the 10-year rate, while in the eurozone, the market reacted to improved growth prospects, resulting in a modest movement in German rates of -2 basis points on the 2-year rate and +3 basis points on the 10-year rate.

• The Fund delivered a positive performance in August, also outperforming its benchmark.
• Our rigorous stock selection proved particularly effective, with a positive contribution from our investments in special situations.
• We continue to redeploy subscription proceeds in the primary market, which offers relevant opportunities.
• Finally, we are maintaining exposure of around 9% of the Fund's net assets to the collateralized loan obligation (CLO) segment, which is performing steadily.

• We continue to focus on our core investment themes through a selection of high-yield bonds, energy, financials, and our CLO selection.
• Given the current valuation level of credit markets, we maintain a high level of market hedging, which now accounts for 16.8% of the Fund's net assets.
• After years of weakness due to abundant liquidity and low cost of capital, default rates are expected to return to more normal levels, which we see as a catalyst for creating real idiosyncratic opportunities.
• Finally, the portfolio's high carry (approximately 5.9%) and attractive credit valuations should mitigate short-term volatility and help generate medium- and long-term performance.