Carmignac Absolute Return Europe

• May was a strong month for equities, supported by easing tariff tensions and an earnings season that broadly exceeded lowered expectations.• US equities held firm despite rising bond yields, driven by concerns over the fiscal impact of President Trump’s spending plans. • In Europe, cyclicals and small caps outperformed, reflecting a shift toward riskier assets. • Top-performing sectors included Travel & Leisure, Banks, and Industrials, while defensives like Staples, Utilities, and Healthcare lagged—Healthcare in particular weighed down by policy uncertainty.

• Lower volatility and a supportive Q1 earnings season created a favorable environment for fundamental stock picking, with the Long book benefiting from several strong earnings reports.• The Fund delivered a positive return in May. • Top sector contributors included Financials—especially retail banks—alongside Industrials, Consumer Discretionary, Technology, and Communication Services. • Most sector books contributed positively, with only Healthcare and Real Estate acting as modest detractors. • Key stock selection winners were long positions included long positions in Prysmian, which advanced following strong first-quarter results; Siemens Energy, supported by an earnings beat and a robust order pipeline; and Piraeus Bank, which gained after issuing a confident full-year outlook. • Stock selection detractors included a long position in Sanofi, which declined due to a disappointing drug trial and renewed concerns over US drug pricing. Additional drag came from short positions in a wind turbine manufacturer and a Norwegian chemical company.

• We increased exposure to the technology sector during the month, driven by signs of improving momentum in semiconductors. At the same time, we used weakness in healthcare to selectively rebuild positions in names where we see meaningful upside.• Following strong year-to-date performance, we trimmed several financial holdings to lock in gains, though we continue to maintain net long exposure to European banks. • In a lower-volatility environment with more rational price action, we expanded gross exposure from the mid-90s to 115%, reflecting increased conviction. • This expansion was achieved by scaling up both long and short positions, while keeping net exposure steady in the mid-to-high teens range. • With Q1 earnings season now behind us, market attention is shifting back to macroeconomic and political developments. • Although sensitivity to tariff headlines has recently diminished, risks may resurface toward quarter-end as early July tariff deadlines approach.