Carmignac Portfolio Flexible Bond

-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 positive performance in August, unlike its benchmark.
-Our inflation-linked strategies were the main contributors to the fund's performance in August, benefiting from rising consumer and producer prices.
-Our allocation to high-yield credit and subordinated financial debt also contributed positively to performance, benefiting from tighter credit spreads.
-During the month, we strengthened our position in emerging market debt by initiating a position in Czech local sovereign debt, and we also consolidated our exposure to US inflation-linked instruments.

-The current environment presents numerous uncertainties stemming from the Trump administration's decisions, which could lead to greater volatility in risky assets.
-The market appears pessimistic about the economic trajectories of developed countries, thereby incorporating optimistic expectations of rate cuts, particularly in the United States.
-Disinflationary momentum appears less vigorous on both sides of the Atlantic, while the market continues to price in a sustained return of inflation below central bank targets.
-Based on these observations, we are maintaining a low level of sensitivity to rates while retaining a strong appetite for inflation-linked products.