Carmignac Portfolio EM Debt

• The announcement of a moratorium on tariffs between the United States and China has reignited risk appetite, resulting in a tightening of credit spreads of -50bp on the Itraxx Xover index in May.• The Federal Reserve kept its key rates in the 4.25% to 4.50% range, as the US job market continued to show resilience with better-than-expected job creation and stable unemployment. • In the eurozone, faced with fragile economic growth, the ECB lowered its rates by 0.25%, as anticipated by the market. • Rates rose in May, particularly in the US, where the 10-year rate increased by +24bp, while its German counterpart rose by +6bp. • On the currency front, the dollar continued to weaken against the euro due to US budget uncertainties. The renewed appetite for risk benefited certain emerging currencies, such as the Mexican peso, the Chilean peso and the South African rand.

• The fund posted a positive performance during the month, albeit below its reference indicator.• Against a backdrop of rising core European interest rates, the portfolio suffered mainly from its long positions in Eastern European rates (Hungary, Poland), while our positions in South African rates had a positive effect. • Our exposure to corporate credit and our selection of emerging market debt denominated in hard currencies (Egypt, Mexico) had a positive impact in a context of tightening credit spreads, but this was partly offset by the protections we put in place to reduce our exposure to this market. • Finally, on the currency front, although the sharp rise in the euro had a negative impact on our exposure to the US dollar, we benefited from our positions in the South African rand, Indonesian rupiah and Malaysian ringgit.

• In a context marked by uncertainty caused by the introduction of tariffs, geopolitical conflicts and fiscal slippage, we expect the major central banks in developed and emerging countries to maintain an accommodative bias. We are therefore maintaining a relatively high level of modified duration.• In terms of rates, we favor real rates in countries or central banks that are behind in the cycle, such as Brazil, and an allocation to certain countries such as South Africa and Indonesia. • On credit, although this asset class offers attractive carry, we are cautious due to relatively high valuations and are maintaining a significant level of coverage on the iTraxx Xover to protect the portfolio from the risk of widening spreads. • Finally, in currencies, we are maintaining a cautious exposure with a significant allocation to the euro. However, we are retaining selective exposure to emerging market currencies with attractive carry. Our currency selection includes Latin American currencies (BRL, CLP), Asian currencies (KRW, MYR) and the South African rand (ZAR).