Carmignac Portfolio Patrimoine Europe

• April 2025 saw significant volatility in financial markets, with a sharp correction quickly followed by an equally strong rebound, resulting in only modest net changes by month-end.• The month began with Donald Trump announcing higher tariffs than markets had expected. Dubbed “Freedom Day” by the US president, this move reignited fears of a US recession and triggered a crisis of confidence, leading investors to exit riskier assets and US holdings such as the dollar and Treasury bonds. • In response to the market downturn, Trump suspended most tariff measures for 90 days (except for those targeting China), which allowed equity markets to recover. • European and emerging market equities outperformed US markets, while interest rates experienced pronounced swings. • In the US, the yield curve steepened as markets began to price in four Federal Reserve rate cuts by year-end. • Credit spreads widened significantly after the tariff announcement but narrowed again as market conditions improved. • Gold was the standout performer, reaching record highs, while oil prices dropped sharply on concerns about an economic slowdown. • On the macroeconomic front, uncertainty over trade barriers began to weigh on US leading indicators, particularly consumer sentiment, raising fears of stagflation in the coming months.

• In this environment, the Fund ended the month with a positive return, outperforming its reference indicator.• The advantages of diversified and active management were particularly evident throughout the period. • During the first half of the month, the Fund focused on capital preservation, successfully limiting losses in equity markets, largely due to our option strategies. • Call options on the VIX, put options on equity indices, and credit default swaps (CDS) on credit markets were the main contributors to performance at the start of the month. • Subsequently, selective profit-taking on options and an increase in equity exposure allowed us to benefit from the market rebound, supported by careful and profitable stock selection. • Our prudent modified duration helped us withstand volatility in rates. • Exposure to gold continued to be beneficial, as the environment remained highly favorable for the metal.

• The combination of monetary and fiscal easing is a relatively rare occurrence and currently provides strong support for European assets.• Coupled with attractive valuations and ongoing turmoil in the US, we see a compelling case for European investments. • However, following the recent outperformance and late-April rebound, we are adopting a slightly more cautious stance. • We remain exposed to risk assets but have recently added optional protection to help cushion potential volatility. • We are maintaining our diversifying allocation to gold and remain neutral on modified duration, as we believe current levels fully reflect anticipated central bank rate cuts. • We have also increased our exposure to inflation-linked bonds, which we consider attractively valued, as the market appears to be underestimating inflation risk.