Carmignac Portfolio Merger Arbitrage Plus

• Amid a backdrop of calmer markets, the Merger Arbitrage strategy performed well in June. The HFRX Merger Arbitrage Index rose 1.46% (in US dollars) over the month.• The tightening of spreads in June was fuelled by a steady flow of positive news. Notably, Faro Technologies and Interpublic Group received U.S. antitrust clearance ahead of schedule. Meanwhile, two high-profile takeover battles in the UK—Assura and Warehouse REIT—also contributed to the upbeat sentiment.
• Finally, against all expectations, the US Department of Justice and HPE reached an agreement on the acquisition of Juniper Networks. In addition, around ten transactions were completed, which also contributed to the narrowing of spreads.
• The only negative surprise of the month was the announcement by the European Union of an in-depth investigation into the acquisition of Kellanova by Mars, which had nevertheless obtained approval from the US FTC at the same time.
• As in the previous month, M&A activity remained robust, driven mainly by Europe and Asia, which accounted for almost half of the number of deals announced worldwide. A total of 25 new deals were announced during the month.
• Japan was once again particularly active, notably with the $29 billion acquisition of Toyota Industries by its parent company.
• The return of private equity groups has now been confirmed, accounting for more than a third of buyers during the month.

• The fund showed a positive performance during the month.• The main contributors to performance were : Juniper Networks, Fortnox and Assura.
• The main detractors to performance were: Kellanova, H&E Equipment Services and Andlauer Healthcare.

• The fund's investment ratio is 106%, up from the previous month.• With 53 positions in the portfolio, diversification remains satisfactory.
• 2025 continues to look much more promising than 2024 thanks to a more favourable antitrust environment for M&A activity worldwide: the change of administration in the US following Trump's election, the publication of the Draghi report in Europe recommending the emergence of national champions to face global competition, regulators in the UK being pushed by politicians to prioritise economic activity, and the Japanese market continuing to open up to foreign capital.
• Lower interest rates should also drive M&A activity in the coming quarters.
• However, instability linked to the trade war launched by the Trump administration and geopolitical tensions are slowing the recovery, which is less robust than we had hoped.