Carmignac Portfolio Flexible Bond

• In the United States, GDP growth was revised down to -0.5% in the first quarter, while leading indicators sent mixed signals. While PMI indices surprised on the upside, consumer confidence and household income declined, and core inflation came in higher than expected at +2.7%. • The Federal Reserve kept its key interest rates in the 4.25% to 4.50% range while delivering a less accommodative message than expected by raising its inflation forecasts. • In the eurozone, the European Central Bank (ECB) lowered its key interest rate as expected by 25 basis points to 2.0%. Although this was widely anticipated, Christine Lagarde nevertheless adopted a more restrictive tone than expected regarding the outlook for inflation. • Tensions in the Middle East initially pushed oil prices above $80 per barrel, but they fell by more than 10% after the ceasefire was announced, which also contributed to a tightening of credit spreads by 18 basis points on the Markit iTraxx Crossover index. • In June, rates moved in different directions, with the 10-year rate in the US easing by 17 bp on the back of weaker economic data, while its German counterpart rose by 11 bp.

• In an uncertain environment marked by heightened geopolitical tensions, the fund delivered a positive performance in June, outperforming its benchmark.• Our carry strategies were the main contributors to the fund's performance, particularly through our allocation to subordinated financial bonds and high-yield credit. • Our allocation to emerging market sovereign issuers also contributed to positive performance, particularly in Egyptian and Ivorian debt. • We maintained a relatively cautious approach to corporate debt, strengthening our index-linked CDS, as credit spreads tightened in June.

• The current environment presents many uncertainties stemming from the Trump administration's decisions, which could result in greater volatility for risky assets.• The market appears pessimistic about the economic outlook for developed countries and is therefore factoring in the expectation of interest rate cuts, particularly in the United States. • Disinflationary momentum appears to be weaker on both sides of the Atlantic, while the market continues to anticipate a sustained return of inflation below central bank targets. • Based on these observations, we are adopting a low sensitivity to rates while maintaining a strong appetite for inflation-linked products.