Investment Policy Statement for Institutional Investor: Carmignac Investissement

This Investment Policy Statement (IPS) has been developed for the Carmignac Investissement A EUR Acc fund (ISIN: FR0010148981), hereinafter referred to as "the client". Its objective is to ensure clear and effective communication among stakeholders by outlining the fund’s investment policy and management approach. The fund is a UCITS-compliant mutual fund managed by Carmignac Gestion S.A., a French asset manager. The fund aims to outperform the MSCI AC World Net Return USD Index over a five-year horizon through active global equity management. It follows a growth-oriented strategy grounded in fundamental analysis and macroeconomic trends. The target VaR-Equivalent-Volatility (VEV) range is 12%–20%. The portfolio mainly invests in North American equities adhering to UCITS rules, including the short-selling ban and 5/10/40 diversification constraint. Portfolio construction is driven by Mean-Variance Optimization (MVO), aiming to maximize the Sharpe ratio. The optimization respects strategic asset allocation constraints based on macroeconomic assumptions, VEV targets, liquidity constraint and regulatory limits. The optimized portfolio achieves an expected annualized return of 19.25%, a standard deviation of 19.37%, and a VEV of 16.09%. Expected return is also estimated using the Fama-French Five- Factor Model, yielding an annualized return of 11.23% and a residual standard deviation of 13.14%. Risk analysis includes historical and parametric Value-at-Risk (VaR) including its Cornish-Fisher expansion. The Minimum Variance Hedge Ratio (MVHR) is computed for each foreign currency exposure, and forwards are used accordingly to hedge the currency risk. The fund’s annualized Tracking Error and Information Ratio are calculated. A qualitative macro risk matrix is also developed to assess external factors influencing the fund’s strategy.