M A N A G E M E N T R E P O R T

MANAGEMENT REPORT FOURTH QUARTER 2016

THE LETTER Paris, 12 January 2017 Dear Investor, Donald Trump will be sworn in as US President right about when the Chinese New Year begins a disturbing coincidence when you consider that this will be the Year of the Rooster. Most investors are already concerned that with his inappropriate outbursts, the aggressively cocky, richly-feathered blond bird soon to strut into the Oval Office will trigger a surge in market volatility. But who can be sure that he will? The fact is that Trump has confounded expectations once again, putting together a Cabinet made up primarily of able, no-nonsense business people with proven track records. Will he listen to them, and will they succeed in convincing him to tone down the more disruptive points of his electoral platform above all his call for starkly protectionist policies? That seems likely to us. Punitive US tariffs would truly be bad news for both GDP growth and inflation. In contrast, Trump s commitment to large-scale fiscal stimulus should increase investor confidence in the resilience of the global economic recovery under way. Granted, both stocks and bonds already trade at rather lofty valuations. But with strong global economic growth coming on top of continued monetary policy accommodation in Europe and Japan, equity markets look set to scale new heights. So given all that, what s our strategy? As I wrote in my previous Letter, the unfolding scenario of less erratic growth, coupled with a moderate pick-up in inflation, is likely to put commodities first and foremost oil, particularly since the recent agreement among OPEC members at an advantage over stocks with good visibility. Chief among the latter are the stocks of drug companies, which will remain a favourite target for populist governments. Our portfolios also include substantial holdings of Japanese financial stocks. They have shed a great deal of their market value even as their issuers are getting a boost from the global upswing and a weaker yen. At the same time, the political and global economic shifts we discussed above haven t caused us to lose faith in our tech names, whose bright prospects become brighter every day. Our firm had to contend with a long string of surprises in 2016 that were virtually impossible to anticipate and tough to manage but as you know, managing the risks that come with our convictions is what we are all about. In the Year of the Rooster, a more predictable environment should make the job easier for us. In the hope that it will, I wish you a happy and peaceful new year. Edouard Carmignac

OVERVIEW 5 Carmignac news EQUITY MANAGEMENT DIVERSIFIED MANAGEMENT PROFILED MANAGEMENT FIXED INCOME MANAGEMENT 6 Carmignac 10 Carmignac range of funds 12 Macroeconomic analysis and investment strategy 16 Carmignac Investissement 19 Carmignac Portfolio Grande Europe 23 Carmignac Euro-Entrepreneurs 37 Carmignac Patrimoine 45 Carmignac Portfolio Emerging Patrimoine 49 Carmignac Euro-Patrimoine 55 Carmignac Profil Réactif 100 Carmignac Profil Réactif 75 Carmignac Profil Réactif 50 58 Carmignac Portfolio Global Bond 61 Carmignac Portfolio Capital Cube 64 Carmignac Sécurité 27 Carmignac Emergents 53 Carmignac Investissement Latitude 70 Carmignac Portfolio Capital Plus 30 Carmignac Portfolio Emerging Discovery 75 Carmignac Court Terme 33 Carmignac Portfolio Commodities CARMIGNAC GESTION Portfolio management company AMF agreement n GP 97-08 of 13/03/1997 CHAIRMAN AND CHIEF EXECUTIVE OFFICER: Edouard Carmignac DEPUTY CHIEF EXECUTIVE OFFICER: Eric Helderlé COMPLIANCE : CARMIGNAC GESTION: Ernst & Young and Cabinet Vizzavona FRENCH-DOMICILED FUNDS: KPMG and Cabinet Vizzavona CARMIGNAC GESTION LUXEMBOURG UCITS management company Subsidiary of Carmignac Gestion CSSF agreement of 10/06/2013 COMPLIANCE : CARMIGNAC GESTION LUXEMBOURG: Ernst & Young Luxembourg LUXEMBOURG-DOMICILED FUNDS: PricewaterhouseCoopers

CARMIGNAC NEWS Fund awards received in 2016: uro Fund Award Allemagne February 2016 Carmignac Patrimoine Best Balanced Fund - 20 years Carmignac Investissement Best Balanced Fund - 20 years Carmignac Sécurité Best Euro denominated short-term bonds Fund - 10 years Carmignac Emergents 2 nd Emerging Market Equity Fund - 1 year Fund Buyer Focus Europe March 2016 France s favourite asset manager L Agefi France June 2016 Carmignac Sécurité Actif d Or de la Distribution Bonds Specialists Appointments and new hires during the quarter Christophe Peronin was appointed Deputy Managing Director to assist Eric Helderé, the Managing Director. He will continue being responsible, for heading up operations and overseeing risk management, a department that reports directly to him. Christophe s new role also includes helping Eric run the Strategic Development Committee and implement its policies. With Christophe s new appointment, we will now be better able to capitalise on his extensive asset management experience and strengthen our business processes and strategic orientation as a risk manager. David Older has been named Head of Equity. A senior equity manager at Carmignac since 2015, David is in charge of evaluating and optimising portfolio performance, with a focus on alpha generation. He will be extending his range of expertise to cover the entire non-commodity US equity portfolio. David s thorough knowledge of US tech, media and telecom stocks and his vast experience with alpha generation and long/short (2) investing have already enriched Carmignac s asset management work. Our Equity team has also stepped up its capabilities with the addition of two new sector analysts: Nan Ou in Global Consumer, and Pau Guzman in Tech, Media and Telecoms. Nan has worked as an analyst at Goldman Sachs & Co. He holds a degree from Georgetown University. Pau, a graduate of ESADE Business School in Barcelona, was formerly an Investment Banking Analyst at Morgan Stanley. Read about all of our awards (1) on www.carmignac.com Gergely Majoros, a CFA, has joined the Portfolio Advisors team. He will report to Didier Saint-Georges as a member of the Investment Committee. After graduating from the University of Frankfurt, he worked in Germany, most notably as a sellside European equity analyst at ING, and subsequently as an emerging-markets equity fund manager for Deka Investments and Cominvest. Publication of the net asset values on the Internet www.carmignac.com (daily from 3pm CET) The company s financial intermediary selection policy, conflicts of interest management policy, voting policy, and disclosure of intermediary fees and commissions are available on its website: www.carmignac.com (1) Reference to a ranking or award does not constitute a guarantee as to future rankings or awards for these funds or the asset management company. (2) Long/short investing involves buying stocks expected to increase in value and short-selling stocks expected to decrease in value. CARMIGNAC QUATRIÈME TRIMESTRE 2016 / 5

CARMIGNAC Over 25 years of independence and conviction Founded in January 1989 by Edouard Carmignac, Carmignac is now one of Europe s leading asset managers. Its capital is held entirely by its managers and staff. In this way, the company s long-term viability is ensured through a stable shareholding structure, reflecting its spirit of independence. This fundamental value ensures the freedom required for successful and renowned portfolio management. Carmignac offers a limited range of global, specialised and diversified funds, trying to meet its investors needs in the best way possible. As part of our international expansion, we are currently present in Luxembourg, Frankfurt, Milan, Zurich, Miami, Madrid and London. Our Funds are actively marketed in 14 countries: France, Luxembourg, Belgium, Netherlands, Spain, Italy, Switzerland, Germany, Austria, United Kingdom, Ireland, Sweden, Taiwan and Singapore, for professional clients only. Risk Managers The ability to manage risks has always been part of Carmignac s management style. In constantly changing market conditions, and to meet our clients needs in the best possible way, we are continually improving our risk analysis, monitoring and management processes. This allows each member of the management team and each Carmignac employee to use the most effective resources every day. This risk management culture is inherent to our approach and is therefore applied to all of our funds, while respecting the specific risk profiles of each one. EUR 56 billion of assets under management EUR 2 billion of equity capital 280 employees Source: Carmignac, 30/12/2016 6 / Management report CARMIGNAC FOURTH QUARTER 2016

CONVICTION-BASED MANAGEMENT An international development strategy Strategic Development Committee Eric Helderlé Managing Director France Chairman Luxembourg Christophe Peronin Chief Operating Officer Deputy Managing Director France Davide Fregonese Global Head of Sales Managing Director Luxembourg Yon Elosegui Head of Strategic Marketing Managing Director Luxembourg Maxime Carmignac Managing Director London Pascale Guillier General Secretary Didier Saint-Georges Managing Director Member of the Investment Committee Frédéric Leroux Global Manager Head of Cross Asset Team Rose Ouahba Head of Fixed Income Team Sophie Derobert Head of Human Resources Ivan Monème Head of Communication Cyril de Girardier Chief Financial Officer Controlled expertise Active management seeking to anticipate rather than experience market trends. Careful risk management, reflected in a diversification of assets and fine-tuning of exposures. An opportunistic management strategy, reflecting our managers convictions rather than market indices. In-depth local knowledge, which lies at the heart of our strategy. It is based on extensive knowledge of local conditions and steady relations with the directors of the companies in which we invest. A completely international approach, mirroring our fund management team of international experts, so that investment opportunities can be seized on marketplaces all over the world. Transparency at a management and portfolio level. This ensures that our investment strategies are completely clear, gaining our customers trust. International development Ariane Tardieu Head of Country, France Marco Fiorini Head of Country, Switzerland Mischa Cornet Head of Country, Netherlands and Luxembourg Frank Ruettenauer Head of Retail, Germany and Austria Giorgio Ventura Head of Country, Italy Ignacio Lana Head of Country, Spain Herwig Bogaerts Head of Country, Belgium Mikael Fellbom Head of Country, Nordic countries David Tavares Head of US Offshore & LATAM Nikolay Troptchev Director, Business development Asia CARMIGNAC FOURTH QUARTER 2016 / 7

A TEAM OF EXPERTS Discussion, sharing and teamwork are essential pillars of quality fund management focused on generating performance. Carmignac has created an international management team uniting more than 10 different nationalities. Each member brings considerable experience acquired all over the world. Mutual development stems from the daily sharing of knowledge and skills. The level of experience and synergies within the team are strengths that allow us to successfully handle any market conditions. Conviction as a performance driver 8 / Management report CARMIGNAC FOURTH QUARTER 2016

INTERNATIONAL FUND MANAGEMENT Expertise in all asset classes EDOUARD CARMIGNAC, CIO EQUITIES FIXED INCOME CROSS ASSET/MULTI-STRATEGY PORTFOLIO ADVISORS David Older, Team Leader, 18 years experience Technology, Media & Telecommunications Huseyin Yasar, Fund Manager, 8 years experience Henrik Fridlund, Analyst, 4 years experience Pau Guzman Alcon, Analyst, 2 years experience European Equities Mark Denham, Team Leader, 22 years experience Malte Heininger, Fund Manager, 10 years experience Vincent Steenman, Fund Manager, 12 years experience Emerging Equities Xavier Hovasse, Team Leader, 17 years experience David Young Park, Fund Manager, 12 years experience Haiyan Li-Labbé, Fund Manager, 15 years experience Michel Wiskirski, Analyst, 8 years experience Commodities Michael Hulme, Team Leader, 19 years experience Simon Lovat, Analyst, 16 years experience Sector Analysts Antoine Colonna, Global Consumer, 24 years experience Nan Ou, Global Consumer, 3 years experience Matthew Williams, Finance, 22 years experience Tim Jaksland, Innovation, 25 years experience Vincent Steenman, Industry, 12 years experience Rose Ouahba, Team Leader, 21 years experience Charles Zerah, Fund Manager, 21 years experience Carlos Galvis, Fund Manager, 18 years experience Keith Ney, Fund Manager, 17 years experience Joseph Mouawad, Emerging Markets Analyst, 11 years experience Mattia Parolari, Quantitative Analyst, 10 years experience Nader Awada, Multi-Strategy Analyst, 10 years experience Pierre Verlé, Head of Credit, 12 years experience Alexandre Deneuville, Credit Analyst, 9 years experience Florian Viros, Credit Analyst, 9 years experience Frédéric Leroux, Team Leader, 27 years experience Julien Chéron, Fund Manager, Quantitative Analyst, 16 years experience Laurent Chebanier, Country Risk Analyst, 18 years experience Obe Ejikeme, Quantitative Equity Analyst, 13 years experience Yassine Basraoui, Fund Manager, 9 years experience Pierre-Edouard Bonenfant, Fund Manager, 5 years experience Mathieu Decrop, Fund Manager, 6 years experience François Escoffier, Fund Manager, 19 years experience Cyrille Corso, Fund Manager, 16 years experience François Poydenot de Pontonx, Investment Solutions Manager, 16 years experience Didier Saint-Georges, Team Leader, 29 years experience Sandra Crowl, 25 years experience Jean Médecin, 22 years experience Gergerly Majoros, 14 years experience CARMIGNAC FOURTH QUARTER 2016 / 9

CARMIGNAC RANGE OF FUNDS EQUITY MANAGEMENT Our equity fund management is based on a long-term investment approach. Macroeconomic analysis identifies current and future global economic growth drivers to help us decide on investment themes. The constant search for the best investment opportunities involves a selection of securities with strong growth potential. Net Assets as of 30/12/2016 Fund manager(s) Risk scale (1) Recommended minimum investment horizon Legal structure Investment universe Reference indicator (2) Carmignac Investissement 5 103 405 092.65 Edouard Carmignac 5 5 Years French Mutual Fund International equities MSCI AC World NR (Eur) Carmignac Portfolio Grande Europe 253 119 825.04 Mark Denham and Vincent Steenman 5 5 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV EU members/candidates equities and additionally, Russian and Turkish equities Stoxx 600 NR (Eur) Carmignac Euro-Entrepreneurs 320 801 285.07 Mark Denham and Malte Heininger 5 5 Years French Mutual Fund EU small and mid-cap equities Stoxx 200 Small NR (Eur) Carmignac Emergents 1 130 111 414.87 Xavier Hovasse and David Young Park 6 5 Years French Mutual Fund Emerging markets equities MSCI Emerging Markets NR (Eur) Carmignac Portfolio Emerging Discovery 305 299 226.72 Xavier Hovasse and David Young Park 5 5 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV Emerging markets small and mid capitalisations 50% MSCI EM SmallCap NR (Eur) + 50% MSCI EM MidCap NR (Eur) (3) Carmignac Portfolio Commodities 683 390 277.97 Michael Hulme 6 5 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV International equities Commodities Carmignac Portfolio Commodities Index (3)(4) PROFILED MANAGEMENT Invested primarily in Carmignac funds, profiled funds benefit from the entire team s international expertise. A major advantage of this approach is that thanks to our in-depth understanding of each underlying fund, the level of equity risk exposure can be tactically adjusted in accordance with the fund manager s outlook and short-term market movements. Net Assets as of 30/12/2016 Fund manager(s) Risk scale (1) Recommended minimum investment horizon Legal structure Investment universe Reference indicator (2) Carmignac Profil Réactif 100 110 398 903.53 Frédéric Leroux 5 5 Years French Fund of Funds Carmignac Profil Réactif 75 121 266 169.58 Frédéric Leroux 4 5 Years French Fund of Funds Carmignac Profil Réactif 50 232 878 290.07 Frédéric Leroux 4 3 Years French Fund of Funds International equities and bonds (between 0% and 100% of assets exposed in equity UCI) International equities and bonds (between 0% and 75% of assets exposed in equity UCI) International equities and bonds (between 0% and 50% of assets exposed in equity UCI) MSCI AC World NR (Eur) 75% MSCI ACW NR (Eur) + 25% Citigroup WGBI (Eur) (3) 50% MSCI ACW NR (Eur) + 50% Citigroup WGBI (Eur) (3) 10 / Management report CARMIGNAC FOURTH QUARTER 2016

DIVERSIFIED MANAGEMENT The management of our diversified funds combines our international equity and bond expertise. A perfect illustration of how effective flexible management can be, the three Patrimoine funds integrate long-term themes with the search for limited volatility. Net Assets as of 30/12/2016 Fund manager(s) Risk scale (1) Recommended minimum investment horizon Legal structure Investment universe Reference indicator (2) Carmignac Patrimoine 24 670 872 406.84 Edouard Carmignac and Rose Ouahba 4 3 Years French Mutual Fund International equities and bonds 50% MSCI ACW NR (Eur) + 50% Citigroup WGBI (Eur) (3) Carmignac Portfolio Emerging Patrimoine 772 005 765.14 Xavier Hovasse and Charles Zerah 5 5 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV Emerging bonds and equities 50% MSCI EM NR (Eur) + 50% JP Morgan GBI EM (Eur) (3) Carmignac Euro-Patrimoine 213 007 773.93 Malte Heininger 4 3 Years French Mutual Fund EU equities 50% Euro Stoxx 50 NR (Eur) + 50% Eonia compounded (3) Carmignac Investissement Latitude 440 630 878.01 Frédéric Leroux and Julien Chéron 5 5 Years French Mutual Fund (5) Carmignac Investissement feeder Fund International equities with the option to participate in the futures markets to hedge up to 100% of the equity risk exposure of the master Fund MSCI AC World NR (Eur) FIXED INCOME MANAGEMENT Over the years, Carmignac has been able to hone its own style of bond expertise, which fits in perfectly with its investment philosophy. Conviction-based management supported by investment decisions made independently of reference indicators. Net Assets as of 30/12/2016 Fund manager(s) Risk scale (1) Recommended minimum investment horizon Legal structure Investment universe Reference indicator (2) Carmignac Portfolio Global Bond 829 793 081.38 Charles Zerah 4 2 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV International bonds JP Morgan GBI Global (EUR) (Accrued interest) Carmignac Portfolio Capital Cube 93 998 011.33 Carlos Galvis 3 3 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV Multi-strategy and multi-asset portfolio Eonia compounded Carmignac Sécurité 12 266 066 346.98 Keith Ney 2 2 Years French Mutual Fund Bonds denominated in Euro Euro MTS 1-3 Y (Accrued interest) Carmignac Portfolio Capital Plus 1 809 982 994.41 Carlos Galvis 2 2 Years Sub-fund of Carmignac Portfolio, a Luxembourg SICAV Multi-strategy and multi-asset portfolio Eonia compounded Carmignac Court Terme 304 526 820.36 Rose Ouahba 1 1 Day French Mutual Fund Short-term money-market investments denominated in Euro Eonia compounded (1) Risk scale from 1 (lowest risk) to 7 (highest risk), category 1 does not mean the investment is risk free. The risk category of this fund is not guaranteed and may change over time. (2) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. (3) Rebalanced quarterly. (4) Index calculated and composed of 45% MSCI ACWF Oil and Gas NR (Eur), 5% MSCI ACWF Energy Equipment NR (Eur), 40% MSCI ACWF Metal and Mining NR (Eur), 5% MSCI ACWF Paper and Forest NR (Eur) and 5% MSCI ACWI Chemicals NR (Eur) as from 01/07/2013. (5) Alternative investment fund. CARMIGNAC FOURTH QUARTER 2016 / 11

Alexandr Mitiuc - Fotolia.com MACROECONOMIC ANALYSIS AND INVESTMENT STRATEGY A crucial development from the standpoint of our investment strategy is that fiscal policies are becoming more expansive at the same time that inflation is staging a moderate comeback. This cyclical shift marks the end of a lengthy period during which central banks had the ability to turn any macroeconomic bad news into good news for financial markets. Economic analysis In our two preceding reports, we predicted a regime change in terms of economic and financial policy with greater emphasis on fiscal stimulus, after a decade of unprecedented central-bank interventionism. We anticipated such a shift for political rather than economic reasons, given that popular pressure in favour of a new policy approach was palpable, and still is. In light of Brexit, support for Donald Trump, no campaigners lead in opinion polls for Italy s constitutional referendum, and the increasing popularity of extremist votes in Europe, a return of these expansionist fiscal policies seems likely, we wrote. In the intervening time, Donald Trump has ridden to power on a platform and political narrative calling for higher fiscal spending to boost domestic growth. The Italians, meanwhile, have voted down a proposal to modernise their political institutions that might have helped the country s economy operate more efficiently, but through the kind of belt-tightening likely to depress the business cycle. Election after election reveals mounting dissatisfaction with an economic and political system that has left the middle class increasingly vulnerable, just when inflation is picking up in the United States (+2.1%) and even in Germany (+1.6%). The stage is therefore set for a cyclical upturn. Moreover, in this expansionary phase, growth will be less hampered by a massive global debt overhang and, as deflationary pressures subside, central banks will feel less compelled to take action at the slightest sign of a faltering economy. This cyclical shift marks the end of a lengthy period during which central banks had the ability to turn any macroeconomic bad news into good news for financial markets. A crucial development from the standpoint of our investment strategy is that fiscal policies are becoming more expansive at the same time that inflation is staging a moderate comeback. Rising bond yields something we correctly predicted coupled with a sector rotation into cyclical industries and markets a trend we should have done more to leverage in our equity portfolios and a stronger US dollar which we failed in part to cash in on just after the November elections all bear witness to the sea change taking place. The question at this stage is what investment opportunities and what financial-market risks that sea change will generate. United States Today as much as ever, the United States is the epicentre of the cyclical upswing. How should we interpret Trump s promises which may or may not be kept to use fiscal policy to spur economic growth at a time when a return of inflation looks probable? Infinitely more important than his pledge to spend heavily on infrastructure is his proposal to cut the corporate tax rate, possibly from 35% to 20%. Such a policy could lead to a cyclical turnaround 12 / Management report MACROECONOMIC ANALYSIS AND INVESTMENT STRATEGY

in profit margins, which have historically been a key determinant of the business cycle. Since the Lehman Brothers meltdown, corporate revenues have fallen faster than costs, with the result that profit margins have tended to shrink. That decline has been a major obstacle to capital expenditure in recent years even with rock-bottom lending rates. Companies with heftier margins will be more inclined to invest, and thus better able to respond to the uptick in consumer demand that Trump s victory at the polls has served to strengthen. The year-on-year growth rate in durable goods orders climbed from 0% to 1.8% in November, while the Consumer Expectations Index has hit a thirteen-year high. This renewed consumer confidence should be strong enough to offset slower growth in real disposable income, which at +2.3% year-on-year represents a thirty-three month low. But what these figures show above all is how high hopes in the US currently are. High hopes, however, have a way of being disappointed. If the new US President s economic programme fails to go through, or goes through too slowly, a rebound in capital expenditure will become a more iffy bet. And that would also be true if companies chose to use the prospective tax cuts to engage in financial engineering. But these possible let-downs are not our baseline scenario. We anticipate more vigorous growth accompanied by mounting inflationary pressure. Several points lead us to believe that inflation will rise faster than the consensus currently assumes. To start with, manufacturers of non-discretionary goods have got into the habit of raising their selling prices in order to offset the downward pressure on profit margins. The same goes for the owners of buy-to-let properties. To United States: the corporate tax cut promised by Trump could give an additional boost to an economy already on the mend 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% 03/07 03/08 03/09 03/10 After-tax profits, annual change 03/11 03/12 03/13 ------ Projection incorporating a tax-rate reduction from 35% to 20% 03/14 United States: rising consumer spending in the wake of Trump s victory could offset declining household income 03/15 120 100 80 60 40 Consumer sentiment indices (University of Michigan)) Source : Carmignac, CEIC, 30/12/2016 03/16 03/17 01/05 01/07 01/09 01/11 01/13 01/15 make up for low returns on their financial assets, they have hiked rents for the part of the population that can t afford home ownership. In addition, a steady appreciation in energy prices can soon be expected to lift overall inflation. Finally, after eight years of unprecedented wage moderation, an upward drift is now observable (particularly for managers), with hourly compensation increasing 2.9% over the past year. This shows that US inflation is by no means a temporary phenomenon caused by rising energy prices, but reflects prices across the underlying economy. And upward wage pressure is starting to feed into it. Even if the expected pick-up in economic growth doesn t materialise, we believe the inflationary momentum will be strong enough to deter the Federal 03/18 Current Economic Conditions Index Index of Consumer Sentiment Index of Consumer Expectations 8% 6% 4% 2% 0% -2% -4% -6% Real disposable income, annual change 01/11 01/12 01/13 01/14 01/15 01/16 Reserve from transitioning to a more accommodating monetary policy stance. What we are describing here is merely the standard workings of the business cycle, whose key drivers have clearly swung into action in the United States. Their upside potential is visible today, as is the basis for a subsequent trend reversal. Given the debt overhang left by a string of crises in preceding years, the Fed is initially likely to take a hands-off approach to inflation in order to facilitate deleveraging. This policy should result in real interest rates staying as low as possible and a steepening yield curve as the economy starts humming in earnest. Further on, after inflation picks up steam due to a lack of intervention during the expansionary phase, it will lead to higher longterm yields and cyclical contraction. In other words, the good old economy is back in town. Source : Carmignac, CEIC, 30/12/2016 CARMIGNAC FOURTH QUARTER 2016 / 13

Upturn in Europe as well 30% 20% 10% 0% -10% -20% -30% -40% 01/06 Germany: factory orders, annual change 01/08 01/10 01/12 Source : Carmignac, CEIC, 30/12/2016 01/14 01/16 2,5% 1,0% -0,5% Europe Although the upturn in Europe is nowhere near as strong as in the United States, two recent developments suggest that GDP growth on the other side of the pond is still having a knock-on effect here. First, German factory orders have reached a thirty-month high, and they are being driven by exports. This means that growth abroad will spread to Europe via Germany. Second, the latest German inflation readings point to an unusually sharp rebound, with food, energy and rent prices as the biggest contributors. While prices in the rest of the eurozone have yet to pick up to the same extent, the experience of previous cycles leads us to view widespread spillover from Germany as a very likely scenario. As in the United States, a good many political platforms in Europe call for greater public spending. That has long been true in France, but the 01/08 same may now be said of Italy and Spain as well. This suggests that we may be seeing business cycle synchronisation between the US and Europe, with the usual delay. At a time of resurgent inflation, the ECB will be unable to go on expanding its balance sheet indefinitely through massive bond purchases. Emerging markets Though the emerging world seems to be sharply divided into commodity-exporting countries and the others, Donald Trump s victory at the polls and his protectionist agenda area causing fear in both groups. Mexico is a case in point: the peso has lost 18% of its value since the US elections in November. In contrast, Brazil, a country grappling with a highly unsettled domestic environment, has seen its currency bounce back to its pre-election level. The Germany: inflation (CPI), annual change 01/10 01/12 01/14 Russian rouble has likewise gained 6%. The equity markets in both countries have held up rather well, buoyed by stronger GDP growth. Brazil, for example, has gone from a 6% contraction in output to nearly flat growth in the space of a year. China is still the country with the greatest potential to derail the entire emerging world. Its huge stock of corporate debt has resulted in a systemically fragile economy that is nothing less than a time bomb. Just how worrying that bomb is can be gauged from the capital flight it triggers at increasingly regular intervals. Even so, the economy is recovering and the latest statistics, such as electric power production, are reassuring enough to keep China s systemic risk from materialising in the near term. Meanwhile, the newly-developed countries seem fairly well-equipped to deal with further dollar appreciation and rising US bond yields, thanks to a secular improvement in economic fundamentals first and foremost their declining dependence on foreign capital. 01/16 Source : Carmignac, CEIC, 30/12/2016 Japan Japan is sticking doggedly to its policy of keeping nominal ten-year government bond yields close to zero. The result has been to drive the yen way down (by -16% against the dollar) by encouraging Japanese savers to invest abroad. At the same time, economic activity has continued to recover. Manufacturing output growth surged from 0.2% to 2.9% in November, with all industries contributing to the increase. Japanese policy offers a welcome counterweight to monetary tightening in the US in that it helps reduce global upward pressure on bond yields. Japan: an economy buoyed by yen depreciation that aims to rekindle inflation 30% 20% 10% 0% -10% -20% -30% -40% 2002 Japan: industrial production, annual change 2005 2008 2011 2014 130 120 110 100 90 80 70 Japanese currency 04/11 04/12 04/13 04/14 04/15 04/16 Yen depreciation 14 / Management report MACROECONOMIC ANALYSIS AND INVESTMENT STRATEGY

Niko - Fotolia.com portfolios also include substantial holdings of Japanese financial stocks. They have shed a great deal of their market value even as their issuers are getting a boost from the global upswing and a weaker yen. At the same time, the political and global economic shifts we discussed above haven t caused us to lose faith in our tech names, whose bright prospects become brighter every day. Investment strategy The general view among pundits is that the election of Donald Trump has created substantial economic and geopolitical uncertainty. Yet financial markets seem to disagree, judging from their highly positive reaction to the event. Developed-country equity markets are ahead by 8% on average, while ten-year sovereign bond yields have gained 65 basis points in the United States and 23 in Germany. The greenback has appreciated against all other currencies including by 11% against the yen and 6% against the euro. Visibly wagering that the policy mix shaping up in Washington will boost output at a time of renewed inflation, investors have accelerated the sector rotation into the sectors with the greatest sensitivity to changes in GDP growth and the least vulnerability to inflation. It s hard to say right now whether the new US President will end up dashing the market s high hopes, or whether his protectionist policies will turn out to be as drastic as critics fear. Granted, both stocks and bonds already trade at rather lofty valuations. But with strong global economic growth coming on top of continued monetary policy accommodation in Europe and Japan, equity markets look set to scale new heights. We have accordingly increased our exposure to equity markets to near-maximum level. Our basic strategy is as follows: The unfolding scenario of less erratic growth, coupled with a moderate pick-up in inflation, is likely to put commodities first and foremost oil, particularly since the recent agreement among OPEC members at an advantage over stocks with good visibility. Chief among the latter are the stocks of drug companies, which will remain a favourite target for populist governments. Our Fixed income markets show as much contrast as ever. A number of emerging-market local currency bonds offer extremely high yields exceeding 11% in the case of Brazil. Moreover, the hunt for yield can make this an attractive asset class, although careful risk analysis is imperative. As credit spreads narrow, corporate issues may well be buoyed by positive global growth forecasts, but in light of their broadly high valuations and discontinuous liquidity, we don t see a great deal of investment opportunity here at this stage. It should also be mentioned that the outlook for safe-haven government bond yields has yet to improve. While it s too soon to proclaim that the long-term slide in sovereign yields is over and done with, we do believe that they still have room to rise further in the near term. We d like to see ten-year government paper trade at 3% in the United States and 1% in Germany before we move away from our current negative modified duration. Although the Fed has been slow to normalise monetary policy, the change under way may prove to be surprisingly bold if our analysis of US inflation is correct. At the same time, the uptick in German inflation (currently +1.6%) can be viewed as a harbinger of things to come across Europe. In the foreign exchange market, the growth and inflation differentials between the United States and Europe, and the resulting monetary policy mismatch, have understandably created a broad consensus that the dollar will continue to strengthen. We are wary of this near-unanimous forecast, particularly because it has led many investors to take massive long positions in the US currency. We will therefore be keeping our exposure roughly in line with performance indices. As we argued in our previous report, the outlook for the yen is clearer, given the Bank of Japan s policy of deliberately forcing the Japanese currency down. We will seek to leverage any pronounced reversal of the weakening trend observed in the past few months by initiating a short position that is positively correlated with risk assets. The currencies of emerging-market commodity exporters will likely remain a major allocation in our portfolios, whereas we hold a large short position in the yuan versus the dollar. We consider this an effective way of hedging all our assets against the risk that the Chinese time bomb will go off. Source of data: Carmignac, CEIC, 30/12/2016 CARMIGNAC FOURTH QUARTER 2016 / 15

Edouard Carmignac International equity fund which benefits from our macro-economic expertise, active management and unconstrained asset allocation in terms of sectors, geographical areas and market capitalisations. The Fund aims to outperform its reference indicator over 5 years minimum. At least 60% of net assets are permanently exposed to equity markets. The Fund s main performance drivers are therefore equities but also currencies and occasionally fixed income products. Carmignac Investissement gained +1.64% in the fourth quarter, while its reference indicator was up +7.81%. This brings 2016 performance to +2.13%, lagging well behind its reference indicator+11.09%. As in the previous quarter, the portfolio s performance was penalised by our exposure to the healthcare and gold-mining sectors, whose losses cancelled out to a large extent the positive returns from our energy and tech stocks. We also deemed it prudent to reduce our exposure to the US dollar, as the consensus bet on a widening interest rate differential between the United States and other developed economies seems questionable to us. The main event marking the quarter was the surprise election of Mr. Trump as President of the United States. The prospect of a more business-friendly administration pushed the US equity market to an all-time high, and led to both substantial appreciation of the greenback and a swift, large-scale sector rotation as portfolios were repositioned. Setting aside worries about the potential harm that Trump s protectionist stance may do to global trade, investors have welcomed promises of corporate tax reform, a less stringent regulatory regime and fiscal stimulus through infrastructure spending in the US. We also believe that regardless of whoever ultimately wins the upcoming French and German elections, Europe is increasingly likely to embark on a path of fiscal expansionism as well. In combination with the mild cyclical global recovery further buoyed by an uptick in oil prices these developments are changing the dynamics of portfolio construction. We have accordingly stepped up our efforts to rebalance our portfolio towards more cyclical stocks, which should benefit from higher growth and inflation. We raised our exposure to commodities, industrials and financials to 44% of our equity exposure, with energy and materials making up almost 27% of the portfolio at year-end, up from their very low level at the start of 2016. We also continued to reduce our healthcare exposure due to concerns that Performance of the fund since its launch 1800 1600 1400 1200 1000 800 600 400 263% 200 0 01/89 12/92 12/96 12/00 12/04 12/08 12/12 12/16 Carmignac Investissement A EUR acc MSCI AC World NR (Eur) 1 411% From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). drug companies will remain a favourite target for populist governments, and scaled back our allocation to specific Internet names, which in recent years were among the leading beneficiaries of a scarce global growth environment. In 2017, we expect a return to a more normalized economic cycle in which stock selection will be the primary driver of performance. This is in stark contrast to the situation of the past several years, when heavy central-bank intervention caused liquidity expectations to change constantly, making investment in index funds the key determinant of equity market trends. Our asset allocation at 31 December 2016 was as follows: Our allocation to the reflation theme rose from 25% to 44% of the Fund s assets. We initiated four positions in US airlines as they should benefit from the probable pick-up in the domestic economy, with load factors at historically high levels and good cost visibility. Financials rose to 10% of the portfolio, mainly via new positions in Japanese banks (Mitsubuishi UFJ, Sumitomo Mitsui Financial, Mizuho Financial Group and Nomura Holdings). Operating in the world s lowest interest rate environment, those banks are set to reap the benefits of the incipient global rise in interest rates, while the Yen s persistent weakness enhances their international activity. Yet it is worth noting that their shares trade on average at a 40% discount to their net assets. As one of the banks best-equipped to capitalise on higher inflation and interest rates in the United States, Bank of America deserved to be included in the portfolio. Alternatively, we added to our natural resources holdings (now 20% of the portfolio), sensing that it was the right time in the cycle to invest in oil services businesses Halliburton and Schlumberger as drilling gets under way again in the Permian. We also upped our exposure to businesses operating in this high-potential basin by boosting our allocation to Pioneer Natural Resources, Concho Resources and by adding EOG Resources to the portfolio. As we believe that Trump s election heralds a new era of energy infrastructure build-out in the US and Canada, we initiated a position in TransCanada Corp, which will benefit if the Keystone Pipeline restarts. However, we sold our holding in Occidental Petroleum because we found the company s strategic shift towards acquisitions unconvincing. We reduced our emerging market growth theme (from 17% to 14% of the portfolio) as we see potential headwinds from rising interest rates and a stronger US dollar. During the quarter we sold our positions in Mediatek and Unilever, due to their disappointing outlooks, and took profits on AIA Group due to the current uncertainty around the regulation of Chinese capital outflows. * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. 16 / Management report EQUITY MANAGEMENT

We more than halved our exposure to our longevity theme, exiting names like Novartis and ThermoFisher Scientific. Our position in Novo Nordisk saw significant weakness in 2016 and has been reduced to 1%. Though this has been a money-making name for the Fund over the years, we think that the short-term uncertainty surrounding its pricing ability outweighs its leadership in the promising diabetes care market. Within Technology and Communications, we took significant profits on Amazon, sold our position in Alphabet and exited Level 3 following its recent acquisition by CTL. These funds were reallocated in part to start a position in Samsung Electronics, the technology component and handset leader that could benefit from an ownership restructuring. Lastly, we invested in TripAdvisor, the travel review website that we feel is poised for a turnaround. Among this quarter s all-too-rare sources of satisfaction, we note: Stocks Performance Pão de Açúcar, retail, Brazil +64% LinkedIn*, internet, United States +63% Anadarko, oil, United States +48% Altice, telecommunications, France +42% *Holding fully liquidated at 31 December. EQUITY MANAGEMENT Geographic breakdown (derivatives excluded) (%) Statistics (%) 1 year 3 years Fund volatility 11.95 11.99 56.8 18.8 Benchmark volatility 15.90 11.69 Sharpe ratio 0.20 0.41 North America Europe 8.0 Beta 0.62 0.92 Alpha -0.07-0.53 Asia 8.0 Calculation period: weekly (1 year) and monthly (3 years). 6.0 Asia-Pacific Latin America Quarterly gross performance contribution (%) 2.4 Cash, cash equivalents and derivatives operations Equity Portfolio Equity Derivatives Bond Derivatives Currency Derivatives Total 2.39-0.06 1.24-1.57 2.00 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 16.07 11.54 Net currency exposure of Euro share classes (%) Sector breakdown (derivatives excluded) (%) USD 1,1 84.2 Financials 19.3 EUR 28.1 Information Technology 17.5 GBP 0.2 Consumer Discretionary 17.0 CHF 1.7 Energy 14.8 AUD and CAD 2.8 Materials 11.9 Latin America 0.4 Healthcare 7.9 Emerging Asia -18.4 Industrials 4.1 Other 1.0 Consumer Staples 3.4 Telecommunication Services 1.7 Cash, cash equivalents and derivatives operations 2.4 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Investissement A EUR acc 2.13 1.64 4.25 2.13 14.20 42.11 76.74 1410.92 MSCI AC World NR (Eur) 11.09 7.81 12.23 11.09 43.31 88.07 55.58 262.75 Category average* 3.92 4.14 9.1 3.92 35.4 80.92 52.94 454.22 Ranking (quartile) 3 4 4 3 4 4 2 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * Global Large-Cap Growth Equity. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). CARMIGNAC FOURTH QUARTER 2016 / 17

EQUITY MANAGEMENT HOLDINGS CARMIGNAC INVESTISSEMENT AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 121 110 553.66 2.37 Cash (including collateral cash from derivative positions) 121 110 553.66 2.37 Equities Developed countries 4 265 628 694.00 83.58 North America 2 899 138 243.38 56.81 142 276 AMAZON.COM INC (USA) Consumer Discretionary 749.87 101 150 513.51 1.98 841 838 AMERICAN AIRLINES GROUP (USA) Industrials 46.69 37 265 149.30 0.73 3 984 349 ANADARKO PETROLEUM (USA) Energy 69.73 263 407 116.16 5.16 2 620 584 BANK OF AMERICA (USA) Financials 22.10 54 908 657.41 1.08 2 180 811 CELGENE CORP (USA) Healthcare 115.75 239 325 786.44 4.69 309 756 CF INDUSTRIES HOLDINGS (USA) Materials 31.48 9 244 957.46 0.18 329 503 CHARTER COMMUNICATIONS INC-A (USA) Consumer Discretionary 287.92 89 945 962.32 1.76 565 952 CONCHO RESOURCES (USA) Energy 132.60 71 149 784.50 1.39 792 760 DELTA AIR LINES (USA) Industrials 49.19 36 971 665.70 0.72 558 549 EOG RESOURCES (USA) Energy 101.10 53 538 093.29 1.05 2 112 394 FACEBOOK INC (USA) Information Technology 115.05 230 415 671.68 4.51 1 052 043 FRANCO-NEVADA CORP (Canada) Materials 80.28 59 710 850.18 1.17 6 625 290 GOLDCORP INC (Canada) Materials 13.60 85 426 825.31 1.67 1 165 693 HALLIBURTON (USA) Energy 54.09 59 779 411.59 1.17 909 766 HESS CORP (USA) Energy 62.29 53 727 730.87 1.05 4 944 201 HUDBAY MINERALS INC (Canada) Materials 7.68 26 845 391.27 0.53 549 729 INTERCEPT PHARMACEUTICALS INC (USA) Healthcare 108.65 56 627 689.83 1.11 3 625 070 INTERCONTINENTAL EXCHANGE (USA) Financials 56.42 193 909 883.29 3.80 1 214 335 MASTERCARD INC (USA) Information Technology 103.25 118 871 854.70 2.33 1 390 602 MICROSOFT CORP (USA) Information Technology 62.14 81 926 530.72 1.61 3 439 904 NEWMONT MINING (USA) Materials 34.07 111 114 035.82 2.18 1 394 671 NIKE INC (USA) Consumer Discretionary 50.83 67 211 307.83 1.32 1 762 220 NOBLE ENERGY INC (USA) Energy 38.06 63 588 616.45 1.25 8 279 333 ORYX PETROLEUM (Canada) Energy 0.53 3 102 298.77 0.06 479 125 PIONEER NAT. RESOURCES (USA) Energy 180.07 81 797 619.10 1.60 3 294 040 POTASH CORP (Canada) Materials 18.09 56 496 026.17 1.11 672 969 SCHLUMBERGER (USA) Energy 83.95 53 563 164.30 1.05 1 185 298 SERVICENOW (USA) Information Technology 74.34 83 541 174.04 1.64 3 601 319 SILVER WHEATON CORP (Canada) Materials 19.32 65 965 852.65 1.29 821 864 SOUTHWEST AIRLINES CO (USA) Industrials 49.84 38 835 460.31 0.76 1 608 594 T-MOBILE US INC (USA) Telecommunication Services 57.51 87 708 216.11 1.72 1 221 699 TRANSCANADA CORP (Canada) Energy 60.54 52 290 047.34 1.02 1 459 171 TRIPADVISOR INC (USA) Consumer Discretionary 46.37 64 149 570.30 1.26 565 275 UNITED CONTINENTAL HLD (USA) Industrials 72.88 39 058 774.12 0.77 1 440 670 VISA INC (USA) Information Technology 78.02 106 566 554.54 2.09 Asia-Pacific 407 282 228.44 7.98 3 971 783 DAI-ICHI LIFE INSURANCE (Japan) Financials 1 946.00 62 827 503.30 1.23 25 244 974 MITSUBISHI UFJ FINANCIAL GROUP (Japan) Financials 720.20 147 791 513.91 2.90 28 707 166 MIZUHO FINANCIAL GROUP INC (Japan) Financials 209.80 48 957 277.36 0.96 8 244 478 NOMURA HOLDINGS (Japan) Financials 689.10 46 181 375.75 0.90 2 800 366 SUMITOMO MITSUI FINANCIAL (Japan) Financials 4 460.00 101 524 558.12 1.99 Europe 959 208 222.18 18.80 13 519 934 ALTICE SA (Netherlands) Consumer Discretionary 18.93 254 829 235.52 4.99 1 503 197 CRITEO (France) Information Technology 41.08 58 545 942.41 1.15 44 810 DASSAULT AVIATION SA (France) Industrials 1 061.60 47 570 296.00 0.93 344 268 HERMES INTERNATIONAL (France) Consumer Discretionary 390.00 134 264 520.00 2.63 3 222 404 INDITEX (Spain) Consumer Discretionary 32.43 104 502 561.72 2.05 1 740 409 LAFARGEHOLCIM LTD (Switzerland) Materials 53.65 87 101 625.79 1.71 1 744 080 LONDON STOCK EXCHANGE (United Kingdom) Financials 29.14 59 539 000.94 1.17 1 706 332 NOVO NORDISK AS (Denmark) Healthcare 254.70 58 449 309.12 1.15 560 837 RECKITT BENCKISER (United Kingdom) Consumer Staples 68.86 45 242 778.61 0.89 1 952 688 SFR GROUP SA (France) Consumer Discretionary 26.83 52 390 619.04 1.03 904 228 SHIRE PLC (United Kingdom) Healthcare 46.84 49 618 134.40 0.97 339 905 TALEND SA (France) Information Technology 22.20 7 154 198.63 0.14 Equities Emerging markets 716 665 844.99 14.04 Latin America 305 856 180.10 5.99 6 440 658 BANCO SANTANDER MEXICO (Mexico) Financials 7.19 43 904 556.53 0.86 13 821 766 CEMEX (Mexico) Materials 8.03 105 227 571.44 2.06 4 651 720 GRUPO PAO DE ACUCAR (Brazil) Consumer Staples 54.75 73 289 112.82 1.44 563 616 MERCADOLIBRE INC (Argentina) Information Technology 156.14 83 434 939.31 1.63 Asia 410 809 664.89 8.05 23 214 619 AIA GROUP LTD (Hong Kong) Financials 43.75 124 196 998.07 2.43 44 998 643 GMR INFRASTRUCTURE LTD (India) Industrials 11.85 7 448 868.00 0.15 5 593 686 HDFC BANK (India) Financials 1 323.55 103 421 527.22 2.03 35 719 SAMSUNG ELECTRONICS (South Korea) Information Technology 1 802 000.00 50 525 369.94 0.99 3 063 714 TENCENT HOLDINGS (China) Information Technology 189.70 71 070 117.43 1.39 1 994 715 UNITED SPIRITS LTD (India) Consumer Staples 1 942.80 54 146 784.23 1.06 Portfolio value 4 982 294 538.99 97.63 Net assets 5 103 405 092.65 100.00 18 / Management report CARMIGNAC FOURTH QUARTER 2016

Mark Denham Vincent Steenman Equity fund focused on stock-picking across European markets. The investment process is based on fundamental bottom-up analysis. Stock selection focuses on asymmetric risk/return profiles with a clear catalyst for entry and exit. The Fund aims to outperform its reference indicator over 5 years and to generate long-term capital growth. During the fourth quarter of 2016, Carmignac Portfolio Grande Europe increased by +3.90%, providing a lower return than the reference indicator which was up +5.76%. The full-year 2016 performance of the Fund was +5.11%, versus +1.73% for the indicator. Markets rose during the fourth quarter, reflecting positive investor sentiment towards the economy and corporate earnings. Economic data in Europe strengthened during the period with high and rising leading indicators of economic activity across the region. Germany s IFO survey and various Purchasing Managers Indices all registered expansionary readings, even in previously lagging economies such as France and Italy. Furthermore, financial markets had no trouble weathering potentially difficult events, including the unexpected election of Donald Trump as US president in November and a No vote in the Italian referendum on constitutional reform in December. It was almost as if, after successfully contending with the Brexit vote in the UK over the summer, investors felt they could take other events in their stride. Mr Trump s agenda in particular his call for more protectionism and fiscal stimulus at home led to higher growth and inflation expectations worldwide, rising bond yields and a stronger dollar relative to the euro. The stock market consequently enjoyed a decent rally in the quarter driven by cyclical sectors that stand to gain from those themes. Financials banks and insurance companies led the way because they are seen as beneficiaries of rising bond yields, followed by Oil & Gas, Automotive and Metals & Mining names. Given that stocks in these sectors do not generally exhibit the characteristics we look for when investing for the longer term, we have low exposure to them. That was the dominant reason why the fund lagged its reference indicator in the quarter. In addition, the growth names we own showed relative weakness. They were hurt by rising economic growth expectations because the market is now less willing to pay a premium for the secular delivery of growth by the likes of internet names Rightmove or Auto Trader; or for the stable growth of legal publisher Wolters Kluwer. Lastly, we were hurt by the final profit warning by drug company Novo Nordisk, operating in a sector where increased competition has reduced growth forecasts. It was not all bad news, however. Telecoms company Altice, in which we have a long-standing position, gained considerable ground on upgraded market forecasts for its US cable operations, as well as expected gradual improvements at its French operator SFR, an outcome fully in line with our thesis there. Even so, we will stick to our current investment approach, as described above, which we expect will deliver superior returns over the longer term. In fact, we have strengthened our positions with that conviction in mind. During the quarter, we made several changes to the Fund. We have been looking for names that meet our specific criteria mentioned above, but that also show a certain degree of sensitivity to an improving economic environment. Names added include WPP, the media advertising agency, which should generate double-digit profit growth from economic growth, higher margins achieved through cost control and digitisation, bolt-on acquisitions and share buybacks; and SPIE, a French technical services company with strong cash generation that can reinvest its cash in accretive acquisitions like the recent SAG deal in Germany and is well-positioned to cash in on France s improving economic outlook. Testing company Applus+ is another new name with a similar profile. Performance of the fund since its launch 200 180 80% 160 140 120 26% 100 80 60 40 07/99 12/00 12/02 12/04 12/06 12/08 12/10 12/12 12/14 12/16 Carmignac Portfolio Grande Europe A EUR acc Stoxx 600 NR (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report EQUITY MANAGEMENT / 19

EQUITY MANAGEMENT We have also used some of the weakness in stable growth sectors to increase existing holdings. We have added to Shire and Novo Nordisk in the Healthcare sector, where we feel valuations are too low in light of the quality of future growth. At the same time, we have bought new positions in Fresenius and Galenica, which offer significant upside. Source of data: Bloomberg, 30/12/2016 Some of the best performances in the year came from: Stocks Performance Smiths Group, industrial conglomerate, United Kingdom +51% Altice, telecommunications, Netherlands +42% Aena, airports management, Spain +23% Sunrise Communications, telecommunications, Switzerland +13% Criteo, digital advertising, France +4% Geographical Exposure (%) Positions Long Short Net United Kingdom 31.3-1.0 30.4 Netherlands 13.9 0.0 13.9 Germany 13.3 0.0 13.3 France 9.4 0.0 9.4 Switzerland 8.9 0.0 8.9 Spain 5.5 0.0 5.5 Ireland 2.6 0.0 2.6 Denmark 2.6 0.0 2.6 Belgium 1.8 0.0 1.8 USA 1.0 0.0 1.0 Finland 0.8 0.0 0.8 Sweden 0.0-0.9-0.9 Other countries 0.8 0.0 0.8 Total 91.8-1.9 90.0 Sector Exposure (%) Positions Long Short Net Cons. Services 20.5-1.0 19.6 Financials 15.4 0.0 15.4 Healthcare 13.5 0.0 13.5 Cons. Goods 12.2 0.0 12.2 Industrials 11.4-0.9 10.5 Technology 5.5 0.0 5.5 Oil & Gas 5.1 0.0 5.1 Telecommunication 4.4 0.0 4.4 Basic Materials 3.8 0.0 3.8 Total 91.8-1.9 90.0 Quarterly gross performance contribution (%) Equity Portfolio Equity Derivatives Currency Derivatives Total 2.81 0.74 0.55 4.10 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 13.61 13.83 Net currency exposure of Euro share classes (%) Statistics (%) 1 year 3 years Fund volatility 16.29 11.55 USD -0.2 Benchmark volatility 21.25 12.91 EUR 58.2 Sharpe ratio 0.34 0.41 GBP CHF Other 2.6 7,4 22.6 16.8 Beta 0.70 0.77 Alpha 0.08-0.03 Calculation period: weekly (1 year) and monthly (3 years). Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Portfolio Grande Europe A EUR acc 5.11 3.90 12.17 5.11 14.34 46.34 15.64 79.69 Stoxx 600 NR (Eur) 1.73 5.76 10.40 1.73 19.53 65.12 10.55 25.74 Category average* 0.75 3.96 10.2 0.75 22.23 78.89 34.13 163.99 Ranking (quartile) 1 2 2 1 3 4 4 3 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * Europe Large-Cap Blend Equity. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 20 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC PORTFOLIO GRANDE EUROPE AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 32 538 536.46 12.85 Cash (including collateral cash from derivative positions) 18 626 070.35 7.36 Carmignac Court Terme Mutual Fund - Money Market 13 912 466.11 5.50 Equities European Union 195 721 227.73 77.32 Germany 32 928 641.98 13.01 96 994 BAYER AG Basic Materials 99.13 9 615 015.22 3.80 77 975 DEUTSCHE POST Industrials 31.24 2 435 549.13 0.96 152 371 FRESENIUS Healthcare 74.26 11 315 070.46 4.47 43 742 HUGO BOSS AG Consumer Goods 58.13 2 542 722.46 1.00 68 616 SAP AG Technology 82.81 5 682 090.96 2.24 36 875 ZALANDO SE Consumer Services 36.29 1 338 193.75 0.53 Belgium 4 165 745.00 1.65 147 460 ONTEX GROUP NV Consumer Goods 28.25 4 165 745.00 1.65 Denmark 6 581 803.83 2.60 192 145 NOVO NORDISK AS Healthcare 254.70 6 581 803.83 2.60 Spain 10 104 517.93 3.99 20 424 AENA SA Industrials 129.65 2 647 971.60 1.05 506 527 APPLUS SERVICES SA Industrials 9.65 4 887 985.55 1.93 65 418 CELLNEX TELECOM SAU Technology 13.67 893 936.97 0.35 370 656 TALGO SA Industrials 4.52 1 674 623.81 0.66 Finland 2 043 783.15 0.81 120 046 FERRATUM OYJ Financials 17.03 2 043 783.15 0.81 France 20 536 093.31 8.11 63 729 CRITEO Technology 41.08 2 482 092.74 0.98 2 231 DASSAULT AVIATION SA Industrials 1061.60 2 368 429.60 0.94 127 853 SFR GROUP SA Consumer Services 26.83 3 430 295.99 1.36 212 385 SPIE SA Industrials 20.02 4 250 885.78 1.68 31 984 TELEPERFORMANCE Consumer Services 95.30 3 048 075.20 1.20 59 267 VINCI SA Industrials 64.70 3 834 574.90 1.51 62 129 VIVENDI Consumer Services 18.06 1 121 739.10 0.44 Ireland 6 461 171.88 2.55 289 416 RYANAIR HOLDINGS PLC Consumer Services 14.51 4 197 979.08 1.66 103 840 SMURFIT KAPPA GROUP PLC Industrials 21.80 2 263 192.80 0.89 Netherlands 33 613 954.94 13.28 466 951 ALTICE SA Telecommunication 18.83 8 792 687.33 3.47 224 831 ASR NEDERLAND Financials 22.60 5 081 180.60 2.01 83 990 PHILIPS LIGHTING NV Industrials 23.40 1 965 366.00 0.78 490 921 ROYAL DUTCH SHELL PLC Oil & Gas 22.43 12 897 028.39 5.10 141 711 WOLTERS KLUWER Consumer Services 34.42 4 877 692.62 1.93 United Kingdom 79 285 515.71 31.32 526 700 AA PLC Consumer Services 2.77 1 709 800.49 0.68 555 954 AUTO TRADER GROUP PLC Consumer Services 4.09 2 663 837.70 1.05 1 496 213 CONVATEC GROUP PLC Healthcare 2.34 4 099 862.01 1.62 617 911 INFORMA PLC Consumer Services 6.80 4 922 440.02 1.94 1 172 735 JRP GROUP PLC Financials 1.50 2 053 934.90 0.81 166 560 LONDON STOCK EXCHANGE Financials 29.14 5 685 986.88 2.25 62 496 METRO BANK PLC Financials 29.25 2 141 527.65 0.85 186 693 MICRO FOCUS INTER. Technology 21.79 4 765 745.63 1.88 531 439 PRUDENTIAL PLC Financials 16.28 10 132 579.35 4.00 55 049 RIGHTMOVE PLC Consumer Services 39.03 2 517 060.06 0.99 220 453 SHIRE PLC Healthcare 46.84 12 097 022.63 4.78 156 846 SMITHS GROUP PLC Industrials 14.16 2 601 850.23 1.03 308 302 UNILEVER Consumer Goods 39.12 12 059 232.73 4.76 556 280 WPP Consumer Services 18.16 11 834 635.43 4.68 Equities ex European Union 24 860 060.86 9.82 USA 2 448 625.97 0.97 68 652 GRUBHUB INC Consumer Services 37.62 2 448 625.97 0.97 Switzerland 22 411 434.89 8.85 7 373 GALENICA AG Consumer Services 1149.00 7 902 590.49 3.12 178 724 NESTLE SA Consumer Goods 73.05 12 178 906.90 4.81 37 279 SUNRISE COMMUNICATIONS Telecommunication 67.00 2 329 937.50 0.92 Portfolio value 220 581 288.59 87.15 Net assets 253 119 825.05 100.00 EQUITY MANAGEMENT CARMIGNAC FOURTH QUARTER 2016 / 21

EQUITY MANAGEMENT NET EQUITY EXPOSURE CARMIGNAC PORTFOLIO GRANDE EUROPE AT 30/12/2016 Exposure ( ) % Exposure Long derivative positions 11 815 390.00 4.67 European Union 11 815 390.00 4.67 Financials (1 Position) Europe 11 815 390.00 4.67 Short derivative positions -4 691 399.00-1.85 European Union -4 691 399.00-1.85 Consumer Services (1 Position) United Kingdom -2 429 516.00-0.96 Industrials (1 Position) Sweden -2 261 883.00-0.89 Equity Investment 220 581 288.59 87.15 Net equity exposure 227 705 279.59 89.96 22 / Management report CARMIGNAC FOURTH QUARTER 2016

Mark Denham Malte Heininger European small and mid-cap equity fund. Through a disciplined bottom-up analysis, the Fund manager aims to seize the best opportunities within this broad and under-researched universe. For this purpose, stock selection focuses on asymmetric risk/return profiles with a clear catalyst for entry and exit. The Fund aims to outperform its reference indicator over 5 years. During the fourth quarter of 2016, Carmignac Euro-Entrepreneurs increased by +2.73%, delivering a lower return than the reference indicator, which was +4.36%. The Fund s full-year 2016 performance is +2.36%, versus +0.52% for the indicator. The market rally that started in Q3 continued into the fourth quarter, as stocks reacted well to improving economic leading indicators worldwide. The market also had to contend with one-off events which could have been adverse for sentiment, such as the unexpected election of Donald Trump as US president in November and a No vote in Italy s constitutional reform referendum in December. As it turns out, these did not slow the momentum and Mr Trump s apparent agenda protectionism combined with fiscal stimulus at home sparked rising growth and inflation expectations, rising bond yields and a stronger dollar relative to the euro. Consequently, the quarter saw a wider market rally led by oil and gas names, along with a broad range of cyclical stocks including those in the hitherto poorly performing bank and insurance sectors, where we have low exposure. Although we made very few changes to the portfolio over the quarter, our holdings were affected by a large number of noteworthy events and consequently turned in a mixed performance. ASR Nederland reported its maiden set of quarterly results since listing in June, which were encouraging. The company s performance underlined the key attributes of our investment case, with a Solvency 2 ratio of 188%, versus a target of 160%, and a 94% combined ratio of non-life insurance claims and costs to premiums, which is below that of most European insurers. Moreover, with a 5.5% dividend yield, the stock trades at an unwarranted discount to the sector given its quality. We therefore expect this to be corrected through strong performance in the coming quarters. Parques Reunidos experienced a strong recovery towards the end of the quarter. In October, the company had released a disappointing trading statement that showed declining sales at its US theme parks attributable to rainy weather in the Northeast of the country, which accounts for 60% of US profits, as well as a sharper-than-anticipated falloff in sales at Marineland near Nice following the terrorist attack in the city. Going forward, assuming such events do not recur, we should see higher profits in both geographies, as well as an uplift to earnings as a result of recently signed management contracts in Dubai and Vietnam and the growing contribution from their Mall Entertainment Concepts. Even though the stock rebounded from around 12 to 15 per share in December, it still only trades at 15 times 2017 earnings, which looks like good value as we expect profits to grow 30% over the next two years. Note that Merlin Entertainments PLC, the nearest comparable, trades at 21 times earnings. The largest negative contributor was Intertrust, the Trust and Corporate Services leader, which fell sharply post disappointing Q3 results. This reflected worse-than-expected competitive pressure in one of its key jurisdictions, the Cayman Islands, where a competitor has re-entered the market and taken away business. One of the investment attractions of this industry is high revenue visibility, as clients continually require support and administrative services to optimise international operations spanning different legal and tax geographies. So while recent results have been disappointing and the decline in Cayman Islands business will likely impact 2016 full-year results and performance at the start of 2017 (although to a lesser degree), we expect favourable industry fundamentals to reassert themselves. Intertrust s share price fell by an excessive 15% in November but has since recouped more than half of that loss. And given that this high-margin business now trades at a significant discount to the market, we anticipate further recovery. 2017 promises to be a year with many talking points carrying over from 2016, such as the French presidential elections, the UK government triggering negotiations to exit the EU and hopefully growing evidence of economic improvement in Europe. Nonetheless, due to our bottom-up approach, we continue to focus our stockselection efforts on companies with strong individual business models and asymmetric risk/reward profiles. Source of data: Carmignac, Bloomberg, Company data, 30/12/2016 Performance of the fund since conversion 450 400 350 229% 300 250 200 150 100 50 12/02 12/04 12/06 12/08 12/10 12/12 12/14 12/16 Carmignac Euro-Entrepreneurs A EUR acc Stoxx 200 Small NR (Eur) 302% From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. P ast performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report EQUITY MANAGEMENT / 23

EQUITY MANAGEMENT Some of the best performances in the year came from: Stocks Performance Fagron, healthcare, Belgium +48% Altice, telecommunications, Netherlands +42% Micro Focus International, software, United Kingdom +37% Quarterly gross performance contribution (%) Equity Portfolio Equity Derivatives Currency Derivatives Mutual Fund Total 2.02 0.85-0.14-0.01 2.72 Tessenderlo Chemie, chemicals, Belgium +27% Puma, footwear, Germany +26% Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 15.66 13.01 Geographical Exposure (%) Positions Long Short Net Netherlands 17.7 0.0 17.7 Belgium 12.7 0.0 12.7 United Kingdom 13.6-1.4 12.2 France 10.7 0.0 10.7 Switzerland 9.8-0.6 9.2 Spain 7.5 0.0 7.5 Germany 11.7-5.1 6.6 Finland 6.0 0.0 6.0 Austria 5.3 0.0 5.3 Ireland 2.1 0.0 2.1 USA 1.5-1.1 0.4 Total 98.6-8.2 90.4 Sector Exposure (%) Positions Long Short Net Cons. Services 22.4-1.2 21.2 Financials 17.0-1.1 15.9 Technology 15.2-0.3 14.9 Industrials 11.5 0.0 11.5 Basic Materials 13.5-4.5 9.0 Healthcare 8.7-1.1 7.7 Telecommunication 7.2 0.0 7.2 Cons. Goods 3.1 0.0 3.1 Total 98.6-8.2 90.4 Net currency exposure of Euro share classes (%) Statistics (%) 1 year 3 years Fund volatility 13.88 13.33 USD EUR GBP CHF Other 0.1 13.7 3.7 0.2 82.4 Benchmark volatility 22.65 13.67 Sharpe ratio 0.23 0.62 Beta 0.55 0.74 Alpha 0.04 0.19 Calculation period: weekly (1 year) and monthly (3 years). Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since conversion on 01/01/2003** Carmignac Euro-Entrepreneurs A EUR acc 2.36 2.73 10.90 2.36 26.20 84.73 50.45 301.95 Stoxx 200 Small NR (Eur) 0.52 4.36 12.24 0.52 22.02 85.76 30.05 229.44 Category average* -2.48 1.94 9.62-2.48 25.85 92.66 50.26 328.46 Ranking (quartile) 1 2 2 1 3 4 2 4 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * Europe Mid-Cap Equity. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). **The Fund was transformed on 01/01/2003: new reference indicator and new investment strategy. 24 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC EURO-ENTREPRENEURS AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 51 155 311.03 15.95 Cash (including collateral cash from derivative positions) 20 458 418.77 6.38 Carmignac Court Terme Mutual Fund - Money Market 30 696 892.26 9.57 Equities European Union 252 622 719.79 78.75 Germany 37 668 326.12 11.74 121 882 BILFINGER BERGER AG Industrials 36.58 4 457 834.15 1.39 94 977 COMPUGROUP MEDICAL Technology 38.95 3 698 879.27 1.15 232 900 LANXESS AG Basic Materials 62.35 14 521 315.00 4.53 62 280 LEIFHEIT AG Consumer Goods 56.49 3 518 197.20 1.10 33 715 MORPHOSYS Healthcare 48.75 1 643 606.25 0.51 25 435 PUMA Consumer Goods 249.65 6 349 847.75 1.98 440 335 TELE COLUMBUS AG Consumer Services 7.90 3 478 646.50 1.08 Austria 16 892 787.02 5.27 270 631 DO & CO AG Consumer Services 62.42 16 892 787.02 5.27 Belgium 40 740 764.21 12.70 149 872 ABLYNX SA Healthcare 10.82 1 620 865.68 0.51 2 201 633 FAGRON NV Healthcare 9.71 21 384 461.33 6.67 509 639 TESSENDERLO CHEMIE Basic Materials 34.80 17 735 437.20 5.53 Spain 23 959 308.72 7.47 508 813 APPLUS SERVICES SA Industrials 9.65 4 910 045.45 1.53 835 260 PARQUES REUNIDOS SERVICIOS C Consumer Services 15.26 12 741 891.30 3.97 1 396 054 TALGO SA Industrials 4.52 6 307 371.97 1.97 Finland 19 309 414.50 6.02 1 134 180 FERRATUM OYJ Financials 17.03 19 309 414.50 6.02 France 23 541 256.17 7.34 390 808 ALTRAN TECHNOLOGIES SA Technology 13.88 5 424 415.04 1.69 60 583 SFR GROUP SA Consumer Services 26.83 1 625 441.89 0.51 92 535 SOPRA STERIA GROUP Technology 107.85 9 979 899.75 3.11 71 181 TARKETT Industrials 34.09 2 426 560.29 0.76 42 864 TELEPERFORMANCE Consumer Services 95.30 4 084 939.20 1.27 Ireland 6 839 118.44 2.13 313 793 SMURFIT KAPPA GROUP PLC Industrials 21.80 6 839 118.44 2.13 Netherlands 40 161 035.91 12.52 8 627 ALTICE SA Telecommunication 18.93 163 309.11 0.05 414 087 ASR NEDERLAND Financials 22.60 9 358 366.20 2.92 274 255 IMCD GROUP NV Basic Materials 40.49 11 104 584.95 3.46 558 271 INTERTRUST NV Financials 16.72 9 334 291.12 2.91 47 498 INTERXION Technology 35.07 1 579 288.80 0.49 132 624 PHILIPS LIGHTING NV Industrials 23.40 3 103 401.60 0.97 276 235 VAN LANSCHOT NV-CVA Financials 19.98 5 517 794.13 1.72 United Kingdom 43 510 708.70 13.56 1 226 084 CONVATEC GROUP PLC Healthcare 2.34 3 359 665.51 1.05 584 198 INFORMA PLC Consumer Services 6.80 4 653 873.48 1.45 5 211 862 JRP GROUP PLC Financials 1.50 9 128 085.39 2.85 963 538 MICRO FOCUS INTER. Technology 21.79 24 596 407.01 7.67 2 631 578 NON-STANDARD FINANCE PLC Financials 0.58 1 772 677.31 0.55 Equities ex European Union 17 023 254.25 5.31 USA 4 668 482.39 1.46 130 890 GRUBHUB INC Consumer Services 37.62 4 668 482.39 1.46 Switzerland 12 354 771.86 3.85 3 525 GALENICA AG Consumer Services 1149.00 3 778 194.96 1.18 2 542 162 MEYER BURGER TECHNOLOGY Industrials 0.67 1 588 851.25 0.50 57 654 SUNRISE COMMUNICATIONS Telecommunication 67.00 3 603 375.00 1.12 51 171 TEMENOS GROUP AG Technology 70.90 3 384 350.65 1.05 EQUITY MANAGEMENT Portfolio value 269 645 974.04 84.05 Net assets 320 801 285.07 100.00 CARMIGNAC FOURTH QUARTER 2016 / 25

EQUITY MANAGEMENT NET EQUITY EXPOSURE CARMIGNAC EURO-ENTREPRENEUR AT 30/12/2016 Exposure ( ) % Exposure Long derivative positions 46 565 223.00 14.52 European Union 27 499 345.00 8.57 Consumer Services (1 Position) France 10 787 136.00 3.36 Telecommunication (2 Positions) Netherlands 16 712 209.00 5.21 ex European Union 19 065 878.00 5.94 Consumer Services (1 Position) Switzerland 9 203 790.00 2.87 Industrials (1 Position) Switzerland 7 346 275.00 2.29 Telecommunication (1 Position) Switzerland 2 515 813.00 0.78 Short derivative positions -26 246 976.00-8.18 European Union -20 865 747.00-6.50 Basic Materials (1 Position) Germany -14 511 533.00-4.52 Consumer Services (1 Position) Germany -1 042 874.00-0.33 Consumer Services (1 Position) United Kingdom -2 957 865.00-0.92 Healthcare (1 Position) United Kingdom -1 461 838.00-0.46 Technology (1 Position) Germany -891 637.00-0.28 ex European Union -5 381 229.00-1.68 Financials (1 Position) USA -3 468 137.00-1.08 Healthcare (1 Position) Switzerland -1 913 092.00-0.60 Equity Investment 269 645 974.04 84.05 Net equity exposure 289 964 221.04 90.39 26 / Management report CARMIGNAC FOURTH QUARTER 2016

Xavier Hovasse David Young Park Emerging market equity fund combining a fundamental top-down approach with a disciplined bottom-up analysis in order to identify the best opportunities within its investment universe by seeking companies offering longterm growth potential and attractive cash generation, in underpenetrated sectors and in countries with healthy fundamentals. The Fund aims to outperform its reference indicator over 5 years with lower volatility. Carmignac Emergents was down -3.58% in the fourth quarter of 2016, compared with a +2.11% increase in its reference indicator. That takes its performance since the start of the year to +1.39%, versus a +14.51% gain in its reference indicator. Emerging markets continued on the whole to reap the benefits of improving macroeconomic indicators in both the developed and the developing worlds. The fourth quarter also saw two game-changing events. On the geopolitical front, Donald Trump was elected the 45th President of the United States. On the energy front, the Organization of the Petroleum Exporting Companies (OPEC) reached a landmark deal with non-member oil producers to cut output by 1.2 million barrels a day. The economic fundamentals of emerging countries showed further gradual improvement, with most of them running a current-account surplus for the period. And though it may seem counter-intuitive, their healthier balance of payments was accompanied by a more generous risk premium at the close of the quarter, the nominal interest rate differential stood at 6%. At the same time, a good many indicators, both tangible ones like manufacturing indicators and sentiment-related ones like PMI surveys, strongly suggest that the business cycle has entered the recovery stage. The better readings from emerging markets both shape and reflect trends in developed economies, corroborating our hypothesis that a worldwide cyclical recovery is taking hold. That said, this recent, rather moderate upturn is highly vulnerable to large exogenous shocks, and just such a shock could happen sooner rather than later if the US federal tax reform proposal widely discussed and increasingly advocated by the incoming US administration to create a new destination-based cash-flow tax goes through. China, which with 17% of the Fund s assets is our primary geographic allocation, also posted improving economic indicators. Inordinate expansion of the country s money supply (averaging 15% over the fourth quarter) has certainly kept the Chinese economy humming, but it has also stoked inflation: the Producer Price Index (PPI) recorded a 5.5% year-on-year increase in December 2016. And though overheating in the property market an unmistakable trend in the third quarter seems to have subsided in response to recent government policy moves, China s balance of payments is still under considerable pressure. Finally, even with greater efforts by Beijing to make the country s borders less porous, capital outflows have persisted, with no sign of letting up. During the fourth quarter, we acquired a stake in 58.com (Wuba), China s top classified ads website. 58.com, the Chinese answer to Craigslist and Leboncoin.fr in France, spans a variety of content categories that include housing, jobs and used car sales. Although still in its swaddling clothes in China, this kind of business model holds major potential, given the scope of its addressable markets. Better still, this is a capital-light business with capital spending equal to a mere 3% of sales. India, where nearly 15% of the Fund s assets are invested, experienced an economic earthquake in the fourth quarter one with a monetary epicentre. In November, Narendra Modi s administration caught virtually everyone off guard when it announced the immediate withdrawal of close to 85% of all banknotes in circulation in the country. Such a bold move was bound to send major ripples across an economy in which fiat money is used for 98% of all daily transactions. The aim was to curb India s parallel economy accounting for an estimated 26% of GDP and strengthen the hand of the tax authorities. Although this massive banknote withdrawal amounts to amputation from a short-term economic standpoint, it should pave the way for a cyclical rebound once the economy has kicked the cash habit, which it most likely will in the next few months. The shock wave triggered by the surprise outcome of the US elections was felt the hardest in Mexico. Donald Trump produced a steady stream of inflammatory rhetoric on the neighbouring country during his campaign. By scapegoating Mexico and its people, he created a kind of Trojan horse for winning over US voters. And win them over he did. Almost immediately afterwards, the Mexican peso plummeted to a record low of 20.7 against the dollar. Today, with the President Elect just entering the Oval Office, uncertainty continues to reign supreme. While Mexican manufacturers are holding their breath, storm clouds appear to be gathering over their production lines. We accordingly scaled back our exposure to domestic consumer-goods stocks, reducing our holdings in Walmex and Fomento Económico. At the same time, we initiated a new position in Grupo México, a major copper producer. The company s strong balance sheet evidenced by ample net cash and substantial ability to generate free cash flow are fully in line with our investment philosophy. In Brazil, where economic renewal and tax reform are progressing (however slowly), we increased our holdings by acquiring a stake in Taesa, a leading power transmission company in the country. Though this is a capital-hungry business, investment plans aren t approved unless the real internal rate of return negotiated prior to the project is above a certain threshold. Furthermore, the Performance of the fund since its launch 600 425% 500 400 300 200 100 109% 0 02/97 01/00 01/03 01/06 01/09 01/12 01/15 12/16 Carmignac Emergents A EUR acc MSCI Emerging Markets NR (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report EQUITY MANAGEMENT / 27

EQUITY MANAGEMENT company s revenue stream has a number of attractive features, as it is inflationadjusted and guaranteed, independently of the power volume transported. Among the countries of Europe, the Middle East and Africa (EMEA), Russia stands out as the star pupil. Orthodox fiscal and monetary policies, gradual economic recovery and a historic agreement with OPEC are all working in Moscow s favour. The increasingly encouraging economic climate created by those factors led us to raise our exposure to Russia by taking a stake in Moscow Exchange, the national securities exchange group. Not only does Moscow Exchange enjoy monopoly status; it also has a broad range of revenue sources that are both cyclical and countercyclical. And as it combines a capital-light business model, a handsome 7.7% free cash flow yield and an attractive valuation with a 6.2% dividend yield we view this investment as a very good buy. As this new year gets under way, the emerging-market asset class appears to be basking in sunny weather. Almost by definition, it stands to benefit from a revival in developed-world manufacturing, rising commodity prices and improved domestic economic indicators. But Donald Trump s entry into the White House, along with his statements on international trade and basing taxation on where goods are produced, casts something of a shadow over what would otherwise qualify as a promising or even exciting outlook for emerging markets. Here are some of our best-performing stocks in 2016: Stocks Performance Samsung Electronics, electronics and appliances, South Korea +43% Astra International, automotive, Indonesia +38% MercadoLibre, software and internet, China +37% Taiwan Semiconductor, semi-conductors, Taiwan +26% Emaar Properties, real estate, United Arab Emirates +25% Geographic breakdown (derivatives excluded) (%) Sector breakdown (derivatives excluded) (%) 0.9 North America 22.0 Latin America 2.4 Europe Middle East 2.4 Africa 1.1 11.8 Eastern Europe 51.1 Asia 1.8 Asia-Pacific Information Technology Consumer Discretionary Financials Consumer Staples Real Estate Telecommunication Services Industrials Materials Healthcare 8.4 7.5 6.1 5.8 3.5 2.0 13.2 13.9 31.7 6.5 Cash, cash equivalents and derivatives operations Utilities Cash, cash equivalents and derivatives operations 1.6 6.5 Statistics (%) 1 year 3 years Fund volatility 14.74 13.70 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 13.41 14.02 Benchmark volatility 18.24 14.88 Sharpe ratio 0.14 0.32 Beta 0.73 0.83 Alpha -0.16-0.08 Calculation period: weekly (1 year) and monthly (3 years). Net currency exposure of Euro share classes (%) USD 33.4 Quarterly gross performance contribution (%) Equity Portfolio Equity Derivatives Currency Derivatives Total EUR JPY Latin America 0.1 18,1 20.6 14.6-2.61 0.13-0.77-3.25 Emerging Asia 2,9 21.2 Eastern Europe, Middle East and Africa 10.1 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Emergents A EUR acc 1.39-3.58 0.17 1.39 12.77 24.09 30.35 424.51 MSCI Emerging Markets NR (Eur) 14.51 2.11 10.05 14.51 20.88 27.72 30.27 108.79 Category average* 12.13 1.1 8.41 12.13 18.32 28.45 31.46 197.48 Ranking (quartile) 4 4 4 4 4 3 3 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * Global Emerging Markets Equity. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 28 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC EMERGENTS AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 73 284 255.10 6.48 Cash (including collateral cash from derivative positions) 73 284 255.10 6.48 Equities 1 056 827 159.77 93.52 North America 9 834 579.90 0.87 194 215 LAS VEGAS SANDS (USA) Consumer Discretionary 53.41 9 834 579.90 0.87 Asia-Pacific 20 526 949.52 1.82 636 601 LINE CORP (Japan) Information Technology 34.01 20 526 949.52 1.82 Europe 27 422 773.54 2.43 856 768 JERONIMO MARTINS (Portugal) Consumer Staples 14.74 12 628 760.32 1.12 710 564 LILAC GROUP (United Kingdom) Consumer Discretionary 21.96 14 794 013.22 1.31 Latin America 249 023 737.63 22.04 1 921 251 BANCO SANTANDER MEXICO (Mexico) Financials 7.19 13 096 747.75 1.16 5 385 937 BB SEGURIDADE PARTICIPACOES (Brazil) Financials 28.30 44 400 366.19 3.93 2 492 691 CCR (Brazil) Industrials 15.96 11 588 845.69 1.03 2 937 512 CEMEX (Mexico) Materials 8.03 22 363 803.14 1.98 236 133 FEMSA UNITS ADR (Mexico) Consumer Staples 76.21 17 061 574.71 1.51 6 710 835 GRUPO BANORTE (Mexico) Financials 102.30 31 593 988.81 2.80 6 432 548 GRUPO MEXICO SA DE CV (Mexico) Materials 56.43 16 704 956.59 1.48 242 662 MERCADOLIBRE INC (Argentina) Information Technology 156.14 35 922 488.44 3.18 23 065 735 MEXICO REAL ESTATE MGMT (Mexico) Real Estate 21.43 22 747 922.22 2.01 2 921 818 TRANSMISSORA ALIANCA (Brazil) Utilities 20.74 17 652 278.05 1.56 9 319 752 WAL-MART DE MEXICO (Mexico) Consumer Staples 37.05 15 890 766.04 1.41 Asia 577 949 333.57 51.14 484 938 58.COM (China) Information Technology 28.00 12 873 443.00 1.14 5 877 620 AIA GROUP LTD (Hong Kong) Financials 43.75 31 444 959.74 2.78 56 537 999 ASTRA INTERNATIONAL (Indonesia) Consumer Discretionary 8 275.00 32 923 856.38 2.91 209 571 BAIDU INC (China) Information Technology 164.41 32 667 047.27 2.89 7 852 254 BHARTI AIRTEL LTD (India) Telecommunication Services 305.65 33 526 734.11 2.97 3 443 895 BHARTI INFRATEL LTD (India) Telecommunication Services 5.06 16 534 614.16 1.46 57 640 056 DALI FOODS GROUP CO LTD (China) Consumer Staples 4.10 28 898 794.84 2.56 271 761 HERO MOTOCORP LTD (India) Consumer Discretionary 44.88 11 562 757.43 1.02 6 656 643 ICICI BANK (India) Financials 255.30 23 753 850.28 2.10 1 981 228 INFOSYS TECHNOLOGIES (India) Information Technology 14.83 27 856 469.53 2.46 1 093 154 KANGWON LAND (South Korea) Consumer Discretionary 35 750.00 30 676 995.18 2.71 4 309 052 MEDIATEK (Taiwan) Information Technology 216.50 27 443 728.53 2.43 108 840 NETEASE (China) Information Technology 215.34 22 221 005.55 1.97 355 938 PLDT (Philippines) Telecommunication Services 1 365.00 9 265 992.55 0.82 27 608 SAMSUNG BIOLOGICS CO LTD (South Korea) Healthcare 151 000.00 3 272 407.03 0.29 51 958 SAMSUNG ELECTRONICS (South Korea) Information Technology 1 802 000.00 72 738 659.85 6.44 4 300 223 SHANGHAI INTERNATIONAL AIR-A (China) Industrials 26.52 15 558 348.14 1.38 2 421 771 TAIWAN SEMICONDUCTOR (Taiwan) Information Technology 28.75 66 011 771.75 5.84 4 716 961 TATA MOTORS LTD (India) Consumer Discretionary 472.00 31 101 174.84 2.75 751 904 UNITED SPIRITS LTD (India) Consumer Staples 1 942.80 20 411 466.53 1.81 10 179 335 ZHENGZHOU YUTONG BUS CO-A (China) Industrials 19.59 27 205 256.88 2.41 Africa 27 339 853.62 2.42 1 054 960 MTN GROUP LTD (South Africa) Telecommunication Services 126.17 9 228 166.37 0.82 129 705 NASPERS LTD (South Africa) Consumer Discretionary 2 014.09 18 111 687.25 1.60 Eastern Europe 11 876 986.68 1.05 6 088 944 MOSCOW EXCHANGE (Russia) Financials 125.59 11 876 986.68 1.05 Middle East 132 852 945.31 11.76 502 291 CHECK POINT SOFTWARE (Israel) Information Technology 84.46 40 221 377.45 3.56 28 068 633 EMAAR PROPERTIES PJSC (United Arab Emirates) Real Estate 7.13 51 659 616.23 4.57 12 541 957 EMLAK KONUT GAYRIMENKUL (Turkey) Real Estate 2.99 10 107 393.52 0.89 8 061 753 ENKA INSAAT VE SANAYI (Turkey) Industrials 5.38 11 689 998.15 1.03 192 119 TARO PHARMACEUTICAL INDUSTRIES (Israel) Healthcare 105.27 19 174 559.96 1.70 Portfolio value 1 056 827 159.77 93.52 Net assets 1 130 111 414.87 100.00 EQUITY MANAGEMENT CARMIGNAC FOURTH QUARTER 2016 / 29

Xavier Hovasse David Young Park Equity fund invested in small and mid-capitalisations of emerging countries, as well as less covered frontier markets. The investment process combines a fundamental top-down approach with a disciplined bottomup analysis in order to identify the best investment opportunities by seeking companies offering long-term growth potential and attractive cash generation, in underpenetrated sectors and in countries with healthy fundamentals. The Fund aims to outperform its reference indicator over 5 years. Carmignac Portfolio Emerging Discovery was down -6.08% in the fourth quarter of 2016, compared with a -0.52% decrease in its reference indicator. That takes its full-year gain to +3.76%, versus a +6.67% rise in its reference indicator. The last quarter of 2016 saw a spate of historic events, some political, as with the unexpected outcome of the US presidential election, others geopolitical or energy-related, a prime example being the landmark agreement among oil-producing countries (for more details, see our macroeconomic analysis for Carmignac Emergents). Although our performance is usually driven by our Asian stocks with 64% of total assets the largest component of the Fund s portfolio this time around they delivered disappointing returns. The main sources of disappointment were from China and India (the region s two economic heavyweights), but for diametrically opposed reasons. Our portfolio of Chinese stocks suffered primarily from the transfer of YY from Carmignac Emergents to Carmignac Portfolio Emerging Discovery. This social network website holds a clearly dominant 47% share of the virtual karaoke market, but its stock price took a beating in the fourth quarter as investors feared it could lose ground to new market entrants. While those fears did a fair amount of harm, we remain confident in a company that combines a leadership position in a fast-growing market, a capital-light business model and an anticipated 12% free cash flow yield in 2017 (source: Deutsche Bank). Performance of the fund since its launch 150 30% 125 100 75 50 25 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 Carmignac Portfolio Emerging Discovery A EUR acc 50% MSCI EM MidCap NR (Eur) + 50% MSCI EM SmallCap NR (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 13% The underperformance of our Indian stocks during the quarter was due partially or even entirely to a one-off exogenous shock which, though not unprecedented in the country, still took the population by surprise. Overnight, the government withdrew close to 85% of all banknotes in circulation, acting no doubt with the laudable intention of curbing India s sizable parallel economy. The initial impact, however, has been to create instability and throttle economic activity, given that fiat money is used for 98% of all daily transactions in the country. The good news is that such a shock is by definition a short-lived phenomenon the immediate and noteworthy economic slowdown that resulted should almost automatically give way to an equally sudden upswing in the coming months. In fact, we opted for greater exposure to India by acquiring a stake in Varun Beverages, one of the world s largest franchisees for soft drinks sold under PepsiCo trademarks. Carbonated soft drinks are most definitely an under-penetrated market segment in India. At 9.4 litres, the country s annual per capita consumption of those beverages lags miles behind the global average, which is roughly 91.9 litres per capita, and can therefore be expected to gradually align with international trends. Varun Beverages has close to a 21% share of the market for PepsiCo brands and controls nearly 45% of all Pepsi bottling in India. With a 7% free cash flow yield, the company fits our investment philosophy to a T. Our holdings in Sri Lanka and other frontier Asian countries i.e., whose markets are still in their infancy showed greater resilience and therefore made a positive contribution to the Fund s fourth-quarter performance. Our Latin American portfolio also turned in mixed results during the quarter. Unsurprisingly, the repeated unfriendly remarks by the White House s new tenant gave our Mexican stocks a tough time. Meanwhile, we moved to enlarge our footprint in Brazil, investing in Alliar Médicos à Frente during its recent IPO. A network of facilities for diagnostic imaging and clinical analysis, Alliar can look forward to strong, sustainable growth, given the low penetration rate of this kind of medical analysis in the country. Moreover, it operates in what is still a highly fragmented market that will likely undergo consolidation over the next few years. Last but not least, its virtually cycle-agnostic business model offers an attractive combination of gradual value accretion and low capital expenditure (just 7% of sales according to Bloomberg). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. 30 / Management report EQUITY MANAGEMENT

In the Europe, Middle East and Africa (EMEA) region, we bolstered our presence in the United Arab Emirates by upping our stake in Emaar Malls, a Dubai-based real estate development company that owns the renowned Dubai Mall, which drew over 80 million visitors in 2014. The gradual rise in oil prices on the back of the epoch-making agreement between OPEC and non- OPEC producers should boost incomes in oil-producing countries the main source of tourists in Dubai and thus generate more business for Emaar. Here are some of our best-performing stocks in 2016: Stocks Performance Intercorp Financial Services, financial services, Peru +41% Globaltra-Spons, rail freight transportation, Russia +39% Banco Davivienda, retail, Colombia +38% Organización TER CB, retail, Colombia +34% Dr Lal PathLabs, healthcare, India +33% EQUITY MANAGEMENT Geographic breakdown (derivatives excluded) (%) Sector breakdown (derivatives excluded) (%) 26.6 0.6 Europe 2.2 Middle East 3.2 Eastern Europe 7.9 57.5 Asia Financials Information Technology Consumer Staples Industrials Materials Consumer Discretionary Healthcare 7.2 5.6 21.2 17.5 13.8 12.4 12.1 Latin America Africa Utilities Real Estate 4.0 2.4 2.0 Cash, cash equivalents and derivatives operations Telecommunication Services Cash, cash equivalents and derivatives operations 1.9 2.0 Statistics (%) 1 year 3 years Net currency exposure of Euro share classes (%) Fund volatility 13.75 10.39 Benchmark volatility 15.99 13.97 Sharpe ratio 0.36 0.66 Beta 0.80 0.69 Alpha -0.03 0.27 Calculation period: weekly (1 year) and monthly (3 years). USD EUR GBP Latin America Emerging Asia Eastern Europe, Middle East and Africa 1,1 8.1-0.2 3,8 7.4 20.7 25.9 38.1 Quarterly gross performance contribution (%) Equity Portfolio Currency Derivatives Total -5.93-0.08-6.01 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 12.29 14.47 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Porfolio Emerging Discovery A EUR acc 3.76-6.08-0.45 3.76 20.89 36.98-29.98 Reference indicator* 6.67-0.52 5.66 6.67 20.75 33.84-12.81 Category average** 9.8 0.41 6.99 9.8 25 48.41-38.09 Ranking (quartile) 4 4 4 4 3 3-3 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * 50% MSCI EM SmallCap NR (Eur) + 50% MSCI EM MidCap NR (Eur). ** Global Emerging Markets Equity. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). CARMIGNAC FOURTH QUARTER 2016 / 31

EQUITY MANAGEMENT HOLDINGS CARMIGNAC PORTFOLIO EMERGING DISCOVERY AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 6 256 009.49 2.05 Cash (including collateral cash from derivative positions) 6 256 009.49 2.05 Equities 299 043 217.23 97.95 Europe 1 782 412.89 0.58 470 000 GLOBAL PORTS INV (Cyprus) Industrials 4.00 1 782 412.89 0.58 Latin America 81 201 375.23 26.60 2 000 000 ALLIAR MEDICOS A FRENTE SA (Brazil) Healthcare 14.65 8 535 057.82 2.80 706 276 BANCO DAVIVIENDA (Colombia) Financials 30 000.00 6 691 684.67 2.19 2 074 654 CEMEX LATAM HOLDINGS (Colombia) Materials 11 300.00 7 403 956.96 2.43 156 104 CERVECERIA CCU (Chile) Consumer Staples 6 995.00 1 545 669.92 0.51 488 902 CRESUD S.A.C.I.F.Y A. (Argentina) Real Estate 15.77 7 309 774.39 2.39 626 662 EMBOTELLADORA ANDINA (Chile) Consumer Staples 2 289.00 2 030 458.69 0.67 1 450 000 ENERGISA SA (Brazil) Utilities 18.58 7 847 883.71 2.57 825 657 FPC PAR CORRETORA SEGURO (Brazil) Financials 13.46 3 237 304.68 1.06 2 768 223 GRUPO LALA SAB DE CV (Mexico) Consumer Staples 30.21 3 848 611.41 1.26 400 000 GRUPO SUPERVIELLE SA CL-B (Argentina) Financials 13.14 4 983 171.37 1.63 188 475 INTERCORP FINANCIAL SERVICES (Peru) Financials 32.00 5 718 132.26 1.87 924 890 ORGANIZACION TER CB (Colombia) Consumer Discretionary 11 300.00 3 300 717.01 1.08 866 165 SUL AMERICA UNITS (Brazil) Financials 18.00 4 541 632.44 1.49 7 606 014 TF ADMINISTRADOR 3 MM (Mexico) Financials 26.12 9 142 870.29 2.99 2 141 001 UNIFIN FINANCIERA (Mexico) Financials 51.40 5 064 449.61 1.66 Asia 175 486 668.64 57.48 33 621 456 CEMEX HLDGS PHILIPPINES (Philippines) Materials 11.10 7 117 450.17 2.33 3 861 118 CHICONY ELECTRONICS CO (Taiwan) Information Technology 75.00 8 518 788.12 2.79 238 175 DR LAL PATHLABS LTD (India) Healthcare 15.79 3 565 703.88 1.17 1 095 000 ENN ENERGY HOLDINGS (China) Utilities 31.90 4 271 459.40 1.40 879 644 GIANT MANUFACTURING CO (Taiwan) Consumer Discretionary 183.00 4 735 452.81 1.55 1 408 114 HAVELLS INDIA LTD (India) Industrials 5.05 6 736 919.35 2.21 15 926 085 HOLCIM PHILIPPINES (Philippines) Materials 16.50 5 011 617.45 1.64 277 938 HYUNDAI INDUSTRIAL CO LTD (South Korea) Consumer Discretionary 5 100.00 1 112 688.32 0.36 3 796 729 ICTSI INT'L CONTAINER (Philippines) Industrials 71.95 5 209 851.41 1.71 5 862 478 INDOCEMENT TUNGGAL PRAKARSA (Indonesia) Materials 15 400.00 6 353 370.89 2.08 202 061 INNOCEAN WORLDWIDE (South Korea) Consumer Discretionary 57 100.00 9 056 784.41 2.97 6 931 574 JOHN KEELLS HOLDINGS PLC (Sri Lanka) Industrials 0.97 6 363 444.51 2.08 74 680 KAKAO CORP (South Korea) Information Technology 77 000.00 4 513 884.66 1.48 891 881 LIC HOUSING FINANCE LTD (India) Financials 8.25 6 978 191.94 2.29 28 322 250 LT GROUP INC (Philippines) Consumer Staples 12.56 6 784 257.62 2.22 5 011 046 PHILIPPINE NATIONAL BANK (Philippines) Financials 54.60 5 218 022.79 1.71 675 406 PRESIDENT CHAIN STORE (Taiwan) Consumer Staples 231.00 4 589 658.51 1.50 7 914 087 PRIMAX ELECTRONICS (Taiwan) Information Technology 44.10 10 266 984.08 3.36 6 057 157 PRISM CEMENT LTD (India) Materials 1.14 6 553 617.04 2.15 12 300 000 PRODIA WIDYAHUSADA TBK PT (Indonesia) Healthcare 5 800.00 5 020 365.86 1.64 10 397 374 SA SA INTL HOLDINGS (Hong Kong) Consumer Discretionary 3.08 3 916 028.68 1.28 21 149 SHREE CEMENT LTD (India) Materials 217.24 4 355 847.84 1.43 331 302 SILICON WORKS (South Korea) Information Technology 27 800.00 7 229 766.60 2.37 168 604 SINA CORP (China) Information Technology 60.79 9 717 409.02 3.18 1 656 087 TRIPOD TECHNOLOGY CORP (Taiwan) Information Technology 72.80 3 546 647.34 1.16 1 121 929 VARUN BEVERAGES LTD (India) Consumer Staples 5.61 5 968 375.08 1.95 1 378 260 VIETNAM DAIRY PRODUCTS JSC (Vietnam) Consumer Staples 125 600.00 7 209 406.69 2.36 15 185 000 YIHAI INTL HLDG (China) Consumer Staples 3.27 6 072 031.70 1.99 253 992 YY INC (China) Information Technology 39.42 9 492 642.47 3.11 Africa 9 654 372.09 3.16 1 523 560 EAST AFRICAN BREWERIES (Kenya) Consumer Staples 244.00 3 439 561.25 1.13 1 973 720 GUINNESS NIGERIA PLC (Nigeria) Consumer Staples 83.05 493 392.50 0.16 32 290 983 SAFARICOM (Kenya) Telecommunication Services 19.15 5 721 418.34 1.87 Eastern Europe 6 650 782.01 2.18 1 108 201 GLOBALTRA-SPONS (Russia) Industrials 6.33 6 650 782.01 2.18 Middle East 24 267 606.37 7.95 10 635 411 ARAMEX PJSC (United Arab Emirates) Industrials 1.11 11 174 365.94 3.66 1 056 130 AVIVASA EMEKLILIK VE (Turkey) Financials 19.23 5 473 932.81 1.79 11 266 106 EMAAR MALLS GROUP (United Arab Emirates) Financials 2.62 7 619 307.62 2.50 Portfolio value 299 043 217.23 97.95 Net assets 305 299 226.72 100.00 32 / Management report CARMIGNAC FOURTH QUARTER 2016

Michael Hulme Global equity fund invested in energy, natural resources, and related industrial companies. By combining a fundamental top-down approach and a disciplined bottom-up analysis, the Fund manager aims to select quality companies with attractive long-term growth prospects and sustainable cash flow generation, across the entire commodity value chain. The Fund aims to outperform its reference indicator over 5 years. Carmignac Portfolio Commodities was up +9.86% in the fourth quarter of 2016, compared with +13.09% for its reference indicator. The fund continued to be positioned conservatively in mining and materials, as our concerns over China s medium-term economic health outweighed positive price momentum from bulk metals. The major event in the quarter was of course the election of Donald Trump. The result has spurred anticipation of a reflationary trend in markets, with US 10-year yields spiking and infrastructure spending themes gaining prominence. The OPEC agreement provided an additional tailwind for energyrelated investments in the US. For the full year, the Fund gained +21.68%, versus +41.68% for its reference indicator. 2016 has been a year of violent rotation, with mining stocks crushed early in the first quarter, only to stage a spectacular rally throughout the rest of the year as China primed the pump. In energy, we also saw a recovery in oil prices from their spring lows, pushing up to the high $60s by year-end. Falling non-opec supply, coupled with a reassertion of OPEC discipline in the fourth quarter, improved sentiment, and indeed we have started to see a recovery in rig count, as well as production growth in the largest of the shale basins, the Permian. Latterly even gas prices staged a rally as the winter months closed in and signs of improved global gas demand became apparent. The fourth quarter saw a sell-off in gold prices, and consequently our gold-miner holdings showed considerable weakness, with Goldcorp down 12% and Newmont down 8%, while silver royalty company Silver Wheaton fell 24%. On the positive side, our shale oil holdings did well, with Oasis Petroleum rising 40% over the quarter. We remain positive on oil-price developments going into the new year, as we see continued proof of OPEC discipline, healthy global demand trends (+1.3% year-on-year) and stagnant non-opec supply potentially leading us into a supply shortfall next summer that should drag inventories into line by the autumn. Accordingly, we have added to our oil service exposure, particularly to beneficiaries of onshore US fracking activity, which is clearly picking up as oil prices recover. New additions to the fund included RPC and Halliburton. We also started a position in MasTec, a pipeline builder in the US. We boosted our position in Methanex, which benefits from higher oil prices as well as lower US feedstock costs. We also added selectively to our favoured sub-sectors in metals, with positions in Boliden (zinc), First Quantum (copper) and Grupo Mexico (copper). At the same time, we exited coallevered names South 32 and Shenhua Coal. Noting the sell-off in coal prices at the beginning of 2017, we may seek to rebuild positions on extended weakness. On the mining side, we are torn between attractive valuations on spot commodity prices and longer-term negative fundamentals (a consequence of overcapacity in China and excess supply additions still being rolled out). We favour companies that could benefit from rising protectionism such as steel names ArcelorMittal and Nucor, as well as Tenaris, given its oil leverage. Our attention has also been drawn to less obvious commodity themes over the past few months. We are particularly interested in the upstream end of the semiconductor sector (i.e. semiconductor equipment manufacturers), for example. We wagered that the silicon wafer manufacturers would be heading for pricing power and consolidation, and the latter development finally appears to be happening, with pricing coming back as demand recovers and new sources of demand open up for wafers, such as electric vehicles and solar energy. Performance of the fund since its launch 450 400 350 300 250 187% 200 150 100 50 03/03 12/03 12/04 12/05 12/06 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 Carmignac Portfolio Commodities A EUR acc Reference indicator (1) 193% From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. (1) Index composed of 45% MSCI ACWI Oil and Gas NR (Eur), 5% MSCI ACWI Energy Equipment NR (Eur), 40% MSCI ACWI Metal and Mining NR (Eur), 5% MSCI ACWI Paper and Forest NR (Eur) et 5% MSCI ACWI Chemicals NR (Eur). Quarterly rebalanced. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report EQUITY MANAGEMENT / 33

EQUITY MANAGEMENT This thesis supported our investment in Siltronic, a spin-out of Wacker Chemie, which performed creditably last year and which we still feel is undervalued, given its free cash-flow generation potential. The stock rose 86% in the fourth quarter of 2016, making it the best performer in our portfolio. The main drag on our performance in 2016 was our underweight positioning in the bulk mining business. In 2017, we see the fundamentals in this sub-sector becoming more challenged as the China stimulus effect fades. In contrast, we remain more constructive on base metals such as copper and zinc, and on oil prices. So that is where the majority of our assets remain focused as 2017 gets under way. Some of our best-performing stocks in the quarter: Stocks Performance Oasis Petroleum, Shale oil and gas, USA +105% Siltronic, commodity related industries, Germany +95% BHP Billiton, diversified metals and mining, United Kingdom +72% Lundin Mining, diversified metals and mining, Canada +68% Rio Tinto, diversified metals and mining, United Kingdom +60% Geographical Exposure (%) Positions Long Short Net North America 59.5-2.9 56.6 Europe 39.3-11.7 27.6 Latin America 3.5-0.2 3.3 Asia 2.2-0.5 1.7 Asia-Pacific 0.9 0.0 0.9 Eastern Europe 0.0-0.3-0.3 Total 105.4-15.5 89.8 Sector Exposure (%) Positions Long Short Net Energy 49.3-8.1 41.2 Industrial Materials 28.2-5.4 22.8 Precious Metals 10.0-0.5 9.5 Chemicals 9.8 0.0 9.8 Agricultural resources 5.0-0.8 4.2 Other Commodities Related 3.1 0.0 3.1 Regional Indexes 0.1-0.8-0.7 Total 105.4-15.5 89.9 Net currency exposure of Euro share classes (%) Statistics (%) 1 year 3 years USD EUR JPY GBP AUD and CAD Latin America 1,1 11,7 21.7 0.1 16.4 19.9 2,18.6 44.0 Fund volatility 18.78 13.98 Benchmark volatility 25.08 19.25 Sharpe ratio 1.19 0.27 Beta 0.68 0.67 Alpha -0.07 0.08 Calculation period: weekly (1 year) and monthly (3 years). Emerging Asia 0.5 Eastern Europe, Middle East and Africa -14.8 Other 3.5 Quarterly gross performance contribution (%) Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 15.08 18.27 Equity Portfolio Bond Portfolio Equity Derivatives Currency Derivatives Total 13.88 0.05-3.28-0.25 10.40 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Portfolio Commodities A EUR acc 21.68 9.86 11.67 21.68 10.04-9.08 4.64 192.64 Reference indicator* 41.68 13.09 19.11 41.68 11.29 8.70 16.59 186.57 Category average** 39.62 9.04 15.92 39.62 4.83-12.2-9.79 168.07 Ranking (quartile) 4 3 4 4 2 3 2 2 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * Index composed of 45% MSCI ACWI Oil and Gas NR (Eur). 5% MSCI ACWI Energy Equipment NR (Eur). 40% MSCI ACWI Metal and Mining NR (Eur). 5% MSCI ACWI Paper and Forest NR (Eur) et 5% MSCI ACWI Chemicals NR (Eur). Quarterly rebalanced. ** Sector Equity Natural Resources. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). Past performance is not a reliable indicator of future performance. 34 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC PORTFOLIO COMMODITIES AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 7 424 401.34 1.09 Cash (including collateral cash from derivative positions) 7 424 401.34 1.09 Equities 675 965 876.63 98.91 Energy 329 852 616.88 48.27 385 000 ANADARKO PETROLEUM (USA) North America 69.73 25 452 524.29 3.72 EQUITY MANAGEMENT 3 200 000 CAIRN ENERGY (United Kingdom) Europe 2.36 8 843 486.41 1.29 670 000 CANADIAN NATURAL RESOURCES LTD (Canada) North America 42.79 20 268 867.76 2.97 195 000 CARRIZO OIL & GAS (USA) North America 37.35 6 905 190.80 1.01 240 000 ENBRIDGE (Canada) North America 56.50 9 586 765.17 1.40 1 650 000 ENI SPA (Italy) Europe 15.47 25 525 500.00 3.74 90 000 EOG RESOURCES (USA) North America 101.10 8 626 688.79 1.26 121 882 353 FAR LTD (Australia) Asia-Pacific 0.08 6 275 694.41 0.92 3 000 000 GLOBALWAFERS (Taiwan) Asia 115.00 10 148 984.15 1.49 330 000 HALLIBURTON (USA) North America 54.09 16 923 157.15 2.48 265 000 NOBLE ENERGY INC (USA) North America 38.06 9 562 360.75 1.40 1 075 000 OASIS PETROLEUM INC (USA) North America 15.14 15 430 670.78 2.26 115 000 PDC ENERGY INC (USA) North America 72.58 7 913 439.20 1.16 95 000 PIONEER NAT. RESOURCES (USA) North America 180.07 16 218 677.41 2.37 1 060 000 ROYAL DUTCH SHELL PLC (Netherlands) Europe 22.43 27 847 352.39 4.07 390 000 RPC (USA) North America 19.81 7 324 863.71 1.07 250 000 SCHLUMBERGER (USA) North America 83.95 19 898 080.11 2.91 780 000 SILTRONIC AG (Germany) Europe 44.03 34 339 500.00 5.02 700 000 SUNCOR ENERGY (Canada) North America 43.90 21 725 759.13 3.18 540 000 TENARIS SA (Italy) Europe 16.97 9 163 800.00 1.34 300 000 TRANSCANADA CORP (Canada) North America 60.54 12 840 326.63 1.88 880 000 WOOD GROUP (United Kingdom) Europe 8.76 9 030 927.84 1.32 Industrial Materials 186 508 127.46 27.29 369 999 ALCOA CORP (USA) North America 28.08 9 850 269.66 1.44 3 450 000 ARCELORMITTAL (Luxembourg) Europe 7.02 24 205 200.00 3.54 2 000 000 ARIZONA MINING INC (Canada) North America 2.45 3 464 244.05 0.51 1 310 000 BHP BILLITON PLC (United Kingdom) Europe 13.07 20 050 550.61 2.93 280 000 BOLIDEN (Sweden) Europe 237.90 6 951 784.60 1.02 22 060 000 CEMEX HLDGS PHILIPPINES (Philippines) Asia 11.10 4 669 962.86 0.68 690 000 FIRST QUANTUM MINERALS LTD (Canada) North America 13.35 6 512 425.32 0.95 8 300 000 GRUPO MEXICO SA DE CV (Mexico) Latin America 56.43 21 554 621.85 3.15 4 051 200 LUNDIN MINING CORP (Canada) North America 6.40 18 330 573.72 2.68 242 000 MUELLER INDUSTRIES INC (USA) North America 39.96 9 168 352.69 1.34 126 000 NUCOR CORP (USA) North America 59.52 7 110 234.65 1.04 825 000 RIO TINTO PLC (United Kingdom) Europe 31.59 30 526 739.69 4.47 2 500 000 ROTORK PLC (United Kingdom) Europe 2.41 7 064 198.69 1.03 770 000 WEIR GROUP PLC (United Kingdom) Europe 18.90 17 048 969.07 2.49 Precious Metals 67 974 413.11 9.95 2 800 000 ELDORADO GOLD CORP (Canada) North America 3.22 8 547 997.16 1.25 1 100 000 GOLDCORP INC (Canada) North America 13.60 14 183 455.80 2.08 CARMIGNAC FOURTH QUARTER 2016 / 35

EQUITY MANAGEMENT HOLDINGS CARMIGNAC PORTFOLIO COMMODITIES AT 30/12/2016 Price in currencies Total value ( ) % of net assets 900 000 HOCHSCHILD MINING PLC (Peru) Latin America 2.12 2 229 967.20 0.33 2 300 000 KANSAI MINING CORP (USA) North America 0.01 16 260.74 0.00 630 000 NEWMONT MINING (USA) North America 34.07 20 349 940.74 2.98 145 000 ROYAL GOLD INC (USA) North America 63.35 8 708 935.77 1.27 760 000 SILVER WHEATON CORP (Canada) North America 25.94 13 937 855.70 2.04 Agricultural resources 17 344 217.76 2.54 820 000 DARLING INGREDIENTS (USA) North America 12.91 10 036 691.16 1.47 687 700 INTERFOR CORP (Canada) North America 15.03 7 307 526.60 1.07 Chemicals 66 961 068.85 9.80 328 200 CF INDUSTRIES HOLDINGS (USA) North America 31.48 9 795 435.89 1.43 620 000 METHANEX CORP (Canada) North America 43.80 25 746 385.40 3.77 425 000 POTASH CORP (Canada) North America 24.29 7 298 419.88 1.07 120 000 PRAXAIR INC (USA) North America 117.19 13 332 827.68 1.95 310 000 TESSENDERLO CHEMIE (Belgium) Europe 34.80 10 788 000.00 1.58 Other Commodities Related 7 325 432.57 1.07 202 000 MASTEC INC (USA) North America 38.25 7 325 432.57 1.07 Portfolio value 675 965 876.63 98.91 Net assets 683 390 277.97 100.00 NET EQUITY EXPOSURE CARMIGNAC PORTFOLIO COMMODITIES AT 30/12/2016 Exposure ( ) % Exposure Long derivative positions 44 169 097.00 6.46 Industrial Materials (1 Position) Europe 804 247.00 0.12 Regional Indexes (3 Positions) Europe 31 127 434.00 4.55 Energy (5 Positions) North America 6 934 458.00 1.01 Industrial Materials (2 Positions) Europe 5 302 958.00 0.78 Short derivative positions -106 220 130.00-15.54 Energy (9 Positions) Europe -26 403 991.00-3.86 Industrial Materials (3 Positions) Europe -4 845 688.00-0.71 Regional Indexes (4 Positions) Europe -44 044 220.00-6.44 Energy (1 Position) Europe -4 903 624.00-0.72 Energy (1 Position) Eastern Europe -1 915 146.00-0.28 Energy (8 Positions) North America -19 117 648.00-2.80 Energy (3 Positions) Latin America -1 326 733.00-0.19 Industrial Materials (1 Position) Asia -3 091 026.00-0.45 Precious Metals (3 Positions) North America -572 054.00-0.08 Equity Investment 675 965 876.63 98.91 Net equity exposure 613 914 843.63 89.83 36 / Management report CARMIGNAC FOURTH QUARTER 2016

Edouard Carmignac Rose Ouahba Diversified fund combining three performance drivers: international bonds, equities and currencies. At least 50% of the assets are permanently invested in fixed income and money market instruments. Its flexible allocation aims to mitigate capital fluctuation while seeking the best sources of return. The Fund aims to outperform its reference indicator over 3 years. Carmignac Patrimoine gained +1.92% in the fourth quarter, compared with a +2.64% increase in its reference indicator. That brings its year-to-date performance to +3.88%, against +8.05% for its reference indicator. The Fund s equity portfolio contributed +0.43% to gross performance for the quarter, while its reference indicator was up +3.94% (see the Carmignac Investissement report). The equity portfolio was weighed down by our holdings in the pharmaceutical and gold-mining industries, whose losses, to a large extent, cancelled out the positive returns from our energy and tech stocks. Our equity exposure is high in this start of year, at 49%. It reflects our belief that equity investors are still underestimating the magnitude of the global recovery under way. Our bond portfolio also contributed to the Fund s gains for the quarter, adding +1.89%, in contrast with a -1.30% decline in its reference indicator. This portfolio was boosted by effective risk management in response to a particularly busy political calendar and a rerating of the inflation premium, as discussed in our previous quarterly report. Our prudent approach led us to reduce the portfolio s modified duration and increase our dollar exposure two strategies which have paid off. As we mention in the macroeconomic section of this report, we still see a paradigm shift ahead as investor decisions become driven less by monetary policies and more by the business cycle. The recovery should be supported by looser fiscal policies or even audacious measures in the US if President Trump follows through on his election platform. The following themes will underpin our investment strategy in 2017: rerating of the inflation premium: that translates into a considerably lower, and even negative, modified duration, which will shelter us against rising interest rates possibly even let us gain from them. We are also keeping inflation-linked securities in our portfolio. What has changed is that we are now also applying this strategy to our holdings in Europe, as we expect interest rates there to increase; outperformance of emerging market debt: this asset class will continue to be supported by more flexible monetary policies and higher commodities prices; rerating of the political risk premium: the European Union remains fragmented and the political risk is palpable; the dollar is now favoured over the euro. However, aversion to this risk just well may have reached unsustainable levels that could be challenged by the outcome of the upcoming elections. The main risk on the agenda as we head into 2017 is a shift in expectations about the ECB s monetary policy. Anticipations of asset purchase tapering could intensify, leading to a sovereign debt crisis and a sharp appreciation of the euro. We therefore plan to continue scaling back our exposure to peripheral sovereign debt and gradually strengthen our hedges against higher German and French yields. We are keeping our dollar exposure, but have reduced it significantly. Investment strategy Currencies and cash: we are maintaining our exposure to the US dollar, although our euro exposure is already on its way to gaining the upper hand. The euro lost 6.4% against the dollar in the fourth quarter, but gained 7.9% against the yen (source: Bloomberg). The Federal Reserve raised its benchmark interest rate by 25 basis points, bringing the spread against the eurozone shortterm rate to around 100 basis points. Donald Trump s election victory boosted consumer and business confidence indices and pushed the dollar up to the point where it is now overvalued. The EUR/USD exchange rate currently shows a 16% differential from the purchasing-power-parity exchange rate, whereas previous dollar rallies ended with the greenback overvalued by 30% on average. We therefore believe the dollar has limited upside potential, and any further gains would depend on how closely Trump sticks to his campaign platform. Meanwhile, the euro could bounce higher on the back of better GDP growth and inflation figures, which investors would probably take as heralding the end of the ECB s ultra-loose monetary policy. Those factors prompted us to shrink our dollar weighting from 70% to 45% and increase our euro weighting to 53%. We remain cautious on the yen and are keeping our short position. Government bonds: our government bond allocation stands at 23%, with 7% allocated to emerging market government bonds. The total modified duration at the end of the quarter was -2.8. US interest rates have been climbing since Trump s victory, substantiating the risk management decisions we made earlier. The ten-year Treasury yield is up by some 90 basis points, while inflation expectations, measured by the differential between nominal and real interest rates, have risen by Performance of the fund since its launch 1000 900 800 700 600 500 374% 400 300 200 100 0 11/89 12/92 12/95 12/98 12/01 12/04 12/07 12/10 12/13 12/16 Carmignac Patrimoine A EUR acc 50% MSCI ACW NR (Eur) + 50% Citigroup WGBI all maturities (Eur) 748% From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report DIVERSIFIED MANAGEMENT / 37

DIVERSIFIED MANAGEMENT 40 basis points. Thanks to our hedges, the modified duration of our portfolio is now in negative territory meaning the sharp rise in interest rates has been beneficial for our Fund. We will continue with this prudent strategy into the next quarter. The cyclical recovery is still largely being driven by the commodities sector and could accelerate, as discussed in the macroeconomic section of this report. Most notably, wages in the US have recently started trending upwards, which could lend further support to a pick-up in inflation. We are therefore keeping our short positions on US long-term interest rates as well as our allocation to inflation-linked bonds. Inflation is also starting to reappear in Europe, although that primarily reflects a favourable comparison basis. Interest rates in the region are returning to normal after being stuck at rock-bottom levels. That said, the ECB s monetary policy should give us a breathing space, as there is still considerable bond scarcity relative to the current pace of its asset purchases. We are maintaining our allocation to Italian bonds (ten-year yield of around 1.9%) and Portuguese bonds (ten-year yield of around 3.8%). These positions are partially hedged by a strategy designed to take advantage of a rise in German yields. Our allocation to emerging market government bonds contributed +1% to the Fund s performance for the year, mostly thanks to gains in our Brazilian holdings. We remain optimistic about this asset class, since it should be supported by buoyant commodity prices and a return to accommodative monetary policies in certain countries. At the end of the year, we added Russian government bonds denominated In USD to our portfolio, bringing our total allocation to emerging market government bonds to approximately 7%. Our allocation to corporate bonds stands at 25%. The core themes in this portfolio contributed +2.4% to the Fund s full-year performance. The portfolio benefited from a rally in subordinated bonds issued by top-tier European banks, driven by a rebound in Italian banks. Banking sector bonds as a whole got a boost from the higher interest rates and steeper rate curve. In addition, the sector s outperformance was fuelled by the prospect that the regulations that have largely handcuffed the industry and crimped its earnings outlook will be eased. The remainder of our corporate bond holdings consists of commodity-sector bonds and AAA-rated structured credit. Net currency exposure of Euro share classes (%) Sector breakdown (derivatives excluded) (%) USD EUR GBP 6,8 0.2 31.8 71.2 Financials Consumer Discretionary Information Technology 20.0 17.7 16.9 CHF 0.9 Energy 15.4 AUD and CAD 1.4 Materials 12.5 Latin America 4.7 Healthcare 8.2 Emerging Asia -11.4 Industrials 4.1 Eastern Europe, Middle East and Africa 0.7 Consumer Staples 3.4 Other 0.6 Telecommunication Services 1.7 Bond portfolio (derivatives excluded) Rating breakdown (%) Bond portfolio (derivatives excluded) Maturity breakdown (%) AAA 17,5 23.1 < 1 year 18.1 AA 1.7 1-3 years 12.9 A 16.9 3-5 years 12.3 BBB 1,0 11,7 34.7 5-7 years 10.1 BB 2,0 14.9 7-10 years 0,3 37.6 B 8.1 > 10 years 9.0 CCC 0.6 CC 0.1 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Patrimoine A EUR acc 3.88 1.92 3.01 3.88 13.84 24.26 69.26 748.09 Reference indicator* 8.05 2.64 4.30 8.05 35.77 50.48 75.26 373.85 Category average** 2.83 1.75 4.13 2.83 12.32 28.55 15.41 226.11 Ranking (quartile) 2 2 3 2 2 3 1 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * 50% MSCI ACW NR (Eur) + 50% Citigroup WGBI (Eur) (accrued interest). ** EUR Moderate Allocation - Global. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 38 / Management report CARMIGNAC FOURTH QUARTER 2016

Statistics (%) 1 year 3 years Fund volatility 6.32 7.63 Benchmark volatility 8.67 7.43 Sharpe ratio 0.70 0.61 Beta 0.52 0.91 Alpha 0.01-0.42 Calculation period: weekly (1 year) and monthly (3 years). Modified duration of the bond portfolio (derivatives included) Euro -0.53 United States -3.03 Other 0.76 DIVERSIFIED MANAGEMENT Quarterly gross performance contribution (%) Equity Portfolio Bond Portfolio Equity Derivatives Bond Derivatives Currency Derivatives Total 1.06 1.33-0.38 1.96-1.68 2.29 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 10.57 7.19 HOLDINGS CARMIGNAC PATRIMOINE AT 30/12/2016 Price in currencies total value ( ) % of net assets Cash, cash equivalents and derivatives operations 977 320 667.53 3.96 Cash (including collateral cash from derivative positions) 306 631 534.26 1.24 138 267 000 ITALY 14/08/2017 Treasury bill in Euro 138 535 736.24 0.56 93 214 000 ITALY 14/09/2017 Treasury bill in Euro 93 408 047.43 0.38 93 214 000 SPAIN 15/09/2017 Treasury bill in Euro 93 466 530.99 0.38 344 456 000 SPAIN 18/08/2017 Treasury bill in Euro 345 278 818.61 1.40 Developed countries fixed rate Government bonds 2 986 465 961.49 12.11 86 970 000 GREECE 3.38% 17/07/2017 (Greece) Euro 98.45 86 991 671.02 0.35 228 709 000 GREECE 4.75% 17/04/2019 (Greece) Euro 94.35 223 555 215.00 0.91 195 100 IRELAND 3.90% 20/03/2023 (Ireland) Euro 123.77 247 495.95 0.00 93 385 000 ITALY 0.45% 01/06/2021 (Italy) Euro 99.94 93 365 199.30 0.38 93 385 000 ITALY 3.75% 01/05/2021 (Italy) Euro 114.00 107 068 353.21 0.43 43 068 505 PORTUGAL 2.88% 15/10/2025 (Portugal) Euro 95.05 41 207 142.81 0.17 136 457 158 PORTUGAL 3.88% 15/02/2030 (Portugal) Euro 96.12 135 829 101.27 0.55 91 901 088 PORTUGAL 4.10% 15/02/2045 (Portugal) Euro 91.64 87 538 824.61 0.35 5 253 573 PORTUGAL 4.10% 15/04/2037 (Portugal) Euro 96.29 5 213 763.67 0.02 82 389 900 PORTUGAL 4.35% 16/10/2017 (Portugal) Euro 103.65 86 168 718.41 0.35 29 438 400 PORTUGAL 4.45% 15/06/2018 (Portugal) Euro 106.48 32 070 116.34 0.13 46 766 252 PORTUGAL 4.95% 25/10/2023 (Portugal) Euro 111.54 52 604 697.75 0.21 358 030 888 PORTUGAL 5.65% 15/02/2024 (Portugal) Euro 114.66 428 352 458.29 1.74 13 161 000 SLOVENIA 5.85% 10/05/2023 (Slovenia) Dollar 112.93 14 198 937.79 0.06 221 947 000 SPAIN 1.40% 31/01/2020 (Spain) Euro 104.35 234 466 799.83 0.95 96 050 000 SPAIN 5.50% 30/04/2021 (Spain) Euro 122.75 121 488 829.34 0.49 128 000 000 UNITED STATES 0.50% 28/02/2017 (USA) Dollar 100.00 121 563 618.41 0.49 50 724 000 UNITED STATES 0.50% 31/03/2017 (USA) Dollar 100.00 48 151 233.94 0.20 939 191 100 UNITED STATES 2.12% 15/05/2025 (USA) Dollar 97.98 875 000 586.82 3.55 202 586 500 UNITED STATES 2.25% 15/11/2024 (USA) Dollar 99.34 191 383 197.73 0.78 Developed countries inflation-linked Government bonds 921 681 923.54 3.74 74 352 000 ITALY I/L 2.35% 15/09/2024 (Italy) Euro 114.24 86 407 628.33 0.35 143 905 000 ITALY I/L 3.10% 15/09/2026 (Italy) Euro 122.29 189 193 745.10 0.77 662 206 100 USA I/L 0.62% 15/01/2026 (USA) Dollar 100.87 646 080 550.11 2.62 Emerging countries inflation-linked Government bonds 600 743 690.40 2.43 108 000 BRAZIL I/L 6.00% 15/08/2050 (Brazil) Real Brazil 3 151.66 99 151 991.23 0.40 17 396 244 MEXICO I/L 4.50% 04/12/2025 (Mexico) Mexican peso 112.30 501 591 699.17 2.03 Emerging markets fixed rate Government bonds 1 200 796 154.54 4.87 8 900 000 ARGENTINA 7.00% 17/04/2017 (Argentina) Dollar 104.15 8 788 280.64 0.04 CARMIGNAC FOURTH QUARTER 2016 / 39

DIVERSIFIED MANAGEMENT HOLDINGS CARMIGNAC PATRIMOINE AT 30/12/2016 Price in currencies total value ( ) % of net assets 55 800 000 BAHRAIN 7.00% 12/10/2028 (Bahrain) Dollar 102.49 55 053 002.13 0.22 1 682 000 BRAZIL 10.00% 01/01/2025 (Brazil) Real Brazil 980.15 480 236 992.63 1.95 48 449 000 BRAZIL 2.88% 01/04/2021 (Brazil) Euro 102.13 50 535 625.42 0.20 111 900 000 BRAZIL 5.62% 21/02/2047 (Brazil) Dollar 87.91 95 851 009.72 0.39 114 639 000 INDONESIA 2.62% 14/06/2023 (Indonesia) Euro 100.77 117 191 932.01 0.48 30 600 000 INDONESIA 3.38% 30/07/2025 (Indonesia) Euro 102.77 31 892 455.97 0.13 860 541 000 POLAND 2.50% 25/07/2026 (Poland) Zloty 91.08 180 185 382.52 0.73 114 000 000 RUSSIA 4.75% 27/05/2026 (Russia) Dollar 102.50 111 315 441.26 0.45 75 261 000 SAUDI ARABIA 2.38% 26/10/2021 (Saudi Arabia) Dollar 97.30 69 746 032.24 0.28 Developed countries fixed rate corporate bonds 4 551 346 158.73 18.43 47 850 000 ABN AMRO BANK 2.88% 30/06/2020 (Netherlands) Financials (subordinated debt) 105.37 51 122 435.28 0.21 101 634 000 AIR LEASE 5.62% 01/04/2017 (USA) Industrials 100.83 98 553 543.08 0.40 36 275 000 ALLIED IRISH 2.75% 16/04/2019 (Ireland) Financials (senior debt) 105.43 38 961 153.81 0.16 11 547 000 ALLIED IRISH 4.12% 26/11/2020 (Ireland) Financials (subordinated debt) 101.63 11 784 920.40 0.05 42 307 000 ALTICE SA 6.25% 15/02/2020 (Netherlands) Consumer Discretionary 104.75 44 992 319.31 0.18 29 200 000 ALTICE SA 6.50% 26/01/2017 (Netherlands) Consumer Discretionary 104.24 29 701 746.92 0.12 24 243 000 ALTICE SA 6.50% 27/01/2017 (Netherlands) Consumer Discretionary 104.15 24 639 343.78 0.10 28 261 000 ALTICE SA 6.62% 15/02/2018 (Netherlands) Consumer Discretionary 102.71 27 977 642.00 0.11 107 444 000 ALTICE SA 7.25% 15/05/2017 (Netherlands) Consumer Discretionary 107.13 118 090 805.03 0.48 78 253 000 ALTICE SA 7.62% 15/02/2020 (Netherlands) Consumer Discretionary 105.25 79 547 479.09 0.32 70 377 000 AXA 3.38% 06/07/2027 (France) Financials (subordinated debt) 101.78 72 804 746.20 0.30 48 486 000 AXA 5.12% 04/07/2023 (France) Financials (subordinated debt) 115.42 57 208 398.93 0.23 10 485 000 BANCO POPOLARE SC 2.75% 27/07/2020 (Italy) Financials (senior debt) 101.56 10 775 379.92 0.04 62 916 000 BANK OF AMERICA 3.88% 22/03/2017 (USA) Financials (senior debt) 100.58 60 649 244.44 0.25 23 523 000 BANK OF IRELAND 7.38% 18/06/2020 (Ireland) Financials (subordinated debt) 102.00 24 069 506.96 0.10 65 700 000 BANKIA 3.50% 17/01/2019 (Spain) Financials (senior debt) 106.48 72 165 615.98 0.29 42 800 000 BANKIA 4.00% 22/05/2019 (Spain) Financials (subordinated debt) 101.85 44 653 544.88 0.18 19 130 000 BARCLAYS 2.62% 11/11/2020 (United Kingdom) Financials (subordinated debt) 99.43 19 094 640.95 0.08 33 570 000 BARCLAYS 7.75% 10/04/2018 (United Kingdom) Financials (subordinated debt) 105.22 34 065 341.17 0.14 30 700 000 BBVA 3.50% 11/04/2019 (Spain) Financials (subordinated debt) 104.44 32 847 549.11 0.13 52 000 000 BBVA 7.00% 19/02/2019 (Spain) Financials (subordinated debt) 96.15 50 444 668.70 0.20 39 000 000 BBVA 8.88% 14/04/2021 (Spain) Financials (subordinated debt) 108.05 42 899 791.22 0.17 68 600 000 BBVA 9.00% 09/05/2018 (Spain) Financials (subordinated debt) 104.53 68 861 457.22 0.28 13 300 000 BELFIUS BANK SA 3.12% 11/05/2026 (Belgium) Financials (subordinated debt) 101.50 13 769 637.58 0.06 26 782 000 BERKSHIRE HATHAWAY 0.50% 13/02/2020 (USA) Financials (senior debt) 101.40 27 265 881.03 0.11 23 633 000 BHP BILLITON 5.625% 22/10/2024 (Australia) Materials (subordinated debt) 113.22 27 023 153.85 0.11 53 430 000 BNP PARIBAS 2.38% 14/09/2017 (France) Financials (senior debt) 100.61 51 335 196.72 0.21 54 585 000 BNP PARIBAS 6.12% 17/06/2022 (France) Financials (subordinated debt) 105.03 57 484 586.69 0.23 48 641 000 CITIGROUP INC 4.30% 20/11/2026 (USA) Financials (subordinated debt) 101.07 46 851 027.60 0.19 47 821 000 CITIGROUP INC 4.40% 10/06/2025 (USA) Financials (subordinated debt) 102.35 46 534 892.04 0.19 38 471 000 CREDIT AGRICOLE 4.38% 17/03/2025 (France) Financials (subordinated debt) 98.50 36 400 495.06 0.15 28 900 000 CREDIT AGRICOLE 4.50% 14/10/2025 (France) Financials (subordinated debt) 99.00 28 895 809.50 0.12 28 900 000 CREDIT AGRICOLE 4.75% 27/09/2028 (France) Financials (subordinated debt) 101.50 29 700 917.97 0.12 48 426 000 CREDIT AGRICOLE 7.88% 23/01/2024 (France) Financials (subordinated debt) 101.31 46 623 310.87 0.19 74 650 000 CREDIT LOGEMENT SA 0.83% 16/03/2017 (France) Real Estate (subordinated debt) 79.11 59 085 997.55 0.24 25 713 000 CREDIT SUISSE 5.75% 18/09/2020 (Switzerland) Financials (subordinated debt) 109.56 28 605 613.87 0.12 72 710 000 CREDIT SUISSE 6.50% 08/08/2023 (Switzerland) Financials (subordinated debt) 106.68 75 346 142.01 0.31 47 850 000 DANICA PENSION 4.38% 29/09/2025 (Denmark) Financials (subordinated debt) 105.77 51 161 069.24 0.21 61 095 000 DANSKE BANK 5.88% 06/04/2022 (Denmark) Financials (subordinated debt) 104.89 64 960 156.71 0.26 30 600 000 DNO ASA 8.75% 18/06/2017 (Norway) Energy 89.06 25 949 746.25 0.11 5 915 000 EBAY INC 2.88% 01/06/2021 (USA) Information Technology 100.23 5 689 328.52 0.02 29 465 000 EBAY INC 3.80% 09/02/2022 (USA) Information Technology 103.43 29 233 662.77 0.12 16 077 000 EUROFINS SCIENTIFIC 2.25% 27/01/2022 (Luxembourg) Healthcare 100.74 16 534 464.45 0.07 40 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC PATRIMOINE AT 30/12/2016 Price in currencies total value ( ) % of net assets 10 359 000 EUROFINS SCIENTIFIC 3.38% 30/10/2022 (Luxembourg) Healthcare 103.35 11 029 954.98 0.04 19 685 000 EUROFINS SCIENTIFIC 4.88% 29/04/2023 (Luxembourg) Healthcare (subordinated debt) 102.53 20 837 297.88 0.08 18 426 000 FCA CAPITAL IRELAND PLC 1.25% 21/01/2021 (Ireland) Consumer Discretionary 102.00 18 917 464.33 0.08 39 337 000 FCA CAPITAL IRELAND PLC 1.38% 17/04/2020 (Ireland) Consumer Discretionary 102.39 40 663 923.23 0.16 27 589 000 FCA CAPITAL IRELAND PLC 2.00% 23/10/2019 (Ireland) Consumer Discretionary 104.22 28 861 824.18 0.12 32 206 000 FCA CAPITAL IRELAND PLC 2.62% 17/04/2019 (Ireland) Consumer Discretionary 105.17 34 473 964.17 0.14 26 988 000 FCA CAPITAL IRELAND PLC 4.00% 17/10/2018 (Ireland) Consumer Discretionary 106.90 29 081 943.47 0.12 500 000 FIRST QUANTUM MINERALS LTD 7.25% 15/05/2017 (Canada) Materials 99.50 476 353.67 0.00 19 900 000 FONCIERE LYONNAISE 3.50% 28/11/2017 (France) Real Estate 103.19 20 603 704.89 0.08 41 600 000 GENEL ENERGY 7.50% 27/01/2017 (United Kingdom) Energy 83.88 33 483 447.90 0.14 26 055 000 IBERDROLA 5.00% 11/09/2019 (Spain) Utilities 106.93 26 802 855.56 0.11 49 492 000 IMS HEALTH INC 3.50% 15/10/2019 (USA) Healthcare 104.29 52 073 310.25 0.21 19 100 000 ING GROEP NV 6.00% 16/04/2020 (Netherlands) Financials (subordinated debt) 97.61 17 911 897.61 0.07 72 542 000 INTESA SAN PAOLO 2.38% 13/01/2017 (Italy) Financials (senior debt) 100.02 69 564 751.84 0.28 66 790 000 INTESA SAN PAOLO 3.00% 28/01/2019 (Italy) Financials (senior debt) 105.21 72 135 258.45 0.29 51 107 000 INTESA SAN PAOLO 3.88% 16/01/2018 (Italy) Financials (senior debt) 101.40 50 010 644.42 0.20 70 188 000 INTESA SAN PAOLO 5.25% 12/01/2024 (Italy) Financials (senior debt) 104.78 71 394 011.40 0.29 67 771 000 INTESA SAN PAOLO 5.71% 15/01/2026 (Italy) Financials (subordinated debt) 95.37 63 003 113.55 0.26 47 486 000 INTESA SAN PAOLO 7.70% 17/09/2025 (Italy) Financials (subordinated debt) 94.82 43 721 160.95 0.18 15 538 000 ISLANDSBANKI 1.75% 07/09/2020 (Iceland) Financials (senior debt) 102.39 15 997 109.59 0.06 26 788 000 JP MORGAN 1.65% 23/09/2019 (USA) Financials (senior debt) 99.18 25 307 813.26 0.10 9 136 000 LANDSBANKINN 1.62% 15/03/2021 (Iceland) Financials (senior debt) 101.59 9 326 369.21 0.04 72 233 000 LEUCADIA 5.50% 18/01/2023 (USA) Financials (senior debt) 106.06 73 428 113.64 0.30 113 899 000 LLOYDS 4.58% 10/12/2025 (United Kingdom) Financials (subordinated debt) 100.48 108 833 846.59 0.44 47 372 740 MERCURY BONDCO PLC 8.25% 30/11/2017 (Italy) Information Technology 105.83 50 494 248.27 0.20 71 556 000 MMC NORILSK NICKEL OJSC 6.62% 14/10/2022 (Russia) Materials 111.74 76 793 254.33 0.31 55 493 000 MYLAN 2.25% 22/09/2024 (Netherlands) Healthcare 102.01 56 752 082.96 0.23 72 106 000 MYRIAD INTERNATIONAL HOLDINGS BV 6.00% 18/07/2020 (Netherlands) Consumer Discretionary 108.59 76 128 258.06 0.31 57 981 000 NORTH ATLANTIC DRILLING 6.25% 01/02/2019 (Norway) Energy 26.25 15 898 383.53 0.06 65 400 000 NUMERICABLE 6.00% 15/05/2017 (France) Consumer Discretionary 102.75 65 146 812.04 0.26 55 258 000 NUMERICABLE 6.25% 15/05/2019 (France) Consumer Discretionary 100.88 54 112 339.88 0.22 81 346 000 PERSHING SQUARE 5.50% 15/06/2022 (Netherlands) Financials (senior debt) 100.19 79 252 225.82 0.32 47 834 300 RABOBANK 6.50% 29/12/2049 (Netherlands) Financials (subordinated debt) 113.69 54 417 841.01 0.22 40 675 000 ROYAL BANK OF SCOTLAND 3.62% 25/03/2019 (United Kingdom) Financials (subordinated debt) 100.03 41 834 867.13 0.17 34 545 000 ROYAL BANK OF SCOTLAND 6.93% 09/04/2018 (United Kingdom) Financials (subordinated debt) 107.42 38 873 579.36 0.16 39 537 000 ROYAL BANK OF SCOTLAND 8.62% 15/08/2021 (United Kingdom) Financials (subordinated debt) 101.41 38 049 544.16 0.15 59 600 000 SANTANDER 6.25% 12/03/2019 (Spain) Financials (subordinated debt) 93.76 56 097 059.67 0.23 12 733 000 SOCIETE GENERALE 6.75% 07/04/2021 (France) Financials (subordinated debt) 102.80 13 296 800.45 0.05 32 649 000 SOCIETE GENERALE 7.88% 18/12/2023 (France) Financials (subordinated debt) 97.10 30 163 682.90 0.12 48 511 000 SOCIETE GENERALE 8.00% 29/09/2025 (France) Financials (subordinated debt) 99.96 46 946 832.94 0.19 42 957 000 TOTAL SA 2.71% 05/05/2023 (France) Energy (subordinated debt) 97.96 42 362 177.36 0.17 46 508 000 TOTAL SA 3.37% 06/10/2026 (France) Energy (subordinated debt) 96.47 45 250 182.86 0.18 29 000 000 TOTAL SA 3.88% 18/05/2022 (France) Energy (subordinated debt) 105.77 31 375 643.75 0.13 48 521 000 TULLOW OIL 6.00% 06/01/2017 (United Kingdom) Energy 95.33 44 338 464.50 0.18 62 593 000 TULLOW OIL 6.25% 15/04/2017 (United Kingdom) Energy 93.25 56 149 750.33 0.23 47 367 000 UBS AG 3.00% 15/04/2021 (Switzerland) Financials (senior debt) 100.10 45 247 030.17 0.18 42 630 000 UBS AG 4.12% 15/04/2026 (Switzerland) Financials (senior debt) 101.82 41 518 208.12 0.17 77 359 000 UBS AG 4.75% 12/02/2021 (Switzerland) Financials (subordinated debt) 107.55 86 479 174.84 0.35 82 597 000 UBS AG 4.75% 22/05/2018 (Switzerland) Financials (subordinated debt) 102.31 82 400 421.28 0.33 77 360 000 UBS AG 5.12% 15/05/2024 (Switzerland) Financials (subordinated debt) 101.34 76 705 645.76 0.31 15 625 000 UBS AG 5.75% 19/02/2022 (Switzerland) Financials (subordinated debt) 105.58 17 280 564.38 0.07 14 250 000 UBS AG 7.62% 17/08/2022 (Switzerland) Financials (subordinated debt) 114.05 15 800 677.79 0.06 48 422 000 UNICREDIT 6.38% 02/05/2018 (Italy) Financials (subordinated debt) 101.26 46 983 322.97 0.19 DIVERSIFIED MANAGEMENT CARMIGNAC FOURTH QUARTER 2016 / 41

DIVERSIFIED MANAGEMENT HOLDINGS CARMIGNAC PATRIMOINE AT 30/12/2016 Price in currencies total value ( ) % of net assets 68 864 000 UNICREDIT 6.75% 10/09/2021 (Italy) Financials (subordinated debt) 94.09 66 268 059.28 0.27 121 003 000 UNICREDIT 6.95% 31/10/2022 (Italy) Financials (subordinated debt) 115.14 140 795 013.16 0.57 20 900 000 UNICREDIT 9.25% 03/06/2022 (Italy) Financials (subordinated debt) 106.76 22 389 462.71 0.09 36 659 000 UNIPOLSAI SPA 5.75% 18/06/2024 (Italy) Financials (subordinated debt) 95.22 36 054 834.57 0.15 17 900 000 VIENNA INSURANCE 5.50% 09/10/2023 (Austria) Financials (subordinated debt) 110.29 19 973 158.38 0.08 16 097 000 XYLEM INC 2.25% 11/12/2022 (USA) Industrials 106.35 17 414 054.33 0.07 Developed countries floating rate corporate bonds 23 358 395.63 0.10 14 219 000 AP MOELLER-MAERSK A/S TV 18/03/2019 (Denmark) Industrials 102.59 14 594 594.89 0.06 8 635 000 LOCK AS TV 09/01/2017 (Norway) Financials (senior debt) 100.74 8 763 800.74 0.04 Emerging markets fixed rate corporate bonds 470 148 944.73 1.91 52 064 000 AXIS BANK 5.12% 05/09/2017 (United Arab Emirates) Financials (senior debt) 101.84 51 105 448.44 0.21 47 866 000 BRF SA 2.75% 03/06/2022 (Brazil) Consumer Staples 102.83 49 991 886.43 0.20 37 558 000 CBQ FINANCE 7.50% 18/11/2019 (Qatar) Financials (subordinated debt) 112.51 40 396 526.64 0.16 23 400 000 CESKE DRAHY 1.88% 25/05/2023 Industrials 103.68 24 529 880.22 0.10 11 219 000 FIDEICOM 5.25% 30/10/2025 (Mexico) Real Estate 95.76 10 424 744.08 0.04 38 900 000 ICICI BANK 4.70% 21/02/2018 (India) Financials (senior debt) 102.46 38 429 544.71 0.16 36 708 000 MOL HUNGARIAN OIL AND GAS 2.62% 28/04/2023 (Hungary) Energy 102.11 38 142 895.61 0.15 34 111 000 PETROBRAS ARGENTINA SA 7.38% 21/07/2020 (Brazil) Energy 98.28 32 865 325.50 0.13 16 268 000 PETROBRAS GLOBAL FINANCE BV 3.25% 01/04/2019 (Brazil) Energy 102.43 17 064 389.91 0.07 21 273 000 PETROBRAS GLOBAL FINANCE BV 6.62% 16/01/2034 (Brazil) Energy 87.72 23 452 307.65 0.10 48 422 000 PHOSAGRO 4.20% 13/02/2018 (Russia) Materials 101.47 47 335 753.67 0.19 35 838 000 SANTANDER 4.12% 09/11/2022 (Mexico) Financials (senior debt) 100.42 34 333 537.35 0.14 35 679 000 YPF SA 8.50% 23/03/2021 (Argentina) Energy 107.81 37 275 877.44 0.15 24 593 000 YPF SA 8.50% 28/07/2025 (Argentina) Energy 102.68 24 800 827.08 0.10 Developed countries convertible corporate bonds 22 767 336.50 0.09 48 800 000 BANK OF NEW YORK MELLON 4.19% 15/12/2050 (Luxembourg) Financials (subordinated debt) 46.21 22 767 336.50 0.09 Asset Backed Securities 1 013 818 497.17 4.11 19 775 840 AMERICAN CAPITAL, ACAS CLO 2014-2 (USA) CLO (AAA tranche) 100.37 18 919 924.82 0.08 48 038 000 AMERICAN CAPITAL, ACAS CLO 2015-1 (USA) CLO (AAA tranche) 100.09 45 815 920.32 0.19 17 784 000 SPIRE PARTNERS, AURIUM CLO II (Europe) CLO (AAA tranche) 100.83 18 072 014.84 0.07 6 084 000 SPIRE PARTNERS, AURIUM CLO II (Europe) CLO (AA tranche) 100.90 6 208 214.59 0.03 5 616 000 SPIRE PARTNERS, AURIUM CLO II (Europe) CLO (A tranche) 101.24 5 780 193.99 0.02 18 664 000 AXA IM, ADAGIO V CLO (Europe) CLO (AAA tranche) 100.63 18 852 490.79 0.08 8 960 000 AXA IM, ADAGIO V CLO (Europe) CLO (AA tranche) 100.08 9 023 413.40 0.04 39 237 000 AXA IM, ALLEGRO CLO III (USA) CLO (AAA tranche) 100.22 37 454 809.99 0.15 30 985 000 APOLLO MANAGEMENT, ALME LOAN FUNDING IV (Europe) CLO (AAA tranche) 100.99 31 394 009.92 0.13 9 360 000 APOLLO MANAGEMENT, ALME LOAN FUNDING V (Europe) CLO (AAA tranche) 101.40 9 564 154.39 0.04 3 613 000 APOLLO MANAGEMENT, ALME LOAN FUNDING V (Europe) CLO (A tranche) 101.42 3 719 881.69 0.02 38 150 000 OAKTREE CAPITAL, ARBOUR CLO III (Europe) CLO (AAA tranche) 101.08 38 591 619.94 0.16 14 900 000 OAKTREE CAPITAL, ARBOUR CLO IV (Europe) CLO (AAA tranche) 100.25 14 962 850.19 0.06 38 135 699 NEWSTAR CAPITAL, ARCH STREET CLO (USA) CLO (AAA tranche) 100.74 36 422 461.53 0.15 28 705 000 SPIRE PARTNERS, AURIUM CLO I (Europe) CLO (AAA tranche) 100.91 29 020 998.51 0.12 28 079 000 BARINGS, BABSON EURO CLO 2016-1 (Europe) CLO (AAA tranche) 100.90 28 490 494.24 0.12 4 680 000 BARINGS, BABSON EURO CLO 2016-1 (Europe) CLO (AA tranche) 100.24 4 732 476.73 0.02 2 246 000 BARINGS, BABSON EURO CLO 2016-1 (Europe) CLO (A tranche) 100.93 2 296 638.19 0.01 39 237 000 BLACK DIAMOND, BLACK DIAMOND CLO 2012-1 (USA) CLO (AAA tranche) 100.08 26 779 843.80 0.11 12 122 000 CSAM, CADOGAN SQUARE CLO VII (Europe) CLO (AA tranche) 100.55 12 212 077.57 0.05 5 682 000 CSAM, CADOGAN SQUARE CLO VII (Europe) CLO (A tranche) 100.85 5 747 026.61 0.02 3 788 000 CSAM, CADOGAN SQUARE CLO VII (Europe) CLO (BBB tranche) 101.76 3 872 917.68 0.02 39 620 000 CARLYLE, CARLYLE GMS EURO CLO 2015-2 (Europe) CLO (AAA tranche) 100.68 39 906 983.65 0.16 1 650 000 CARLYLE, CARLYLE GMS EURO CLO 2015-2 (Europe) CLO (BBB tranche) 99.82 1 649 146.79 0.01 8 654 000 CVC CREDIT PARTNERS, CVC CORDATUS V (Europe) CLO (AAA tranche) 100.93 8 757 358.55 0.04 2 864 000 CVC CREDIT PARTNERS, CVC CORDATUS V (Europe) CLO (A tranche) 100.48 2 894 781.50 0.01 42 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC PATRIMOINE AT 30/12/2016 Price in currencies total value ( ) % of net assets 14 256 000 CVC CREDIT PARTNERS, CVC CORDATUS VI (Europe) CLO (AA tranche) 100.73 14 426 980.12 0.06 5 210 000 CVC CREDIT PARTNERS, CVC CORDATUS VI (Europe) CLO (A tranche) 101.12 5 309 112.96 0.02 5 707 000 CVC CREDIT PARTNERS, CVC CORDATUS VI (Europe) CLO (BBB tranche) 102.08 5 887 483.05 0.02 38 282 000 GUGGENHEIM, CORK STREET CLO (Europe) CLO (AAA tranche) 100.53 38 527 429.73 0.16 2 842 000 CAIRN CAPITAL, CAIRN CLO 2013-3 (Europe) CLO (AA tranche) 100.09 2 857 463.19 0.01 3 793 000 CAIRN CAPITAL, CAIRN CLO 2013-3 (Europe) CLO (A tranche) 100.19 3 823 987.75 0.02 7 399 000 PRAMERICA, DRYDEN 39 EURO CLO (Europe) CLO (BBB tranche) 99.37 7 409 529.52 0.03 15 149 000 BLACKSTONE/GSO, ELM PARK (Europe) CLO (AAA tranche) 101.04 15 357 014.79 0.06 9 468 000 BLACKSTONE/GSO, ELM PARK (Europe) CLO (AA tranche) 100.56 9 565 655.69 0.04 11 835 000 BLACKSTONE/GSO, ELM PARK (Europe) CLO (A tranche) 101.17 12 053 798.64 0.05 8 426 000 BLACKSTONE/GSO, ELM PARK (Europe) CLO (BBB tranche) 101.65 8 646 606.07 0.04 38 283 000 INVESTCORP, HARVEST CLO XIV (Europe) CLO (AAA tranche) 100.78 38 650 536.01 0.16 9 470 000 INVESTCORP, HARVEST CLO IV (Europe) CLO (AA tranche) 98.89 9 374 236.62 0.04 18 661 000 ICG, ICG US CLO 2016-1 (USA) CLO (AAA tranche) 100.45 17 771 398.86 0.07 32 711 000 APEX CREDIT, JFIN CLO 2016-1 (USA) CLO (AAA tranche) 100.23 31 389 929.17 0.13 4 673 000 ALCENTRA, JUBILEE CLO 2013-X (Europe) CLO (A tranche) 99.75 4 708 074.06 0.02 5 607 000 ALCENTRA, JUBILEE CLO 2013-X (Europe) CLO (BBB tranche) 98.99 5 629 745.82 0.02 31 201 000 ALCENTRA, JUBILEE CLO 2015-XVI (Europe) CLO (AAA tranche) 100.79 31 469 684.11 0.13 3 736 000 ALCENTRA, JUBILEE CLO 2016-XVII (Europe) CLO (AAA tranche) 100.70 3 777 303.35 0.02 6 842 000 ALCENTRA, JUBILEE CLO 2016-XVII (Europe) CLO (AA tranche) 100.08 6 892 760.11 0.03 6 539 000 ALCENTRA, JUBILEE CLO 2016-XVII (Europe) CLO (A tranche) 101.24 6 685 695.93 0.03 38 684 599 KKR CREDIT ADVISORS, KKR CLO 12 (USA) CLO (AAA tranche) 99.87 36 813 246.52 0.15 17 300 000 SEIX, MOUNTAIN VIEW CLO X (USA) CLO (AAA tranche) 100.03 16 496 987.36 0.07 26 117 000 BAIN CREDIT, NEWHAVEN II CLO (Europe) CLO (AAA tranche) 100.93 26 410 796.58 0.11 43 064 000 ONEX CREDIT, OCP CLO 2015-9 (USA) CLO (AAA tranche) 100.03 41 052 111.07 0.17 44 755 000 ONEX CREDIT, OCP CLO 2016-12 (USA) CLO (AAA tranche) 100.31 42 564 858.54 0.17 24 679 000 OAK HILL ADVISORS, OAK HILL ECP IV (Europe) CLO (AAA tranche) 100.37 24 930 498.53 0.10 21 945 000 INVESCO, RISERVA CLO (USA) CLO (AAA tranche) 99.82 20 789 064.28 0.08 14 000 000 SOFI, SOFI CONSUMER LOAN PROGRAM 2016-3 (USA) CLO (A tranche) 99.62 12 316 501.45 0.05 28 395 000 ALCENTRA, SHACKLETON 2016-IX (USA) CLO (AAA tranche) 100.05 27 024 017.29 0.11 25 174 296 TRINITAS CAPITAL MANAGEMENT, TRINITAS CLO V (USA) CLO (AAA tranche) 100.12 24 063 285.78 0.10 DIVERSIFIED MANAGEMENT Equities Developed countries 10 221 276 963.10 41.43 North America 7 070 240 172.89 28.66 347 870 AMAZON.COM INC (USA) Consumer Discretionary 749.87 247 316 688.22 1.00 2 101 962 AMERICAN AIRLINES GROUP (USA) Industrials 46.69 93 046 319.77 0.38 9 789 461 ANADARKO PETROLEUM (USA) Energy 69.73 647 185 698.54 2.62 6 501 880 BANK OF AMERICA (USA) Financials 22.10 136 232 802.09 0.55 5 315 835 CELGENE CORP (USA) Healthcare 115.75 583 368 477.13 2.36 747 080 CF INDUSTRIES HOLDINGS (USA) Materials 31.48 22 297 301.16 0.09 800 784 CHARTER COMMUNICATIONS INC-A (USA) Consumer Discretionary 287.92 218 593 722.95 0.89 1 357 689 CONCHO RESOURCES (USA) Energy 132.60 170 684 580.61 0.69 1 979 470 DELTA AIR LINES (USA) Industrials 49.19 92 315 837.21 0.37 1 383 618 EOG RESOURCES (USA) Energy 101.10 132 622 687.65 0.54 5 101 968 FACEBOOK INC (USA) Information Technology 115.05 556 512 366.34 2.26 2 639 835 FRANCO-NEVADA CORP (Canada) Materials 80.28 149 829 229.59 0.61 16 372 046 GOLDCORP INC (Canada) Materials 13.60 211 101 991.56 0.86 2 832 537 HALLIBURTON (USA) Energy 54.09 145 258 996.28 0.59 2 207 676 HESS CORP (USA) Energy 62.29 130 377 945.52 0.53 10 857 103 HUDBAY MINERALS INC (Canada) Materials 7.68 58 950 511.53 0.24 1 323 192 INTERCEPT PHARMACEUTICALS INC (USA) Healthcare 108.65 136 302 261.96 0.55 8 743 865 INTERCONTINENTAL EXCHANGE (USA) Financials 56.42 467 721 131.36 1.90 3 020 878 MASTERCARD INC (USA) Information Technology 103.25 295 715 243.90 1.20 3 458 229 MICROSOFT CORP (USA) Information Technology 62.14 203 739 606.60 0.83 CARMIGNAC FOURTH QUARTER 2016 / 43

DIVERSIFIED MANAGEMENT HOLDINGS CARMIGNAC PATRIMOINE AT 30/12/2016 Price in currencies total value ( ) % of net assets 8 551 592 NEWMONT MINING (USA) Materials 34.07 276 229 191.22 1.12 3 493 635 NIKE INC (USA) Consumer Discretionary 50.83 168 363 562.03 0.68 4 242 720 NOBLE ENERGY INC (USA) Energy 38.06 153 095 921.50 0.62 1 170 266 PIONEER NAT. RESOURCES (USA) Energy 180.07 199 791 228.84 0.81 8 023 335 POTASH CORP (Canada) Materials 18.09 137 608 087.37 0.56 1 635 294 SCHLUMBERGER (USA) Energy 83.95 130 156 844.09 0.53 2 820 295 SERVICENOW (USA) Information Technology 74.34 198 777 653.76 0.81 8 743 060 SILVER WHEATON CORP (Canada) Materials 19.32 160 147 825.74 0.65 2 052 123 SOUTHWEST AIRLINES CO (USA) Industrials 49.84 96 968 770.15 0.39 3 720 986 T-MOBILE US INC (USA) Telecommunication Services 57.51 202 885 901.74 0.82 2 985 518 TRANSCANADA CORP (Canada) Energy 60.54 127 783 420.92 0.52 3 556 831 TRIPADVISOR INC (USA) Consumer Discretionary 46.37 156 369 048.09 0.63 1 411 500 UNITED CONTINENTAL HLD (USA) Industrials 72.88 97 530 334.20 0.40 3 587 380 VISA INC (USA) Information Technology 78.02 265 358 983.27 1.08 Asia-Pacific 1 005 841 486.12 4.08 9 696 565 DAI-ICHI LIFE INSURANCE (Japan) Financials 1 946.00 153 384 756.81 0.62 62 595 005 MITSUBISHI UFJ FINANCIAL GROUP (Japan) Financials 720.20 366 449 597.15 1.49 71 157 744 MIZUHO FINANCIAL GROUP INC (Japan) Financials 209.80 121 352 606.15 0.49 20 166 918 NOMURA HOLDINGS (Japan) Financials 689.10 112 964 825.41 0.46 6 942 392 SUMITOMO MITSUI FINANCIAL (Japan) Financials 4 460.00 251 689 700.60 1.02 Europe 2 145 195 304.09 8.70 32 230 909 ALTICE SA (Netherlands) Consumer Discretionary 18.93 607 499 126.57 2.46 95 533 DASSAULT AVIATION SA (France) Industrials 1 061.60 101 417 832.80 0.41 854 410 HERMES INTERNATIONAL (France) Consumer Discretionary 390.00 333 219 900.00 1.35 7 799 230 INDITEX (Spain) Consumer Discretionary 32.43 252 929 028.90 1.03 4 242 404 LAFARGEHOLCIM LTD (Switzerland) Materials 53.65 212 318 073.32 0.86 4 239 519 LONDON STOCK EXCHANGE (United Kingdom) Financials 29.14 144 727 722.19 0.59 4 153 095 NOVO NORDISK AS (Denmark) Healthcare 254.70 142 261 607.61 0.58 1 364 671 RECKITT BENCKISER (United Kingdom) Consumer Staples 68.86 110 088 150.26 0.45 4 599 157 SFR GROUP SA (France) Consumer Discretionary 26.83 123 395 382.31 0.50 2 138 346 SHIRE PLC (United Kingdom) Healthcare 46.84 117 338 480.13 0.48 Equities Emerging markets 1 681 147 713.48 6.81 Latin America 702 268 235.57 2.85 10 493 628 BANCO SANTANDER MEXICO (Mexico) Financials 7.19 71 532 766.36 0.29 33 724 492 CEMEX (Mexico) Materials 8.03 256 750 576.69 1.04 11 021 192 GRUPO PAO DE ACUCAR (Brazil) Consumer Staples 54.75 173 642 802.09 0.70 1 353 342 MERCADOLIBRE INC (Argentina) Information Technology 156.14 200 342 090.43 0.81 Asia 978 879 477.91 3.97 56 429 150 AIA GROUP LTD (Hong Kong) Financials 43.75 301 893 002.57 1.22 46 196 606 GMR INFRASTRUCTURE LTD (India) Industrials 11.85 7 647 173.27 0.03 13 531 789 HDFC BANK (India) Financials 1 323.55 250 188 924.51 1.01 86 531 SAMSUNG ELECTRONICS (South Korea) Information Technology 1 802 000.00 122 400 145.19 0.50 7 399 008 TENCENT HOLDINGS (China) Information Technology 189.70 171 637 550.84 0.70 4 609 060 UNITED SPIRITS LTD (India) Consumer Staples 1 942.80 125 112 681.53 0.51 Portfolio value 23 693 551 739.31 96.04 Net assets 24 670 872 406.84 100.00 44 / Management report CARMIGNAC FOURTH QUARTER 2016

Xavier Hovasse Charles Zerah Diversified emerging markets fund combining three performance drivers: emerging market equities, bonds, and currencies. By actively managing the equity exposure, the Fund manager seeks to benefit from market upturns while limiting drawdowns. The Fund aims to outperform its reference indicator over 5 years. In the fourth quarter of 2016, Carmignac Portfolio Emerging Patrimoine was down -1.47%, compared with a +1.08% increase in its reference indicator. This takes its gain for the full year to +9.76%, versus +13.97% for its indicator. The Fund benefited from appreciation in the bond market, but was hurt by its sector allocation on the equity part (see Carmignac Emergents report) and a number of its currency hedges. While we have maintained substantial exposure to equities, we reduced our sensitivity to bond yields during the quarter, based on our expectations for US Treasury yields. Fixed income component In our previous report, we stated our confidence in emerging market bonds. Yields had eased since the start of 2016 due to improved economic fundamentals in the leading emerging markets. Donald Trump s electoral victory and several of his campaign promises admittedly look like bad news for the developing world, particularly for countries that export manufactured goods and services. On the other hand, the global cyclical upswing we have seen since the first quarter of 2016, along with rising commodity prices and therefore inflation, should drive up the value of fixed income assets in commodity producing and exporting countries that produce and export raw materials (see Macroeconomic analysis). These conflicting factors have led us to maintain a highly selective approach, with a balanced allocation between external and local sovereign debt in our fixed income portfolio. Emerging market bond yields climbed 61 basis points to 6.79% (as measured by the JP Morgan GBI-EM Diversified Index) during the fourth quarter. But even with emerging market bond prices heading downward, our portfolio performed well, due to our hedges on US Treasury yields and our exposure to both sovereign and corporate bonds of commodity-producing countries. The leading contributors to our fourth-quarter and full-year performance were in fact Russian, Brazilian and Chilean local bonds. Energy-sector corporate bonds also accounted for a sizable share of the Fund s gains, despite the fact that our average allocation to them during the year was in the neighbourhood of just 8%. Based on our global macroeconomic outlook, we favour bonds issued by commodity producers, along with inflation-linked bonds to hedge against the pickup in inflation that we expect to occur in the next few months. The Fund s modified duration should remain low in the first quarter of 2017, reflecting our concern over a potential increase in developed-country bond yields. Currency component In our previous quarterly report, we stressed our cautious stance on emerging market currencies in light of their recent rally on the back of rising commodity prices and economic stabilisation in China. However, Donald Trump s win at the polls was particularly detrimental to emerging market currencies in the fourth quarter. Our currency hedges prevented us from taking full advantage of a cheaper euro during the period, given that a number of the emerging market currencies that lost ground to the dollar appreciated against the EU s common currency. We took profits on the Japanese yen and the Brazilian real during the quarter, which we ended with significant exposure to the euro and the dollar to shield us against a possible surge in volatility caused by a shift to protectionism in the United States. Equity component In the last quarter of 2016, emerging market equities continued on the whole to reap the benefits of improving macroeconomic indicators in both the developed and the developing worlds. The underperformance of our equity portfolio in that environment is attributable to a wide range of factors that worked against our allocation choices in terms of both geography and individual stocks. China, a major allocation with 5.5% of the Fund s assets, posted an improvement in economic indicators, driven in part by inordinate expansion of the money supply (averaging 15% over the fourth quarter). But the country s balance of payments is still under considerable pressure. During the fourth quarter, we acquired a stake in 58.com (Wuba), China s top classified ads website. 58.com, the Chinese answer to Craigslist and Leboncoin.fr in France, spans a variety of content categories that include housing, jobs and used car sales. Although still in its swaddling clothes in China, this kind of business model holds major potential, given the scope of its addressable markets. Performance of the fund since its launch 125 120 115 16% 110 105 100 95 90 85 03/11 06/11 12/11 06/12 12/12 06/13 12/13 06/14 12/14 06/15 12/15 06/16 12/16 Carmignac Portfolio Emerging Patrimoine A EUR acc 50% MSCI EM NR (Eur) + 50% JP Morgan GBI EM (Eur) 12% From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report DIVERSIFIED MANAGEMENT / 45

DIVERSIFIAED MANAGEMENT Our Indian stocks, which with 6.3% of the Fund s assets represent our primary allocation, had something of a bumpy ride when Narendra Modi s administration unexpectedly announced the immediate withdrawal of close to 85% of all banknotes in circulation in the country. Although this move amounts to amputation from a short-term economic standpoint, it should pave the way for a cyclical rebound once India s economy has kicked the cash habit, which it most likely will in the next few months. Our Mexican equity portfolio, accounting for 4.3% of the Fund s assets, detracted from performance as a result of the shock wave triggered by the surprise outcome of the US elections. During his campaign, Donald Trump produced a steady stream of inflammatory rhetoric on the neighbouring country that sent the Mexican peso plummeting to a record low of 20.7 against the dollar. We accordingly restructured our Mexican portfolio. We scaled back our exposure to domestic consumer-goods stocks, reducing our holdings in Walmex and Fomento Económico, while at the same time initiating a new position in Grupo México, a major copper producer. The company s strong balance sheet and substantial ability to generate free cash flow are fully in line with our investment philosophy. After pursuing a cautious approach to Europe, the Middle East and Africa (EMEA) for several months, we raised our exposure to Russia by taking a stake in Moscow Exchange, the national securities exchange group. Not only does Moscow Exchange enjoy monopoly status; it also has a broad range of revenue sources that are both cyclical and countercyclical. As this new year gets under way, the emerging market asset class appears to be basking in sunny weather. Almost by definition, it stands to benefit from a revival in developed-world manufacturing, rising commodity prices and improved domestic economic indicators. But President Trump s statements on international trade cast something of a shadow over what would otherwise qualify as a promising or even exciting outlook for emerging markets. Sector breakdown (derivatives excluded) (%) Bond portfolio (derivatives excluded) - Rating breakdown (%) Information Technology 35.2 AAA 5.7 Consumer Discretionary 14.8 AA 1,2 5.8 Financials 14.3 A 17.9 Consumer Staples 9.4 BBB 19,2 29.0 Real Estate 7.3 BB 21,2 26.2 Telecommunication Services 6.9 B 3,6 13.4 Industrials 5.1 CCC 2.0 Materials 3.4 Healthcare 2.2 Utilities 1.4 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 9.18 10.62 Bond portfolio (derivatives excluded) - Maturity breakdown (%) Net currency exposure of Euro share classes (%) < 1 year 1-3 years 3-5 years 5-7 years 7-10 years > 10 years 0.4 9.6 6.9 8,0 17.4 28.3 37.4 USD EUR GBP Latin America Emerging Asia Eastern Europe, Middle East and Africa -0.2 4,4 2,5 20.6 15,5 26.6 19.8 11.3 21.7 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Portfolio Emerging Patrimoine A EUR acc 9.76-1.47 1.94 9.76 15.73 14.38-12.21 Reference indicator* 13.97 1.08 5.77 13.97 18.31 21.76-15.60 Category average** 10.64 1.79 6.07 10.64 17.24 22.09-11.71 Ranking (quartile) 3 4 4 3 3 4-3 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * 50% MSCI EM NR (Eur) + 50% JP Morgan GBI EM (Eur) (Accrued interest). ** Global Emerging Markets Equity. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 46 / Management report CARMIGNAC FOURTH QUARTER 2016

Quarterly gross performance contribution (%) Equity Portfolio Bond Portfolio Equity Derivatives Bond Derivatives Currency Derivatives Total -0.77 1.62-0.16 0.42-2.14-1.03 Modified duration of the bond portfolio (derivatives included) Euro -0.05 United States -1.33 Other 3.49 Statistics (%) 1 year 3 years Fund volatility 10.27 9.50 Benchmark volatility 13.96 12.07 Sharpe ratio 1.02 0.55 Beta 0.67 0.71 Alpha 0.02 0.09 Calculation period: weekly (1 year) and monthly (3 years). DIVERSIFIED MANAGEMENT HOLDINGS CARMIGNAC PORTFOLIO EMERGING PATRIMOINE AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 13 332 090.43 1.73 Cash (including collateral cash from derivative positions) 13 332 090.43 1.73 Developed countries fixed rate Government bonds 27 553 317.29 3.57 29 000 000 UNITED STATES 0.50% 31/01/2017 (USA) Dollar 100.00 27 553 317.29 3.57 Emerging markets fixed rate Government bonds 197 519 036.17 25.58 31 257 213 ARGENTINA 7.82% 31/12/2033 (Argentina) Euro 97.65 30 548 577.26 3.96 21 850 000 BAHRAIN 7.00% 12/10/2028 (Bahrain) Dollar 102.49 21 561 520.84 2.79 15 000 000 BRAZIL 5.62% 21/02/2047 (Brazil) Dollar 87.91 12 848 660.82 1.66 8 000 000 GHANA 9.25% 15/09/2022 Dollar 107.41 8 356 861.82 1.08 5 000 000 INDONESIA 3.38% 30/07/2025 (Indonesia) Euro 102.77 5 211 185.62 0.68 82 000 000 POLAND 2.50% 25/07/2026 (Poland) Zloty 91.08 17 170 941.42 2.22 124 000 000 POLAND 3.25% 25/07/2025 (Poland) Zloty 97.98 28 004 274.19 3.63 52 600 000 RUSSIA 4.75% 27/05/2026 (Russia) Dollar 102.50 51 361 335.18 6.65 250 000 000 THAILAND 4.88% 22/06/2029 (Thailand) Thai baht 119.18 7 899 986.51 1.02 15 000 000 TURKEY 6.62% 17/02/2045 (Turkey) Dollar 99.85 14 555 692.51 1.89 Emerging countries inflation-linked Government bonds 173 875 742.55 22.52 30 000 BRAZIL I/L 6.00% 15/05/2023 (Brazil) Real Brazil 2 992.25 26 149 200.38 3.39 40 000 BRAZIL I/L 6.00% 15/08/2050 (Brazil) Real Brazil 3 095.39 36 067 301.70 4.67 73 400 000 CHILE I/L 1.50% 01/03/2021 (Chile) Chilean peso 102.46 28 032 023.58 3.63 30 000 000 MEXICO I/L 4.00% 08/11/2046 (Mexico) Mexican peso 102.86 7 918 748.63 1.03 900 000 MEXICO I/L 4.50% 04/12/2025 (Mexico) Mexican peso 112.30 25 952 882.17 3.36 3 000 000 000 RUSSIA I/L 2.50% 16/08/2023 (Russia) Russian Ruble 96.85 49 755 586.09 6.44 Developed countries fixed rate corporate bonds 25 775 290.82 3.34 4 319 050 AFREN 10.25% 26/01/2017 (United Kingdom) Energy 0.26 10 708.05 0.00 19 516 720 AFREN 6.62% 09/12/2017 (United Kingdom) Energy 0.52 95 293.78 0.01 2 000 000 DNO ASA 8.75% 18/06/2017 (Norway) Energy 89.06 1 696 061.84 0.22 10 000 000 GENEL ENERGY 7.50% 27/01/2017 (United Kingdom) Energy 83.88 8 050 880.94 1.04 100 000 000 JP MORGAN 0.00% 03/01/2030 (Netherlands) Financials 23.29 6 784 351.42 0.88 10 000 000 TULLOW OIL 6.00% 06/01/2017 (United Kingdom) Energy 95.33 9 137 994.79 1.18 Emerging markets fixed rate corporate bonds 60 012 192.86 7.77 2 000 000 CABLEVISION 6.50% 15/06/2019 (Argentina) Consumer Discretionary 102.16 1 943 722.31 0.25 3 000 000 PETROBRAS GLOBAL FINANCE BV 5.38% 01/10/2029 (Brazil) Energy 83.22 2 973 298.27 0.39 11 000 000 PETROBRAS GLOBAL FINANCE BV 5.62% 20/05/2043 (Brazil) Energy 74.48 7 838 705.85 1.02 11 690 000 PETROBRAS GLOBAL FINANCE BV 6.62% 16/01/2034 (Brazil) Energy 87.72 12 887 579.39 1.67 20 000 000 PETROLEOS MEXICANOS 6.50% 13/03/2027 (Mexico) Energy 102.88 19 579 458.00 2.54 5 000 000 YPF SA 8.50% 23/03/2021 (Argentina) Energy 107.81 5 223 783.94 0.68 9 500 000 YPF SA 8.50% 28/07/2025 (Argentina) Energy 102.68 9 565 645.10 1.24 Equities 273 938 095.01 35.48 North America 2 797 220.57 0.36 55 240 LAS VEGAS SANDS (USA) Consumer Discretionary 53.41 2 797 220.57 0.36 Asia-Pacific 4 919 527.56 0.64 152 569 LINE CORP (Japan) Information Technology 34.01 4 919 527.56 0.64 CARMIGNAC FOURTH QUARTER 2016 / 47

DIVERSIFIED MANAGEMENT HOLDINGS CARMIGNAC PORTFOLIO EMERGING PATRIMOINE AT 30/12/2016 Price in currencies Total value ( ) % of net assets Europe 7 490 413.47 0.97 241 888 JERONIMO MARTINS (Portugal) Consumer Staples 14.74 3 565 429.12 0.46 188 519 LILAC GROUP (United Kingdom) Consumer Discretionary 21.96 3 924 984.35 0.51 Latin America 56 626 910.82 7.34 332 833 BANCO SANTANDER MEXICO (Mexico) Financials 7.19 2 268 849.75 0.29 1 313 360 BB SEGURIDADE PARTICIPACOES (Brazil) Financials 28.30 10 827 023.22 1.40 360 252 CCR (Brazil) Industrials 15.96 1 674 858.55 0.22 717 037 CEMEX (Mexico) Materials 8.03 5 458 930.66 0.71 51 024 FEMSA UNITS ADR (Mexico) Consumer Staples 76.21 3 686 692.62 0.48 1 794 936 GRUPO BANORTE (Mexico) Financials 102.30 8 450 392.22 1.09 1 516 948 GRUPO MEXICO SA DE CV (Mexico) Materials 56.43 3 939 426.57 0.51 45 952 MERCADOLIBRE INC (Argentina) Information Technology 156.14 6 802 507.97 0.88 4 383 873 MEXICO REAL ESTATE MGMT (Mexico) Real Estate 21.43 4 323 469.51 0.56 642 548 TRANSMISSORA ALIANCA (Brazil) Utilities 20.74 3 881 978.94 0.50 3 115 885 WAL-MART DE MEXICO (Mexico) Consumer Staples 37.05 5 312 780.81 0.69 Asia 157 839 547.96 20.45 109 980 58.COM (China) Information Technology 28.00 2 919 592.32 0.38 1 684 163 AIA GROUP LTD (Hong Kong) Financials 43.75 9 010 184.01 1.17 15 182 451 ASTRA INTERNATIONAL (Indonesia) Consumer Discretionary 8 275.00 8 841 219.09 1.15 58 225 BAIDU INC (China) Information Technology 164.41 9 075 868.45 1.18 2 281 967 BHARTI AIRTEL LTD (India) Telecommunication Services 305.65 9 743 304.39 1.26 806 872 BHARTI INFRATEL LTD (India) Telecommunication Services 5.06 3 873 903.59 0.50 13 459 009 DALI FOODS GROUP CO LTD (China) Consumer Staples 4.10 6 747 896.63 0.87 52 969 HERO MOTOCORP LTD (India) Consumer Discretionary 44.88 2 253 699.75 0.29 1 948 301 ICICI BANK (India) Financials 255.30 6 952 513.64 0.90 562 777 INFOSYS TECHNOLOGIES (India) Information Technology 14.83 7 912 759.34 1.02 253 544 KANGWON LAND (South Korea) Consumer Discretionary 35 750.00 7 115 162.24 0.92 1 048 647 MEDIATEK (Taiwan) Information Technology 216.50 6 678 680.97 0.87 26 468 NETEASE (China) Information Technology 215.34 5 403 763.09 0.70 100 334 PLDT (Philippines) Telecommunication Services 1 365.00 2 611 955.16 0.34 7 540 SAMSUNG BIOLOGICS CO LTD (South Korea) Healthcare 151 000.00 893 724.61 0.12 14 380 SAMSUNG ELECTRONICS (South Korea) Information Technology 1 802 000.00 20 081 318.63 2.60 781 851 SHANGHAI INTERNATIONAL AIR-A (China) Industrials 26.52 2 828 762.61 0.37 741 912 TAIWAN SEMICONDUCTOR (Taiwan) Information Technology 28.75 20 222 773.17 2.62 1 764 168 TATA MOTORS LTD (India) Consumer Discretionary 472.00 11 635 281.02 1.51 237 286 UNITED SPIRITS LTD (India) Consumer Staples 1 942.80 6 440 500.40 0.83 2 468 268 ZHENGZHOU YUTONG BUS CO-A (China) Industrials 19.59 6 596 684.85 0.85 Africa 6 556 181.86 0.85 296 605 MTN GROUP LTD (South Africa) Telecommunication Services 126.17 2 594 525.18 0.34 28 371 NASPERS LTD (South Africa) Consumer Discretionary 2 014.09 3 961 656.68 0.51 Eastern Europe 1 593 223.96 0.21 816 794 MOSCOW EXCHANGE (Russia) Financials 125.59 1 593 223.96 0.21 Middle East 36 115 068.81 4.68 155 893 CHECK POINT SOFTWARE (Israel) Information Technology 84.46 12 483 264.07 1.62 6 934 532 EMAAR PROPERTIES PJSC (United Arab Emirates) Real Estate 7.13 12 762 832.51 1.65 3 696 747 EMLAK KONUT GAYRIMENKUL (Turkey) Real Estate 2.99 2 979 158.41 0.39 1 988 586 ENKA INSAAT VE SANAYI (Turkey) Industrials 5.38 2 883 562.86 0.37 50 160 TARO PHARMACEUTICAL INDUSTRIES (Israel) Healthcare 105.27 5 006 250.96 0.65 Portfolio value 758 673 674.70 98.27 Net assets 772 005 765.13 100.00 48 / Management report CARMIGNAC FOURTH QUARTER 2016

Malte Heininger European equity fund with an actively managed net equity exposure ranging between 0 and 50%. The Fund aims to generate alpha through the combination of long and short positions, while following a flexible and active management with an emphasis on limiting downside risk. The Fund aims to outperform its reference indicator over 3 years. During the fourth quarter of 2016, Carmignac Euro-Patrimoine increased by +2.39%, delivering a lower return than the reference indicator, which was up +4.92%. The Fund s full-year 2016 performance is +8.85%, versus +1.92% for the indicator. 2016 was a year clearly divided into two halves. The first half was similar to the preceding years in that it was characterised by sluggish growth, with worries about the health of the economy being addressed by aggressive central bank policies. Bonds and bond proxies peaked during those first six months, whereas commodities and bank stocks troughed after years of massive underperformance, setting the stage for a second half dominated by the theme of reflation and economic recovery hopes that got amplified by Trump s electoral victory. While the Euro Stoxx 50 ended the year relatively flat, the moves underneath the surface were massive. Banks lost almost 40% at one point, only to regain 50% by year-end; commodities recorded a surge of over 100% from their January low; telcos shed over 20% from their peak. We navigated those choppy waters relatively well, with the Fund outperforming, while keeping volatility throughout the year at 6.0, versus 11.5 for the indicator. During the fourth quarter, the US elections and the Italian referendum removed the last two hurdles for the market to fully embrace the reflation trade and start the year-end rally. To accommodate the sector rotation under way, we tactically adjusted our exposure through long hedges on bank stocks and the Italian market index without making major changes to our core positions. We acknowledge the emergence of green shoots brought about by a mixture of reflation, hope for fiscal stimulus and low base effects and though we don t intend to fight the trend, we seriously question whether this is the beginning of a sustainable economic recovery. Once the initial shock and excitement about Brexit and Trump settles, it will be hard to see how a surge in populism and protectionism can lead to greater global economic growth and welfare. As always, we will stay focused on bottom-up investment cases supported by factors that do not depend on our broader world outlook. We initiated a position in Hapag Lloyd, the German container shipping line, during the fourth quarter. Since its IPO in November 2015, freight rates had been falling steadily as the industry struggled with overcapacity in a lowgrowth environment. We are now entering a phase in which a combination of reduced vessel deliveries, mounting idle capacity and rising average vessel speeds leads in effect to zero supply growth. But while the industry remains fragmented, the consolidation that we have seen in the recent past has left the top four players with a market share in excess of 45%. Moreover, Hapag is poised to benefit from the closing of the UASC merger, which is expected to create synergies of $400 million. Given Hapag-Lloyd s high financial leverage, the potential for higher freight rates is significant and we see the company in a sweet spot for 2017. We bought into the rights issue of MeyerBurger, the leading Swiss solar equipment manufacturer, at a very attractive valuation. While there is still overcapacity in the sector and the demand outlook for investments in innovative solar cell technologies such as PERC and HJT remains uncertain, the combination of a fixed balance sheet, a strong new management team and technological leadership in a market set for secular growth is compelling. We continue to see significant value in ASR, the Dutch insurer that IPOed in June of last year. It is a well-run company with a strong regulatory capital base, high free cash flows and defensive accounting that should create opportunities for future cash returns to shareholders. We consider it attractive from both an absolute and a relative value standpoint, although we would not expect its current undervaluation to fully disappear until the Dutch government has disposed of its entire 51% stake. Finally, since we wrote about Galenica in our last report, some of the catalysts we were hoping for swung into motion, prompting us to increase our position. The FDA has removed the black-box label on Veltassa, the core product of Relypsa, which Galenica bought last summer. The overhang from the stake held by KKR and Pessina through Sprint has been cleared and the shares have been placed with long-term-oriented shareholders like us. The next catalysts will be the IPO of the Galenica Santé business in spring and the continued positive news flow on their drug roll-outs and future cooperation deals. We are very excited about the company s long-term prospects. Source of data: Bloomberg, Euro Stoxx Banks, 31/12/2016 Performance of the fund since conversion 200 180 160 140 120 100 80 12/02 12/04 12/06 12/08 12/10 12/12 12/14 12/16 Carmignac Euro-Patrimoine A EUR acc 50% Euro Stoxx 50 NR (Eur) + 50% Eonia compounded. 73% From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 45% * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report DIVERSIFIED MANAGEMENT / 49

DIVERSIFIED MANAGEMENT Statistics (%) 1 year 3 years Fund volatility 6.03 8.10 Benchmark volatility 11.51 7.61 Sharpe ratio 1.57 0.13 Beta 0.20 0.34 Alpha 0.16-0.05 Calculation period: weekly (1 year) and monthly (3 years). Exposure by asset class (%) Sector Exposure (%) Positions Long Short Net Cons. Services 21.8-5.1 16.6 Financials 24.6-12.0 12.6 Technology 12.9-0.5 12.4 Telecommunication 8.8-3.3 5.5 Basic Materials 5.6-3.9 1.8 Oil & Gas 5.0-4.0 0.9 Industrials 12.9-12.1 0.7 Healthcare 4.8-4.9-0.1 Utilities 0.0-0.5-0.5 Cons. Goods 12.7-20.7-8.1 Regional Indexes 4.5-5.8-1.3 Total 113.6-73.0 40.6 Long positions -73.0 Net equity exposure Cash (including collateral cash from derivative positions) 6,8 Short positions 40.6 3.3 113.6 Quarterly gross performance contribution (%) Equity Portfolio Equity Derivatives Bond Derivatives Currency Derivatives Total 3.41-0.22-0.03-0.43 2.73 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 7.52 7.59 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since conversion on 01/01/2003 Carmignac Euro-Patrimoine A EUR acc 8.85 2.39 6.32 8.85 2.64 12.70 7.98 72.65 Reference indicator* 1.92 4.92 7.54 1.92 7.82 27.84 6.72 45.27 Category average** 2.38 2.56 5.47 2.38 11.05 31.16 18.41 118.48 Ranking (quartile) 1 2 2 1 4 4 4 3 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * 50% Euro Stoxx 50 NR (Eur) + 50% Eonia compounded. ** EUR Moderate Allocation. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 50 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC EURO-PATRIMOINE AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 6 957 490.87 3.27 Cash (including collateral cash from derivative positions) 6 957 490.87 3.27 Equities European Union 179 097 650.97 84.08 Germany 52 202 659.60 24.51 79 170 BAYER AG Basic Materials 99.13 7 848 122.10 3.68 116 687 DAIMLER AG Consumer Goods 70.72 8 252 104.64 3.87 228 753 DEUTSCHE BOERSE AG Financials 76.42 17 481 304.26 8.21 57 020 FRESENIUS Healthcare 74.26 4 234 305.20 1.99 99 722 HAPAG-LLOYD AG Industrials 21.95 2 188 897.90 1.03 36 719 LANXESS AG Basic Materials 62.35 2 289 429.65 1.07 10 322 LINDE AG Basic Materials 156.10 1 611 264.20 0.76 63 929 SCHAEFFLER AG Consumer Goods 14.06 898 522.10 0.42 60 395 SIEMENS AG Industrials 116.80 7 054 136.00 3.31 9 495 ZALANDO SE Consumer Services 36.29 344 573.55 0.16 Belgium 2 319 276.47 1.09 2 562 AB INBEV SA Consumer Goods 100.55 257 609.10 0.12 54 817 AGEAS Financials 37.61 2 061 667.37 0.97 Denmark 2 049 815.10 0.96 59 841 NOVO NORDISK AS Healthcare 254.70 2 049 815.10 0.96 Spain 5 527 768.06 2.60 225 419 PARQUES REUNIDOS SERVICIOS C Consumer Services 15.26 3 438 766.85 1.61 462 373 TALGO SA Industrials 4.52 2 089 001.21 0.98 Finland 3 245 514.50 1.52 707 392 NOKIA OYJ Technology 4.59 3 245 514.50 1.52 France 16 527 893.21 7.76 37 448 CRITEO Technology 41.08 1 458 510.40 0.68 1 190 DASSAULT AVIATION SA Industrials 1061.60 1 263 304.00 0.59 68 050 PEUGEOT Consumer Goods 15.50 1 054 434.75 0.50 243 439 SFR GROUP SA Consumer Services 26.83 6 531 468.37 3.07 28 447 SOPRA STERIA GROUP Technology 107.85 3 068 008.95 1.44 16 039 TELEPERFORMANCE Consumer Services 95.30 1 528 516.70 0.72 89 928 VIVENDI Consumer Services 18.06 1 623 650.04 0.76 Ireland 6 154 515.69 2.89 282 382 SMURFIT KAPPA GROUP PLC Industrials 21.80 6 154 515.69 2.89 Italy 10 513 045.98 4.94 309 869 ENI SPA Oil & Gas 15.47 4 793 673.43 2.25 8 325 142 TELECOM ITALIA SPA Telecommunication 0.69 5 719 372.55 2.69 Netherlands 39 857 157.12 18.71 391 179 ALTICE SA Telecommunication 18.93 7 379 152.57 3.46 206 245 ASR NEDERLAND Financials 22.60 4 661 137.00 2.19 162 705 HEINEKEN HLDG NV Consumer Goods 71.26 11 594 358.30 5.44 1 595 IMCD GROUP NV Basic Materials 40.49 64 581.55 0.03 246 637 INTERTRUST NV Financials 16.72 4 123 770.64 1.94 58 239 INTERXION Technology 35.07 1 936 422.59 0.91 65 798 MYLAN INC Healthcare 38.15 2 379 894.48 1.12 81 657 PHILIPS LIGHTING NV Industrials 23.40 1 910 773.80 0.90 442 088 ROYAL DUTCH SHELL PLC Oil & Gas 22.43 5 807 066.19 2.73 United Kingdom 37 496 459.98 17.60 796 442 INFORMA PLC Consumer Services 6.80 6 344 664.48 2.98 3 659 348 JRP GROUP PLC Financials 1.50 6 409 003.35 3.01 80 104 LONDON STOCK EXCHANGE Financials 29.14 2 734 571.88 1.28 624 116 MICRO FOCUS INTER. Technology 21.79 15 931 920.85 7.48 28 564 SHIRE PLC Healthcare 46.84 1 567 406.00 0.74 139 366 SMITHS GROUP PLC Industrials 14.16 2 311 882.10 1.09 56 168 UNILEVER Consumer Goods 39.12 2 197 011.32 1.03 Sweden 3 203 545.26 1.50 822 959 NORDNET AB-B Financials 37.30 3 203 545.26 1.50 Equities ex European Union 26 952 632.09 12.65 USA 18 026 948.49 8.46 6 151 CF INDUSTRIES HOLDINGS Basic Materials 31.48 183 582.35 0.09 177 894 GRUBHUB INC Consumer Services 37.62 6 344 984.38 2.98 25 954 MONSANTO CO Consumer Goods 105.21 2 588 879.20 1.22 202 659 TRIPADVISOR INC Consumer Services 46.37 8 909 502.56 4.18 Switzerland 8 925 683.60 4.19 5 454 GALENICA AG Consumer Services 1149.00 5 845 751.87 2.74 1 629 233 MEYER BURGER TECHNOLOGY Industrials 0.67 1 018 270.63 0.48 2 476 NESTLE SA Consumer Goods 73.05 168 723.69 0.08 28 621 TEMENOS GROUP AG Technology 70.90 1 892 937.41 0.89 Portfolio value 206 050 283.06 96.73 Net assets 213 007 773.93 100.00 DIVERSIFIED MANAGEMENT CARMIGNAC FOURTH QUARTER 2016 / 51

DIVERSIFIED MANAGEMENT NET EQUITY EXPOSURE CARMIGNAC EURO-PATRIMOINE AT 30/12/2016 Exposure ( ) % Exposure Long derivative positions 35 853 951.00 16.83 European Union 22 775 092.00 10.69 Financials (1 Position) Europe 7 816 425.00 3.67 Industrials (1 Position) United Kingdom 1 459 047.00 0.68 Regional Indexes (2 Positions) Europe 3 993 145.00 1.87 Regional Indexes (1 Position) Italy 9 506 475.00 4.46 ex European Union 13 078 859.00 6.14 Consumer Services (1 Position) Switzerland 5 421 308.00 2.55 Industrials (1 Position) Switzerland 1 937 551.00 0.91 Telecommunication (1 Position) Switzerland 5 720 000.00 2.69 Short derivative positions -155 444 214.00-72.98 European Union -137 614 891.00-64.61 Consumer Goods (2 Positions) Germany -14 579 559.00-6.84 Consumer Goods (2 Positions) Netherlands -12 238 624.00-5.75 Consumer Goods (1 Position) United Kingdom -1 815 222.00-0.85 Consumer Services (2 Positions) Germany -1 643 358.00-0.77 Consumer Services (1 Position) France -3 641 842.00-1.71 Consumer Services (3 Positions) United Kingdom -3 495 261.00-1.64 Financials (1 Position) Germany -12 627 234.00-5.93 Financials (1 Position) United Kingdom -624 587.00-0.29 Healthcare (1 Position) France -377 118.00-0.18 Healthcare (1 Position) United Kingdom -2 989 906.00-1.40 Healthcare (1 Position) Sweden -1 930 298.00-0.91 Industrials (1 Position) Germany -6 863 433.00-3.22 Industrials (1 Position) Spain -1 475 594.00-0.69 Industrials (1 Position) Ireland -1 822 028.00-0.86 Industrials (2 Positions) Sweden -7 557 030.00-3.55 Oil & Gas (1 Position) Denmark -745 704.00-0.35 Oil & Gas (1 Position) Italy -737 232.00-0.35 Oil & Gas (2 Positions) Netherlands -2 042 382.00-0.96 Oil & Gas (1 Position) United Kingdom -3 192 185.00-1.50 Telecommunication (1 Position) Italy -5 905 754.00-2.77 Regional Indexes (4 Positions) Europe -51 310 540.00-24.09 ex European Union -17 829 323.00-8.37 Healthcare (1 Position) Switzerland -1 553 126.00-0.73 Industrials (2 Positions) Switzerland -4 009 555.00-1.88 Regional Indexes (1 Position) USA -12 266 642.00-5.76 Equity Investment 206 050 283.06 96.73 Net equity exposure 86 460 020.06 40.59 52 / Management report CARMIGNAC FOURTH QUARTER 2016

Frédéric Leroux Julien Chéron Diversified fund, feeder of the Carmignac Investissement international equity fund. Through the use of derivatives, the Fund Manager is free to adjust the fund s exposure to Carmignac Investissement s equity risk from anywhere between 0% and 100%. The Fund combines strong convictions on global equities and expertise in managing market risk exposure. The Fund aims to outperform its reference indicator over 5 years. Carmignac Investissement Latitude returned +3.48% in the fourth quarter of 2016, compared with +7.81% for its reference indicator. This took performance for the full year to +1.34% for the Fund and +11.09% for the reference indicator. During the quarter, we maintained only moderate equity exposure ahead of the US elections (c. 75% on average), due to the uncertainty surrounding the outcome. But once Donald Trump won on 8th November, we raised the Fund s exposure to its maximum level a move in line with both our positive macroeconomic outlook (see Macroeconomic Analysis) and the upbeat market sentiment, as the victor s commitment to a stimulus programme created a surge of investor confidence. Our additional derivatives positions contributed significantly to performance, accounting for 60% of the Fund s gains over the quarter. In the climate of uncertainty leading up to the US elections, we initiated short positions on Brazilian and UK equity indices to benefit from the greater vulnerability of our emerging market and commodity themes. Later in the fourth quarter, after Italy s constitutional referendum, our strategies favouring recovery in the banking sector and a rebound in its equity markets also paid off. And at year-end, our portfolio got a boost from our strategy designed to take advantage of lower volatility. Volatility was in fact subdued during the transition phase between Obama s and Trump s terms of office, which produced very little in the way of new developments for the market. We also succeeded in keeping volatility lower than the market index. The Fund s twelve-month volatility was 9.91%, versus 15.90% for the reference indicator and 11.95% for Carmignac Investissement, the master fund. As this new year gets under way, our outlook remains centred on the continuation of global growth strong enough to sustain equity markets. After hitting a low last October, US consumer confidence shot up in response to the election of a presidential candidate promising fiscal stimulus and tax cuts. The Federal Reserve will most likely hold fire for now. On the one hand, rising inflation will strengthen the case for a less dovish monetary policy. On the other hand, the persistently high level of national debt will prevent the Fed from normalising its policy too aggressively. This leads us to believe that the business cycle has moved back to centre stage, after playing a minor role in this recent period dominated by monetary policy. Equity investors are hoping, of course, that higher prices won t drive interest rates up excessively. But that risk is tempered by the Fed s current stance which is particularly hesitant given that no one knows just now how the Trump administration s stimulus programme will play out. In Europe, lowered risk of a rise in bond yields, coupled with direct support from the European Central Bank, has buoyed sentiment. Moreover, industrial production and orders for durable goods in Germany show the kind of upward momentum that may well clear the ground for welcome surprises. The emerging market space is still exposed to the risk of capital flight from China, but the cyclical upswing under way should work in the near term to their advantage. More broadly speaking, while political risk remains an issue, it will likely take a back seat to the economic upturn. In an international environment marked by a widespread shift to growth-oriented fiscal policies and a revival of inflation two crucially important developments for our investment decisions we believe that the business cycle will be the key variable to watch in the coming quarters. Performance of the fund since its launch 300 250 200 150 100 155% 107% 50 01/05 01/06 01/07 01/08 01/09 01/10 01/11 01/12 01/13 01/14 01/15 01/16 12/16 Carmignac Investissement Latitude A EUR acc MSCI AC World NR (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report DIVERSIFIED MANAGEMENT / 53

DIVERSIFIED MANAGEMENT Net currency exposure of the fund (%) USD 6,8 EUR 27.1 JPY -0.1 GBP 0.2 CHF 1.6 AUD and CAD 2.6 Latin America 0.4 39,2 85.6 Statistics (%) 1 year 3 years Fund volatility 9.91 9.81 Benchmark volatility 15.90 11.69 Sharpe ratio 0.19 0.07 Beta 0.42 0.66 Alpha -0.04-0.69 Calculation period: weekly (1 year) and monthly (3 years). Emerging Asia -18.4 Other 1.0 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 16.05 11.54 Quarterly gross performance contribution (%) Equity Derivatives Bond Derivatives Currency Derivatives Mutual Fund Total 2.60 0.08-0.56 1.49 3.61 Exposure rate (%): 107.30 Exposure rate of the master fund (%): 103.39 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Investissement Latitude A EUR acc 1.34 3.48 3.95 1.34 1.27 24.73 62.70 155.23 MSCI AC World NR (Eur) 11.09 7.81 12.23 11.09 43.31 88.07 55.58 107.30 Category average* 1.85 2.08 4.26 1.85 9.09 21.07 7.29 35.36 Ranking (quartile) 3 2 2 3 4 2 1 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * EUR Flexible Allocation - Global. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 54 / Management report CARMIGNAC FOURTH QUARTER 2016

Carmignac Profil Réactif 100 A EUR acc Carmignac Profil Réactif 75 A EUR acc Carmignac Profil Réactif 50 A EUR acc Frédéric Leroux The Profils Réactifs funds are managed on a discretionary basis by the portfolio manager, who pursues an active asset allocation policy, mainly involving funds invested in international equities and bonds. They aim to generate a positive annual return while keeping annual volatility below that of their reference indicator. In the fourth quarter of 2016, Carmignac Profil Réactif 100 gained +10.97% (versus +7.81% for its reference indicator); Carmignac Profil Réactif 75 was up +9.24% (versus +5.22%); and Carmignac Profil Réactif 50 returned +7.66% (versus +2.64%). Ranked from the most to the least aggressive funds in the range, our three Profil Réactif funds posted full-year increases of respectively +10.32%, +8.65% and +7.80%, compared with +11.09%, +9.62% and +8.05% for their reference indices. All three were rated in the top decile of their Morningstar categories. In our previous quarterly report, we indicated our expectation of a stronger global economy, while stressing that a combination of considerable imbalances and lacklustre growth frustrate[d] public opinion and fuel[led] criticism of the elite and the establishment, potentially recreating the political conditions for a return of stimulus plans in developed countries. That forecast materialised and strikingly so with the election of Donald Trump, whose pledge to boost government spending immediately lifted stock markets. As far back as September, we began raising the equity exposures of our three Profil Réactif funds in light of the improved economic outlook, and we rapidly increased these exposures to their maximum levels following the US elections. Their average market exposures in the fourth quarter were 94% for Carmignac Profil Réactif 100, 70% for Carmignac Profil Réactif 75 and 46% for Carmignac Profil Réactif 50. These funds of funds also managed to achieve lower volatility than the market. Twelve-month volatility stood at 10.81% for Carmignac Profil Réactif 100 (versus 15.90% for its reference indicator), 8.42% for Carmignac Profil Réactif 75 (versus 12.07%) and 6.57% for Carmignac Profil Réactif 50 (versus 8.67%). Additional derivatives contributed quite significantly to our quarterly performance, accounting for more than 85% of the gains recorded by all three funds. Further support came from our positions in cyclical sectors, for example positions that would link our funds returns to an appreciation in the dollar and a depreciation in the yen, to a rise in ten-year bond yields and to a drop in equity index volatility. At the same time, we benefited from our investments in the Carmignac fixed income funds, whose low or negative modified durations enabled them to outperform their benchmarks. The entire underlying range of equity and diversified funds also made a positive contribution to the Profil Réactif funds gains in the period. The only noteworthy exceptions were our three emerging market funds (Carmignac Emergents, Carmignac Portfolio Emerging Discovery, Carmignac Portfolio Emerging Patrimoine), which lost ground in the fourth quarter. However, our equity funds disappointingly underperformed their benchmarks due to overly conservative positioning at the start of the quarter. Our funds of funds are entering this first quarter of 2017 with lowered risk and minimal exposure to the US dollar. After the strong stock market surge of the past few months, a technical correction looks likely to us, and therefore warrants taking profits in the short term. Going forward, we believe that equities will benefit from the cyclical turnaround currently supported by renewed inflation. Global economic growth is on track to pick up steam, as we argue in our Macroeconomic Analysis. Sectors and economies that are sensitive to the business cycle should continue to outperform less sensitive sectors provided that interest rates don t rise to the point of jeopardising the cyclical upswing we expect to encompass more regions in the months to come. Our holdings should therefore do well in this first part of 2017. Early this year, we introduced quantitative allocation methods into the investment process for our Profil Réactif funds. We view this as a good way to optimise the risk-return trade-off for the underlying portfolio. At the same time, we set tight risk limits for our derivatives strategies. * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report PROFILED MANAGEMENT / 55

PROFILED MANAGEMENT Asset allocation (%) CPR 100 A EUR acc CPR 75 A EUR acc CPR 50 A EUR acc Carmignac Investissement A EUR acc 11.23 9.90 3.97 Carmignac Euro-Entrepreneurs A EUR acc 9.18 5.13 2.56 Carmignac Portfolio Grande Europe A EUR acc 11.09 6.58 1.52 Carmignac Emergents A EUR acc 6.48 4.76 3.01 Carmignac Portfolio China A EUR acc 1.98 1.50 1.00 Carmignac Portfolio Commodities A EUR acc 9.90 6.96 3.98 Carmignac Portfolio Emerging Discovery A EUR acc 3.45 1.74 1.00 Carmignac Euro-Patrimoine A EUR acc 0.00 0.00 1.01 Carmignac Patrimoine A EUR acc 5.94 9.40 16.23 Carmignac Portfolio Emerging Patrimoine A EUR acc 5.99 5.02 3.01 Carmignac Portfolio Investissement Latitude A EUR acc 16.86 11.29 7.80 Carmignac Portfolio Capital Plus A EUR acc 4.00 15.97 19.75 Carmignac Portfolio Global Bond A EUR acc 3.40 9.53 17.08 Carmignac Securité A EUR acc 7.98 8.94 13.56 Cash (including collateral cash from derivative positions) 2.50 3.28 4.52 Total 100.00 100.00 100.00 Exposure by asset class (%) CPR 100 A EUR acc CPR 75 A EUR acc CPR 50 A EUR acc Equities 69.82 50.78 33.02 Bonds 18.05 33.38 48.45 Cash (including collateral cash from derivative positions) 12.13 15.83 18.53 Net currency exposure of Euro share classes (%) Carmignac Profil Réactif 100 Net currency exposure of Euro share classes (%) Carmignac Profil Réactif 75 Net currency exposure of Euro share classes (%) Carmignac Profil Réactif 50 USD 61.1 USD 67.9 USD 34.0 EUR 26.0 EUR 25.1 EUR 61.0 JPY -3.9 JPY -3.9 JPY -2.9 GBP 0.6 GBP 0.1 GBP -0.2 CHF 2.6 CHF 2.0 CHF 1.5 AUD and CAD 2.8 AUD and CAD 2.1 AUD and CAD 1.3 Latin America 7.1 Latin America 6.1 Latin America 5.2 Emerging Asia Eastern Europe, Middle East and Africa Other 1.7 0.9 1.0 Emerging Asia Eastern Europe, Middle East and Africa Other -1.5 1.2 0.7 Emerging Asia Eastern Europe, Middle East and Africa Other -1.8 1.4 0.4 CARMIGNAC PROFIL RÉACTIF 100 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Profil Réactif 100 A EUR acc 10.32 10.97 14.42 10.32 12.32 33.31 18.05 100.81 MSCI AC World NR (Eur) 11.09 7.81 12.23 11.09 43.31 88.07 55.58 62.84 Category average** 1.85 2.08 4.26 1.85 9.09 21.07 7.29 34.11 Ranking (quartile) 1 1 1 1 2 2 2 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * EUR Moderate Allocation. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). Statistics (%) 1 year 3 years Fund volatility 10.81 9.35 Benchmark volatility 15.90 11.69 Sharpe ratio 1.00 0.45 Beta 0.58 0.57 Alpha 0.08-0.37 Calculation period: weekly (1 year) and monthly (3 years). Quarterly gross performance contribution (%) Equity Derivatives Bond Derivatives Currency Derivatives Mutual Fund Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 14.89 11.54 Total 5.24 0.73 3.41 1.90 11.28 Performance of the fund since its launch 225 200 101% 175 63% 150 125 100 75 50 01/02 01/04 01/06 01/08 01/10 01/12 01/14 01/16 12/16 Carmignac Profil Réactif 100 A EUR acc MSCI AC World NR (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 56 / Management report CARMIGNAC FOURTH QUARTER 2016

CARMIGNAC PROFIL RÉACTIF 75 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Profil Réactif 75 A EUR acc 8.65 9.24 11.46 8.65 10.35 25.38 22.50 118.52 Reference indicator* 9.62 5.22 8.24 9.62 39.66 68.78 69.32 84.21 Category average** 3.73 3.7 7.33 3.73 17.29 41.52 18.19 48.01 Ranking (quartile) 1 1 1 1 4 4 3 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * 75% MSCI ACW NR (Eur) + 25% Citigroup WGBI (Eur) (Accrued interest). ** EUR Aggressive Allocation - Global. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). PROFILED MANAGEMENT Statistics (%) 1 year 3 years Fund volatility 8.42 7.68 Benchmark volatility 12.07 9.33 Sharpe ratio 1.08 0.46 Beta 0.59 0.61 Alpha 0.07-0.38 Calculation period: weekly (1 year) and monthly (3 years). Quarterly gross performance contribution (%) Equity Derivatives Bond Derivatives Currency Derivatives Mutual Fund Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 12.14 9.03 Total 3.90 0.71 3.43 1.61 9.65 Performance of the fund since its launch 240 220 200 180 160 84% 140 120 100 80 60 06/99 06/01 06/03 06/05 06/07 06/09 06/11 06/13 06/1512/16 119% Carmignac Profil Réactif 75 A EUR acc 75% MSCI ACW NR (Eur) + 25% Citigroup WGBI all maturities (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). CARMIGNAC PROFIL RÉACTIF 50 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Profil Réactif 50 A EUR acc 7.80 7.66 9.02 7.80 9.59 16.35 23.55 79.85 Reference indicator* 8.05 2.64 4.30 8.05 35.77 50.48 75.26 86.60 Category average** 2.83 1.75 4.13 2.83 12.32 28.55 15.41 40.76 Ranking (quartile) 1 1 1 1 3 4 3 1 From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. * 50% MSCI ACW NR (Eur) + 50% Citigroup WGBI (Eur) (Accrued interest). ** EUR Flexible Allocation - Global. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). Statistics (%) 1 year 3 years Fund volatility 6.57 6.13 Benchmark volatility 8.67 7.43 Sharpe ratio 1.24 0.53 Beta 0.60 0.59 Alpha 0.06-0.31 Calculation period: weekly (1 year) and monthly (3 years). Quarterly gross performance contribution (%) Equity Derivatives Bond Derivatives Currency Derivatives Mutual Fund Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 9.09 7.19 Total 2.64 0.69 3.66 1.28 8.27 Performance of the fund since its launch 200 175 150 125 100 87% 80% 75 01/02 01/04 01/06 01/08 01/10 01/12 01/14 01/16 12/16 Carmignac Profil Réactif 50 A EUR acc 50% MSCI ACW NR (Eur) + 50% Citigroup WGBI all maturities (Eur) From 01/01/2013 the equity index reference indicators are calculated net dividends reinvested. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). CARMIGNAC FOURTH QUARTER 2016 / 57

Charles Zerah International fixed income fund that implements interest rate, credit and currency strategies across the globe with a total return approach. Its flexible and opportunistic style enables the Fund to implement a largely unconstrained, conviction-driven allocation and swiftly adapt, when necessary, to fully exploit opportunities in all market conditions. In the fourth quarter of 2016, Carmignac Portfolio Global Bond posted gains of +1.73%, while its reference indicator decreased by 2.30%. This performance takes the full-year Fund s gain to +9.46%, whereas its reference indicator was up by only +4.60%. Higher prices for the corporate bonds in our portfolio enhanced by the appreciation of the US dollar against the euro worked to the Fund s advantage. At the same time, our cautious approach over the past quarter to the Fund s modified duration and currency allocation helped us generate the substantial outperformance we recorded and protect the Fund s performance through hedges against rising US long-term interest rates. Fixed income component In our previous report, we shared our concerns about weak bond yields and our uncertainty about how the elections in the US and Europe would play out. Those concerns led us to keep the Fund s modified duration mainly to between 0 and 2 during the period. Carmignac Portfolio Global Bond has held up quite well amid the major upward pressure on developed country sovereign bond yields, despite Donald Trump s victory (which took us by surprise). For several months, we had felt that due to a combination of historically low absolute yields, a likely pick-up in inflation (admittedly from an extremely low level) and political risks in the US and Europe, the bond markets in those geographies had little to offer us. As a result, the Fund s modified duration was less than 1 just prior to the US elections. That made it easier for us to weather turbulences. We intend to maintain our cautious approach to bond markets, particularly since Mr Trump s victory has vindicated our macroeconomic outlook (see our Macroeconomic Analysis). The cyclical upturn in both the US and China since the second quarter of 2016 has seriously rattled fixed Performance of the fund since its launch 190 180 74% 170 160 150 140 41% 130 120 110 100 90 12/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15 03/16 12/16 Carmignac Portfolio Global Bond A EUR acc JP Morgan GBI Global (EUR) (accrued interest) ---- Carmignac Portfolio Global Bond A EUR acc rebased at 01/03/2010, date of the beginning of fund management by C. Zerah ---- JP Morgan GBI Global (EUR) (accrued interest) rebased at 01/03/2010, date of the beginning of fund management by C. Zerah 50% 40% Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). income markets. In the fourth quarter alone, yields on 10-year US Treasuries rose from 1.59% to 2.44%. In continental Europe as well, a return to growth is becoming increasingly discernible, resulting in a growing inflation, driven in part by higher commodity prices, a lower unemployment and an improving business confidence. In response to those encouraging signs, the European Central Bank announced it would be scaling back its sovereign bond purchases as of the second quarter of 2017 (from 80 to 60 billion per month). Yet for now the ECB has extended its programme until the end of the year, judging that the many elections scheduled to take place this year could well undermine the economic recovery under way. We will therefore be maintaining the low-duration strategy we deployed in the fourth quarter, while holding enough cash to be able to seize any attractive buy opportunities that come along. At the end of the fourth quarter, we shifted some cash into Italian and Polish government bonds, which had been battered by recent trends with spreads widening to 70 basis points. We should also continue to short futures contracts on US and German long-term government bonds in order to hedge against a faster-than-anticipated increase in inflation expectations. But even as we are limiting our holdings of developed country government paper, we are maintaining our exposure to emerging market sovereign debt, an asset class that has been buoyed by improved economic fundamentals (see Carmignac Portfolio Emerging Patrimoine report). In summary, we remain cautious on developed country government bonds. Not only are yields at low levels, the threatening upcoming elections in Europe entail non-negligible political risks and inflation is on the way back up. Credit component As previously, our holdings in this asset class in the fourth quarter consisted of energy sector bonds, bank bonds and structured credit products. All three contributed to the Fund s positive performance during the period despite rising sovereign debt yields. The subordinated bank bonds in the portfolio notched up further gains due to steeper European sovereign bond yield curves, which should help lift the issuing banks profit margins. Moreover, the new strategic plan presented by UniCredit, the Italian bank, supports our belief that the long-term trend at leading European banks will be to deleverage and increase their CET1 ratios. At the same time, the relative strength of oil prices has pushed up the value of our energy sector bonds. Our global macroeconomic outlook points to maintaining our exposure to these two market segments, both of which stand to benefit from greater inflation and probable upward pressure on yields. Paper issued by banks and oil companies and European CLOs remain the primary investment themes in our credit portfolio, accounting for roughly 20% of the Fund s assets. Currency component At the beginning of the fourth quarter, our currency risk related mainly to our euro exposure, and only moderately to our dollar and yen exposure. However, the Fund * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. 58 / Management report FIXED INCOME MANAGEMENT

took advantage of the rise of the dollar against the euro. After the Federal Reserve hiked its benchmark interest rate by 25 basis points on 14 December, we decided at year-end to keep our exposure to the dollar in the vicinity of 30%. We believe that the risk of inflation and faster economic growth in the event that Donald Trump actually delivers on his campaign promises could lead to more aggressive monetary tightening in the United States. Moreover, spreads between short- and medium-term German and US government bonds (2 and 10-year issues) reached new highs at the end of the quarter (c. 195 and 224 basis points, respectively), further fuelling the appreciation of the greenback. Finally, given the Bank of Japan s QE policy that should remain in place, we intend to avoid the Japanese currency. Bond portfolio (derivatives excluded) - Rating breakdown (%) To conclude, Carmignac Portfolio Global Bond is maintaining a cautious approach to developed country government bonds, as well as a diversified allocation to emerging market sovereigns and to corporate bonds. With inflation now gaining traction in the US and Europe and political risk on the rise in continental Europe, the Fund s modified duration is bound to remain low. We will also continue with our prudent approach to currency allocation. Source of data: Bloomberg, 30/12/2016 Net currency exposure of Euro share classes (%) FIXED INCOME MANAGEMENT AAA 46.6 USD 27.1 AA 2.0 EUR 24,6 57.5 A 9.0 GBP 0.3 BBB 11.8 CHF 5.0 BB 19.9 Latin America 5.1 B 9.0 Eastern Europe, Middle East and Africa 5.0 CCC 1.8 Sector breakdown (derivatives excluded) (%) Bond portfolio (derivatives excluded) - Maturity breakdown (%) Financials 64.3 < 1 year 47,1 Energy 19,7 35.7 1-3 years 5,3 3-5 years 3,3 5-7 years 4,8 7-10 years 1,6 21,5 > 10 years 18,1 Modified duration of the bond portfolio (derivatives included) Euro 0.37 United States 0.17 Other 1.14 Statistics (%) 1 year 3 years Fund volatility 4.64 6.65 Benchmark volatility 6.17 7.15 Sharpe ratio 2.15 1.34 Beta 0.59 0.78 Alpha 0.12 0.12 Calculation period: weekly (1 year) and monthly (3 years). Quarterly gross performance contribution (%) Bond Portfolio Bond Derivatives Currency Derivatives Total 4.42 1.06-2.89 2.59 Value at Risk (%) Fund Reference indicator 99% - 20 days (2 years) 4.11 6.04 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Portfolio Global Bond A EUR acc 9.46 1.73 2.96 9.46 28.69 31.34-40.04 JP Morgan GBI (Eur) (Accrued interest) 4.60-2.30-3.26 4.60 30.09 18.56-74.41 Category average* 4 0.52 0.38 4 23.45 22.61-68.45 Ranking (quartile) 1 1 1 1 2 1-4 * Global Bond. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). CARMIGNAC FOURTH QUARTER 2016 / 59

FIXED INCOME MANAGEMENT HOLDINGS CARMIGNAC PORTFOLIO GLOBAL BOND AT 30/12/2016 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 11 103 748.83 1.34 Cash (including collateral cash from derivative positions) 11 103 748.83 1.34 Fixed income investments 818 689 332.56 98.66 Developed countries fixed rate Government bonds 366 632 573.76 44.18 25 000 000 GREECE 4.75% 17/04/2019 (Greece) Euro 94.35 24 436 643.84 2.94 40 000 000 UNITED STATES 0.50% 28/02/2017 (USA) Dollar 100.00 37 989 678.37 4.58 120 000 000 UNITED STATES 0.50% 31/01/2017 (USA) Dollar 100.00 114 013 726.72 13.74 50 000 000 UNITED STATES 0.50% 31/03/2017 (USA) Dollar 100.00 47 465 258.18 5.72 100 000 000 UNITED STATES 0.75% 15/01/2017 (USA) Dollar 100.00 95 145 247.20 11.47 50 000 000 UNITED STATES 1.00% 31/03/2017 (USA) Dollar 100.11 47 582 019.45 5.73 Developed countries inflation-linked Government bonds 76 181 626.20 9.18 15 000 000 ITALY I/L 2.35% 15/09/2024 (Italy) Euro 114.24 17 432 139.35 2.10 15 000 000 ITALY I/L 3.10% 15/09/2026 (Italy) Euro 122.29 19 722 062.37 2.38 40 000 000 USA I/L 0.62% 15/01/2026 (USA) Dollar 100.87 39 027 424.48 4.70 Emerging countries inflation-linked Government bonds 46 015 939.16 5.54 20 000 BRAZIL I/L 6.00% 15/08/2050 (Brazil) Real Brazil 3 095.39 18 033 650.85 2.17 35 000 000 MEXICO I/L 4.00% 08/11/2046 (Mexico) Mexican peso 102.86 9 238 540.07 1.11 650 000 MEXICO I/L 4.50% 04/12/2025 (Mexico) Mexican peso 112.30 18 743 748.24 2.26 Emerging markets fixed rate Government bonds 155 784 201.06 18.78 33 419 661 ARGENTINA 7.82% 31/12/2033 (Argentina) Euro 97.65 32 662 000.05 3.94 17 150 000 BAHRAIN 7.00% 12/10/2028 (Bahrain) Dollar 102.49 16 923 573.57 2.04 15 000 000 BRAZIL 5.62% 21/02/2047 (Brazil) Dollar 87.91 12 848 660.82 1.55 16 000 000 INDONESIA 2.62% 14/06/2023 (Indonesia) Euro 100.77 16 356 309.04 1.97 200 000 000 POLAND 2.50% 25/07/2026 (Poland) Zloty 91.08 41 880 344.94 5.05 3 000 000 QATAR 4.62% 02/06/2046 (Qatar) Dollar 100.19 2 860 865.53 0.34 19 600 000 RUSSIA 4.75% 27/05/2026 (Russia) Dollar 102.50 19 138 444.29 2.31 14 150 000 SAUDI ARABIA 2.38% 26/10/2021 (Saudi Arabia) Dollar 97.30 13 114 002.82 1.58 Developed countries fixed rate corporate bonds 86 865 139.16 10.47 5 000 000 BBVA 7.00% 19/02/2019 (Spain) Financials (subordinated debt) 96.15 4 850 800.68 0.58 4 000 000 COMMONWEALTH BANK 2.00% 22/04/2022 (Australia) Financials (subordinated debt) 100.90 4 091 909.59 0.49 5 000 000 CREDIT SUISSE 6.25% 18/12/2024 (Switzerland) Financials (subordinated debt) 97.36 4 628 574.44 0.56 8 000 000 CYBG PLC 8.00% 08/12/2022 (United Kingdom) Financials (subordinated debt) 91.82 8 659 031.21 1.04 4 000 000 DNO ASA 8.75% 18/06/2017 (Norway) Energy 89.06 3 392 123.70 0.41 14 200 000 GENEL ENERGY 7.50% 27/01/2017 (United Kingdom) Energy 83.88 11 432 250.93 1.38 3 000 000 ING GROEP NV 6.50% 16/04/2025 (Netherlands) Financials (subordinated debt) 96.26 2 777 985.30 0.33 4 000 000 LOCK AS 7.00% 15/08/2017 (Norway) Financials 106.79 4 378 733.33 0.53 10 000 000 ROYAL BANK OF SCOTLAND 10.50% 16/03/2017 (United Kingdom) Financials (subordinated debt) 102.01 11 043 376.71 1.33 5 000 000 SANTANDER 6.25% 12/03/2019 (Spain) Financials (subordinated debt) 93.76 4 706 129.17 0.57 5 000 000 SANTANDER 6.38% 19/05/2019 (Spain) Financials (subordinated debt) 93.23 4 457 306.23 0.54 5 000 000 SOCIETE GENERALE 7.88% 18/12/2023 (France) Financials (subordinated debt) 97.10 4 619 388.48 0.56 3 000 000 UNICREDIT 8.00% 03/06/2024 (Italy) Financials (subordinated debt) 92.05 2 637 863.64 0.32 5 000 000 UNICREDIT 9.25% 03/06/2022 (Italy) Financials (subordinated debt) 106.76 5 354 472.60 0.65 10 000 000 UNIPOLSAI SPA 5.75% 18/06/2024 (Italy) Financials (subordinated debt) 95.22 9 835 193.15 1.19 Emerging markets fixed rate corporate bonds 31 577 031.47 3.81 2 107 000 PETROBRAS ARGENTINA SA 7.38% 21/07/2020 (Brazil) Energy 98.28 2 030 056.01 0.24 8 504 000 PETROBRAS GLOBAL FINANCE BV 5.62% 20/05/2043 (Brazil) Energy 74.48 6 060 032.24 0.73 2 000 000 PETROBRAS GLOBAL FINANCE BV 6.62% 16/01/2034 (Brazil) Energy 87.72 2 204 889.55 0.27 10 000 000 PETROLEOS MEXICANOS 6.50% 13/03/2027 (Mexico) Energy 102.88 9 789 729.01 1.18 11 000 000 YPF SA 8.50% 23/03/2021 (Argentina) Energy 107.81 11 492 324.66 1.38 Developed countries convertible corporate bonds 11 663 594.52 1.41 25 000 000 BANK OF NEW YORK MELLON 4.19% 15/12/2050 (Luxembourg) Financials (subordinated debt) 46.21 11 663 594.52 1.41 Asset Backed Securities 43 969 227.23 5.30 2 000 000 APOLLO MANAGEMENT, ALME LOAN FUNDING V (Europe) CLO (BB tranche) 94.85 1 962 339.73 0.24 2 000 000 ARES MANAGEMENT, ARES EUROPEAN CLO VIII (Europe) CLO (BB tranche) 96.09 1 921 738.60 0.23 2 500 000 KKR CREDIT ADVISORS, AVOCA CAPITAL CLO X (Europe) CLO (B tranche) 89.41 2 235 250.00 0.27 5 000 000 KKR CREDIT ADVISORS, AVOCA CAPITAL CLO XIV (Europe) CLO (BB tranche) 91.38 4 623 629.44 0.56 2 000 000 CSAM, CADOGAN SQUARE CLO VI (Europe) CLO (BB tranche) 89.22 1 802 650.27 0.22 4 000 000 CVC CREDIT PARTNERS, CVC CORDATUS VI (Europe) CLO (BB tranche) 97.47 3 956 029.60 0.48 5 000 000 PRAMERICA, DRYDEN 46 EURO CLO (Europe) CLO (BB tranche) 94.74 4 791 554.56 0.58 2 000 000 ALCENTRA, JUBILEE CLO 2015-XV (Europe) CLO (BB tranche) 89.75 1 816 373.22 0.22 1 000 000 BAIN CREDIT, NEWHAVEN II CLO (Europe) CLO (B tranche) 86.50 874 556.33 0.11 2 000 000 OAK HILL ADVISORS, OAK HILL ECP III (Europe) CLO (BB tranche) 90.84 1 834 877.07 0.22 2 500 000 BLACKSTONE/GSO, ORWELL PARK (Europe) CLO (BB tranche) 89.87 2 270 905.67 0.27 4 000 000 PARTNERS GROUP, PENTA CLO 2 (Europe) CLO (BB tranche) 88.58 3 573 342.93 0.43 2 000 000 BAIN CREDIT, RYE HARBOUR CLO (Europe) CLO (BB tranche) 94.70 1 916 691.91 0.23 7 400 000 CHENAVARI, TORO EUROPEAN CLO 1 (Europe) CLO (BB tranche) 92.01 6 883 926.22 0.83 3 600 000 TIKEHAU CAPITAL, TIKEHAU CLO II (Europe) CLO (BB tranche) 96.78 3 505 361.68 0.42 Portfolio value 818 689 332.56 98.66 Net assets 829 793 081.39 100.00 60 / Management report CARMIGNAC FOURTH QUARTER 2016

Carlos Galvis Multi-asset and multi-strategy fund. Its investment philosophy focuses on generating performance while aiming to maintain ex-ante volatility below 6% on an annual basis, in all market conditions. In the fourth quarter, Carmignac Portfolio Capital Cube increased by +1.04%, while its benchmark was down -0.09%, bringing the 2016 performance to +2.09% for the Fund, while the EONIA (compounded) decreased by -0.32%. Over Q4, financial markets were dominated by the US election results. After an unexpected Donald Trump victory, equities rallied, bonds sold off and the dollar strengthened. The FOMC increased rates at its December meeting, but surprised the markets with upward revision on the path of interest rates for the next two years. As a result, the dollar continued to rise, while the front-end of the US curve fully repriced the new Fed dots projections and caused the yield curve to flatten considerably. In Japan, the BoJ kept policy unchanged, while economic data continued to improve steadily. In Europe, the ECB kept the deposit facility rate at -0.40% but extended the APP until December 2017 with a lower monthly pace of 60 billion per month. With this background, EM assets underperformed as a stronger dollar and higher rates weighed on EM equities and currencies performance (source : ECB, 08/12/2016). Going into 2017, the global economy should be supported by monetary policy accommodation in Europe and Japan, while fiscal expansion in the US is expected to boost nominal economic growth over the next few years. In this context, acceleration in economic activity is likely to be more global in this new year as well, as higher inflation prints will likely confirm a genuine cyclical economic recovery. As a result, the equity sector rotation seen over the second half of 2016, with strong outperformance by high cyclical sectors relative to more defensive sectors, should continue. Additionally, the persistent sell-off in bond markets and well-supported equity markets seen over Q4 should stabilise in the first part of the year, while the next leg for higher rates and higher equity valuations should be a function of fiscal spending implementation and higher nominal GDP growth. However, the risks are on the downside, as political risks in Europe persist and policy uncertainty on the new US President may strongly jitter markets. With this background, the portfolio should continue to favour equity markets over bond markets and to remain long US dollar, particularly against Asian currencies. Our rate strategy made a negative contribution of -0.08% over the quarter. Fixed income markets saw greater volatility as the US 10 year yield increased by roughly 1%, marking one of the worst quarters for US Treasuries in the last twenty years. Inflation expectations shot up as higher oil prices and improved growth expectations weighed significantly on long duration positions in global bond portfolios. Treasuries underperformed Bunds as policy divergence between the ECB and the Fed became more pronounced. Furthermore, the yield curve steepened first and then flattened as the front-end quickly priced in a more aggressive Fed after the December meeting. In this context, the Fund suffered from its long exposure to US Treasuries, but benefited from its short modified duration to German yields. Going forward, markets are likely to become less dependent on Central banks but highly sensitive to the economic cycle. Given our central scenario of continuing strong US growth, we will be favouring a short bias strategy, but likely to express more via European sovereign bonds relative to US Treasuries. Our FX strategy contributed positively with +0.37% of performance. As rates in the US spiked relative to those in Japan and Europe, the dollar index strongly outperformed mainly against those two other major currencies. At the same time, the steady CNH devaluation weighed also on the poor performance of Asian currencies particularly the KRW. The Fund benefited from its long dollar positions against a basket of Asian currencies including the CNH and the KRW. The relative value strategy long CAD vs PLN supported the Fund s performance. Going forward, the dollar s upward trend should continue, particularly against Asian currencies. At the same time, the higher premiums on LATAM FX like MXN and BRL should come down as rates stabilise in the US. The portfolio will remain long USD against Asian currencies while favouring LATAM currencies within the EM space. Performance of the fund since its launch 103 102 101 100 99 98 11/15 12/15 02/16 04/16 06/16 08/16 10/16 12/16 Carmignac Portfolio Capital Cube A EUR acc Eonia compounded Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 2% 0% * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. Management report FIXED INCOME MANAGEMENT / 61

FIXED INCOME MANAGEMENT Our equity strategy made a positive contribution of +0.74% to performance. Global equities continued to perform well as the global recovery showed further, clear signs of picking up. Outperformance by high beta sectors pushed indices to new highs despite higher rising yields. And though we are still far from reaching the threshold for the level of real interest rates to start hurting equity valuations, the next leg up on equity markets should reflect higher nominal GDP and fiscal stimulus, which is likely to be delivered as expected. The risks around this scenario are on the downside, given that there may well be grounds for disappointment at the fiscal policy implementation stage. However, the portfolio should continue to favour equities over bonds. Our credit strategy had a flat contribution to performance (+0.01%). Credit continued to do very well, driven by the general risk-on environment. Rising rates in the US did not generate any panic-selling amongst credit investors, and relatively weak fundamentals are trumped by positive technical factors. Most of European credit will continue to be distorted by Central banks in the short-term and offers little value apart from a few instruments not eligible for the ECB purchase program, such as CLOs, subordinated bank credit and idiosyncratic opportunities in the high-yield space. Our credit risk is very limited to be able in order to be in a better position to seize opportunities in the next wave of volatility. Bond portfolio (derivatives excluded) - Rating breakdown (%) Net currency exposure of Euro share classes (%) AAA 41.0 USD 0.4 A 1,6 26.7 EUR 91.9 BBB 8,0 20.6 JPY -1.4 BB 3,1 7.3 GBP 1.6 B 4.4 CHF 3.2 Eastern Europe, Middle East and Africa -0.1 Other 4.4 Bond portfolio (derivatives excluded) - Maturity breakdown (%) Sector breakdown (derivatives excluded) (%) < 1 year 1-3 years 7-10 years 3.9 4.5 11,3 87.9 Financials Energy Consumer Discretionary 4.0 15.7 80.3 > 10 years 3.7 Quarterly gross performance contribution (%) Value at Risk (%) Fund Bond Portfolio Equity Derivatives Bond Derivatives Currency Derivatives Total -0.04 0.92-0.04 0.44 1.28 99% - 20 days (2 years) 0.51 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Portfolio Capital Cube A EUR acc 2.09 1.04 1.03 2.09 - - - 1.95 Eonia compounded -0.32-0.09-0.17-0.32 - - - -0.34 Category average* - - - - - - - - Ranking (quartile) 2 3 3 2 - - - 2 * Alt - Multistrategy. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). 62 / Management report CARMIGNAC FOURTH QUARTER 2016

Statistics (%) 1 year 3 years Fund volatility 2.94 Benchmark volatility 0.01 Sharpe ratio 1.06 Beta NS Alpha NS Calculation period: weekly (1 year) and monthly (3 years). Modified duration of the bond portfolio (derivatives included) Euro 0.24 United-States -0.05 Other 0.26 Equity exposure rate (%) : 3.96 FIXED INCOME MANAGEMENT HOLDINGS CARMIGNAC PORTFOLIO CAPITAL CUBE AT 30/12/2016 Interest Rates Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 81 545 233.54 86.75 Cash (including collateral cash from derivative positions) 19 669 884.36 20.92 2 615 000 GREECE 13/01/2017 Treasury bill in Euro 2 612 277.88 2.78 1 350 000 ITALY 12/05/2017 Treasury bill in Euro 1 351 579.50 1.44 2 000 000 ITALY 14/06/2017 Treasury bill in Euro 2 003 180.00 2.13 1 350 000 ITALY 31/03/2017 Treasury bill in Euro 1 351 620.00 1.44 7 000 000 ITALY 31/05/2017 Treasury bill in Euro 7 010 080.00 7.46 5 000 000 PORTUGAL 17/03/2017 Treasury bill in Euro 5 000 427.78 5.32 15 000 000 PORTUGAL 19/05/2017 Treasury bill in Euro 15 002 700.00 15.96 3 500 000 PORTUGAL 20/01/2017 Treasury bill in Euro 3 499 984.02 3.72 15 000 000 SPAIN 12/05/2017 Treasury bill in Euro 15 027 300.00 15.99 9 000 000 SPAIN 16/06/2017 Treasury bill in Euro 9 016 200.00 9.59 Fixed income investments 12 452 777.79 13.25 Emerging markets fixed rate Government bonds 3 322 974.96 3.53 6 759 000 POLAND 3.25% 25/07/2025 (Poland) Zloty 97.98 1 526 458.78 1.62 62 300 MEXICO 4.50% 04/12/2025 (Mexico) Mexican peso 112.30 1 796 516.18 1.91 Developed countries fixed rate corporate bonds 2 675 813.17 2.85 100 000 CABLE COMMUNICATIONS SYSTEMS 5.00% 15/10/2019 (Netherlands) Consumer Discretionary 106.12 107 045.56 0.11 400 000 ENI SPA 4.88% 11/10/2017 (Italy) Energy 103.89 420 085.10 0.45 2 050 000 INTESA SAN PAOLO 4.75% 15/06/2017 (Italy) Financials 102.17 2 148 682.51 2.29 Asset Backed Securities 6 453 989.66 6.87 1 500 000 BAIN CREDIT, NEWHAVEN II CLO (Europe) CLO (AAA tranche) 100.93 1 516 934.27 1.61 500 000 BAIN CREDIT, NEWHAVEN II CLO (Europe) CLO (B tranche) 86.50 437 278.17 0.47 1 000 000 OAK HILL ADVISORS, OAK HILL ECP IV (Europe) CLO (AAA tranche) 100.37 1 010 229.63 1.07 1 870 000 INVESCO, RISERVA CLO (USA) CLO (AAA tranche) 99.82 1 771 385.99 1.88 1 000 000 TIKEHAU CAPITAL, TIKEHAU CLO (Europe) CLO (BB tranche) 90.17 909 322.77 0.97 800 000 BLACKSTONE/GSO, TYMON PARK (Europe) CLO (AAA tranche) 100.80 808 838.83 0.86 Portfolio value 12 529 293.36 13.33 Net assets 93 998 011.33 100.00 CARMIGNAC FOURTH QUARTER 2016 / 63

Keith Ney Fund invested in bonds and other debt securities denominated in Euro. It seeks to outperform its reference indicator, the Euro MTS 1-3 years, over a 2-year investment horizon with lower volatility. In the fourth quarter of 2016, Carmignac Sécurité increased by +0.19%, while its benchmark declined by -0.03%, bringing the full year performance for the Fund to +2.07% versus the benchmark s +0.30%. Quarterly and Annual Performance Review Our fourth-quarter performance was driven by our hedges against rising interest rates, as well as gains in our consumer discretionary and financial high-yield credit. The steady move higher in global PMIs and market-priced inflation expectations pushed nominal yields up in Europe and the US. This cyclically driven re-pricing was accelerated by the surprise Republican sweep in the November US elections, with high hopes of a business-friendly policy shift across fiscal, regulatory and trade matters. Our portfolio construction was ideal for the recent quarter when the German yield curve steepened by +40bps between the 10-year and 2-year maturities, combining an overall duration exposure that is net negative with a bias for a bear steepening of curves. Bond picking also supported our performance, with our subordinated bank exposure returning +3.4% during the quarter, while the high yield index average return was +1.8% (Source: Bloomberg, Merrill Lynch 31/12/2016). Our annual performance was driven by flexibly navigating 2016 s dramatic twists and turns in both the corporate credit and government bond markets. On the credit side, tactical hedges protected the portfolio from the Chinese outflow-driven and the Brexit-driven high-yield market panics when spreads rose by +180bp and +140bp, respectively (Source: Bloomberg, 31/12/2016). We opportunistically added fallen-angel commodity credit during the first quarter s overly-discounted Performance of the fund since its launch 400 276% 350 300 250 200 150 244% 100 01/89 01/91 01/93 01/95 01/97 01/99 (1) 01/01 01/03 01/05 01/07 01/09 01/11 01/13 01/15 12/16 Carmignac Sécurité A EUR acc Euro MTS 1-3 years Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). (1) Date of creation of the Euro and the Euro MTS 1-3 years index material and energy default cycle. On the rate side, we timely pivoted from overweight long-maturity government bonds benefiting from the strong first-half rally to being net short long-maturity government bonds during the summer benefiting from the strong second half sell-off. Although impossible to foresee the timing, we are confident that the unique combination of risk premia suppression by central banks, deteriorating liquidity and inflows into non-fundamentally driven index funds and volatility-sensitive investment strategies will continue to produce opportunities for the discerning longterm value investor as political shocks, inflation surprises and default cycles inevitably disrupt comatose markets. Investment Strategy With risk-free bond yields negative out to eight years, short maturity Eurozone fixed income is severely challenged. Nowhere is this upside-down world of return free risk more extreme than in Germany, where a shocking 66% of the sovereign bond market trades with a negative yield. Although subject to an attendant higher level of volatility, we are convinced that a flexible and opportunistic-based strategy with an active risk management is essential to outperform and protect the purchasing power of our clients assets during this era of financial repression and its heightened political, macro and market-driven uncertainty. Carmignac Sécurité will continue to focus on the following core strategies: Firstly, bank credit across the capital structure should outperform, as the multi-year trend of de-risking, de-leveraging and re-regulating banks works to decrease the excessive systemic discount still in bank credit spreads. In particular, the banking policy shift from taxpayer funded bail-outs to unsecured creditor funded restructuring and resolution should drive increased bank risk differentiation and flight to quality within the periphery. Total financial credit is around 22% of the fund, including 0.8% in Additional Tier 1 securities of low risk retail focused banks that we feel the market continues to undervalue. The ECB s suppression of risk premia across Eurozone non-bank investment grade credit market ought to force investor rebalancing into our favourite bank themes. Secondly, the alignment of the economic and political cycles justifies limited exposure to spread product, that is, a cyclical upturn in inflation could hurt rates, while an adverse outcome to any of the upcoming European elections could hurt spreads. Our exposure to European Collateralised Loan Obligations is around 7%, mostly in AAA tranches. This remains a broken asset class, where regulatory constraints and crisis scars allow us to benefit from very attractive spread levels considering * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. 64 / Management report FIXED INCOME MANAGEMENT

the near complete absence of historical defaults. Our total allocation to non-european corporate credit geographic risk is 11%. Our allocation to non-euro denominated corporate credit risk is around 3.5%, but currency risk remains fully hedged. Lastly, the overall duration will be managed tactically, with an opportunistic approach to curve positioning beyond our benchmark s 1-3 year maturity focus, but always within our -3 to +4 portfolio duration risk limitation. This low-duration strategy, instead of short-maturity, will help to support directional, carry and roll-down driven performance in this difficult negative front-end yield environment. Despite a partial retracement of the first half s bond rally, we continue to reduce our overall duration risk. US and EU inflation is likely to rise faster than consensus expectations, possibly accelerated by protectionist and fiscally loose policy. We ended the quarter with a modified duration close to -0.3 and a cash balance of around 31%. The average yield on the portfolio is +0.22% with an average maturity of 1.7 years. By way of comparison, our reference indicator has a negative average yield of -0.45%. FIXED INCOME MANAGEMENT Sector breakdown (derivatives excluded) (%) Bond portfolio (derivatives excluded) - Rating breakdown (%) Financials 46.4 AAA 7.7 Consumer Discretionary 16.2 AA 5.7 Healthcare 6.7 A 30.7 Industrials 6.5 BBB 8,6 47.3 Consumer Staples 5.9 BB 4.9 Energy 5.1 B 3.7 Telecommunication Services 3.3 CC 0.0 Materials 3.2 Real Estate 3.0 Utilities 1.9 Information Technology 1.7 Statistics (%) 1 year 3 years Bond portfolio (derivatives excluded) - Maturity breakdown (%) Fund volatility 0.76 1.19 Benchmark volatility 0.51 0.50 Sharpe ratio 3.15 1.45 Beta 0.34 1.15 Alpha 0.04 0.05 Calculation period: weekly (1 year) and monthly (3 years). < 1 year 1-3 years 3-5 years 5-7 years 7-10 years > 10 years 6.4 2.7 0.3 4.1 11,3 38.0 48.4 Cumulative performance (%) Since 31/12/2015 3 months 6 months 1 year 3 years 5 years 10 years Since the first NAV Carmignac Securité A EUR acc 2.07 0.19 0.59 2.07 4.95 13.28 37.34 275.85 Euro MTS 1-3 Y (Accrued interest) 0.30-0.03-0.01 0.30 2.87 9.43 27.95 - Category average* 0.67-0.08 0.25 0.67 2.52 8.52 17.12 184.74 Ranking (quartile) 1 1 1 1 1 1 1 1 * EUR Diversified Bond - Short Term. Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). CARMIGNAC FOURTH QUARTER 2016 / 65

FIXED INCOME MANAGEMENT Quarterly gross performance contribution (%) Bond Portfolio Bond Derivatives Currency Derivatives Total 0.41 0.29-0.26 0.44 HOLDINGS CARMIGNAC SÉCURITÉ AT 30/12/2016 Modified duration of the bond portfolio (derivatives included) Euro -0,45 United-States 0,02 Other 0,01 Price in currencies Total value ( ) % of net assets Cash, cash equivalents and derivatives operations 3 723 895 630.90 30.36 Cash (including collateral cash from derivative positions) 668 226 167.24 5.45 272 391 000 ITALY 12/05/2017 Treasury bill in Euro 272 715 986.55 2.22 92 372 000 ITALY 13/01/2017 Treasury bill in Euro 92 383 805.39 0.75 180 123 000 ITALY 13/04/2017 Treasury bill in Euro 180 339 191.62 1.47 363 415 000 ITALY 14/02/2017 Treasury bill in Euro 363 557 753.69 2.96 92 372 000 ITALY 14/03/2017 Treasury bill in Euro 92 448 875.85 0.75 92 340 000 ITALY 14/07/2017 Treasury bill in Euro 92 488 289.56 0.75 181 006 000 ITALY 14/09/2017 Treasury bill in Euro 181 382 807.67 1.48 90 000 000 ITALY 31/05/2017 Treasury bill in Euro 90 131 940.64 0.73 182 318 806 PORTUGAL 17/03/2017 Treasury bill in Euro 182 334 588.32 1.49 270 688 532 PORTUGAL 19/05/2017 Treasury bill in Euro 270 736 617.83 2.21 295 749 314 PORTUGAL 20/01/2017 Treasury bill in Euro 295 750 461.20 2.41 360 913 000 SPAIN 12/05/2017 Treasury bill in Euro 361 583 858.59 2.95 181 006 000 SPAIN 15/09/2017 Treasury bill in Euro 181 496 372.95 1.48 90 497 000 SPAIN 16/06/2017 Treasury bill in Euro 90 662 284.90 0.74 181 093 000 SPAIN 20/01/2017 Treasury bill in Euro 181 130 697.75 1.48 36 400 000 ELECTRICITE DE FRANCE 05/05/2017 Commercial paper in Euro 36 435 505.64 0.30 90 000 000 VOLKSWAGEN 03/11/2017 Commercial paper in Euro 90 090 425.51 0.73 Fixed income investments 8 542 170 716.08 69.64 Developed countries fixed rate Government bonds 1 572 433 069.71 12.82 85 668 000 GREECE 3.38% 17/07/2017 (Greece) Euro 98.45 85 689 346.59 0.70 31 248 000 GREECE 4.75% 17/04/2019 (Greece) Euro 94.35 30 543 849.86 0.25 187 537 000 ITALY 1.15% 15/05/2017 (Italy) Euro 100.57 188 897 886.59 1.54 98 193 000 ITALY 3.50% 01/12/2018 (Italy) Euro 107.01 105 382 993.59 0.86 93 724 000 ITALY 4.00% 01/02/2017 (Italy) Euro 100.36 95 637 640.33 0.78 367 132 000 ITALY 4.25% 01/02/2019 (Italy) Euro 109.05 406 940 422.05 3.32 181 574 000 ITALY 4.25% 01/09/2019 (Italy) Euro 111.25 204 644 431.30 1.67 181 283 000 SPAIN 0.25% 30/04/2018 (Spain) Euro 100.74 182 923 362.82 1.49 47 300 000 SPAIN 2.75% 30/04/2019 (Spain) Euro 106.80 51 400 197.26 0.42 131 285 000 SPAIN 3.80% 31/01/2017 (Spain) Euro 100.32 136 312 282.87 1.11 22 500 000 SPAIN 4.12% 17/03/2017 (Spain) Euro 100.89 23 442 075.00 0.19 55 435 000 SPAIN 4.50% 31/01/2018 (Spain) Euro 105.20 60 618 581.45 0.49 Emerging markets fixed rate Government bonds 31 849 646.58 0.26 1 366 975 ARGENTINA 7.00% 17/04/2017 (Argentina) Dollar 104.15 1 349 815.72 0.01 29 459 000 BRAZIL 4.12% 15/09/2017 (Brazil) Euro 102.29 30 499 830.86 0.25 Developed countries fixed rate corporate bonds 5 460 000 356.15 44.55 54 014 000 AIB MORTGAGE BANK 4.88% 29/06/2017 (Ireland) Financials 102.46 56 700 634.16 0.46 8 150 000 AIR LIQUIDE SA 2.91% 12/10/2018 (France) Materials 105.40 8 644 156.61 0.07 16 746 000 AIRBUS GROUP 5.50% 25/09/2018 (France) Industrials 109.82 18 642 794.19 0.15 37 928 000 AKELIUS RESIDENTIAL PROPERTY 1.50% 23/01/2022 (Sweden) Real Estate 100.64 38 236 162.40 0.31 11 212 000 ALLIED IRISH 2.75% 16/04/2019 (Ireland) Financials 105.43 12 042 245.53 0.10 4 800 000 ALSTRIA OFFICE REIT-AG 2.12% 12/01/2023 (Germany) Real Estate 105.12 5 119 902.25 0.04 26 421 000 ALTICE SA 6.25% 15/02/2020 (Netherlands) Consumer Discretionary 104.75 28 097 999.58 0.23 11 550 000 ALTICE SA 6.62% 15/02/2018 (Netherlands) Consumer Discretionary (Dollar) 102.71 11 434 194.30 0.09 35 558 000 ALTICE SA 7.25% 15/05/2017 (Netherlands) Consumer Discretionary 107.13 39 081 501.48 0.32 3 525 000 AMGEN INC 2.12% 13/09/2019 (USA) Healthcare 105.63 3 746 442.43 0.03 45 184 000 AMGEN INC 4.38% 05/12/2018 (USA) Healthcare 108.49 49 175 826.90 0.40 7 687 000 ANADARKO PETROLEUM 8.70% 15/03/2019 (USA) Energy (Dollar) 113.44 8 459 684.10 0.07 78 871 000 ANHEUSER-BUSCH INBEV 0.62% 17/03/2020 (Belgium) Consumer Staples 101.94 80 775 302.48 0.66 36 164 000 ANHEUSER-BUSCH INBEV 2.00% 16/12/2019 (Belgium) Consumer Staples 106.16 38 426 286.08 0.31 13 541 000 AP MOELLER-MAERSK A/S 4.38% 24/11/2017 (Denmark) Industrials 103.98 14 144 989.81 0.12 13 100 000 ARGENTA SPAARBANK 3.88% 24/05/2021 (Belgium) Financials (subordinated debt) 104.70 14 027 621.77 0.11 44 900 000 ATOS 2.38% 02/04/2020 (France) Information Technology 105.19 47 769 454.44 0.39 11 100 000 AUCHAN SA 2.88% 15/11/2017 (France) Consumer Staples 102.73 11 445 538.44 0.09 13 400 000 AUCHAN SA 3.62% 19/10/2018 (France) Consumer Staples 106.65 14 392 644.47 0.12 9 000 000 AUCHAN SA 6.00% 15/04/2019 (France) Consumer Staples 113.78 10 629 295.89 0.09 4 500 000 AUTOROUTES DU SUD 4.00% 24/09/2018 (France) Industrials 106.96 4 863 143.22 0.04 28 400 000 AUTOROUTES DU SUD 7.38% 20/03/2019 (France) Industrials 116.42 34 721 096.93 0.28 4 444 000 AUTOSTRADE PER L'ITALIA 3.62% 30/11/2018 (Italy) Industrials 106.95 4 767 730.79 0.04 9 233 000 AVIVA PLC 0.10% 13/12/2018 (United Kingdom) Financials 100.21 9 252 828.18 0.08 55 673 000 BANK OF AMERICA 1.88% 10/01/2019 (USA) Financials 103.77 58 798 003.07 0.48 23 100 000 BANK OF AMERICA 4.62% 07/02/2017 (USA) Financials (subordinated debt) 100.48 24 176 856.99 0.20 23 500 000 BANK OF AMERICA 4.62% 07/08/2017 (USA) Financials 102.87 24 617 193.22 0.20 5 304 000 BANK OF AMERICA 4.62% 14/09/2018 (USA) Financials (subordinated debt) 107.70 5 787 009.12 0.05 34 350 000 BANK OF AMERICA 4.75% 03/04/2017 (USA) Financials 101.22 35 999 407.01 0.29 4 647 000 BANK OF IRELAND 2.00% 08/05/2017 (Ireland) Financials 100.78 4 744 404.30 0.04 28 700 000 BANKIA 3.50% 17/01/2019 (Spain) Financials 106.48 31 524 401.50 0.26 12 000 000 BANKIA 4.00% 22/05/2019 (Spain) Financials (subordinated debt) 101.85 12 519 685.48 0.10 9 019 000 BASF SE 1.50% 01/10/2018 (Germany) Materials 102.89 9 314 579.81 0.08 7 132 000 BAYER AG 1.12% 24/10/2017 (Germany) Healthcare 101.07 7 283 943.75 0.06 9 000 000 BBVA 2.38% 22/01/2019 (Spain) Financials 104.82 9 636 633.69 0.08 24 000 000 BBVA 7.00% 19/02/2019 (Spain) Financials (subordinated debt) 96.15 23 282 154.78 0.19 33 400 000 BBVA 8.88% 14/04/2021 (Spain) Financials (subordinated debt) 108.05 36 739 821.20 0.30 60 393 000 BG ENERGY CAPITAL 3.00% 16/11/2018 (United Kingdom) Energy 105.72 64 087 554.18 0.52 66 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC SÉCURITÉ AT 30/12/2016 Price in currencies Total value ( ) % of net assets 22 141 000 BG ENERGY CAPITAL 6.50% 30/11/2017 (United Kingdom) Energy (subordinated debt) 105.62 23 518 719.18 0.19 45 103 000 BHP BILLITON 2.12% 29/11/2018 (Australia) Materials 104.18 47 080 210.49 0.38 7 496 000 BHP BILLITON 5,624% 22/10/2024 (Australia) Materials (subordinated debt) 113.22 8 571 301.20 0.07 24 308 000 BMW FINANCE NV 0.12% 15/04/2020 (Netherlands) Consumer Discretionary 100.51 24 452 649.25 0.20 12 219 000 BMW FINANCE NV 3.25% 14/01/2019 (Netherlands) Consumer Discretionary 106.76 13 429 697.91 0.11 10 016 000 BNP PARIBAS 5.43% 07/09/2017 (France) Financials (subordinated debt) 103.71 10 563 552.22 0.09 1 000 000 BOUYGUES 3.64% 29/10/2019 (France) Industrials 110.19 1 108 463.73 0.01 24 450 000 BOUYGUES 4.00% 12/02/2018 (France) Industrials 104.50 26 421 609.25 0.22 9 075 000 BRITISH TELECOMMUNICATIONS 1.12% 10/06/2019 (United Kingdom) Telecommunication Services 102.78 9 385 093.99 0.08 6 400 000 BUREAU VERITAS 3.12% 21/10/2020 (France) Industrials 109.32 7 186 451.93 0.06 45 900 000 BUREAU VERITAS 3.75% 24/05/2017 (France) Industrials 101.53 47 657 680.77 0.39 18 141 000 CARLSBERG BREWERIES 2.62% 03/07/2019 (Denmark) Consumer Staples 106.59 19 575 823.88 0.16 6 992 000 CARLSBERG BREWERIES 3.38% 13/10/2017 (Denmark) Consumer Staples 102.77 7 238 413.40 0.06 7 100 000 CHRISTIAN DIOR 0.75% 24/03/2021 (France) Consumer Discretionary 101.18 7 211 794.85 0.06 9 000 000 CHRISTIAN DIOR 1.38% 19/03/2019 (France) Consumer Discretionary 102.76 9 315 170.14 0.08 8 243 000 CIBA SPECIAL CHEMICALS 4.88% 20/06/2018 (Luxembourg) Materials 107.23 9 055 443.63 0.07 126 381 000 CITIGROUP INC 5.00% 02/08/2019 (USA) Financials 112.93 145 381 863.98 1.19 108 360 000 CITIGROUP INC 7.38% 04/09/2019 (USA) Financials 119.69 132 346 421.16 1.08 18 113 000 COCA-COLA 2.00% 05/09/2019 (USA) Consumer Staples 105.36 19 111 914.58 0.16 9 019 000 COFIROUTE 5.25% 30/04/2018 (France) Industrials 107.17 9 987 381.15 0.08 9 093 000 COMMERZBANK AG 3.62% 10/07/2017 (Germany) Financials 101.93 9 428 611.42 0.08 4 543 000 COMPAGNIE DE ST GOBAIN 4.50% 30/09/2019 (France) Industrials 112.33 5 156 133.86 0.04 18 798 000 COMPAGNIE DE ST GOBAIN 4.75% 11/04/2017 (France) Industrials 101.34 19 702 871.34 0.16 18 055 000 COMPASS GROUP 3.12% 13/02/2019 (United Kingdom) Consumer Discretionary 106.78 19 780 504.02 0.16 27 514 000 CREDIT SUISSE 1.25% 14/04/2022 (Switzerland) Financials 100.22 27 823 012.37 0.23 11 502 000 CREDIT SUISSE 5.75% 18/09/2020 (Switzerland) Financials (subordinated debt) 109.56 12 795 930.88 0.10 9 000 000 CRH FINANCE 5.00% 25/01/2019 (Ireland) Materials 110.35 10 354 630.82 0.08 77 609 000 DAIMLER AG 0.50% 09/09/2019 (Germany) Consumer Discretionary 101.45 78 854 550.03 0.64 14 200 000 DANONE SA 1.25% 06/06/2018 (France) Consumer Staples 101.97 14 582 917.59 0.12 3 554 000 DEUTSCH POST 1.88% 27/06/2017 (Netherlands) Industrials 101.03 3 625 223.13 0.03 22 704 000 DEUTSCHE POST AG 0.38% 01/01/2021 (Germany) Industrials 101.36 23 076 479.34 0.19 117 000 000 DEXIA CREDIT 0.04% 11/12/2019 (France) Financials 100.37 117 435 849.04 0.96 32 300 000 EBAY INC 2.50% 09/03/2018 (USA) Information Technology (Dollar) 100.95 31 157 935.43 0.25 27 192 000 EE FINANCE 3.25% 03/08/2018 (United Kingdom) Telecommunication Services 105.25 28 989 208.68 0.24 21 400 000 ENGIE SA 0.00% 13/02/2017 (France) Utilities 100.03 21 407 276.00 0.17 9 019 000 ENGIE SA 1.50% 20/07/2017 (France) Utilities 100.98 9 169 193.53 0.07 9 000 000 ENI SPA 4.75% 14/11/2017 (Italy) Energy 104.30 9 445 201.64 0.08 15 513 000 ERICSSON LM 5.38% 27/06/2017 (Sweden) Information Technology 102.70 16 365 741.11 0.13 29 309 000 EUROFINS SCIENTIFIC 2.25% 27/01/2022 (Luxembourg) Healthcare 100.74 30 142 975.58 0.25 24 037 000 EUROFINS SCIENTIFIC 3.12% 26/11/2018 (Luxembourg) Healthcare 105.04 25 325 946.26 0.21 32 488 000 EUROFINS SCIENTIFIC 3.38% 30/10/2022 (Luxembourg) Healthcare 103.35 34 592 255.75 0.28 8 971 000 EUROFINS SCIENTIFIC 4.88% 29/04/2023 (Luxembourg) Healthcare (subordinated debt) 102.53 9 496 134.08 0.08 7 600 000 EUROFINS SCIENTIFIC 7.00% 31/01/2020 (Luxembourg) Healthcare (subordinated debt) 110.46 8 885 956.55 0.07 8 100 000 EXOR NV 5.38% 12/06/2017 (Italy) Financials 102.43 8 541 436.68 0.07 22 903 000 FCA CAPITAL IRELAND PLC 1.25% 13/06/2018 (Ireland) Consumer Discretionary 101.50 23 407 010.32 0.19 13 743 000 FCA CAPITAL IRELAND PLC 1.25% 21/01/2021 (Ireland) Consumer Discretionary 102.00 14 109 557.81 0.12 7 221 000 FCA CAPITAL IRELAND PLC 1.25% 23/09/2020 (Ireland) Consumer Discretionary 101.98 7 389 199.84 0.06 34 750 000 FCA CAPITAL IRELAND PLC 2.00% 23/10/2019 (Ireland) Consumer Discretionary 104.22 36 353 198.39 0.30 40 653 000 FCA CAPITAL IRELAND PLC 2.62% 17/04/2019 (Ireland) Consumer Discretionary 105.17 43 515 806.54 0.35 68 781 000 FCA CAPITAL IRELAND PLC 2.88% 26/01/2018 (Ireland) Consumer Discretionary 103.03 72 714 812.78 0.59 39 028 000 FCA CAPITAL IRELAND PLC 4.00% 17/10/2018 (Ireland) Consumer Discretionary 106.90 42 056 102.33 0.34 10 559 000 FCE BANK PLC 1.75% 21/05/2018 (United Kingdom) Consumer Discretionary 102.54 10 942 540.49 0.09 40 620 000 FCE BANK PLC 1.88% 18/04/2019 (United Kingdom) Consumer Discretionary 104.23 42 878 722.40 0.35 11 195 000 FCE BANK PLC 2.88% 03/10/2017 (United Kingdom) Consumer Discretionary 102.27 11 529 692.16 0.09 27 914 000 FEDEX CORP 0.50% 09/03/2020 (USA) Industrials 101.15 28 335 711.71 0.23 100 653 000 FIAT INDUSTRIAL 6.25% 09/03/2018 (Luxembourg) Consumer Discretionary 107.01 112 874 273.47 0.92 47 200 000 FONCIERE DES REGIONS 3.88% 16/01/2018 (France) Real Estate 104.08 50 889 795.52 0.41 20 000 000 FONCIERE LYONNAISE 1.88% 26/08/2021 (France) Real Estate 105.26 21 091 241.10 0.17 15 100 000 FONCIERE LYONNAISE 2.25% 16/08/2022 (France) Real Estate 107.08 16 213 306.45 0.13 8 200 000 FONCIERE LYONNAISE 3.50% 28/11/2017 (France) Real Estate 103.19 8 489 968.85 0.07 41 440 000 FORD MOTOR CREDIT 1.90% 12/08/2019 (USA) Consumer Discretionary (Dollar) 98.40 38 952 327.47 0.32 38 300 000 GALERIES LAFAYETTE 4.75% 26/04/2019 (France) Consumer Discretionary 109.87 43 337 006.14 0.35 26 800 000 GAS NATURAL CAPITAL 4.12% 24/04/2017 (Spain) Utilities 101.34 27 927 354.85 0.23 29 745 000 GENERAL ELECTRIC CAPITAL 2.88% 18/06/2019 (USA) Industrials 107.33 32 390 361.39 0.26 38 500 000 GENERAL ELECTRIC CAPITAL 6.00% 15/01/2019 (USA) Industrials 112.51 45 550 612.30 0.37 18 061 000 GOLDMAN SACHS GROUP INC 0.75% 10/05/2019 (USA) Financials 101.68 18 452 931.12 0.15 5 050 000 GOLDMAN SACHS GROUP INC 4.50% 30/01/2017 (USA) Financials 100.27 5 273 868.16 0.04 31 642 000 HEIDELBERGCEMENT 5.62% 04/01/2018 (Germany) Materials 105.67 35 212 366.57 0.29 9 050 000 HEIDELBERGCEMENT 8.00% 31/01/2017 (Germany) Materials 100.63 9 414 986.50 0.08 27 100 000 HEIDELBERGCEMENT 9.50% 15/12/2018 (Germany) Materials 118.50 32 242 767.00 0.26 18 215 000 HEINEKEN NV 2.50% 19/03/2019 (Netherlands) Consumer Staples 105.64 19 604 677.24 0.16 28 090 000 HEMSO FASTIGHETS 1.00% 09/06/2026 (Sweden) Real Estate 96.61 27 227 302.23 0.22 59 818 000 HENKEL AG & CO 1.50% 13/06/2019 (Germany) Consumer Staples (Dollar) 99.25 56 549 820.86 0.46 850 000 HSBC FINANCE 4.88% 30/05/2017 (USA) Financials 102.07 892 309.97 0.01 9 000 000 IBERDROLA FINANZAS 4.62% 07/04/2017 (Spain) Utilities 101.26 9 422 091.37 0.08 29 669 000 ING GROEP NV 4.75% 31/05/2017 (Netherlands) Financials 102.05 31 115 652.31 0.25 9 736 000 INTERXION 6.00% 09/01/2017 (Netherlands) Information Technology 104.90 10 485 866.72 0.09 16 347 000 INTESA SAN PAOLO 1.12% 14/01/2020 (Italy) Financials 101.40 16 753 580.71 0.14 30 372 000 INTESA SAN PAOLO 3.00% 28/01/2019 (Italy) Financials 105.21 32 802 696.06 0.27 78 314 000 INTESA SAN PAOLO 4.00% 09/11/2017 (Italy) Financials 103.36 81 418 946.27 0.66 10 700 000 INTESA SAN PAOLO 4.38% 15/10/2019 (Italy) Financials 110.55 11 931 024.74 0.10 38 050 000 INTESA SAN PAOLO 4.75% 15/06/2017 (Italy) Financials 102.17 39 876 691.89 0.33 12 516 000 INTESA SAN PAOLO 4.80% 05/10/2017 (Italy) Financials 103.46 13 096 562.38 0.11 41 500 000 INTESA SAN PAOLO 5.00% 28/02/2017 (Italy) Financials 100.79 43 586 193.66 0.36 8 205 000 INTESA SAN PAOLO 7.00% 19/01/2021 (Italy) Financials (subordinated debt) 99.10 8 393 276.21 0.07 8 000 000 IPSEN SA 1.88% 16/03/2023 (France) Healthcare 101.63 8 212 922.74 0.07 13 742 000 ISLANDSBANKI 1.75% 07/09/2020 (Iceland) Financials 102.39 14 148 042.22 0.12 31 552 000 JOHNSON & JOHNSON 0.25% 20/12/2021 (USA) Healthcare 100.35 31 711 704.99 0.26 FIXED INCOME MANAGEMENT CARMIGNAC FOURTH QUARTER 2016 / 67

FIXED INCOME MANAGEMENT HOLDINGS CARMIGNAC SÉCURITÉ AT 30/12/2016 Price in currencies Total value ( ) % of net assets 36 199 000 JP MORGAN 1.45% 21/08/2018 (USA) Financials (Dollar) 99.58 34 314 766.30 0.28 23 772 000 JP MORGAN 1.65% 23/09/2019 (USA) Financials (Dollar) 99.18 22 458 464.12 0.18 24 438 000 JP MORGAN 1.88% 21/11/2019 (USA) Financials 105.54 25 846 090.78 0.21 46 200 000 KBC BANK 8.00% 25/01/2018 (Belgium) Financials (subordinated debt) 105.77 47 866 270.99 0.39 18 100 000 KBC GROEP NV 2.38% 25/11/2019 (Belgium) Financials (subordinated debt) 103.88 18 848 754.85 0.15 7 859 000 LANDSBANKINN 1.62% 15/03/2021 (Iceland) Financials 101.59 8 022 760.03 0.07 55 227 000 LOCK AS 7.00% 15/08/2017 (Norway) Financials 106.79 60 456 076.45 0.49 44 310 000 LUXOTTICA GROUP 3.62% 19/03/2019 (Italy) Consumer Discretionary 108.21 49 221 824.20 0.40 4 526 000 LVMH 1.25% 04/11/2019 (France) Consumer Discretionary 103.91 4 712 221.34 0.04 93 137 000 MEDIOBANCA SPA 0.88% 14/11/2017 (Italy) Financials 100.64 93 848 439.10 0.77 7 578 000 MEDIOBANCA SPA 2.50% 30/09/2018 (Italy) Financials 104.72 7 984 243.95 0.07 25 481 000 MERCK FINANCIAL SERVICES 0.75% 02/06/2019 (Germany) Healthcare 102.06 26 070 564.02 0.21 21 651 000 MONDELEZ INTERNATIONAL 1.12% 26/01/2017 (USA) Consumer Staples 100.09 21 898 536.59 0.18 18 080 000 MONDI FINANCE 5.75% 03/04/2017 (United Kingdom) Materials 101.46 19 127 770.67 0.16 26 871 000 MORGAN STANLEY 2.25% 12/03/2018 (USA) Financials 102.74 28 098 688.14 0.23 33 500 000 NESTE OIL OYJ 2.12% 17/12/2021 (Finland) Energy 104.47 35 565 275.00 0.29 9 107 000 NOMURA EUROPE 1.88% 29/05/2018 (Netherlands) Financials 102.68 9 453 521.35 0.08 24 231 000 NUMERICABLE 5.38% 15/05/2017 (France) Consumer Discretionary 104.93 25 925 090.17 0.21 18 211 000 NUMERICABLE 5.62% 15/05/2019 (France) Consumer Discretionary 105.94 19 685 408.09 0.16 45 442 000 NYKRE 0.75% 14/07/2021 (Denmark) Financials 100.91 46 015 241.49 0.38 10 804 000 NYKRE 0.88% 13/06/2019 (Denmark) Financials 101.93 11 065 461.24 0.09 7 454 000 NYKRE 4.00% 03/06/2021 (Denmark) Financials (subordinated debt) 103.65 7 901 031.70 0.06 7 200 000 ORANGE 1.88% 02/10/2019 (France) Telecommunication Services 105.20 7 608 941.26 0.06 9 000 000 ORANGE 4.12% 23/01/2019 (France) Telecommunication Services 108.60 10 124 603.11 0.08 4 444 000 ORANGE 5.62% 22/05/2018 (France) Telecommunication Services 108.05 4 956 343.28 0.04 5 729 000 PACCAR FINANCIAL EUROPE 0.12% 24/05/2019 (Netherlands) Industrials 100.70 5 773 669.72 0.05 9 930 000 PPG INDUSTRIES INC 0.00% 03/10/2019 (USA) Materials 100.22 9 952 243.20 0.08 18 000 000 PPR 1.88% 08/10/2018 (France) Consumer Discretionary 103.49 18 708 825.21 0.15 13 544 000 PPR 3.12% 23/04/2019 (France) Consumer Discretionary 107.30 14 828 542.65 0.12 13 907 000 PRICELINE.COM INC 2.15% 25/08/2022 (USA) Consumer Discretionary 106.14 14 793 115.94 0.12 67 283 000 RENAULT 0.38% 10/07/2019 (France) Consumer Discretionary 100.56 67 780 792.81 0.55 9 045 000 RENAULT 2.88% 22/01/2018 (France) Consumer Discretionary 103.05 9 566 964.46 0.08 18 135 000 RENAULT 4.62% 18/09/2017 (France) Consumer Discretionary 103.40 18 996 742.90 0.15 3 908 000 REPSOL INTERNATIONAL FINANCE 4.75% 16/02/2017 (Netherlands) Energy 100.59 4 094 292.87 0.03 17 612 000 ROYAL BANK OF SCOTLAND 10.50% 16/03/2017 (United Kingdom) Financials (subordinated debt) 102.01 19 449 595.07 0.16 21 325 000 ROYAL BANK OF SCOTLAND 3.62% 25/03/2019 (United Kingdom) Financials (subordinated debt) 100.03 21 933 092.60 0.18 35 035 000 ROYAL BANK OF SCOTLAND 5.25% 30/03/2017 (United Kingdom) Financials (subordinated debt) 95.08 34 246 624.91 0.28 9 051 000 ROYAL BANK OF SCOTLAND 5.38% 30/09/2019 (United Kingdom) Financials 113.78 10 425 029.83 0.08 47 422 000 ROYAL BANK OF SCOTLAND 6.93% 09/04/2018 (United Kingdom) Financials (subordinated debt) 107.42 53 364 101.33 0.44 28 533 000 ROYAL BANK OF SCOTLAND 9.50% 16/03/2017 (United Kingdom) Financials (subordinated debt) 101.62 28 255 071.70 0.23 19 700 000 SANOFI 0.00% 05/04/2019 (France) Healthcare 100.28 19 754 963.00 0.16 84 600 000 SANTANDER 1.38% 25/03/2017 (Spain) Financials 100.37 85 820 662.11 0.70 28 900 000 SANTANDER 4.00% 27/03/2017 (Spain) Financials 100.98 30 076 348.77 0.25 20 100 000 SANTANDER 4.12% 04/10/2017 (Spain) Financials 103.29 20 967 199.36 0.17 9 200 000 SANTANDER 6.25% 12/03/2019 (Spain) Financials (subordinated debt) 93.76 8 659 277.67 0.07 37 200 000 SANTANDER CONSUMER 0.62% 20/04/2018 (Norway) Financials 100.82 37 670 870.47 0.31 9 200 000 SANTANDER CONSUMER 0.90% 18/02/2020 (Spain) Financials 101.62 9 421 433.44 0.08 45 500 000 SANTANDER CONSUMER 1.10% 30/07/2018 (Spain) Financials 101.70 46 487 418.56 0.38 17 087 000 SATO OYJ 2.38% 24/12/2020 (Finland) Real Estate 105.20 18 293 077.70 0.15 15 600 000 SCHNEIDER ELECTRIC SE 3.75% 12/07/2018 (France) Industrials 105.83 16 789 647.45 0.14 15 828 000 SCHNEIDER ELECTRIC SE 4.00% 11/08/2017 (France) Industrials 102.55 16 483 443.98 0.13 5 607 000 SECURITAS AB 2.25% 14/03/2018 (Sweden) Industrials 102.63 5 856 314.87 0.05 5 000 000 SIEMENS 1.05% 16/08/2017 (Netherlands) Industrials (Dollar) 99.91 4 754 898.48 0.04 13 577 000 SKANDINAVISKA 2.00% 18/03/2019 (Sweden) Financials 104.62 14 420 202.37 0.12 4 602 000 SNAM SPA 2.38% 30/06/2017 (Italy) Utilities 101.28 4 717 039.91 0.04 4 500 000 SOCIETE DES AUTOROUTES 4.88% 21/01/2019 (France) Industrials 110.00 5 158 496.07 0.04 7 100 000 SOCIETE DES AUTOROUTES 5.12% 18/01/2018 (France) Industrials 105.33 7 827 605.09 0.06 8 100 000 SOCIETE GENERALE 0.75% 25/11/2020 (France) Financials 102.38 8 299 109.10 0.07 22 750 000 SOCIETE GENERALE 5.85% 26/03/2018 (France) Financials (subordinated debt) 107.53 25 495 465.01 0.21 21 400 000 TELEFONICA EMISIONES 2.74% 29/05/2019 (Spain) Telecommunication Services 106.25 23 089 658.40 0.19 11 850 000 TELEFONICA EMISIONES 3.66% 18/09/2017 (Spain) Telecommunication Services 102.73 12 300 089.62 0.10 11 700 000 TELEFONICA EMISIONES 4.80% 21/02/2018 (Spain) Telecommunication Services 105.42 12 820 249.11 0.10 76 446 000 TEVA PHARMACEUTICAL 0.38% 25/07/2020 (Netherlands) Healthcare 99.40 76 116 852.85 0.62 50 736 000 TEVA PHARMACEUTICALS 1.40% 20/07/2018 (Netherlands) Healthcare (Dollar) 99.16 48 002 768.53 0.39 38 744 000 TEVA PHARMACEUTICALS 1.70% 19/07/2019 (Netherlands) Healthcare (Dollar) 98.32 36 397 401.91 0.30 37 899 000 TOTAL SA 2.71% 05/05/2023 (France) Energy (subordinated debt) 97.96 37 374 215.14 0.30 10 173 000 TOTAL SA 3.88% 18/05/2022 (France) Energy (subordinated debt) 105.77 11 006 359.44 0.09 32 584 000 TRINITY ACQUISITION 2.12% 26/02/2022 (United Kingdom) Financials 102.57 33 842 545.84 0.28 38 942 000 TRIONISTA 6.88% 27/01/2017 (Germany) Industrials 105.94 41 724 844.00 0.34 6 856 000 UBS AG 4.75% 12/02/2021 (Switzerland) Financials (subordinated debt) 107.55 7 664 282.41 0.06 15 580 000 UNICREDIT 2.00% 31/07/2017 (Italy) Financials 100.99 16 022 549.90 0.13 14 622 000 UNICREDIT 2.10% 28/12/2017 (Italy) Financials 101.98 15 153 875.25 0.12 16 900 000 UNICREDIT 2.62% 30/01/2018 (Italy) Financials 102.58 17 747 425.57 0.14 44 229 000 UNICREDIT 3.38% 11/01/2018 (Italy) Financials 103.20 47 102 217.35 0.38 120 251 000 UNICREDIT 4.88% 07/03/2017 (Italy) Financials 100.87 126 142 771.87 1.03 20 450 000 UNICREDIT 9.25% 03/06/2022 (Italy) Financials (subordinated debt) 106.76 21 907 392.94 0.18 41 300 000 UNIPER SE 0.12% 08/12/2018 (Germany) Utilities 100.13 41 355 715.40 0.34 63 592 000 VOLKSWAGEN 1.88% 15/05/2017 (Netherlands) Consumer Discretionary 100.73 64 819 273.33 0.53 2 666 000 VOLKSWAGEN 3.25% 21/01/2019 (Netherlands) Consumer Discretionary 106.49 2 921 353.85 0.02 6 506 000 VOLVO 5.00% 31/05/2017 (Sweden) Consumer Discretionary 102.13 6 837 845.21 0.06 23 700 000 WACHOVIA CORP 4.38% 27/11/2018 (USA) Financials (subordinated debt) 108.27 25 764 386.88 0.21 4 544 000 WPP FINANCE 0.75% 18/11/2019 (United Kingdom) Industrials 102.14 4 645 309.41 0.04 5 937 000 XYLEM INC 2.25% 11/12/2022 (USA) Industrials 106.35 6 422 764.53 0.05 Developed countries floating rate corporate bonds 593 946 675.05 4.83 39 321 000 AT&T INC TV 04/06/2019 (USA) Telecommunication Services 100.65 39 586 223.42 0.32 59 961 000 BANK OF AMERICA TV 26/07/2019 (USA) Financials 100.49 60 277 129.38 0.49 68 / Management report CARMIGNAC FOURTH QUARTER 2016

HOLDINGS CARMIGNAC SÉCURITÉ AT 30/12/2016 Price in currencies Total value ( ) % of net assets 14 186 000 COCA-COLA TV 26/11/2017 (United Kingdom) Consumer Staples 100.10 14 200 753.44 0.12 15 677 000 CREDIT SUISSE TV 10/11/2017 (United Kingdom) Financials 100.27 15 723 278.50 0.13 26 759 000 CREDIT SUISSE TV 19/02/2018 (United Kingdom) Financials 100.32 26 849 307.17 0.22 36 100 000 DANONE SA TV 03/11/2018 (France) Consumer Staples 100.23 36 183 391.00 0.29 43 142 000 DANSKE BANK TV 19/11/2018 (Denmark) Financials 100.36 43 298 406.53 0.35 36 824 000 DEUTSCHE TELEKOM INTERNATIONAL TV 03/04/2020 (Netherlands) Telecommunication Services 100.20 36 896 543.28 0.30 28 234 000 FCA CAPITAL IRELAND PLC TV 17/10/2017 (Ireland) Consumer Discretionary 100.42 28 387 202.39 0.23 10 700 000 GOLDMAN SACHS GROUP INC TV 30/01/2017 (USA) Financials 100.02 10 702 862.84 0.09 23 910 000 HBOS PLC TV 21/12/2016 (United Kingdom) Financials (subordinated debt) 99.95 23 901 864.62 0.19 36 258 000 RENAULT TV 27/11/2017 (France) Consumer Discretionary 100.32 36 384 757.97 0.30 37 200 000 TOTAL CAPITAL TV 19/03/2020 (France) Energy 100.21 37 277 748.00 0.30 23 051 000 TOYOTA MOTOR TV 20/07/2018 (USA) Consumer Discretionary 100.17 23 090 417.21 0.19 63 230 000 UNICREDIT TV 13/09/2017 (Italy) Financials 99.76 63 078 248.35 0.51 45 332 000 UNICREDIT TV 19/12/2017 (Italy) Financials 101.12 45 869 859.14 0.37 11 743 000 UNICREDIT TV 30/09/2017 (Italy) Financials 100.35 11 784 884.35 0.10 39 917 000 UNICREDIT TV 31/10/2017 (Italy) Financials 101.06 40 453 797.46 0.33 Emerging markets fixed rate corporate bonds 103 382 165.06 0.84 16 829 000 AMERICA MOVIL SAB 3.75% 28/06/2017 (Mexico) Telecommunication Services 101.86 17 468 296.82 0.14 15 931 000 MOL HUNGARIAN OIL AND GAS 2.62% 28/04/2023 (Hungary) Energy 102.11 16 553 734.06 0.13 9 030 000 MOL HUNGARIAN OIL AND GAS 5.88% 20/04/2017 (Hungary) Energy 101.81 9 568 074.20 0.08 14 857 000 SINOPEC GRP 0.50% 27/04/2018 (China) Energy 100.68 15 008 368.41 0.12 27 150 000 YPF SA 3.75% 30/09/2019 (Argentina) Energy 99.36 25 410 766.45 0.21 18 543 000 YPF SA 8.50% 23/03/2021 (Argentina) Energy (Dollar) 107.81 19 372 925.12 0.16 Asset Backed Securities 780 558 803,53 6,36 31 050 000 KKR CREDIT ADVISORS, AVOCA CAPITAL CLO XIV (Europe) CLO (AAA tranche) 100.92 31 408 202.98 0.26 9 090 000 KKR CREDIT ADVISORS, AVOCA CAPITAL CLO XVI (Europe) CLO (AAA tranche) 101.09 9 239 474.70 0.08 6 208 000 KKR CREDIT ADVISORS, AVOCA CAPITAL CLO XVI (Europe) CLO (AA tranche) 100.08 6 279 266.67 0.05 3 547 000 KKR CREDIT ADVISORS, AVOCA CAPITAL CLO XVI (Europe) CLO (A tranche) 101.33 3 651 364.55 0.03 2 799 000 BLACKROCK, BLACKROCK EUROPEAN CLO II (Europe) CLO (AA tranche) 102.20 2 862 994.52 0.02 37 587 000 CSAM, CADOGAN SQUARE CLO VI (Europe) CLO (AAA tranche) 100.74 37 969 424.73 0.31 8 762 000 CARLYLE, CELF LOAN PARTNERS IV (Europe) CLO (AAA tranche) 99.84 2 990 906.54 0.02 14 541 000 CARLYLE, CARLYLE GMS EURO CLO 2015-3 (Europe) CLO (AAA tranche) 100.93 14 723 933.37 0.12 5 453 000 CARLYLE, CARLYLE GMS EURO CLO 2015-3 (Europe) CLO (BB tranche) 92.99 5 136 387.49 0.04 31 177 000 CARLYLE, CARLYLE GMS EURO CLO 2016-1 (Europe) CLO (AAA tranche) 100.98 31 540 616.37 0.26 4 454 000 CARLYLE, CARLYLE GMS EURO CLO 2016-1 (Europe) CLO (BBB tranche) 101.95 4 565 929.47 0.04 9 846 000 CARLYLE, CARLYLE GMS EURO CLO 2016-2 (Europe) CLO (AA tranche) 100.04 9 858 711.35 0.08 4 476 000 CARLYLE, CARLYLE GMS EURO CLO 2016-2 (Europe) CLO (BB tranche) 95.63 4 295 108.35 0.04 8 706 000 CVC CREDIT PARTNERS, CVC CORDATUS V (Europe) CLO (AAA tranche) 100.93 8 809 979.61 0.07 16 090 000 CVC CREDIT PARTNERS, CVC CORDATUS VII (Europe) CLO (AAA tranche) 100.97 16 245 672.36 0.13 16 090 000 CVC CREDIT PARTNERS, CVC CORDATUS VII (Europe) CLO (AA tranche) 100.55 16 177 799.91 0.13 2 682 000 CVC CREDIT PARTNERS, CVC CORDATUS VII (Europe) CLO (A tranche) 101.03 2 709 558.62 0.02 5 363 000 CVC CREDIT PARTNERS, CVC CORDATUS VII (Europe) CLO (BB tranche) 99.55 5 338 991.99 0.04 26 986 000 CAIRN CAPITAL, CAIRN CLO 2015-5 (Europe) CLO (AAA tranche) 100.95 27 316 785.06 0.22 15 073 000 CAIRN CAPITAL, CAIRN CLO 2016-6 (Europe) CLO (AAA tranche) 100.50 15 147 948.99 0.12 2 970 000 CAIRN CAPITAL, CAIRN CLO 2016-6 (Europe) CLO (AA tranche) 100.47 3 012 026.03 0.02 3 015 000 CAIRN CAPITAL, CAIRN CLO 2016-6 (Europe) CLO (A tranche) 101.03 3 088 600.34 0.03 15 513 000 BLACKSTONE/GSO, DARTRY PARK (Europe) CLO (AAA tranche) 100.88 15 677 816.58 0.13 18 000 000 PRAMERICA, DRYDEN 44 EURO CLO (Europe) CLO (AAA tranche) 100.52 18 218 748.90 0.15 6 200 000 PRAMERICA, DRYDEN 44 EURO CLO (Europe) CLO (AA tranche) 100.16 6 281 980.33 0.05 3 200 000 PRAMERICA, DRYDEN 44 EURO CLO (Europe) CLO (A tranche) 100.43 3 269 383.79 0.03 15 310 000 PRAMERICA, DRYDEN 46 EURO CLO (Europe) CLO (AA tranche) 99.98 15 358 474.52 0.13 23 146 000 PINEBRIDGE INVESTMENTS, EURO GALAXY V (Europe) CLO (AAA tranche) 100.25 23 232 945.63 0.19 29 095 000 GLG PARTNERS, GLG EURO CLO I (Europe) CLO (AAA tranche) 100.14 29 220 426.27 0.24 7 707 000 GLG PARTNERS, GLG EURO CLO II (Europe) CLO (AA tranche) 100.00 7 707 000.00 0.06 8 182 000 BLACKSTONE/GSO, GRIFFITH PARK (Europe) CLO (AA tranche) 99.95 8 178 095.55 0.07 3 818 000 BLACKSTONE/GSO, GRIFFITH PARK (Europe) CLO (A tranche) 100.86 3 850 981.03 0.03 7 000 000 BLACKSTONE/GSO, GRIFFITH PARK (Europe) CLO (BBB tranche) 101.33 7 093 430.40 0.06 35 000 000 CQS, GROSVENOR PLACE CLO 2015-1 (Europe) CLO (AAA tranche) 100.90 35 395 905.77 0.29 10 690 000 INVESTCORP, HARVEST CLO XV (Europe) CLO (AA tranche) 101.03 10 827 749.33 0.09 8 028 000 INVESTCORP, HARVEST CLO XV (Europe) CLO (A tranche) 101.32 8 165 118.60 0.07 5 798 000 INVESTCORP, HARVEST CLO XV (Europe) CLO (BBB tranche) 101.74 5 931 050.64 0.05 4 460 000 INVESTCORP, HARVEST CLO XV (Europe) CLO (BB tranche) 99.04 4 450 813.49 0.04 11 803 000 INVESTCORP, HARVEST CLO XVI (Europe) CLO (AA tranche) 100.47 11 858 911.99 0.10 3 178 000 INVESTCORP, HARVEST CLO XVI (Europe) CLO (A tranche) 101.09 3 242 390.62 0.03 4 086 000 INVESTCORP, HARVEST CLO XVI (Europe) CLO (BBB tranche) 101.72 4 156 275.11 0.03 6 356 000 INVESTCORP, HARVEST CLO XVI (Europe) CLO (BB tranche) 98.38 6 253 241.91 0.05 14 496 000 INVESTCORP, HARVEST CLO VIII (Europe) CLO (AAA tranche) 100.15 14 545 612.88 0.12 10 430 000 HALCYON, HALCYON EUROPEAN FUNDING 2014-1 (Europe) CLO (AA tranche) 100.50 10 522 973.72 0.09 23 620 000 ALCENTRA, JUBILEE CLO 2015-XV (Europe) CLO (AAA tranche) 99.64 23 588 725.55 0.19 20 800 000 OAK HILL ADVISORS, OAK HILL ECP III (Europe) CLO (AAA tranche) 100.93 21 050 449.77 0.17 5 340 000 OAK HILL ADVISORS, OAK HILL ECP III (Europe) CLO (A+ tranche) 100.48 5 397 968.30 0.04 29 000 000 BLACKSTONE/GSO, ORWELL PARK (Europe) CLO (AAA tranche) 100.94 29 352 909.03 0.24 2 615 000 BLACKSTONE/GSO, ORWELL PARK (Europe) CLO (AA+ tranche) 101.00 2 650 437.09 0.02 19 100 000 PARTNERS GROUP, PENTA CLO 2 (Europe) CLO (AAA tranche) 100.92 19 317 886.75 0.16 12 501 000 PARTNERS GROUP, PENTA CLO 2 (Europe) CLO (AA tranche) 100.99 12 665 881.31 0.10 26 590 000 ICG, ST PAUL'S VI (Europe) CLO (AAA tranche) 101.14 27 099 089.15 0.22 4 850 000 CHENAVARI, TORO EUROPEAN CLO 1 (Europe) CLO (AAA tranche) 100.07 4 864 858.95 0.04 27 277 000 CHENAVARI, TORO EUROPEAN CLO 2 (Europe) CLO (AAA tranche) 100.36 27 466 807.00 0.22 5 455 000 CHENAVARI, TORO EUROPEAN CLO 2 (Europe) CLO (BBB tranche) 101.76 5 612 666.23 0.05 19 058 000 TIKEHAU CAPITAL, TIKEHAU CLO (Europe) CLO (AAA tranche) 100.79 19 250 958.76 0.16 28 000 000 TIKEHAU CAPITAL, TIKEHAU CLO II (Europe) CLO (AAA tranche) 100.04 28 040 415.51 0.23 3 938 000 TIKEHAU CAPITAL, TIKEHAU CLO II (Europe) CLO (BB tranche) 96.78 3 834 476.19 0.03 34 180 000 BLACKSTONE/GSO, TYMON PARK (Europe) CLO (AAA tranche) 100.80 34 556 262.88 0.28 Portfolio value 8 542 170 716.08 69.64 Net assets 12 266 066 346.98 100.00 FIXED INCOME MANAGEMENT CARMIGNAC FOURTH QUARTER 2016 / 69

Carlos Galvis Multi-asset and multi-strategy fund. Its investment philosophy focuses on optimizing performance while maintaining ex-ante volatility below 2.5% on an annual basis, in all market conditions. In the fourth quarter, Carmignac Portfolio Capital Plus increased by +0.64%, while its benchmark was down -0.09%, bringing the 2016 performance to +0.07% for the Fund, while the EONIA (compounded) decreased by -0.32%. Over Q4, financial markets were dominated by the US election results. After an unexpected Donald Trump victory, equities rallied, bonds sold off and the dollar strengthened. The FOMC increased rates at its December meeting, but surprised the markets with upward revision on the path of interest rates for the next two years. As a result, the dollar continued to rise, while the front-end of the US curve fully repriced the new Fed dots projections and caused the yield curve to flatten considerably. In Japan, the BoJ kept policy unchanged, while economic data continued to improve steadily. In Europe, the ECB kept the deposit facility rate at -0.40% but extended the APP until December 2017 with a lower monthly pace of 60 billion per month (source : ECB, 08/12/2016). With this background, EM assets underperformed as a stronger dollar and higher rates weighed on EM equities and currencies performance. Going into 2017, the global economy should be supported by monetary policy accommodation in Europe and Japan, while fiscal expansion in the US is expected to boost nominal economic growth over the next few years. In this context, acceleration in economic activity is likely to be more global in this new year as well, as higher inflation prints will likely confirm a genuine cyclical economic recovery. As a result, the equity sector rotation seen over the second half of 2016, with strong outperformance Performance of the fund since its launch 125 120 115 110 6% 105 100 95 12/07 12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 Carmignac Portfolio Capital Plus A EUR acc Eonia compounded 16% Past performance is not necessarily indicative of future performance. Performances are net of fees (excluding applicable entrance fee due to the distributor). by high cyclical sectors relative to more defensive sectors, should continue. Additionally, the persistent sell-off in bond markets and well-supported equity markets seen over Q4 should stabilise in the first part of the year, while the next leg for higher rates and higher equity valuations should be a function of fiscal spending implementation and higher nominal GDP growth. However, the risks are on the downside, as political risks in Europe persist and policy uncertainty on the new US President may strongly jitter markets. With this background, the portfolio should continue to favour equity markets over bond markets and to remain long US dollar, particularly against Asian currencies. Our rate strategy made a positive contribution of +0.23% over the quarter. Fixed income markets saw greater volatility as the US 10 year yield increased by roughly 1%, marking one of the worst quarters for US Treasuries in the last twenty years. Inflation expectations shot up as higher oil prices and improved growth expectations weighed significantly on long duration positions in global bond portfolios. Treasuries underperformed Bunds as policy divergence between the ECB and the Fed became more pronounced. Furthermore, the yield curve steepened first and then flattened as the front-end quickly priced in a more aggressive Fed after the December meeting. Against this background, the Fund benefited from our short US Treasuries position. Going forward, markets are likely to become less dependent on Central banks but highly sensitive to the economic cycle. Given our central scenario of continuing strong US growth, we will be favouring a short bias strategy, but likely to express more via European sovereign bonds relative to US Treasuries. Our FX strategy contributed negatively with -0.13% of performance. As rates in the US spiked relative to those in Japan and Europe, the dollar index strongly outperformed mainly against those two other major currencies. At the same time, the steady CNH devaluation weighed also on the poor performance of Asian currencies particularly the KRW. The Fund benefited from its long dollar positions against the yen and a basket of Asian currencies including the KRW, SGD and TWD. However, the relative value strategies EM currency penalized the Fund and offset the positive contribution from the long dollar call. Going forward, the dollar s upward trend should continue, particularly against Asian currencies. At the same time, the higher premiums on LATAM FX like MXN and BRL should come down as rates stabilise in the US. The portfolio will remain long USD against Asian currencies while favouring LATAM currencies within the emerging market space. * Risk scale from 1 (lowest risk) to 7 (highest risk); risk 1 doesn t mean an investment without risk. The risk category associated with this fund is not guaranteed and may change with time. 70 / Management report FIXED INCOME MANAGEMENT