In many respects, this second quarter was exceptional, marked by geopolitical and economic uncertainties that triggered tensions in the bond markets and a decline of around 15% in equity markets. The period was characterized by high volatility, contradictory signals, and an uncertain macroeconomic environment. With the announcement of a reversal on tariff policy, the market brushed aside current risks and rebounded very quickly.
As you can see, our management approach was active and consistent with our market outlook and your investment profile. We remained cautious, and the portfolios held up well when the market fell sharply. Our exposure to the U.S. dollar was limited, as our investments were mainly focused on commodity-related assets—gold, silver, copper. This positioning offered relative protection, despite a 12% decline in the dollar since the beginning of the year.
We remained disciplined in our convictions, and our asset allocation maintained a balance between risk-taking and prudence, while allowing us to seize opportunities identified in bonds, commodities, and certain equity segments. We experienced disappointments in some sectors, such as luxury goods and semiconductors, which weighed on the portfolios. The banking sector was the major winner of the first half of the year.
The third quarter will bring the first corporate earnings releases that incorporate the effects of tariff turmoil and the pass-through of price increases by companies. Positive guidance will be crucial to support a dynamic equity market.
Equity Transactions Per Investment Profile
For securities accounts and life insurance policies, we partially reallocated our gold positions by purchasing silver via the ZKB Silver ETF.
On the equity side, we took advantage of Microsoft’s strong rebound after its earnings release to trim the position, and we increased our holding in Alphabet (Google). This quarter, we also sold Newmont after its substantial rise, to reposition into Europe through the pharmaceutical sector—a sector we consider undervalued—by purchasing the Amundi STOXX Europe 600 Healthcare ETF and/or Roche.
Furthermore, our U.S. dollar exposure was reduced.
For PEA-PME accounts, we made several reductions. In March, we wrote that we had invested in Wallix (cybersecurity software) and Theon International (defense sector). At the end of the second quarter, we decided to take profits after gains of more than 140% on each stock over the semester.
For PEA accounts, we reduced our money-market fund position and gradually increased our equity exposure through the Amundi STOXX Europe 600 Healthcare ETF and the Eurostoxx50 ETF.
Report completed on July 23, 2025
Portfolio Management Team
Equity Markets
| Equity Markets | Value 30/06/25 | Quarterly Performance (%) | 2025 Performance (%) |
| Eurostoxx 50 (€) | 5,303 | 1.0% | 8.3% |
| CAC 40 (€) | 7,666 | -1.6% | 3.9% |
| S&P 500 ($) | 6,205 | 10.6% | 5.5% |
| Nasdaq ($) | 22,679 | 17.6% | 7.9% |
Key Indicators
| Key Indicators | Value 30/06/25 | Quarterly Change (Abs) | 2025 Change (Abs) |
| 10-year OAT (France) | 3.29% | -17 bp | +9 bp |
| 10-year Bund (Germany) | 2.61% | -13 bp | +24 bp |
| 10-year T-Bond (U.S.) | 4.23% | +2 bp | -34 bp |
| EUR/USD Exchange Rate | 1.1787 | +0.097 | +0.143 |
| Gold Ounce ($) | 3,303 | +180 | +679 |
| Brent Oil ($) | 67.61 | -7.1 | -7.0 |