As we cross the midpoint of the year, it’s heartening to see that emerging markets are on an upward trajectory. This positive trend reaffirms the core principles of our investment strategy, which are predicated on better growth, attractive valuations and more traditional economic policies.

The journey hasn’t been smooth. We’ve weathered three corrections approximately every two months. These volatile shifts test not only our trading skills and long-term predictions but also our faith in the system. They challenge our belief that markets function as effective discounting mechanisms and that, over time, they reward deserving participants.

In emerging markets, we’re all too aware that markets are often less efficient, even among the larger, liquid index names. There are periods when good stocks are discarded along with the bad, leading to frustrating inconsistencies. For instance, India and Mexico, both market favourites until their respective elections, experienced significant declines for different reasons. India managed to rebound, while Mexico did not, possibly due to fears of Mr. Trump’s potential return to power. As a result, Turkey emerged as our top-performing country for the quarter.

Returning to the winners, we must mention Exide, an Indian leader in lead-acid batteries for the auto and industrial sectors. The company has been pioneering local production of lithium batteries in India, securing major customers like Hyundai/Kia. It seems that national champions, particularly in countries like India, can yield attractive returns. MLP Saglik Hizmetleri, a Turkish hospital group, drove positive performance during the quarter on the back of improvement in rates and client uptake of its services. VA Tech Wabag, an Indian water and sewage plant builder, also performed positively, which is attributed to continuing improvement in orders and a rising Indian equities market.

On the detractor front, Tongcheng Travel, a Chinese online travel agency, delivered negative performance during the quarter due to the company announcing increased spending on expanding its international business. Marcopolo, a Brazilian bus manufacturer, also drove negative performance due to heavy profit-taking during the period. Lastly, ZJLD Group, a Chinese manufacturer of baijiu, was a detractor to performance due to a correction in the Chinese equities market.

Despite facing negativity, concerns, opposition, easy selling, and multiple elections, we’ve managed to make gains. This success prompts a somewhat sarcastic contemplation of the upcoming election cycle in several developed countries. While emerging markets may lack the ‘Aspen’ effect typical of the US stock market, their relative advantages continue to offer enticing returns, which our dual philosophy is well-positioned to capture.

Sources for all data: JOHCM/Bloomberg (unless otherwise stated).

The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The Fund's current performance may be lower or higher than the performance data quoted. Investors may obtain performance information current to the most recent month-end, within 7 business days at www.johcm.com or by calling 866-260-9549 or 312-557-5913.

Returns shown, unless otherwise indicated, are total returns, with dividends and income reinvested. Returns for periods of less than one year are not annualized. Fee waivers are in effect; if they had not been in effect performance would have been lower.

The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small capitalization equities in the emerging markets. The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. Investing in an index is not possible.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.

Historical performance of the Emerging Markets Opportunities Fund for Class II Shares prior to its inception is based on the performance of Class I Shares, the share class most similar to Class II. The performance of Class II Shares has been adjusted to reflect differences in expenses.

*Expense ratios as stated in the latest prospectus. Perpetual Americas Funds Services has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until February 1, 2025.

Fund holdings, sector allocation, regional allocation and top 10 countries are subject to change without notification.

The performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The Fund's current performance may be lower or higher than the performance data quoted. Investors may obtain performance information current to the most recent month-end, within 7 business days at www.johcm.com or by calling 866-260-9549 or 312-557-5913.

Returns shown, unless otherwise indicated, are total returns, with dividends and income reinvested. Returns for periods of less than one year are not annualized. Fee waivers are in effect; if they had not been in effect performance would have been lower.

The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small capitalization equities in the emerging markets. The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. Investing in an index is not possible.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.

Historical performance of the Emerging Markets Opportunities Fund for Class II Shares prior to its inception is based on the performance of Class I Shares, the share class most similar to Class II. The performance of Class II Shares has been adjusted to reflect differences in expenses.

*Expense ratios as stated in the latest prospectus. Perpetual Americas Funds Services has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until February 1, 2025.