After a difficult April and May, the fund bounced back and outperformed in June, underperforming its benchmark index during the quarter but ahead of the benchmark year to date:

• Negative regional allocation, overweight Latin America and underweight Europe.
• Negative stock selection in the materials, energy and financial
• Our best performing stocks were Zealand Pharma, SK Hynix, Recruit, BroadcomandNECCorp, all driven by positive earnings and news flow.
• Our worst performing stocks included Viking Therapeutics, NVIDIA, Apple (which we don’t own) Daifukuand Tenarisand we sold the latter three due to deteriorating fundamentals and trend.

Q2 2024 transactions included:

• Weeded out the losers (mostly software, healthcare and emerging markets). We sold Accenture, AP Memory, CBOE, Daifuku, Dynatrace, Elevance, Globantand Tenaris, as their earnings and price momentum deteriorated.
• Increased Semiconductors and App monetisation. We bought Applovin, Micron, Spotifyand neutralised Nvidia.
• Increased electrification, focusing on pure play mid-cap copper/wiring growth stocks. We bought Antofagasta, Ivanhoe and

Our top-down scorecard showed several important changes:

• The technology sector still has positive fundamentals and trend, but the software industry is deteriorating at the expense of the semiconductor industry. For the first time in history, the semiconductor industry is now bigger than the software industry within the S&P500.
• Some commodity sectors, like the materials sector and the copper industry, have improved, driven mostly by relative price trends as the market begins to anticipate improving earnings.
• Within the traditional low-beta defensive sectors, fundamentals and trend remain poor, with the success of the new anti-obesity drugs becoming bad news for the healthcare sector (fewer co-morbidities) and consumer staples sector (less food & beverage consumption).

Our scenario analysis is bullish. The prospect of falling interest rates and positive earnings will probably lead to a catch-up bull market in lagging areas beyond the Magnificent 7.

• Scenario 1 = 20% probability that the current mega-cap leadership continues. The US’s Magnificent 7 is now down to the Magnificent 4, as Tesla and Apple earnings disappointed, and Meta’s earnings outlook is now being questioned by the market. Their leadership has been replaced by mega-caps we own, such as Novo Nordisk.
• Scenario 2 = 70% probability of a broadening catch-up bull market in lagging areas. The world ex-US industrial/manufacturing/commodity recession is ending, and we expect better performance from non-US stocks/sectors/regions.
• Scenario 3 = 10% probability of a zig-zag or bear market. The risk of resurgent inflation and rising interest rates has reduced, but risks remain from elections in 49% of the worlds population this year, geopolitics, and Middle-East or Ukraine wars escalating.

Second half of 2024 themes:

• Keep weeding out any fundamental losers, and keep buying the dips in our high-conviction neighbourhoods of semiconductors, anti-obesity, electrification, financial growth stocks, Japanese restructuring and emerging markets domestic growth.
• Most low beta sectors have poor or deteriorating fundamentals and price trends. Remain underweight the benchmark index in consumer staples, real estate, telecoms and utilities.
• After the first half of 2024 US mega-cap rally, we expect a catch up rally in other areas. We think Brazil, Indonesia, Japan, the UK and S&P 500 Equal Weighted indices all recover from their first half of 2024 underperformance – but we worry about Europe ex UK .

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 All Country World Index (ACWI) is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging market countries in North and South American, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars. Indexes mentioned are unmanaged statistical composites of stock market performance. 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.

*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 All Country World Index (ACWI) is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging market countries in North and South American, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars. Indexes mentioned are unmanaged statistical composites of stock market performance. 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.

*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.