Volatility increased in Q2 compared to Q1, with a dip in early April. However, by the quarter’s end, equity markets showed a return to narrow leadership. The ‘Mag-7’ remained prominent, but within the technology sector, there were significant subsector differences. Software and Services dropped 7% in the first two months and only recovered to a 2% decline for the quarter. In contrast, semiconductors and hardware surged by over 15% during the three months. Four mega-cap companies (all non-US) experienced gains exceeding 20% each in the quarter. These companies were responsible for nearly all market growth and now hold a dominant position. Additionally, twelve mega-cap companies (including the ‘Mag-7’ plus other major semiconductor firms and pharmaceutical players) represent a significant portion of the global market. Notably, the number of companies with a market capitalisation exceeding $1 trillion has doubled in under six years.

With little exposure to this group of stocks, the fund was negative during the quarter, outperforming the drawdown in April but lagging the tech-driven recovery.

When leadership is this narrow, it is easy to assume that there is only one way to deliver returns, and that requires you to get a handful of big thematic and macro calls right. We disagree - there are a lot of interesting things going on beyond AI, GLP-1s, inflation and interest rates. Since Covid, there has been an unusual lack of coordination between cycles, and this has created some real disconnects between valuations and fundamentals. Currently, there is a multitude of sectors worth monitoring closely, including traditionally stable areas such as staples (eg spirits) and healthcare (eg life sciences), as well as more classically cyclical areas like industrial automation and automotive semiconductors. By triangulating compounding potential, valuation and execution, our process allows us to recognise when these disconnects represent genuine opportunities and are likely todrive strong medium-term returns.

We added four new names to the portfolio towards the end of the quarter, such as the Australian insurer QBE and the Japanese electronics company Murata. Given we were already at our maximum of forty stocks, these were funded by the sale of Continental, Wartsila, Bankinter and Tokio Marine Holdings.

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 EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. Any Indicies mentioned are unmanaged statistical composites of stock market performance. Investing in an index is not possible.

*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, 2026.

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 EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. Any Indicies mentioned are unmanaged statistical composites of stock market performance. Investing in an index is not possible.

*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, 2026.