Regnan Global Equity Impact Solutions (REGIX)

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Fund Description

Regnan Global Equity Impact Solutions is a high conviction, diversified, global multi-cap portfolio with a strong emphasis on driving impact through engagement. The team aim to generate long-term outperformance by investing in mission-driven companies that create value for investors by providing solutions for the growing unmet sustainability needs of society and the environment. They use the United Nations Sustainable Development Goals (SDGs) as an investment lens.

Investment Objective

The investment objective of Regnan Global Equity Impact Solutions (the "Fund") is to seek to achieve long-term capital appreciation by investing in companies that contribute solutions to addressing the world's major social and environmental challenges.

  • Tim Crockford

    Head of Equity Impact Solutions

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  • Mohsin Ahmad

    Fund Manager

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  • Maxime Le Floch

    Analyst

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Fund details

Data as at 30 April 2024
Fund size $2.94mn
Strategy size $374.81mn ()
Fund inception date 23 August 2021
Benchmark MSCI ACWI Investable Market Index
Share classes
Institutional (Launch date) 23-August-2021
Minimum investment
Institutional $100,000
Fund codes
Fund Ticker Share Class Fund Number CUSIP
REGIX Institutional 689 46653M716
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
REGIX Institutional 0.89% 1.33%

Perpetual Americas Funds Services (the "Adviser") has contractually agreed to waive fees and reimburse expenses to the extent that Total Annual Operating Expenses (excluding brokerage costs, interest, taxes, dividends, litigation and indemnification expenses, expenses associated with investment in underlying investment companies, and extraordinary expenses) exceed 0.89%, 0.99%, 1.14% and 0.89% for Institutional Shares, Advisor Shares, Investor Shares and Class Z Shares, respectively, until February 1, 2025.

Administration

Investment Advisor Perpetual Americas Funds Services
Transfer Agent Northern Trust
Custodian Northern Trust

Strategy Highlights

As at 31 March 2024

Market Review

Global equity markets began the year in positive territory, with growing optimism of a ‘Goldilocks’ scenario, as growth accelerated with rate cuts expected to follow.

The US economy continued to surprise to the upside despite persistent fears around high interest rates, high inflation and slowing employment growth. With commodity prices accelerating into the new year and services inflation remaining sticky, the outlook for the Fed Funds rate is increasingly contentious. Meanwhile, growth in the Eurozone has faced headwinds despite positive signs that the economy is improving, and debate has commenced as to whether the European Central Bank may lower rates ahead of their US counterparts. The Bank of Japan ended eight years of negative interest rates in a historic move and we visited Tokyo in March and came back with the conviction that Japan’s renewed focus on shareholder value has staying power. Geopolitical risks remain heightened with the situation in Ukraine and the Middle East ongoing and with the potential for escalation.

 

Performance

The strategy lagged the MSCI ACWI IMI reference index during the period, driven by individual stock setbacks and the continued underperformance of the smaller and mid-cap size equities that the strategy is biased towards. 

Aixtron, the German-based compound semiconductor tools producer, reported in-line results for 2023 with strong revenues, order intake, and new customer additions, yet guidance for 2024 was  isappointing. Sentiment was further impacted by the simultaneous announcement from one of Aixtron’s customers that it would end its microLED investment program; however, management has assured us that other customers continue to invest in this technology, which requires Aixtron’s tools, and we continue to believe in future demand for microLED, with potential to deliver 90% energy saving for displays compared to existing LCD technology.

Yduqs, the Brazilian education provider, also had a weak start, with the broader Brazilian market down and concerns around the regulatory environment for distance learning. We believe these concerns are unfounded and may boost Yduqs, which also has a physical presence on campus and stands to benefit from these changes. 

Positively, Japanese-based Horiba gained 45% during the period, with the announcement of an ambitious new long-term plan and improved earnings, driven by rising demand due to Euro 7 emissions regulations and continued strength in orders for its class-leading mass flow controllers as generative AI applications grow.

Lonza also performed strongly during the quarter, gaining 52%, driven by the acquisition of a US biologics site from Roche, which will double its current biologics commercial capacity, and which led to raised mid-term targets. In the current geopolitical environment, Lonza may also stand to gain from any regulations limiting its Chinese competitors.

 

Outlook

It remains unclear how the inflation data reported at the start of Q2 might affect the cadence of interest rates stateside, but recent commentary supports the view that the ECB remains committed to cutting rates sooner rather than later. We remain of the view that the worst of the interest rate headwinds on company cashflows are behind us.

From an equity market perspective, we would expect the discount that small and mid-cap companies now trade at relative to their larger counterparts to gradually close. While the move in the last two months of 2023 was ultimately ‘too much, too soon’, markets will revert to that trend as long as inflation does not head back to the lofty levels seen in 2022.

We remain optimistic about the portfolio’s growth, with some of the destocking headwinds from 2023 turning to tailwinds and continued growth in demand for innovative solutions to environmental and social challenges, and will continue to use volatility to reaffirm our conviction, increasing position sizes at attractive valuations when the timing is right and adding new, exciting businesses to the portfolio along the way

Total Return (%)

Data as at April 30, 2024
  1 Month Total Return 3 Month Total Return YTD Total Return 1 Year Total Return Cumulative Since Inception
Institutional Net -9.50 -4.46 -7.55 4.53 -22.26
Benchmark -3.34 3.77 4.03 16.94 6.93

Monthly returns (%)

Data as at 30 April 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Fund 2021
Benchmark 2021 1.67 -3.99 4.86 -2.68 3.97
Benchmark 2022 -5.19 -2.29 2.04 -7.94 0.06 -8.63 7.14 -3.55 -9.65 6.15 7.61 -3.83 -18.40
Fund 2022 -12.81 -2.22 1.64 -10.07 1.69 -9.99 10.39 -6.22 -10.09 8.96 6.77 -2.93 -25.04
Benchmark 2023 7.28 -2.87 2.41 1.04 -1.10 5.85 3.78 -2.77 -4.13 -3.36 9.18 5.29 21.49
Fund 2023 6.22 -2.93 1.65 0.27 -0.81 7.46 2.65 -5.04 -7.51 -7.70 13.81 12.01 18.82
Fund 2024 -3.23 3.84 1.67 -9.50 -7.55
Benchmark 2024 0.20 4.12 3.05 -3.34 4.03

Top 10 holdings and active weights

Data as at 30 April 2024
Top 10 holdings
Northern Institutional Treasury Portfolio 5.37%
Ecolab 4.96%
Xylem 4.92%
Lonza 4.75%
PTC 4.74%
Munters 4.59%
Horiba 4.26%
Stevanato Group 4.16%
Novo Nordisk 4.16%
Hannon Armstrong 4.13%
Top 10 active weights
Northern Institutional Treasury Portfolio +5.37%
Ecolab +4.88%
Xylem +4.88%
PTC +4.71%
Lonza +4.69%
Munters +4.58%
Horiba +4.25%
Stevanato Group +4.16%
Hannon Armstrong +4.13%
Carl Zeiss Meditec +4.07%

Regional / Country breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Brazil 6.78% 0.52% 6.25%
Denmark 5.63% 0.85% 4.77%
France 3.96% 2.66% 1.3%
Germany 15.12% 1.95% 13.17%
Italy 4.16% 0.69% 3.46%
Japan 4.26% 5.97% -1.71%
Sweden 4.59% 0.83% 3.75%
Switzerland 8.31% 2.06% 6.25%
United Kingdom 3.93% 3.62% 0.31%
United States 33.30% 62.01% -28.71%
Cash 0.27% 0% 0.27%

Sector breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Health Care 41.94% 11.10% 30.80%
Industrials 30.47% 11.75% 18.70%
Information Technology 24.40% 22.60% 1.80%
Financials 13.41% 15.75% -2.40%
Consumer Discretionary 13.15% 11.37% 1.80%
Materials 9.01% 4.53% 4.50%
Utilities 2.68% 2.42% 0.30%
Communication Services 0.00% 7.01% -7.00%
Consumer Staples 0.00% 6.31% -6.30%
Energy 0.00% 4.35% -4.40%
Real Estate 0.00% 2.75% -2.80%
Cash -35.09% 0.00% -35.09%

Market cap breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Large 39.77% 76.90% -7.10%
Mid 46.58% 21.87% 33.03%
Small 8.11% 1.23% -0.88%

Fund

As at noon Share class Currency CUSIP Number NAV Change Change % Previous
JOHCM International Select Fund 17/05/2024 Institutional USD 46653M849 24.36 -0.11 -0.45% 24.47
Investor USD 46653M823 24.42 -0.11 -0.45% 24.53
JOHCM Emerging Markets Opportunities Fund 17/05/2024 Advisor USD 46653M203 11.87 0.04 0.34% 11.83
Institutional USD 46653M104 11.89 0.03 0.25% 11.86
Investor USD 46653M302 11.85 0.04 0.34% 11.81
JOHCM Global Select Fund 17/05/2024 Advisor USD 46653M807 13.82 -0.01 -0.07% 13.83
Institutional USD 46653M708 13.85 -0.01 -0.07% 13.86
JOHCM Emerging Markets Discovery Fund 17/05/2024 Advisor USD 46653M500 14.92 0.08 0.54% 14.84
Institutional USD 46653M401 14.90 0.07 0.47% 14.83
JOHCM International Opportunities Fund 17/05/2024 Institutional USD 46653M872 12.81 0.00 0.00% 12.81
Regnan Global Equity Impact Solutions 17/05/2024 Institutional USD 46653M716 8.06 0.00 0.00% 8.06
TSW Large Cap Value Fund 17/05/2024 Institutional USD 46653M641 13.41 0.03 0.22% 13.38
TSW Emerging Markets Fund 17/05/2024 Institutional USD 46653M666 9.67 0.00 0.00% 9.67
TSW High Yield Bond Fund 17/05/2024 Institutional USD 46653M658 9.11 -0.01 -0.11% 9.12
10 Nov 2022

Regnan Global Equity Impact Solutions Strategy

Quarterly Impact Report Q2 2022

21 Feb 2022

Q4 Quarterly Impact Report - Regnan Global Equity Impact Solutions

The latest quarterly impact report features thematic research on Liquid Biopsy – a promising alternative to traditional tissue-based biopsies.

25 Apr 2023

Is It Now for Small and Mid-Caps?

Should investors stick to large-cap, which has served many so well, or are is now the time to take a fresh look at small and mid-caps?

Prospectus

An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending any money. This and other important information about the Funds can be found in the Fund’s(s) prospectus or summary prospectus which can be obtained at www.johcm.com or by calling 866-260-9549 or 312-557-5913. Please read the prospectus or summary prospectus carefully before investing. The Perpetual Americas Funds are advised by JOHCM (USA) Inc. and distributed through Perpetual Americas Funds Distributors, LLC, member FINRA. The Perpetual Americas Funds are not FDIC-insured, may lose value, and have no bank guarantee.

Risks

The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. Investing in companies in emerging markets involves higher risk than investing in established economies or securities markets. Emerging Markets may have less stable legal and political systems, which could affect the safe-keeping or value of assets. The Fund’s investment include shares in small-cap companies and these tend to be traded less frequently and in lower volumes than larger companies making them potentially less liquid and more volatile. The Fund intends to invest its assets in companies that meet its impact investing criteria pursuant to the Regnan Taxonomy. This may affect the Fund’s exposure to certain companies or industries and the Fund will forego certain investment opportunities. The Fund’s results may be lower than other funds that do not seek to invest in companies based on expected environmental or societal impact outcomes. Successful application of the Fund’s impact investing strategy will depend on its portfolio managers’ ability to identify and analyze a company’s impact, and there can be no assurance that the strategy or techniques employed will be successful.

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