Equity markets were strong overall in Q2, and volatility fell further, but under the surface there were some notable rotations. As in Q1, the vast majority of index performance came from technology and related sectors, which rallied powerfully in May, when Nvidia’s first-quarter report and guidance was the catalyst for renewed excitement about Artificial Intelligence. For the index as a whole, most of the increase came in the final month, as most other sectors recovered somewhat after a weak May, although in the context of a falling oil price, rising US yields and an increasingly inverted US yield curve, resources and most of the ‘bond proxy’ sectors were still down over the three months.

A large proportion of the fund’s marginal outperformance during the quarter, especially in May, is explained by our relative underexposure to technology. Many of our holdings in the healthcare, utilities and financials sectors were weak, and we used this as an opportunity to top up weights in names such as Deutsche Boerse. On the other hand, we benefitted from strong performance in CRH, Cameco and Komatsu.

We continue to be overweight in the utilities and consumer staples sectors. It is important to note that this is not simply defensive positioning due to a negative short-term macroeconomic view. Bear in mind, we are also overweight in the energy and industrials sectors. The reason we own names like Philip Morris and Heineken is because we believe their growth potential is underappreciated and, therefore, attractively valued at present. Merck and LG Household also contributed negatively to the portfolio this quarter. In 2021 we talked a lot about the emergence of a ‘forgotten middle’ of high-quality companies with strong multi-year growth potential, generally outside the technology sector and, in many cases, with more idiosyncratic than thematic growth drivers. They were ignored in the stampede towards tech-focused ‘lockdown winners’ during Covid, and it is happening again. While everyone else seems to have been reading research notes about how AI is going to transform various sectors and companies, we have been reading about the ongoing nuclear renaissance, the improving corporate governance at various Japanese and Emerging Market companies, and attending investor days with companies like Sanofi and Shell.

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. JOHCM (USA) Inc. has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until January 28, 2024.

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. JOHCM (USA) Inc. has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until January 28, 2024.