The main positive stock contributors in Q2 included:

• In the Technology sector, Advantest the Japanese semiconductor testing company benefitting from AI’s need for more complex chip testing.

• In the Financial sector, B3 benefited from improving local country specific financial conditions.

• In the Consumer Discretionary sector, B&M Bargains the leading UK discount retailer expanding into Europe, and Compass the UK based global catering services company.

The main negative detractor in Q2 was being overweight the Healthcare sector, where Sartorius, Merck KGA and Ono Pharmaceutical were all weak after strong relative share prices last year. We think this weakness is temporary so we are buyers of their dips.

In Q2 we sold ICON on concerns over deteriorating future earnings, and bought Danone on expectations of improving future earnings growth.

Statistically there is now a high probability the 10 largest USA stocks start underperforming and other stocks/sectors/regions start outperforming
during the second half of 2023. The largest 10 USA stocks are up 59% year to date, versus 7% for the equally weighted S&P 500 index, and 11.3% for the MSCI World ex USA index. The outperformance of the 10 largest S&P 500 stocks relative to the equally weighted S&P 500 index is at its widest since records began. The current 1,100 basis points contribution from the largest 10 USA stocks to total index performance year to date is the highest by far of any half-year period. It is around 60% greater than the second & third six month periods which were the Tech bubbles of 2020 & 1999 (690 & 680 basis points contributions).

Given that just a handful of technology-related stocks drove the firsthalf rally, sector performance has been extremely lopsided, and several defensive sectors have now reached statistically significant oversold levels. For example, the Ned Davies defensive SHUT (Staples, Healthcare, Utilities, Telecoms) index is almost 3.0 standard deviations oversold, its worst firsthalf performance of any year since it began in 1972. There is a high probability of this mean reverting, driven by the Fed tightening cycle and a deteriorating economic outlook, leading to a defensive-sector resurgence in the second half.

Outside the US equity market, we have not seen this extraordinary disparity between the top 10 largest companies and the rest. The most notable thing we are seeing is the deterioration in the Chinese stock market due to economic and geo-political concerns, versus the improvement in the Japanese stock market due to corporate restructuring that is being driven by the Tokyo Stock Exchange insistence that listed firms take action to raise their price-to-book ratio above one. In other words, “Abenomics third arrow” of corporate restructuring to increase profitability is finally being implemented. As a result, Japan is probably transitioning from ‘sell the rallies’ to ‘buy the dips’.

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.

Historical performance of the International Select Fund for Class II Shares prior to its inception is based on the performance of Class I Shares. The performance of Class II Shares has been adjusted to reflect differences in expenses.

*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.

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 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.

Historical performance of the International Select Fund for Class II Shares prior to its inception is based on the performance of Class I Shares. The performance of Class II Shares has been adjusted to reflect differences in expenses.

*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.