Tim Crockford
Head of Equity Impact Solutions
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.
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.
Head of Equity Impact Solutions
Fund Manager
Analyst
Analyst
Fund size | $3.81mn | ||||||||
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Strategy size | $377.20mn () | ||||||||
Fund inception date | 23 August 2021 | ||||||||
Benchmark | MSCI ACWI Investable Market Index | ||||||||
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Fees and Expenses |
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Investment Advisor | JOHCM (USA) Inc. |
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Transfer Agent | Northern Trust |
Custodian | Northern Trust |
Market Review
Global equity markets finished the fourth quarter in positive territory, driven by renewed optimism of a soft-landing scenario. With inflation continuing to ease and without a significant increase in unemployment, the Federal Reserve’s tightening cycle is coming to an end, with the Federal Open Market Committee now signalling rate cuts in 2024. While this is a clear pivot from the Fed, there remains the risk of recession, with tight monetary conditions continuing to feed through the economy with a lag, and recent macroeconomic indicators suggesting a slowdown in manufacturing activity and private hiring for the US, in the fourth quarter. Geopolitical risks have heightened with the situation in Israel-Gaza ongoing and with the potential for escalation into a broader regional conflict, which could lead to further disruption to supply chains and energy prices
Performance
The strategy outperformed the MSCI ACWI IMI reference index during the period, driven by positive stock selection led by Autolus and Horiba. Autolus, the early-stage biotech developing CAR T-cell immunotherapies, was the most significant contributor during the quarter, gaining 176% following positive data released at the American Society of Haematology conference, confirming the favourable safety and efficacy profile of Obe-Cel, its adult Acute Lymphoblastic Leukaemia treatment, which is close to commercialisation. Alfen, the Dutch-based European market leader in EV charging solutions, also performed strongly during the quarter, driven by better-than-expected earnings across all business lines and with positive developments in EV Charging with customers starting to order again
after a period of destocking.
Stevanato, the leading provider of drug containment and delivery solutions, reported weaker than expected backlog growth, with an unfavourable mix towards its engineering business, which comes at lower margins. However, we continue to believe Stevanato is well positioned to benefit longer term from the opportunity in its high-value solutions business, especially with capacity expansions, which are on track to generate first revenues from 2023Q4. Lonza, the global CDMO (contract development and manufacturing organisation) leader, also contributed negatively, following surprisingly soft guidance announced at its Capital Markets Day.
During the quarter, we initiated a new position in Kardex, a Swiss-based global leader in intralogistics solutions for automated storage, retrieval and material handling systems. Kardex intralogistic solutions improve the efficiency of logistics processes within manufacturing or distribution centres through automation and can drive an 80-85% reduction in space requirements, significantly improving the carbon footprint of operations. We also re-initiated a position in Hannon Armstrong Sustainable Infrastructure, which we had benched in mid-2022 on the back of structural margin concerns. The specialist financial services provider has devised an impressive plan to limit the rise in their funding costs, which gives us more visibility and conviction in our forecasts.
Outlook
The Fed’s latest commentary signals a shift in market sentiment towards small and mid-cap companies, which have been out of favour for over 18 months, with headline valuations below those of larger companies impacted the most by rising rates in recent years. However, the risk of recession remains with monetary tightening continuing to feed through the economy with a lag, with recent indicators suggesting a slowdown in economic activity in the fourth quarter.
We remain optimistic about the portfolio’s growth profile given the highly innovative solutions that drive the investment case for each of the businesses we are invested in and will continue to use volatility to reaffirm and strengthen our conviction, increasing position sizes at attractive valuations when the timing is right and adding new, exciting businesses to the portfolio along the way.
1 Month Total Return | 3 Month Total Return | YTD Total Return | 1 Year Total Return | Cumulative Since Inception | |
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Institutional Net | 3.84 | 12.54 | 0.48 | 15.79 | -15.51 |
Benchmark | 4.12 | 9.93 | 4.39 | 21.56 | 7.29 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Annual | ||
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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 | 0.48 | ||||||||||
Benchmark | 2024 | 0.20 | 4.12 | 4.39 |
Munters | 8.21% |
Horiba | 7.64% |
YDUQS | 6.82% |
Ecolab | 6.78% |
Xylem | 6.76% |
PTC | 6.57% |
Bank Rakyat Indonesia | 6.56% |
Stevanato Group | 6.29% |
Ansys | 5.98% |
Lonza | 5.81% |
Munters | +8.21% |
Horiba | +7.63% |
YDUQS | +6.82% |
Xylem | +6.72% |
Ecolab | +6.70% |
PTC | +6.54% |
Bank Rakyat Indonesia | +6.52% |
Stevanato Group | +6.29% |
Ansys | +5.94% |
Lonza | +5.76% |
Portfolio | Benchmark | Relative | ||
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Brazil | 12.12% | 0.56% | 11.55% | |
Denmark | 6.82% | 0.81% | 6% | |
France | 6.94% | 2.65% | 4.29% | |
Germany | 17.05% | 1.95% | 15.1% | |
Indonesia | 6.56% | 0.19% | 6.36% | |
Japan | 7.64% | 6.1% | 1.53% | |
Sweden | 8.21% | 0.85% | 7.35% | |
Switzerland | 8.27% | 2.15% | 6.12% | |
United Kingdom | 6.60% | 3.35% | 3.24% | |
United States | 37.02% | 62.5% | -25.47% |
Portfolio | Benchmark | Relative | ||
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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% |
Portfolio | Benchmark | Relative | ||
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Large | 38.87% | 76.95% | -6.82% | |
Mid | 57.04% | 21.81% | 35.23% | |
Small | 0.27% | 1.24% | -0.97% |
Fund |
As at noon | Share class | Currency | CUSIP Number | NAV | Change | Change % | Previous | |
JOHCM International Select Fund | 28/03/2024 | Institutional | USD | 46653M849 | 25.06 | -0.13 | -0.52% | 25.19 | |
Investor | USD | 46653M823 | 25.12 | -0.13 | -0.51% | 25.25 | |||
JOHCM Emerging Markets Opportunities Fund | 28/03/2024 | Advisor | USD | 46653M203 | 11.27 | 0.05 | 0.45% | 11.22 | |
Institutional | USD | 46653M104 | 11.29 | 0.05 | 0.44% | 11.24 | |||
Investor | USD | 46653M302 | 11.25 | 0.05 | 0.45% | 11.20 | |||
JOHCM Global Select Fund | 28/03/2024 | Advisor | USD | 46653M807 | 13.94 | -0.02 | -0.14% | 13.96 | |
Institutional | USD | 46653M708 | 13.97 | -0.01 | -0.07% | 13.98 | |||
JOHCM Emerging Markets Discovery Fund | 28/03/2024 | Advisor | USD | 46653M500 | 14.32 | 0.01 | 0.07% | 14.31 | |
Institutional | USD | 46653M401 | 14.31 | 0.01 | 0.07% | 14.30 | |||
JOHCM International Opportunities Fund | 28/03/2024 | Institutional | USD | 46653M872 | 12.55 | -0.03 | -0.24% | 12.58 | |
Regnan Global Equity Impact Solutions | 28/03/2024 | Institutional | USD | 46653M716 | 8.53 | -0.04 | -0.47% | 8.57 | |
TSW Large Cap Value Fund | 28/03/2024 | Institutional | USD | 46653M641 | 13.38 | 0.05 | 0.38% | 13.33 | |
TSW Emerging Markets Fund | 28/03/2024 | Institutional | USD | 46653M666 | 9.28 | 0.03 | 0.32% | 9.25 | |
TSW High Yield Bond Fund | 28/03/2024 | Institutional | USD | 46653M658 | 9.14 | 0.00 | 0.00% | 9.14 |
Quarterly Impact Report Q2 2022
The latest quarterly impact report features thematic research on Liquid Biopsy – a promising alternative to traditional tissue-based biopsies.
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?
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.
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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