Ben Leyland
Senior Fund Manager
The JOHCM International Opportunities Fund is managed by Ben Leyland, senior fund manager, and Robert Lancastle, fund manager, supported by dedicated analyst Jasmeet Munday. The team seeks to generate high risk-adjusted returns with volatility below that of the broad market by focusing on high-quality, cash-flow-generative companies. They blend the best of quality investing with the best of value investing in order to avoid the two major sources of capital destruction at market turning points: overvaluation and overleverage. They prioritize businesses with strong franchises, strong balance sheets and the ability to create shareholder value by reinvesting in areas of competitive advantage, but they only commit capital where they see a favorable risk/reward ratio, i.e., limited downside and substantial upside on a 3- to 5-year horizon. They emphasize absolute rather than relative returns and are prepared to hold up to 20% cash in the fund when valuations are unattractive.
The team aims to deliver above-average risk-adjusted equity returns over the medium term. They believe this is best achieved by investing in a concentrated, unconstrained portfolio of attractively valued compound growth companies. They prioritize companies that are able to reliably generate cash flow and reinvest it at high marginal returns in order to grow their intrinsic value. As a result, the companies become more valuable over time.
The investment objective of the JOHCM International Opportunities Fund is to achieve long-term total return by investing in a concentrated portfolio of international equity securities. The Fund invests, under normal market conditions, primarily in equity securities of companies headquartered outside the U.S., including those in emerging markets. The Fund may invest in foreign companies of any size, including small- and mid-capitalization companies, in order to achieve its objective. Equity securities include common and preferred stocks, rights and warrants. The Fund may also invest in equity related instruments, such as equity linked notes and participation notes, all of which derive their value from equities. Equity linked notes and participation notes will be securitized, freely transferable and the Fund will not be leveraged as a result of investing in them. The portfolio typically contains 25 to 40 stocks,* with position sizes of 2% to 5%. The Fund is benchmarked against the MSCI EAFE Index, but their process is benchmark-agnostic: The team aims to cluster exposure around particularly attractive areas and have zero exposure to overleveraged or overvalued areas of the market. The process is biased toward larger-cap (>$5 billion) multinationals listed in developed markets.
*The number of stocks in the portfolio will be fewer than 50.
Senior Fund Manager
Senior Fund Manager
Analyst
Fund managers Christopher Lees and Nudgem Richyal believe stock markets are inefficient and aim to exploit market anomalies via an investment process that combines both top-down and bottom-up research. Their intuitive “4-Dimensional” investment process (stocks, sectors, countries, time/change) focuses on the be...
Read MoreFund size | $30.44mn | ||||||||
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Benchmark | MSCI EAFE Index | ||||||||
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Investment Advisor | JOHCM (USA) Inc. |
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Transfer Agent | Northern Trust |
Custodian | Northern Trust |
Equity markets rallied in the fourth quarter 2024 in response to rising hopes for rate cuts during. In the first quarter 2024, those hopes receded somewhat, not least because progress back to 2% inflation appears to be stalling, but equity markets continued to rally and volatility continued to fall. The VIX volatility index is back to pre-Covid levels.
The market continued to be led by the technology and media sectors, nor was it purely a US rally - semiconductors outside the US were also very strong; for example, both TSMC and ASML were up 31%, and it is worth noting that the Japanese market outperformed the US, helped by further yen weakness and improving macro sentiment. Nevertheless, the rising cyclical optimism was certainly, with strength in industrials and materials reflecting a variety of lead indicators turning upwards, including housing starts, rail volumes and the manufacturing PMI index, which ended the quarter above 50 for the first time since October 2022. The trough last year, if it turns out to be a trough, has been very mild. One explanation is the unusual lack of coordination between different cycles since Covid. For example, light vehicle sales were weak in 2020 to 2022 and recovered quite strongly last year, whereas housing starts were strong until mid-2022 before weakening due to rising interest rates. Most recently, we have seen various post-Covid destocking cycles affecting diverse sectors such as transport/logistics, beverages and healthcare.
We don’t have much direct exposure to cyclicals or the semiconductor sector, so we underperformed during the quarter, but it was pleasing to see good performance from the names we do have with exposure to these areas. The thesis of a renewed cycle of capital expenditure and infrastructure renewal is coming through nicely.
Drags on absolute performance came from a few names in sectors affected by the destocking cycle mentioned above. We are monitoring both valuation and fundamental execution to assess whether these situations are buying opportunities. Our exposure to the health care sector continues to grow. It is probably the best place to find ‘forgotten middle’ names at present, with valuations looking increasingly attractive as a few temporary headwinds have masked the structural tailwinds from demographics, innovation and outsourcing.
It has been unrewarding in recent months to be invested in stocks with poor relative earnings momentum in a market which, in the short term, is as much an extrapolating machine as a voting machine. We will continue to ensure the portfolio has a good balance between companies with strong execution trading at reasonable valuations and companies on much more compelling valuations but with weaker current execution, which we believe is leading investors to ignore a strong longer-term outlook.
1 Month Total Return | 3 Month Total Return | YTD Total Return | 1 Year Total Return | Cumulative Since Inception | |
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Institutional Shares Net | 2.95 | 6.18 | 6.18 | 17.70 | 72.36 |
Benchmark | 3.29 | 5.78 | 5.78 | 15.32 | 67.13 |
1 Year | 2 Year | 3 Year | 4 Year | 5 Year | 10 Year | Annualized Since Inception | |
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Institutional Shares Net | 17.70 | 14.53 | 7.87 | 14.13 | 8.62 | 7.53 | |
Benchmark | 15.32 | 6.64 | 4.78 | 13.56 | 7.33 | 7.09 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Annual | ||
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Fund | 2016 | -0.24 | -3.28 | -2.60 | 2.01 | -4.13 | ||||||||
Benchmark | 2016 | -0.29 | -2.05 | -1.99 | 3.42 | |||||||||
Fund | 2017 | 0.85 | 1.95 | 1.91 | 2.88 | 5.22 | -0.99 | 2.18 | 1.26 | 1.32 | 0.71 | -0.15 | -0.18 | 18.17 |
Benchmark | 2017 | 2.90 | 1.43 | 2.75 | 2.54 | 3.67 | -0.18 | 2.88 | -0.04 | 2.49 | 1.52 | 1.05 | 1.61 | 25.02 |
Fund | 2018 | 1.56 | -3.12 | 1.58 | 1.23 | -1.02 | -0.34 | 1.09 | -0.66 | 1.23 | -6.16 | 1.00 | -3.88 | -7.58 |
Benchmark | 2018 | 5.02 | -4.51 | -1.80 | 2.28 | -2.25 | -1.22 | 2.46 | -1.93 | 0.87 | -7.96 | -0.13 | -4.85 | -13.79 |
Fund | 2019 | 5.08 | 2.00 | 1.63 | 2.83 | -4.76 | 5.27 | -2.07 | -0.74 | 1.93 | 2.75 | 0.40 | 2.92 | 18.15 |
Benchmark | 2019 | 6.57 | 2.55 | 0.63 | 2.81 | -4.80 | 5.93 | -1.27 | -2.59 | 2.87 | 3.59 | 1.13 | 3.25 | 22.01 |
Fund | 2020 | -0.92 | -6.55 | -11.34 | 3.46 | 5.38 | 2.02 | 4.34 | 2.42 | -2.90 | -4.26 | 15.23 | 3.50 | 8.20 |
Benchmark | 2020 | -2.09 | -9.04 | -13.35 | 6.46 | 4.35 | 3.40 | 2.33 | 5.14 | -2.60 | -3.99 | 15.50 | 4.65 | 7.82 |
Fund | 2021 | -1.67 | 1.78 | 2.54 | 4.30 | 2.35 | -1.98 | -0.20 | 0.11 | -5.77 | 2.16 | -6.63 | 5.79 | 2.02 |
Benchmark | 2021 | -1.07 | 2.24 | 2.30 | 3.01 | 3.59 | -1.44 | 0.75 | 1.76 | -2.90 | 2.46 | -4.65 | 5.12 | 11.26 |
Fund | 2022 | 0.11 | -0.83 | -3.04 | -1.97 | 2.22 | -8.45 | 6.10 | -5.49 | -8.09 | 7.25 | 12.79 | 0.99 | -0.59 |
Benchmark | 2022 | -4.83 | -1.77 | 0.64 | -6.47 | 0.75 | -9.28 | 4.98 | -4.75 | -9.35 | 5.38 | 11.26 | 0.08 | -14.45 |
Fund | 2023 | 7.54 | -1.68 | 2.00 | 2.05 | -4.11 | 5.33 | 2.80 | -2.37 | -2.25 | -3.13 | 7.71 | 5.07 | 19.54 |
Benchmark | 2023 | 8.10 | -2.09 | 2.48 | 2.82 | -4.23 | 4.55 | 3.24 | -3.83 | -3.42 | -4.05 | 9.28 | 5.31 | 18.24 |
Fund | 2024 | -0.25 | 3.39 | 2.95 | 6.18 | |||||||||
Benchmark | 2024 | 0.58 | 1.83 | 3.29 | 5.78 |
Share Class | Gross Expense* | Net Expense* |
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Institutional | 4.20% | 0.50% |
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.
Northern Institutional Treasury Portfolio | 4.56% |
Deutsche Bérse | 3.99% |
Shellé | 3.95% |
Compass Group | 3.93% |
Thales Group | 3.78% |
Merck KGaA | 3.60% |
Intact | 3.50% |
CRH | 3.37% |
Sanofi | 3.30% |
Komatsué | 3.29% |
Northern Institutional Treasury Portfolio | +4.56% |
Deutsche Börse | +3.76% |
Thales Group | +3.68% |
Compass Group | +3.63% |
Intact | +3.50% |
Merck KGaA | +3.46% |
Komatsu | +3.14% |
CRH | +3.02% |
Fujifilm | +2.99% |
Ebara Corporation | +2.96% |
Portfolio | Benchmark | Relative | ||
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Canada | 7.35% | 0% | 7.35% | |
France | 14.51% | 12.12% | 2.38% | |
Germany | 11.47% | 8.71% | 2.76% | |
Ireland | 3.37% | 0.69% | 2.67% | |
Japan | 21.45% | 23.55% | -2.09% | |
Netherlands | 2.93% | 5.07% | -2.13% | |
Sweden | 4.45% | 3.07% | 1.38% | |
Switzerland | 4.56% | 9.36% | -4.8% | |
United Kingdom | 15.69% | 14.18% | 1.51% | |
United States | 7.30% | 0% | 7.3% | |
Cash | 0.25% | 0% | 0.25% |
Portfolio | Benchmark | Relative | ||
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Financials | 48.42% | 19.20% | 29.20% | |
Industrials | 24.07% | 16.84% | 7.30% | |
Consumer Discretionary | 15.29% | 12.61% | 2.70% | |
Health Care | 9.96% | 12.82% | -2.80% | |
Consumer Staples | 9.12% | 8.71% | 0.40% | |
Energy | 8.83% | 3.93% | 4.90% | |
Information Technology | 5.51% | 9.52% | -4.00% | |
Communication Services | 5.27% | 4.10% | 1.20% | |
Materials | 1.47% | 7.11% | -5.60% | |
Real Estate | 0.00% | 2.03% | -2.00% | |
Utilities | 0.00% | 3.07% | -3.10% | |
Cash | -27.99% | 0.00% | -27.99% |
Portfolio | Benchmark | Relative | ||
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<10BN | 13.43% | 8.08% | 5.35% | |
>10BN | 83.60% | 91.92% | -8.32% |
Fund |
As at noon | Share class | Currency | CUSIP Number | NAV | Change | Change % | Previous | |
JOHCM International Select Fund | 03/05/2024 | Institutional | USD | 46653M849 | 23.56 | 0.32 | 1.38% | 23.24 | |
Investor | USD | 46653M823 | 23.62 | 0.33 | 1.42% | 23.29 | |||
JOHCM Emerging Markets Opportunities Fund | 03/05/2024 | Advisor | USD | 46653M203 | 11.42 | 0.01 | 0.09% | 11.41 | |
Institutional | USD | 46653M104 | 11.45 | 0.02 | 0.17% | 11.43 | |||
Investor | USD | 46653M302 | 11.41 | 0.02 | 0.18% | 11.39 | |||
JOHCM Global Select Fund | 03/05/2024 | Advisor | USD | 46653M807 | 13.39 | 0.22 | 1.67% | 13.17 | |
Institutional | USD | 46653M708 | 13.41 | 0.21 | 1.59% | 13.20 | |||
JOHCM Emerging Markets Discovery Fund | 03/05/2024 | Advisor | USD | 46653M500 | 14.74 | 0.07 | 0.48% | 14.67 | |
Institutional | USD | 46653M401 | 14.72 | 0.06 | 0.41% | 14.66 | |||
JOHCM International Opportunities Fund | 03/05/2024 | Institutional | USD | 46653M872 | 12.48 | 0.09 | 0.73% | 12.39 | |
Regnan Global Equity Impact Solutions | 03/05/2024 | Institutional | USD | 46653M716 | 7.87 | 0.12 | 1.55% | 7.75 | |
TSW Large Cap Value Fund | 03/05/2024 | Institutional | USD | 46653M641 | 13.01 | 0.04 | 0.31% | 12.97 | |
TSW Emerging Markets Fund | 03/05/2024 | Institutional | USD | 46653M666 | 9.41 | 0.03 | 0.32% | 9.38 | |
TSW High Yield Bond Fund | 03/05/2024 | Institutional | USD | 46653M658 | 9.10 | 0.03 | 0.33% | 9.07 |
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.
Opportunities and Challenges in the International Investing Landscape
Despite demographic challenges, there are unique opportunities within the Japanese equity market.
A number of capital cycles are turning. We believe investors need to shift their focus towards sectors which have been overlooked.
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