Core thoughts

Three topics that have been dominating the thoughts and actions of the JOHCM UK Opportunities team over the last quarter.

  • Rachel Reutter
  • Michael Ulrich
22 Jan 2021
View PDF   Download PDF  
View PDF   Download PDF  
  • Structural tailwinds from economic rebuilding - fiscal stimulus, targeted infrastructure spending and the potential re-emergence of inflation in parts of the economy have formed an accelerating structural trend. The need to rebuild economies with more than just interest rate cuts, coupled with the political capital to be won from investing (rather than more austerity), make greater fiscal spending a likely tailwind for a number of years. We’ve added Wood Group, IMI and Redrow to the portfolio. 
  • Pockets of overvaluation - the strong market recovery in the second half of 2020 has once again led to pockets of overvaluation. Whilst our preference is always for companies that can see meaningful growth in the medium and long term, we remain disciplined on what we are prepared to pay for them. We sold Experian and Ferguson on valuation grounds.
  • ESG matters - Our ESG discussions revolve around our proprietary ESG scorecard which forms a crucial component of our quality control process. During 2020 the team had 114 engagements with companies in the form of 1-1 meetings, emails and wider collaborations. As a result of our work, the Fund has an MSCI ESG rating of AA, placing it in the top 4% of funds rated by MSCI globally.


For professional investors only. Past performance is no guarantee of future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation. 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.

For a better experience, we recommend viewing this website in landscape orientation.