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JOHCM re-opens two funds to new investors - UK Dynamic Fund and UK Equity Income Fund

JOHCM has re-opened two flagship funds as 'tide turns' for UK equities. 

13 Jan 2022
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JOHCM has re-opened two of its award winning and top quartile UK funds. The JOHCM UK Dynamic Fund and the JOHCM UK Equity Income Fund had previously only been available to existing investors, following their soft closure in December 2019 and October 2013 respectively. This decision is a result of the high conviction we have in our processes in the current market environment and our positive outlook for the asset class following a multi-year period of redemptions in UK Equities. 

Tjeerd Voskamp, JOHCM’s Head of Sales and Distribution - UK, Europe and Asia, said: “We are delighted to once again be able to offer these top performing funds to a broader group of investors. UK equities have struggled since the Brexit vote in 2016 as allocations to the asset class fell but we feel the tide may be about to turn. With undemanding valuations, increasing M&A activity and a positive macro backdrop, our fund management teams are very positive. Both strategies strongly outperformed the benchmark over 2021  and we are excited by the potential performance runways ahead of both funds.”

Clive Beagles and James Lowen, managers of the JOHCM UK Equity Income Fund and Alex Savvides, manager of the JOHCM UK Dynamic Fund commented: “We are pleased to be reopening our Funds to new investors at this very interesting point in time, particularly for the processes that we run. We believe the UK is a fundamentally cheap and ignored stock market and, within that, our naturally contrarian styles lead us to stocks that are deeply misunderstood, underappreciated and undervalued. This creates a discount on a discount which we believe offers the opportunity for generating strong and consistent returns. We look forward to engaging with any new investors over the months ahead.”
    
The JOHCM UK Dynamic Fund (total strategy AUM £1.54 billion as at 31 December 2021) aims to profit from understanding and backing positive corporate change, particularly when it is misunderstood or under-appreciated by the stock market. The Fund features a mixture of restructuring/recovery plays, cheap/hidden growth and other more general special situations.

The JOHCM UK Equity Income Fund (total strategy AUM £2.52 billion as at 31 December 2021) operates under a strict yield discipline, with James and Clive only buying stocks that they believe will yield more than the FTSE All-Share Index on a prospective basis, although every stock held must also have the potential for capital appreciation. This focus on higher-yielding stocks leads to a naturally contrarian style. 

1Source: Lipper. Both funds are ranked 1st quartile since inception as at 31 December 2021. 
2Source: JOHCM. The benchmark referenced is the FTSE All-Share total return index (12pm adjusted) which returned 17.77% over 2021. The UK Dynamic Fund and the UK Equity Income Fund returned 22.56% and 24.76% respectively over the same period.    

Disclaimer

This press release is intended for journalists in their professional capacity and is not intended to be a financial promotion. Issued by J O Hambro Capital Management Limited. Authorised and regulated by the Financial Conduct Authority.

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