Dr Ivo Kovachev
Senior Fund Manager
Experienced emerging equity market investors Emery Brewer, Dr Ivo Kovachev and Stephen Lew use a predominantly stock-picking approach in finding opportunities in the fast-growing developing markets. They focus on growth companies that have the potential to develop world-class products or become industry leaders in local markets.
Senior Fund Manager
Senior Fund Manager
Senior Fund Manager
For fund managers James Syme, Paul Wimborne and Ada Chan, identifying the most attractive emerging markets in which to invest is the most important influence on investment performance. Through an extensive process that focuses on growth, liquidity, currency, management/politics and valuations, they produce country allocation targets for each...
Read MoreFund size | $62.18mn | ||||||||||||
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Strategy size | $297.61mn | ||||||||||||
Benchmark | MSCI Emerging Markets Small Cap NR | ||||||||||||
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Morningstar Category | Diversified Emerging Markets | ||||||||||||||||||||
Morningstar rankings are based on the Institutional share class and on total returns. Past performance does not guarantee future results. © 2022 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. |
Investment Advisor | JOHCM (USA) Inc. |
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Transfer Agent | Northern Trust |
Custodian | Northern Trust |
Emerging markets experienced a robust rebound in Q1, nearing a previous short-term peak. The potential for a significant breakout is noteworthy. This forecast is supported by two key observations: a) the ongoing recovery in emerging markets is occurring alongside a rebound in the US dollar, and b) a persistently-high US interest rates environment. Indeed, with inflation remaining relatively high, the state of the US interest rate environment in Q1 was consistent with our long-standing prediction of ‘higher for longer’.
Despite these developments, dismissing the strong Q1 performance as merely a reflexive rebound from a temporary low in emerging markets would be premature. The current macroeconomic indicators suggest an improving economy, potentially indicating that relatively high interest rates is part of a trend towards ‘normalisation’. This could signal the start of a recovery and growth spreading from America to the rest of the world, although it may be too early to assert this with certainty.
However, a measured approach is crucial. We’re witnessing clear signs of rotation within the market, suggesting that investors are taking profits from positions they perceive as overvalued. This unwinding of pair trades underscores the influence of profit-taking amid perceived overvaluations.
India, a standout performer in Q1, exemplifies this trend. Early gains were followed by a shift towards ‘recovery plays’ across sectors, countries (including a surprising uptick in China), and individual stocks. This investor behaviour highlights the importance of not getting swept away by euphoria and focusing on long-term outperformance. At the same time, as evidenced by India’s rapid recovery in equity performance toward the end of Q1, a measured approach to portfolio adjustments is crucial to performance optimization.
Looking beyond the recent buzz surrounding artificial intelligence (AI), a different story emerges within the broader market, sectors like industrials and real estate defied expectations, surpassing the performance of information technology in Q1. This shift suggests a more balanced market move rather than a singular focus on AI-related subsectors.
Our own investment strategy yielded both successes and areas for improvement. Our overweight position in India proved to be a profitable decision, contributing close to half of total quarterly performance, while our stock selection in India (Sobha) and China played a significant role in our positive performance. We also saw positive performance from Asia Vital Components, due to positive developments in the company’s thermal cooling solutions for AI, and Phoenix Mills due to continuing expansion of the company’s shopping mall business in India.
However, we readily acknowledge shortcomings. Our investment in One 97 Communications in India underperformed due to a regulator crackdown on its banking operations while our investment in Global Unichip in Taiwan suffered losses due to concerns over project cancellations. Hyundai Autoever underperformed due to concerns over short- to medium-term margins caused by increased investment needs.
The current market environment presents a welcome opportunity. We perceive valuation challenges in certain areas, like India and AI tech, undergoing a healthy correction rather than a catastrophic burst. This, coupled with market rotation, creates fertile ground for our robust investment philosophy that emphasises agility and flexibility. We dynamically adjust our portfolio across sectors, countries, currencies, interest rates, and individual stocks to capitalise on shifting market dynamics.
While we remain optimistic about the future, a note of caution is prudent. While we don’t anticipate an immediate cyclical peak, the presence of bubbles cannot be entirely ignored. The coming months might see additional positive performance, but potential summer profit-taking or unforeseen political events could introduce volatility. Overall, the outlook for emerging markets is promising, but a nuanced approach that acknowledges both opportunities and risks is essential for navigating this dynamic landscape.
1 Month Total Return | 3 Month Total Return | YTD Total Return | 1 Year Total Return | Cumulative Since Inception | |
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Advisor Shares Net | -0.07 | 5.84 | 5.84 | 22.68 | 140.29 |
Institutional Shares Net | -0.07 | 5.84 | 5.84 | 22.86 | 142.21 |
Benchmark | 0.08 | 1.05 | 1.05 | 20.56 | 99.77 |
1 Year | 2 Year | 3 Year | 4 Year | 5 Year | 10 Year | Annualized Since Inception | |
---|---|---|---|---|---|---|---|
Advisor Shares Net | 22.68 | 5.06 | 5.86 | 20.44 | 10.95 | 9.90 | |
Institutional Shares Net | 22.86 | 5.10 | 5.95 | 20.51 | 11.04 | 10.00 | |
Benchmark | 20.56 | 3.59 | 4.23 | 20.65 | 8.51 | 6.14 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Annual | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fund | 2014 | 1.97 | 1.97 | |||||||||||
Benchmark | 2014 | 3.30 | 3.30 | |||||||||||
Fund | 2015 | 1.49 | 3.66 | 3.77 | 9.30 | 1.72 | -2.94 | -7.44 | -10.36 | -0.57 | 7.03 | -0.96 | -0.20 | 2.81 |
Benchmark | 2015 | 1.44 | 2.26 | -0.14 | 9.06 | 0.41 | -4.57 | -7.77 | -9.65 | 0.00 | 5.91 | -2.57 | 0.08 | -6.84 |
Fund | 2016 | -5.96 | -0.53 | 9.27 | 3.64 | -1.79 | 3.84 | 5.15 | 2.47 | 0.74 | -0.93 | -5.95 | -0.97 | 8.18 |
Benchmark | 2016 | -7.88 | -0.36 | 10.00 | 1.49 | -3.53 | 2.54 | 4.28 | 1.84 | 1.31 | -1.48 | -4.67 | -0.16 | 2.26 |
Fund | 2017 | 4.43 | 4.59 | 3.31 | 3.33 | 2.81 | -0.02 | 6.59 | 3.86 | -1.09 | 3.78 | 1.65 | 3.72 | 43.58 |
Benchmark | 2017 | 4.68 | 5.20 | 2.63 | 1.13 | 0.69 | 0.78 | 3.57 | 1.95 | 0.04 | 3.51 | 1.76 | 3.70 | 33.82 |
Fund | 2018 | 4.94 | -2.62 | 0.98 | -1.90 | -1.13 | -3.58 | -1.89 | -3.73 | -4.04 | -10.45 | 4.69 | -2.64 | -20.16 |
Benchmark | 2018 | 5.80 | -4.10 | -1.27 | -0.11 | -2.08 | -6.56 | 1.22 | -2.11 | -3.32 | -10.55 | 5.47 | -1.60 | -18.59 |
Fund | 2019 | 6.54 | 1.86 | 1.32 | 0.46 | -6.53 | 6.40 | -0.43 | -2.35 | 1.03 | 4.90 | -1.80 | 6.26 | 18.12 |
Benchmark | 2019 | 5.38 | 1.30 | 0.94 | 0.21 | -4.92 | 3.92 | -1.49 | -5.01 | 1.96 | 3.82 | -0.59 | 6.11 | 11.50 |
Fund | 2020 | 0.36 | -6.66 | -20.59 | 14.12 | 5.30 | 8.30 | 9.89 | 1.93 | -2.29 | -0.83 | 9.78 | 7.04 | 23.49 |
Benchmark | 2020 | -3.99 | -7.05 | -23.09 | 13.94 | 2.36 | 9.01 | 9.24 | 4.10 | -1.64 | -0.55 | 14.09 | 7.72 | 19.29 |
Fund | 2021 | -1.08 | 5.67 | 2.19 | 6.70 | 2.62 | 2.68 | -1.83 | 2.14 | -2.03 | -0.07 | -0.45 | 4.04 | 22.11 |
Benchmark | 2021 | 0.08 | 5.96 | 1.53 | 6.04 | 1.93 | 2.93 | -1.31 | 1.16 | -1.99 | 0.18 | -2.94 | 4.21 | 18.75 |
Fund | 2022 | -4.53 | -3.54 | 2.11 | -6.36 | 0.36 | -10.59 | 2.29 | 0.13 | -8.61 | 0.74 | 8.88 | -3.09 | -21.33 |
Benchmark | 2022 | -4.42 | -2.50 | 2.66 | -5.02 | -1.64 | -10.53 | 2.76 | 2.48 | -10.03 | -0.07 | 9.41 | -1.03 | -18.02 |
Fund | 2023 | 6.77 | -2.83 | 3.70 | -0.51 | 2.14 | 6.36 | 5.98 | -2.82 | -3.82 | -5.08 | 10.71 | 3.03 | 24.71 |
Benchmark | 2023 | 5.93 | -2.85 | 0.93 | 0.67 | 1.11 | 4.52 | 6.53 | -1.35 | -2.05 | -4.83 | 9.64 | 4.42 | 23.92 |
Fund | 2024 | 1.70 | 4.14 | -0.07 | 5.84 | |||||||||
Benchmark | 2024 | -1.73 | 2.75 | 0.08 | 1.05 |
Share Class | Gross Expense* | Net Expense* |
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Advisor | 1.97% | 1.59% |
Institutional | 1.87% | 1.49% |
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 Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small capitalization equities in the emerging markets. The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. Investing in an index is not possible.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
Historical performance of the Emerging Markets Opportunities Fund for Class II Shares prior to its inception is based on the performance of Class I Shares, the share class most similar to Class II. 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.
Shriram Transport Finance | 1.45% |
PNC Infratech | 1.37% |
Varun Beverages | 1.88% |
KPIT | 1.22% |
Arcadyan | 1.41% |
Santos Brasil | 1.27% |
Narayana Health | 1.25% |
Capstone Mining | 1.33% |
Phoenix Mills | 2.00% |
Embraer | 1.24% |
Varun Beverages | +1.88% |
Indosat | +1.75% |
Phoenix Mills | +1.73% |
Thermax | +1.67% |
Northern Institutional Treasury Portfolio | +1.67% |
Shriram Transport Finance | +1.45% |
Capstone Mining | +1.33% |
Arcadyan | +1.33% |
PNC Infratech | +1.32% |
VA Tech Wabag | +1.32% |
Portfolio | Benchmark | Relative | ||
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Brazil | 6.85% | 4.82% | 2.03% | |
China | 7.09% | 8.17% | -1.07% | |
India | 24.21% | 25.05% | -0.84% | |
Indonesia | 6.01% | 1.74% | 4.26% | |
Malaysia | 2.89% | 2.44% | 0.44% | |
Mexico | 2.55% | 2.11% | 0.44% | |
Saudi Arabia | 2.41% | 4.12% | -1.71% | |
South Korea | 6.20% | 13.56% | -7.35% | |
Taiwan | 19.52% | 22.8% | -3.27% | |
United States | 3.53% | 0% | 3.53% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
Industrials | 22.62% | 17.40% | 5.20% | |
Information Technology | 22.55% | 17.77% | 4.80% | |
Consumer Discretionary | 14.00% | 11.60% | 2.40% | |
Financials | 13.38% | 10.81% | 2.60% | |
Health Care | 7.00% | 9.08% | -2.10% | |
Consumer Staples | 6.75% | 6.25% | 0.50% | |
Real Estate | 5.43% | 6.06% | -0.70% | |
Materials | 4.01% | 12.04% | -8.00% | |
Communication Services | 1.83% | 3.77% | -2.00% | |
Utilities | 1.74% | 3.20% | -1.50% | |
Energy | 1.57% | 1.96% | -0.40% | |
Cash | -0.95% | 0.00% | -0.95% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
Large | 29.24% | 3.26% | 25.98% | |
Mid | 54.91% | 70.02% | -15.10% | |
Small | 13.79% | 26.72% | -12.94% |
Fund holdings, sector allocation, regional allocation and top 10 countries are subject to change without notification.
Fund |
As at noon | Share class | Currency | CUSIP Number | NAV | Change | Change % | Previous | |
JOHCM International Select Fund | 26/04/2024 | Institutional | USD | 46653M849 | 23.13 | 0.03 | 0.13% | 23.10 | |
Investor | USD | 46653M823 | 23.18 | 0.02 | 0.09% | 23.16 | |||
JOHCM Emerging Markets Opportunities Fund | 26/04/2024 | Advisor | USD | 46653M203 | 11.28 | 0.08 | 0.71% | 11.20 | |
Institutional | USD | 46653M104 | 11.30 | 0.08 | 0.71% | 11.22 | |||
Investor | USD | 46653M302 | 11.26 | 0.08 | 0.72% | 11.18 | |||
JOHCM Global Select Fund | 26/04/2024 | Advisor | USD | 46653M807 | 13.31 | 0.17 | 1.29% | 13.14 | |
Institutional | USD | 46653M708 | 13.34 | 0.17 | 1.29% | 13.17 | |||
JOHCM Emerging Markets Discovery Fund | 26/04/2024 | Advisor | USD | 46653M500 | 14.52 | 0.17 | 1.18% | 14.35 | |
Institutional | USD | 46653M401 | 14.51 | 0.17 | 1.19% | 14.34 | |||
JOHCM International Opportunities Fund | 26/04/2024 | Institutional | USD | 46653M872 | 12.30 | 0.04 | 0.33% | 12.26 | |
Regnan Global Equity Impact Solutions | 26/04/2024 | Institutional | USD | 46653M716 | 7.81 | 0.07 | 0.90% | 7.74 | |
TSW Large Cap Value Fund | 26/04/2024 | Institutional | USD | 46653M641 | 13.01 | 0.01 | 0.08% | 13.00 | |
TSW Emerging Markets Fund | 26/04/2024 | Institutional | USD | 46653M666 | 9.21 | 0.12 | 1.32% | 9.09 | |
TSW High Yield Bond Fund | 26/04/2024 | Institutional | USD | 46653M658 | 9.04 | 0.02 | 0.22% | 9.02 |
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 Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small capitalization equities in the emerging markets. The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. Investing in an index is not possible.Source: MSCI. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI.
Historical performance of the Emerging Markets Opportunities Fund for Class II Shares prior to its inception is based on the performance of Class I Shares, the share class most similar to Class II. 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.
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