JOHCM Global Income Builder Fund (JOBIX)

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Fund Description

The JOHCM Global Income Builder Fund is managed by JOHCM’s New York-based Multi-Asset Value team, which includes Senior Fund Managers Giorgio Caputo, Adam Gittes and Robert Hordon and Fund Manager Remy Gicquel.

Investment Strategy

Investment approach

The JOHCM team employs a differentiated bottom-up approach to investing across asset classes that is rooted in global value investing and which seeks to balance current income with the preservation and growth of capital in real (inflation-adjusted) terms over time. They seek to identify income-generative investments where they believe a margin of safety exists between their sense of the security or underlying business’s intrinsic value and the valuation reflected by the security’s market price. In normal market environments, the income level is expected to range between 3.5% and 4.5% of AUM after expenses. However, the team prioritizes the preservation of capital ahead of income generation, thus actual income distribution may fall outside these ranges. 

The team invests across global equity and debt capital market and seeks to manage relatively diversified portfolios, typically investing in the securities of 80-100 debt or equity issuers.  The equity exposure can range from 30% to 70% of the fund, but will generally be at least 40% of assets under management.  

Capacity for the Global Income Builder strategy has been set at $10 billion, at which point JOHCM will take steps to limit additional inflows in order to protect the interests of existing investors.

Investment objective

The investment objective of the JOHCM Global Income Builder Fund is to seek a level of current income that is consistent with the preservation and long-term growth of capital in inflation-adjusted terms. 

The Fund seeks to achieve its investment objective by applying a bottom-up, long-term global value investing philosophy across a broad range of asset classes. In a bottom-up approach, companies and securities are researched and chosen individually. The Fund normally will invest in a wide range of income-producing equity securities, including common stocks of U.S. and foreign companies that offer attractive dividend yields. The Fund also normally will invest in a wide range of fixed income instruments from markets in the United States and multiple countries around the world such as high-yield instruments (commonly referred to as ‘‘junk bonds’’), investment grade instruments and sovereign debt. Additionally, the Fund normally will invest in hybrid securities that embody elements of both equity and fixed income securities such as preferred shares and convertible bonds. The Fund may invest in securities of any maturity or investment rating, as well as unrated securities. While the Fund may hold investments in non-income producing securities, under normal market conditions at least 80% of the Fund’s assets will be comprised of income producing securities.

Other Multi-Asset Equity Funds

JOHCM Credit Income Fund (JOCIX)

The JOHCM Credit Income Fund is managed by Giorgio Caputo, Senior Fund Manager and Head of Multi-Asset Value and Adam Gittes, Senior Fund Manager and Head of Credit. They are supported by the members of the New York-based Multi-Asset Value team.  The Fund seeks competitive current income through a flexible, global corporate cr...

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Fund details

Fund inception date 29 November 2017
Benchmark MSCI World NR, Bloomberg Barclays US Aggregate Index, ICE BofAML BB-B Global High Yield Constrained Index
Share classes
Institutional (Launch date) 29-November-2017
Advisor (Launch date) 29-November-2017
Investor (Launch date) 28-June-2019
Minimum investment
Institutional $1,000,000
Advisor $0
Investor $0
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOBIX Institutional 687 46653M815
JOFIX Advisor 487 46653M799
JOIIX Investor 587 46653M781
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOBIX Institutional 0.73% 0.80%
JOFIX Advisor 0.83% 0.90%
JOIIX Investor 0.98% 1.05%

*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.

Administration

Investment Advisor JOHCM (USA) Inc.
Transfer Agent Northern Trust
Custodian Northern Trust

Strategy Highlights

As at 31 December 2022

Capping off a very disappointing year for investors across most asset classes, the fourth quarter of 2022 was the first quarter of the year to deliver positive returns in most major equity markets. Interest rates, which had risen sharply over the year as central banks around the world grappled with inflation, were generally stable during the quarter, while non-US currencies rallied, energy prices generally eased (thanks in part to warm winter weather in Europe) and authorities in China abandoned their zero-tolerance approach to Covid. While investors remain highly concerned about a potential recession in 2023, the fourth quarter marked a sense of relief that the inflation crisis, and the attendant tightening cycle, may be in the rear-view mirror.

The S&P 500 delivered a 7.6% total return in December, as the value subindex (13.6%) substantially outperformed the growth sub-index (1.4%). Stock indices outside the United States recovered sharply from year-to-date lows reached in September and October, as foreign currencies strengthened with the ECB and BOJ moving toward tighter monetary policy. The MSCI EAFE Index (dominated by Eurozone and Japanese equities) posted a 17.3% total return. The MSCI Emerging Markets index posted a 9.7% return for the quarter, fueled mainly by a turnaround in Chinese equities (the largest country exposure in the index) following a policy shift on reopening. The MSCI China index delivered a 13.5% total return in the fourth quarter; the change in sentiment towards China likely contributed to returns across most geographies and sectors.

Fixed income markets, from both a duration and credit perspective, saw mostly mild shifts in the fourth quarter of 2022. Interest rates, which peaked in the middle of the quarter and reached levels not seen since prior to the Great Financial Crisis, rose slightly from September through to December. The 10 year Treasury yield moved from 3.83% to 3.88%, while the 2 year Treasury yield rose from 4.28% to 4.43%. Both investment grade and high yield bonds experienced credit spread tightening as risk aversion abated across markets. The ICE BofA BBB US Corporate Index Option-Adjusted Spread fell from 2.06% to 1.72%, while the ICE BofA BB US High Yield Index Option-Adjusted Spread saw a more substantial decline and fell from 3.66% at the end of September to 3.09% at the end of December. Stable interest rates and tighter spreads drove a 4.3% total return for the iBoxx USD Liquid High Yield Index and helped high yield investors claw back almost a third of their 2022 losses.

Out top contributors for the quarter were Oracle, Air Products and Chemicals and Naspers. Oracle performed well on strong earnings results, demonstrating the resilience of its business model despite industry headwinds; Oracle finished the year with a -4.7% total return, significantly better than the Nasdaq Composite Index, which delivered -32.5%. Air Products and Chemicals ended the year with strength as a play on industrial recovery as well as spending related to the Inflation Reduction Act. Naspers, the South African holding company with a large stake in Tencent, benefited from the China resurgence.

Our top detractors for the quarter were PayPal Holdings, Equitrans Midstream and Meta Platforms. Concerns mounted during the quarter over Apple’s competitive threat to PayPal in digital payments. Shares of Equitrans were weak as a result of legislative setbacks in the company’s quest to launch a pipeline project in 2023. Investors in Meta Platforms grew frustrated over the heavy investment in metaverse initiatives, although the company signalled a change in trajectory later in the quarter.

While the fourth quarter provided some meaningful relief, 2022 will register as one of the worst years in recent memory for both equity and fixed income markets. Tremendous uncertainty remains as to the extent and duration of central bank tightening needed to bring down inflation. With sharp drawdowns in equity market valuations and interest rates much higher than they were a year ago, it is difficult if not impossible to know if the worst is behind us or if further pain lies ahead. We remain focused on holdings that we believe are justified even if these macroeconomic headwinds persist, while retaining flexibility at the portfolio level to take advantage of opportunities that may emerge from the volatility.

 

Sources for all data: JOHCM/Bloomberg (unless otherwise stated).

Source and notes

Benchmarks: The MSCI World Index is a broad global equity index that represents large and mid-cap equity performance across 23 developed market countries. 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.

Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith. The Bloomberg Barclays US Aggregate Bond Index is a broad-based benchmark that measures the investment grade U.S. dollar-denominated, fixed rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM passthroughs), ABS, and CMBS.

ICE BofAML BB-B Global High Yield Constrained Index contains all securities in The ICE BofAML Global High Yield Index rated BB1 through B3, based on an average of Moody’s, S&P and Fitch, but caps issuer exposure at 2%. Investing in an index is not possible.


BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

Important Information

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 Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Market Index consists of the following 23 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Indexes mentioned are unmanaged statistical composites of stock market performance. Investing in an index is not possible.

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. J O Hambro Capital Management Limited 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, 2022.

Top 10 holdings

Sector breakdown

Equities

No Data

Fixed income

No Data

Regional / Country breakdown

Equities

No Data

Fixed income

No Data

Important Information

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 27/02/2024 Institutional USD 46653M849 24.59 -0.08 -0.32% 24.67
Investor USD 46653M823 24.66 -0.08 -0.32% 24.74
JOHCM Emerging Markets Opportunities Fund 27/02/2024 Advisor USD 46653M203 10.94 -0.01 -0.09% 10.95
Institutional USD 46653M104 10.96 -0.01 -0.09% 10.97
Investor USD 46653M302 10.93 0.00 0.00% 10.93
JOHCM Global Select Fund 27/02/2024 Advisor USD 46653M807 13.79 0.38 2.83% 13.41
Institutional USD 46653M708 13.81 0.38 2.83% 13.43
JOHCM Emerging Markets Discovery Fund 27/02/2024 Advisor USD 46653M500 14.33 -0.01 -0.07% 14.34
Institutional USD 46653M401 14.31 -0.01 -0.07% 14.32
JOHCM International Opportunities Fund 27/02/2024 Institutional USD 46653M872 12.19 0.01 0.08% 12.18
Regnan Global Equity Impact Solutions 27/02/2024 Institutional USD 46653M716 8.41 -0.01 -0.12% 8.42
TSW Large Cap Value Fund 27/02/2024 Institutional USD 46653M641 12.92 0.02 0.16% 12.90
TSW Emerging Markets Fund 27/02/2024 Institutional USD 46653M666 9.16 -0.02 -0.22% 9.18
TSW High Yield Bond Fund 27/02/2024 Institutional USD 46653M658 9.08 -0.01 -0.11% 9.09

Important Information

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.

 

*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.

10 Nov 2021

Global Value and Income Dispatch

Stewarding capital through regime transitions

27 Jul 2021

Global Value and Income Dispatch

Inflation Now; Deflation Later? And Aligning Capital with Labor

24 Jun 2021

Global Value and Income Dispatch

Responsible income: is it time to take your last puff?

08 Jun 2021

Global Value and Income Dispatch

Ten thoughts for the new inflationary regime 
 

11 May 2021

Global Value and Income Dispatch

Should Credit Investors Panic About Rates?

21 Apr 2021

Global Value and Income Dispatch

Don’t let rising rates erode your income assets!

15 Apr 2021

Global Value and Income Dispatch

Fishing in the right ponds: responding to shifts in market regime

02 Feb 2021

Global Value and Income Dispatch

Managing through rising rates with “2020 Hindsight”
 

02 Nov 2020

Global Value and Income Dispatch

Q3 review: The rise of tangible capital?
 

22 Jul 2020

Global Income and Value Dispatch

Q2 review: the global income challenge
 

07 Apr 2020

Global Value and Income Dispatch

Q1 review: In the midst of chaos, there is also opportunity

17 Mar 2020

Global Income and Value Dispatch

Why worried investors shouldn’t be like Alice in Wonderland

06 Mar 2020

Global Value and Income Dispatch

Falling knives, iron gloves and The Shawshank Redemption: thoughts on the coronavirus from the JOHCM Multi-Asset Value team. 

05 Feb 2020

Global Value & Income Dispatch

Q4 Review: What are you paying for today?

26 Nov 2019

Global Value & Income Dispatch

Don't pay too much attention to the default rate. It's rating migration that matters. 

04 Nov 2019

Global Value & Income Dispatch

Q3 Review: Bifurcation and what the averages don't tell you...

29 Oct 2019

Credit market review - Q3 2019

Lale Topcuoglu reviews developments in the credit markets over Q3 2019 

10 Oct 2019

Global Value & Income Dispatch

Equity Market Xenophobia: Is It Justified?
 

09 Aug 2019

Global Value and Income Dispatch

Quality traps, liquidity voids and central bank puts. 

10 May 2019

Global Value and Income Dispatch

What do Swiss cheese and high yield covenants have in common? A lot of holes!

25 Apr 2019

Global Value and Income Dispatch

Blink and you might miss it! – the bottom-up advantage

28 Mar 2019

Global Value and Income Dispatch

What if the Fed has inflation completely wrong?

01 Feb 2019

Global Value and Income Dispatch

Strategies for the next market and on being greedy when others are fearful

23 Jan 2019

Global Value and Income Dispatch

Beware of the liquidity illusion in the quest for higher yields.

27 Nov 2018

Global Value and Income Dispatch

Should investors buy because prices are lower or sell because the economy may be slowing? Giorgio Caputo, JOHCM Global Income Builder Fund, provides his view.

13 Oct 2018

Global Value and Income Dispatch

An insight into the JOHCM Global Income Builder Fund - A fund for all seasons 

28 Aug 2018

Global Value and Income Dispatch

Looking for income? Three reasons to go global
 

29 Jul 2018

Global Value and Income Dispatch

Duration as a diversifier: Giorgio Caputo, Senior Fund Manager of the JOHCM Global Income Builder Fund, provides an update on portfolio positioning. 

01 May 2018

Global Value and Income Dispatch

It is our great pleasure to update you on JOHCM Global Income Builder Fund’s (JOBIX) first full quarter of operation.

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