Christopher Lees
Senior Fund Manager
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 distinct “4-Dimensional” investment process (stocks, sectors, countries, time/change) focuses on the behaviour of each share price to determine whether the most important driver of each prospective investment is stock specific, sector or country-based. The fund invests in both developed global (including the United States) and emerging markets, with the fund managers frequently drawing upon the stocks ideas generated by JOHCM’s regional equity teams.
The investment objective of the Global Select Fund (the “Fund”) is to seek long-term capital appreciation.
The Fund invests, under normal circumstances, at least 80% of its assets in equity securities of U.S. and foreign companies. The Fund can invest without limit in foreign securities and can invest in any country, including countries with developing or emerging markets. The normally will invest in at least three countries (one of which may be the US) with at least 40% of its assets invested in countries other than the U.S. However, the Fund may invest at least 30% of its assets outside the U.S. when market conditions are favorable. Typically, the Fund invests in a number of different countries. The Fund is not required to allocate its investments in any set percentages in any particular countries. The Fund may invest in U.S. and foreign companies of any size, including small and mid-capitalization companies.
The "Adviser" (JOHCM (USA) Inc.) seeks to identify and make investments in U.S. and foreign companies based on a multi-dimensional investment process, considering a number of factors, including growth, valuation, size, momentum, and beta. The Fund utilizes a core style with a modest growth tilt (or “GARP”) over all capitalization ranges. The Fund seeks those stocks, sectors, and countries with positive earnings surprises, sustainably high or increasing return on equity, and attractive valuations.
Senior Fund Manager
Senior Fund Manager
Analyst
Fund size | $61.43mn | ||||||||||||
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Strategy size | $3.29bn | ||||||||||||
Benchmark | MSCI AC World NR | ||||||||||||
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Morningstar Category | World Stock | ||||||||||||||||||||||||
Morningstar rankings are based on Share class I 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. The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Ratings are for the share class shown only; other classes may vary. |
Investment Advisor | JOHCM (USA) Inc. |
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Transfer Agent | Northern Trust |
Custodian | Northern Trust |
The portfolio outperformed its benchmark index in the fourth quarter, and was 1st quartile in the Lipper peer group during the second half of 2023*. This was partly a result of some of the changes we made to the portfolio and partly due to better performance from the midcaps that we own relative to the mega-caps we do not own. We remain positioned for this new trend to continue. Not owning Apple, Facebook, Nvidia and Tesla among the Magnificent Seven US mega-cap stocks was a significant contributor to our underperformance during the first half of 2023.
Purchases during the 4th quarter included AP Memory, Broadcom, Roper, and Synopsis in the technology sector, NU Holdingsin the financial sector, Eli Lilly and Zealand Pharma in healthcare – all due to positive earnings revisions and an improving outlook.
Sales during the 4th quarter included Aptiv and Unilever in the consumer sector, Henry Shein, Repligen and Thermo Fisher in healthcare, ANSYS in the technology sector, and CNH in the industrial sector – all due to our process of ‘weeding out the losers’ on the basis of negative earnings revisions and a deteriorating outlook.
After the significant rally in Q4 2023, we would not be surprised by a shallow correction in Q1 2024.The momentum signals we’ve seen recently suggest that small and mid-caps will see strong gains and outperform over the next 6 to 12 months, even if the overall indices struggle if the mega-caps that dominate these indices underperform after their exceptional outperformance in 2023. However, just because small and mid-caps look poised to outperform doesn’t mean there isn’t a place for some mega-caps with positive earnings revisions in the portfolio, particularly those exposed to the mega-trends of AI and obesity drugs.
Our 2024 scenario analysis and outlook are 80% bullish and 20% bearish. Short term reasons to be bearish include the ongoing potential for a recession and geopolitical tensions. Medium term reasons to be bullish include the Fed regaining credibility with inflation and interest rates stabilising and an AI productivity boost.
Scenario 1 = 10% probability that US Magnificent Seven leadership continues. New bull market leadership is not usually the old Bull market leadership, but several things are ‘different this time,’ eg AI, Cold War 2.0
Scenario 2 = 70% probability of broadening bull market. US interest rates stabilising or China (the world’s second largest economy) stabilising are catalysts for this positive outcome
Scenario 3 = 20% probability of bear market or zig-zag. Resurgent inflation and interest rates rising, or geopolitical/Middle Eastern escalations are catalysts for this negative outcome
We are positioned for 2024 probably being a vice versa of 2023 in several ways, with better performance from 2023’s laggards such as small and mid-caps, emerging markets and the Japanese yen. In 2023, small and mid-caps relative earnings and relative prices significantly underperformed large-caps (negatively impacting our portfolio’s performance) but showed early signs of a trend reversal in Q4 2023. We are already overweight small and mid-caps, and we think this is the beginning of a new positive trend for small and mid-caps relative to large-caps globally. In 2023, the US improved while emerging markets deteriorated, but we expect vice versa in 2024 as the US economy slows and emerging markets’ earnings improve. In 2023, the Japanese Yen significantly underperformed as the Bank of Japan (BOJ) became the last central bank with negative interest rates, but this might end in 2024, and the Fed’s recent dovish pivot and BOJ’s recent loosening of yield curve control are both Yen bullish.
*Peer group of funds includes all funds classified as Global Equity by either the Investment Association (IA) or Lipper Global. Funds included may be domiciled in the UK, Ireland, or Luxembourg. Peer group is comprised of 1870 funds as of December 31, 2023.
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 | 1.46 | 12.24 | 12.24 | 20.88 | 156.62 |
Benchmark | 1.45 | 12.21 | 12.21 | 20.98 | 159.06 |
1 Year | 2 Year | 3 Year | 4 Year | 5 Year | 10 Year | Annualized Since Inception | |
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Advisor Shares Net | 20.88 | -0.86 | -0.18 | 13.76 | 8.67 | 7.15 | 8.92 |
Benchmark | 20.98 | -0.79 | -0.10 | 13.84 | 8.78 | 7.25 | 9.02 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Annual | ||
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Fund | 2013 | 1.20 | 1.58 | 1.46 | -2.30 | 5.79 | -1.39 | 6.96 | 3.34 | 4.05 | 4.48 | 27.75 | ||
Benchmark | 2013 | 0.73 | 2.86 | -0.27 | -2.92 | 4.79 | -2.08 | 5.17 | 4.02 | 1.42 | 1.73 | 16.15 | ||
Fund | 2014 | -1.97 | 7.12 | -4.14 | -0.99 | 4.55 | 3.49 | -2.58 | 4.58 | -1.65 | -0.51 | 1.07 | -1.46 | 7.06 |
Benchmark | 2014 | -4.00 | 4.83 | 0.44 | 0.95 | 2.13 | 1.88 | -1.21 | 2.21 | -3.24 | 0.70 | 1.67 | -1.93 | 4.16 |
Fund | 2015 | 1.62 | 7.08 | -0.44 | -1.07 | 3.99 | -5.93 | 0.43 | -8.91 | -6.30 | 4.46 | -1.37 | -0.61 | -7.98 |
Benchmark | 2015 | -1.56 | 5.57 | -1.55 | 2.90 | -0.13 | -2.35 | 0.87 | -6.86 | -3.62 | 7.85 | -0.83 | -1.80 | -2.36 |
Fund | 2016 | -3.49 | -0.22 | 4.03 | 1.34 | -0.83 | 2.38 | 4.49 | -0.83 | 1.43 | -1.58 | -3.15 | -0.99 | 2.27 |
Benchmark | 2016 | -6.03 | -0.69 | 7.41 | 1.48 | 0.13 | -0.61 | 4.31 | 0.34 | 0.61 | -1.70 | 0.76 | 2.16 | 7.86 |
Fund | 2017 | 6.65 | -1.00 | 2.29 | -0.35 | 0.98 | 0.84 | 4.40 | 1.78 | 1.07 | 3.07 | 0.43 | 2.80 | 25.22 |
Benchmark | 2017 | 2.73 | 2.81 | 1.22 | 1.56 | 2.21 | 0.45 | 2.79 | 0.38 | 1.93 | 2.08 | 1.94 | 1.61 | 23.96 |
Fund | 2018 | 7.28 | -1.74 | -0.31 | -0.12 | 2.62 | -1.75 | 0.93 | -0.61 | -1.19 | -6.59 | 0.60 | -6.21 | -7.56 |
Benchmark | 2018 | 5.64 | -4.20 | -2.14 | 0.95 | 0.12 | -0.54 | 3.02 | 0.79 | 0.44 | -7.49 | 1.46 | -7.04 | -9.42 |
Fund | 2019 | 7.76 | 3.08 | 2.29 | 1.41 | -4.51 | 7.24 | 0.53 | -1.39 | -0.45 | 0.21 | 2.85 | 2.22 | 22.70 |
Benchmark | 2019 | 7.90 | 2.67 | 1.26 | 3.38 | -5.93 | 6.55 | 0.29 | -2.37 | 2.10 | 2.74 | 2.44 | 3.52 | 26.60 |
Fund | 2020 | 0.19 | -6.91 | -10.11 | 12.13 | 8.51 | 2.79 | 6.74 | 4.24 | -1.32 | -1.70 | 12.18 | 5.10 | 33.43 |
Benchmark | 2020 | -1.10 | -8.08 | -13.50 | 10.71 | 4.35 | 3.20 | 5.29 | 6.12 | -3.22 | -2.43 | 12.33 | 4.64 | 16.26 |
Fund | 2021 | 1.03 | 3.97 | 0.73 | 4.31 | -0.20 | 2.60 | 2.01 | 2.45 | -4.59 | 8.07 | -1.05 | 3.86 | 25.16 |
Benchmark | 2021 | -0.45 | 2.32 | 2.67 | 4.37 | 1.51 | 1.36 | 0.69 | 2.50 | -4.13 | 5.10 | -2.41 | 4.00 | 18.54 |
Fund | 2022 | -12.05 | -4.27 | 1.59 | -10.77 | 1.70 | -10.70 | 5.98 | -5.91 | -9.49 | 5.25 | 6.83 | -4.62 | -32.91 |
Benchmark | 2022 | -4.91 | -2.58 | 2.17 | -8.00 | 0.12 | -8.43 | 6.98 | -3.68 | -9.57 | 6.03 | 7.76 | -3.94 | -18.37 |
Fund | 2023 | 6.41 | -4.19 | 1.67 | -1.64 | -2.71 | 5.32 | 2.56 | -3.18 | -4.07 | -3.51 | 10.65 | 5.06 | 11.63 |
Benchmark | 2023 | 7.17 | -2.87 | 3.08 | 1.44 | -1.07 | 5.81 | 3.66 | -2.79 | -4.14 | -3.01 | 9.23 | 4.80 | 22.20 |
Fund | 2024 | 2.33 | 8.10 | 1.46 | 12.24 | |||||||||
Benchmark | 2024 | 0.59 | 4.29 | 3.14 | 8.20 |
Share Class | Gross Expense* | Net Expense* |
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Advisor | 1.12% | 1.09% |
Institutional | 1.02% | 0.99% |
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 All Country World Index (ACWI) is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging market countries in North and South American, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars. Indexes mentioned are unmanaged statistical composites of stock market performance. 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.
*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.
Microsoft | 3.42% |
CRH | 2.85% |
Alphabet | 2.83% |
SK Hynix | 2.80% |
Amazon.com | 2.74% |
Nu Holdings | 2.69% |
Broadcom | 2.69% |
Tenaris | 2.65% |
Compass Group | 2.64% |
Eli Lilly | 2.61% |
CRH | +2.76% |
SK Hynix | +2.70% |
Nu Holdings | +2.69% |
Tenaris | +2.65% |
Zealand Pharma | +2.58% |
Compass Group | +2.57% |
PTC | +2.52% |
Intercontinental Exchange | +2.48% |
Daifuku | +2.46% |
Synopsys | +2.39% |
Portfolio | Benchmark | Relative | ||
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Brazil | 5.02% | 0.53% | 4.48% | |
Denmark | 5.05% | 0.86% | 4.18% | |
Germany | 2.48% | 2.07% | 0.4% | |
Indonesia | 2.30% | 0.18% | 2.11% | |
Ireland | 2.85% | 0.16% | 2.68% | |
Italy | 2.65% | 0.66% | 1.98% | |
Japan | 9.73% | 5.61% | 4.11% | |
South Korea | 2.80% | 1.3% | 1.5% | |
United Kingdom | 2.64% | 3.38% | -0.74% | |
United States | 57.84% | 64.92% | -7.07% | |
Cash | 0.63% | 0% | 0.63% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
Information Technology | 28.01% | 23.87% | 4.10% | |
Financials | 24.28% | 15.93% | 8.40% | |
Health Care | 17.85% | 11.24% | 6.70% | |
Consumer Discretionary | 9.71% | 11.14% | -1.40% | |
Industrials | 8.56% | 10.74% | -2.10% | |
Materials | 7.66% | 4.12% | 3.60% | |
Communication Services | 2.62% | 7.50% | -4.90% | |
Energy | 2.40% | 4.34% | -1.90% | |
Real Estate | 0.00% | 2.17% | -2.20% | |
Utilities | 0.00% | 2.41% | -2.40% | |
Consumer Staples | 0.00% | 6.48% | -6.50% | |
Cash | -1.12% | 0.00% | -1.12% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
85.63% | 95.39% | -9.75% | ||
13.30% | 4.61% | 8.69% | ||
0.00% | 0.00% | 0.00% |
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 | 24/04/2024 | Institutional | USD | 46653M849 | 23.38 | 0.12 | 0.52% | 23.26 | |
Investor | USD | 46653M823 | 23.44 | 0.12 | 0.51% | 23.32 | |||
JOHCM Emerging Markets Opportunities Fund | 24/04/2024 | Advisor | USD | 46653M203 | 11.23 | 0.12 | 1.08% | 11.11 | |
Institutional | USD | 46653M104 | 11.26 | 0.13 | 1.17% | 11.13 | |||
Investor | USD | 46653M302 | 11.22 | 0.12 | 1.08% | 11.10 | |||
JOHCM Global Select Fund | 24/04/2024 | Advisor | USD | 46653M807 | 13.21 | 0.04 | 0.30% | 13.17 | |
Institutional | USD | 46653M708 | 13.24 | 0.04 | 0.30% | 13.20 | |||
JOHCM Emerging Markets Discovery Fund | 24/04/2024 | Advisor | USD | 46653M500 | 14.32 | 0.17 | 1.20% | 14.15 | |
Institutional | USD | 46653M401 | 14.31 | 0.17 | 1.20% | 14.14 | |||
JOHCM International Opportunities Fund | 24/04/2024 | Institutional | USD | 46653M872 | 12.32 | 0.01 | 0.08% | 12.31 | |
Regnan Global Equity Impact Solutions | 24/04/2024 | Institutional | USD | 46653M716 | 7.81 | 0.01 | 0.13% | 7.80 | |
TSW Large Cap Value Fund | 24/04/2024 | Institutional | USD | 46653M641 | 13.04 | -0.01 | -0.08% | 13.05 | |
TSW Emerging Markets Fund | 24/04/2024 | Institutional | USD | 46653M666 | 9.14 | 0.13 | 1.44% | 9.01 | |
TSW High Yield Bond Fund | 24/04/2024 | Institutional | USD | 46653M658 | 9.04 | -0.01 | -0.11% | 9.05 |
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 All Country World Index (ACWI) is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging market countries in North and South American, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars. Indexes mentioned are unmanaged statistical composites of stock market performance. 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.
*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.
This quarter, Christopher Lees, CFA will take a closer look at year-to-date themes and transactions, as well as the team’s forecasts for what's next in the market.
Watch as Christopher Lees, CFA, discusses why the team envisions a 'vice versa' scenario for 2024, countering the trends observed in 2023.
How should an international portfolio manager assess opportunities within the dynamic global markets to bolster return potential?
Watch as Christopher Lees, CFA, explores the importance of country-specific factors in a deglobalized world and the impact of AI on the investment horizon.
Watch as Christopher Lees, CFA, discusses the extraordinary outperformance by USA Mega-caps and where the team is seeing opportunities in 2023.
In this short video, Christopher Lees, CFA, speaks to the strategy's performance and discusses what he and Nudgem Richyal, CFA, are most excited about looking into the next quarter.
What Senior Fund Managers Christopher Lees and Nudgem Richyal are most excited about looking into 2023 in a short video presentation.
Christopher addresses the past quarter and shares what he and Nudgem Richyal, CFA, are excited about moving into the new market regime.
The fund has started tiptoeing slowly into new “neighborhoods” where we see positive relative fundamentals and valuations, plus stabilizing relative share price trends.
"Beware good houses in bad neighborhoods..."
Senior Fund Manager, Chris Lees, reviews the Ukraine invasion and his outlook and positioning for the future.
Updated probability-based scenario analysis from the JOHCM International Select team
Thoughts on the coronavirus and the subsequent market correction from the JOHCM International Select Fund team.
How to beat the investment machines? Chris Lees, manager of the the JOHCM Global Equity Fund, discusses the change in investment process in recent years.
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