JOHCM Global Select Fund (JOGIX)

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Fund Description

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.

Investment Strategy
  • Christopher and Nudgem have a Growth at a Reasonable Price (GARP) investment philosophy, which is sometimes described as core with a growth bias. They aim for consistency of returns by exploiting multiple market anomalies/inefficiencies.
  • Four-dimensional investment process (stocks, sectors, countries, time/change) with factors weighted to what actually drives each share price.
  • Growth and value disciplines are combined to help avoid the volatility that can occur in a single-style strategy, therefore to obtain better risk-adjusted returns over the medium and long term.
  • They look for stocks, sectors and countries that have displayed long-term underperformance (3 to 5 years) followed by short-term outperformance (6 to 12 months).
Investment Objective

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.

  • Christopher Lees

    Senior Fund Manager

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  • Nudgem Richyal

    Senior Fund Manager

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  • Jack Firth

    Analyst

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Fund details

Data as at 30 June 2024
Fund size $59.86mn
Strategy size $3.51bn
Benchmark MSCI AC World NR
Share classes
Institutional (Launch date) 21-March-2013
Advisor (Launch date) 21-March-2013
Minimum investment
Institutional $100,000
Advisor $0
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOGIX Institutional 382 46653M708
JOGEX Advisor 182 46653M807
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOGIX Institutional 0.99% 1.02%
JOGEX Advisor 1.09% 1.12%

*Expense ratios as stated in the latest prospectus. Perpetual Americas Funds Services has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until February 1, 2025.

Fund ratings

Data as at 30 June 2024
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     2-Star
1 year 151/343 40% 2-Star
3 years 280/321 82% 2-Star
5 years 255/277 86% 2-Star
10 years 182/188 94% 2-Star
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.  

Administration

Investment Advisor Perpetual Americas Funds Services
Transfer Agent Northern Trust
Custodian Northern Trust

Investment Background

Data as at 30 June 2024

Strategy Highlights

As at 31 March 2024

The portfolio outperformed its benchmark index this quarter, making it top decile in the Lipper peer group over the last 6 months and 1st quartile over one year*. This was partly a result of some of the changes we made to the portfolio and partly due to better performance from our mid-caps relative to the mega-caps we do not own. We expect this new trend to continue.

Q1 winners included Viking, Zealand, Nu Holdings, Eli Lilly and CRH all due to positive news -we took profits and trimmed them back to model weight. Q1 losers included GXO Logistics, B3, AP Memory, Globant and Dynatrace, all due to disappointing news. We sold GXO Logistics due to deteriorating earnings outlook; the rest are currently under review.

Year-to-date transactions and themes:

  1. Weed out the losers quicker: sold Adobe, Danone, GXO and United Health as their earnings outlook and price momentum deteriorated.
  2. New bull market in Japan: bought NEC and Recruit as their earnings outlook and price momentum improved.
  3. New bull market in small-mid cap biotechnology: bought next-generation anti-obesity company Viking Therapeutics with positive drug results.
  4. Obesity drug success is bad news for the consumer staples sector (ie less snacking): consumer staples is our biggest underweight relative to the index.
  5. European companies with majority US revenues relisting in US creates significant value: holdings CRH and Linde continue to outperform since they moved their listing from Europe to US last year.
  6. Emerging Markets growth stocks (avoid the value traps): holdings Mercadolibre and Nu Holdings (Latin American digital retail and finance).
  7. Growth stocks in the financial sector are working again now the rate shock is over: holdings TPG and Ares(US private equity/debt).
  8. Broadening bull market into mid-caps away from mega-caps: we increased our exposure to mid-caps, and will probably continue in this direction.
  9. Our momentum stocks, such as semiconductors & anti-obesity are due a pause after a big run: we trimmed our biggest winners back to model weight.
  10. What’s next? Lead indicators are improving, the global industrial/manufacturing recession looks like it is ending. We expect a broadening bull market with better performance from more cyclical stocks/sectors/regions.

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, select emerging markets, and Japanese equities as earnings recover in these areas.

Our scenario analysis and outlook is 80% bullish and 20% bearish:
Scenario 1 = 10% probability US Magnificent Seven leadership continues. The Magnificent 7 is now down to the Magnificent 4, as Tesla and Apple earnings disappointed, and Alphabet (Google) earnings are now being questioned.
Scenario 2 = 70% probability of broadening bull market. Inflation & interest rates stabilising, and 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 geopolitics/Middle-East escalating, are catalysts for this negative outcome. 

After the significant rally in Q1 2024, we would not be surprised by a momentum reversal or a shallow correction in Q2 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. 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 top-down scorecard shows several important changes. The technology sector has become significantly overvalued but still has good fundamentals and trend. We expect other cyclical sectors’ fundamentals and trend to improve next. The success of the new anti-obesity drugs is becoming bad news for both the health care and consumer staples sectors (i.e. less comorbidities and less food & beverage consumption).

 

*Source: Lipper

Total Return (%)

Data as at June 30, 2024
  1 Month Total Return 3 Month Total Return YTD Total Return 1 Year Total Return Cumulative Since Inception
Advisor Shares Net 3.19 -0.07 12.16 19.85 156.44
Benchmark 3.18 -0.07 12.13 19.95 158.88

Annualised Return (%)

Data as at June 30, 2024
  1 Year 2 Year 3 Year 4 Year 5 Year 10 Year Annualized Since Inception
Advisor Shares Net 19.85 10.06 -2.38 7.55 7.85 6.41 8.71
Benchmark 19.95 10.17 -2.31 7.63 7.94 6.51 8.80

Monthly returns (%)

Data as at 30 June 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
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 -5.60 2.58 3.19 12.16
Benchmark 2024 0.59 4.29 3.14 -3.30 8.88 2.23 11.30

Expense Ratio (%)

Data as at March 31, 2024
Share Class Gross Expense* Net Expense*
Advisor 1.12% 1.09%
Institutional 1.02% 0.99%

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 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. Perpetual Americas Funds Services has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until February 1, 2025.

Top 10 holdings and active weights

Data as at 30 June 2024
Top 10 holdings
Nvidia 4.13%
Microsoft 3.49%
Alphabet 3.43%
Zealand Pharma 3.41%
SK Hynix 2.99%
Amazon.com 2.92%
Eli Lilly 2.82%
NEC Corporation 2.74%
Broadcom 2.69%
Novo Nordisk 2.66%
Top 10 active weights
Zealand Pharma +3.41%
SK Hynix +2.86%
NEC Corporation +2.71%
Nu Holdings +2.56%
Recruit Holdings +2.49%
Micron Technology +2.42%
Cadence Design Systems +2.35%
Vertex Pharmaceuticals +2.35%
Spotify +2.33%
Regeneron Pharmaceuticals +2.32%

Regional / Country breakdown

Data as at 30 June 2024
Portfolio Benchmark Relative
Brazil 4.38% 0.43% 3.95%
Canada 2.07% 2.62% -0.55%
Denmark 6.08% 0.89% 5.18%
Germany 2.37% 1.94% 0.43%
Indonesia 2.07% 0.16% 1.91%
Ireland 2.30% 0.07% 2.23%
Japan 9.55% 5.09% 4.45%
South Korea 2.99% 1.24% 1.75%
United Kingdom 4.50% 3.34% 1.16%
United States 60.69% 64.7% -4%

Sector breakdown

Data as at 30 June 2024
Portfolio Benchmark Relative
Information Technology 32.66% 25.86% 6.80%
Financials 17.90% 15.62% 2.30%
Health Care 15.33% 10.88% 4.40%
Materials 10.70% 3.98% 6.70%
Consumer Discretionary 9.94% 10.38% -0.50%
Industrials 7.91% 10.29% -2.40%
Communication Services 5.77% 7.90% -2.10%
Consumer Staples 0.00% 6.20% -6.20%
Energy 0.00% 4.36% -4.40%
Real Estate 0.00% 1.98% -2.00%
Utilities 0.00% 2.49% -2.50%
Cash -0.26% 0.00% -0.26%

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 17/07/2024 Institutional USD 46653M849 25.05 -0.20 -0.79% 25.25
Investor USD 46653M823 25.10 -0.20 -0.79% 25.30
JOHCM Emerging Markets Opportunities Fund 17/07/2024 Advisor USD 46653M203 11.69 -0.12 -1.02% 11.81
Institutional USD 46653M104 11.72 -0.12 -1.01% 11.84
Investor USD 46653M302 11.67 -0.12 -1.02% 11.79
JOHCM Global Select Fund 17/07/2024 Advisor USD 46653M807 14.23 -0.37 -2.53% 14.60
Institutional USD 46653M708 14.26 -0.37 -2.53% 14.63
JOHCM Emerging Markets Discovery Fund 17/07/2024 Advisor USD 46653M500 15.27 -0.06 -0.39% 15.33
Institutional USD 46653M401 15.26 -0.06 -0.39% 15.32
JOHCM International Opportunities Fund 17/07/2024 Institutional USD 46653M872 12.86 0.08 0.63% 12.78
Regnan Global Equity Impact Solutions 17/07/2024 Institutional USD 46653M716 7.62 -0.07 -0.91% 7.69
TSW Large Cap Value Fund 17/07/2024 Institutional USD 46653M641 13.65 0.13 0.96% 13.52
TSW Emerging Markets Fund 17/07/2024 Institutional USD 46653M666 9.79 -0.06 -0.61% 9.85
TSW High Yield Bond Fund 17/07/2024 Institutional USD 46653M658 9.20 -0.01 -0.11% 9.21

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 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. Perpetual Americas Funds Services has contractually agreed to waive fees and reimburse expenses so that the Net Total Operating Expenses do not exceed the stated amounts until February 1, 2025.

20 Apr 2024

JOHCM International Select Strategy Update

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.

17 Jan 2024

JOHCM International Select Strategy Update

Watch as Christopher Lees, CFA, discusses why the team envisions a 'vice versa' scenario for 2024, countering the trends observed in 2023.

14 Dec 2023

Importance of Country Effect in Global Equity Returns

How should an international portfolio manager assess opportunities within the dynamic global markets to bolster return potential?

31 Oct 2023

JOHCM International Select Strategy Update

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.

27 Jul 2023

JOHCM International Select Strategy Update

Watch as Christopher Lees, CFA, discusses the extraordinary outperformance by USA Mega-caps and where the team is seeing opportunities in 2023.

05 Apr 2023

JOHCM International Select Strategy Update

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.

19 Jan 2023

Update: JOHCM International Select Strategy

What Senior Fund Managers Christopher Lees and Nudgem Richyal are most excited about looking into 2023 in a short video presentation.

12 Oct 2022

Q3 Video Update from Christopher Lees, CFA

Christopher addresses the past quarter and shares what he and Nudgem Richyal, CFA, are excited about moving into the new market regime.

    01 Oct 2022

    International Select Fund Quarterly Report

    The fund has started tiptoeing slowly into new “neighborhoods” where we see positive relative fundamentals and valuations, plus stabilizing relative share price trends.

      07 Jul 2022

      Q2 End Update with Christopher Lees, CFA

      "Beware good houses in bad neighborhoods..."

      10 Mar 2022

      International Select - Monthly Report

      Senior Fund Manager, Chris Lees, reviews the Ukraine invasion and his outlook and positioning for the future. 

      17 Mar 2020

      Think like a scientist - but which one and when?

      Updated probability-based scenario analysis from the JOHCM International Select team

      02 Mar 2020

      Coronavirus: indiscriminate selling makes for opportunity

      Thoughts on the coronavirus and the subsequent market correction from the JOHCM International Select Fund team. 

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