Global Select Fund (JOGEX)

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Fund Material

Data as at 31 August 2021

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" (J O Hambro Capital Management Limited) 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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Fund details

Data as at 31 August 2021
Fund size $13.60bn
Strategy size $5.29bn
Benchmark MSCI AC World NR
Share classes
Institutional (Launch date) 21-March-2013
Advisor (Launch date) 21-March-2013
Minimum investment
Institutional $1,000,000
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 0.98% 0.98%
JOGEX Advisor 1.08% 1.08%

*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 June 30, 2022.

Fund ratings

Data as at 31 August 2021
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     3-Star
1 year 92/352 26%
3 years 176/307 59% 3-Star
5 years 188/263 70% 3-Star
Morningstar Category World Stock

Morningstar rankings are based on Share class I and on total returns. Past performance does not guarantee future results. © 2018 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 Adviser J O Hambro Capital Management Limited
Transfer Agent Northern Trust
Custodian Northern Trust

Investment Background

As at 30 June 2021

 

Strategy Highlights

As at 30 June 2021

We underperformed the index in the second quarter with negative stock selection effects in a number of sectors. In particular, weakness came from: the consumer sectors, the utility sector, the industrial sector, the financial sector and our semiconductors. These negatives were somewhat offset by positive stock selection in the communication services sector, the healthcare sector, and the technology sector.

Many investors seem to be stuck on the growth versus value debate when the truth is somewhere in the middle (depending on where we are in the business cycle), which is why we combine growth, value and momentum over the cycle. Value usually performs the best during the first year of an economic recovery when earnings growth rates are accelerating. Growth usually performs better after the first year of economic recovery when earnings growth rates start to decelerate, which we think will start to happen from the second half of this year onwards.

The Covid-19 economic recovery is now probably priced into forward-looking global equity markets, so what’s next?

Cyclicals are called cyclical for a reason, as most of their relative outperformance usually occurs within the first 12 months of the recovery from a recession when they have the best relative earnings growth. After that, stable growth usually outperforms during the mid to late cycle when they have the best relative earnings growth. We do not see any reason for this historical pattern to change as we pass peak fiscal/monetary stimulus and peak cyclicality.

We remain 70% bullish and 30% bearish. The highest probability outcome is still “one of the biggest ever equity bull markets, followed by one of the biggest ever equity bear markets” but some early warning signs are flashing so we will keep an open mind in a fast-changing world. Our scenario analysis remains:

  • Scenario 1 (35%) Equity markets rally with the old leadership e. stable growth and high quality stocks (if inflation proves transitory and interests rates stabilise or fall next year)
  • Scenario 2 (35%)Equity markets rally with current leadership e. cyclical growth and financial stocks (if inflation proves structural and interest rates keep rising next year)
  • Scenario 3 (30%) Equity markets fall if interest rates rise too fast e. rising interest rates and/or market rotations to value are often bearish for equities (e.g. 2000-2001)

If inflation proves transitory, we would probably move to 80% bullish, 20% bearish (50%, 30% and 20% for scenarios 1, 2 and 3 respectively).

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

Total Return (%)

Data as at August 31, 2021
  1 Month Total Return 3 Month Total Return YTD Total Return 1 Year Total Return Cumulative Since Inception
Class I 2.47 7.22 18.12 35.09 188.09
Institutional 2.46 7.25 18.18 35.19 190.19
Benchmark 2.50 4.57 15.91 28.64 144.07

Annualised Return (%)

Data as at June 30, 2021
  1 Year 2 Year 3 Year 4 Year 5 Year 10 Year Annualized Since Inception
Class I 43.78 25.22 17.35 18.24 16.26 13.03
Institutional 43.96 25.36 17.47 18.35 16.37 13.13
Benchmark 39.27 19.25 14.57 13.59 14.61 10.96

Monthly returns (%)

Data as at 31 August 2021
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 2.00 2.47 18.12
Benchmark 2021 -0.45 2.32 2.67 4.37 1.51 1.36 0.69

Expense Ratio (%)

Data as at August 31, 2020
Share Class Gross Expense* Net Expense*
Advisor 1.08% 1.08%
Institutional 0.98% 0.98%
Investor 1.23% 1.23%

Disclaimer

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 June 30, 2022.

Top 10 holdings and active weights

Data as at 31 August 2021
Top 10 holdings
ASML 2.30%
DSM 2.22%
Recruit Holdings 2.21%
érsted 2.19%
Vestas 2.17%
IHS Markit 2.14%
Hong Kong Exchanges 2.06%
Accenture 2.01%
Sony 1.95%
SBI Holdings 1.87%
Top 10 active weights
DSM +2.17%
Ørsted +2.14%
Vestas +2.11%
Recruit Holdings +2.09%
IHS Markit +2.07%
Hong Kong Exchanges +1.95%
SBI Holdings +1.86%
ASML +1.79%
Aptiv +1.77%
Sony +1.76%

Regional / Country breakdown

Data as at 31 August 2021
Portfolio Benchmark Relative
Denmark 6.29% 0.68% 5.6%
France 6.33% 2.9% 3.43%
Germany 11.69% 2.36% 9.33%
Ireland 2.32% 0.18% 2.13%
Italy 5.95% 0.62% 5.33%
Japan 21.39% 5.81% 15.58%
Netherlands 10.60% 1.25% 9.35%
Switzerland 2.24% 2.52% -0.28%
United Kingdom 11.09% 3.61% 7.48%
United States 5.99% 59.89% -53.89%
Cash 5.53% 0% 5.53%

Sector breakdown

Data as at 31 August 2021
Portfolio Benchmark Relative
Information Technology 21.79% 22.66% -0.90%
Consumer Discretionary 15.30% 12.35% 2.90%
Industrials 14.92% 9.76% 5.10%
Financials 14.11% 14.02% 0.10%
Health Care 9.58% 11.81% -2.20%
Materials 7.97% 4.84% 3.20%
Communication Services 4.44% 9.42% -5.00%
Consumer Staples 4.11% 6.72% -2.60%
Utilities 2.19% 2.69% -0.50%
Real Estate 0.00% 2.58% -2.60%
Energy 0.00% 3.07% -3.10%
Cash 5.53% 0.00% 5.53%

Market cap breakdown

Data as at 31 August 2021
Portfolio Benchmark Relative
Large 90.01% 94.86% -4.90%
Mid 7.77% 5.14% 2.70%
Small 0.00% 0.00% 0.00%

Disclaimer

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 22/09/2021 Institutional USD 46653M849 32.46 0.08 0.25% 32.38
Investor USD 46653M823 32.45 0.07 0.22% 32.38
JOHCM Emerging Markets Opportunities Fund 22/09/2021 Advisor USD 46653M203 12.80 0.09 0.71% 12.71
Institutional USD 46653M104 12.84 0.10 0.78% 12.74
Investor USD 46653M302 12.78 0.09 0.71% 12.69
JOHCM Global Select Fund 22/09/2021 Advisor USD 46653M807 22.29 0.24 1.09% 22.05
Institutional USD 46653M708 22.36 0.24 1.08% 22.12
JOHCM Emerging Markets Small-Mid Cap Equity Fund 22/09/2021 Advisor USD 46653M500 18.66 0.19 1.03% 18.47
Institutional USD 46653M401 18.69 0.19 1.03% 18.50
JOHCM Global Income Builder Fund 22/09/2021 Advisor USD 46653M799 11.22 0.07 0.63% 11.15
Institutional USD 46653M815 11.22 0.07 0.63% 11.15
Investor USD 46653M781 11.22 0.07 0.63% 11.15
JOHCM International Opportunities Fund 22/09/2021 Institutional USD 46653M872 12.16 0.04 0.33% 12.12
JOHCM Credit Income Fund 22/09/2021 Institutional USD 46653M740 10.18 0.02 0.20% 10.16
Regnan Global Equity Impact Solutions 22/09/2021 Institutional USD 46653M716 9.66 0.04 0.42% 9.62

Disclaimer

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 June 30, 2022.

17 Mar 2020

Think like a scientist - but which one and when?

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

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. 

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. 

27 Aug 2019

Beating the machines - the Global Equity process

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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