JOHCM International Opportunities Fund (JOPSX)

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Fund Description

The JOHCM International Opportunities Fund is managed by Ben Leyland, senior fund manager, and Robert Lancastle, fund manager, supported by dedicated analyst Jasmeet Munday. The team seeks to generate high risk-adjusted returns with volatility below that of the broad market by focusing on high-quality, cash-flow-generative companies. They blend the best of quality investing with the best of value investing in order to avoid the two major sources of capital destruction at market turning points: overvaluation and overleverage. They prioritize businesses with strong franchises, strong balance sheets and the ability to create shareholder value by reinvesting in areas of competitive advantage, but they only commit capital where they see a favorable risk/reward ratio, i.e., limited downside and substantial upside on a 3- to 5-year horizon. They emphasize absolute rather than relative returns and are prepared to hold up to 20% cash in the fund when valuations are unattractive.

Investment Strategy

The team aims to deliver above-average risk-adjusted equity returns over the medium term. They believe this is best achieved by investing in a concentrated, unconstrained portfolio of attractively valued compound growth companies. They prioritize companies that are able to reliably generate cash flow and reinvest it at high marginal returns in order to grow their intrinsic value. As a result, the companies become more valuable over time. 

Investment Objective

The investment objective of the JOHCM International Opportunities Fund is to achieve long-term total return by investing in a concentrated portfolio of international equity securities. The Fund invests, under normal market conditions, primarily in equity securities of companies headquartered outside the U.S., including those in emerging markets. The Fund may invest in foreign companies of any size, including small- and mid-capitalization companies, in order to achieve its objective. Equity securities include common and preferred stocks, rights and warrants. The Fund may also invest in equity related instruments, such as equity linked notes and participation notes, all of which derive their value from equities. Equity linked notes and participation notes will be securitized, freely transferable and the Fund will not be leveraged as a result of investing in them. The portfolio typically contains 25 to 40 stocks,* with position sizes of 2% to 5%. The Fund is benchmarked against the MSCI EAFE Index, but their process is benchmark-agnostic: The team aims to cluster exposure around particularly attractive areas and have zero exposure to overleveraged or overvalued areas of the market. The process is biased toward larger-cap (>$5 billion) multinationals listed in developed markets.
*The number of stocks in the portfolio will be fewer than 50.

  • Ben Leyland

    Senior Fund Manager

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  • Robert Lancastle

    Senior Fund Manager

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  • Jasmeet Munday

    Analyst

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Other International Equity Funds

JOHCM International Select Fund (JOHIX)

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 intuitive “4-Dimensional” investment process (stocks, sectors, countries, time/change) focuses on the be...

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Fund details

Data as at 30 April 2024
Fund size $29.74mn
Benchmark MSCI EAFE Index
Share classes
Institutional (Launch date) 30-September-2016
Minimum investment
Institutional $100,000
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOPSX Institutional 46653M872
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOPSX Institutional 0.50% 4.20%

*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, 2026.

Fund ratings

Data as at 30 April 2024
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     5-Star
1 year 75/748 11% 2-Star
3 years 12/696 2% 5-Star
5 years 70/646 11% 5-Star

Administration

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

Investment Background

Data as at 30 April 2024

Strategy Highlights

As at 31 March 2024

Equity markets rallied in the fourth quarter 2024 in response to rising hopes for rate cuts during. In the first quarter 2024, those hopes receded somewhat, not least because progress back to 2% inflation appears to be stalling, but equity markets continued to rally and volatility continued to fall. The VIX volatility index is back to pre-Covid levels.

The market continued to be led by the technology and media sectors, nor was it purely a US rally - semiconductors outside the US were also very strong; for example, both TSMC and ASML were up 31%, and it is worth noting that the Japanese market outperformed the US, helped by further yen weakness and improving macro sentiment. Nevertheless, the rising cyclical optimism was certainly, with strength in industrials and materials reflecting a variety of lead indicators turning upwards, including housing starts, rail volumes and the manufacturing PMI index, which ended the quarter above 50 for the first time since October 2022. The trough last year, if it turns out to be a trough, has been very mild. One explanation is the unusual lack of coordination between different cycles since Covid. For example, light vehicle sales were weak in 2020 to 2022 and recovered quite strongly last year, whereas housing starts were strong until mid-2022 before weakening due to rising interest rates. Most recently, we have seen various post-Covid destocking cycles affecting diverse sectors such as transport/logistics, beverages and healthcare.

We don’t have much direct exposure to cyclicals or the semiconductor sector, so we underperformed during the quarter, but it was pleasing to see good performance from the names we do have with exposure to these areas. The thesis of a renewed cycle of capital expenditure and infrastructure renewal is coming through nicely.

Drags on absolute performance came from a few names in sectors affected by the destocking cycle mentioned above. We are monitoring both valuation and fundamental execution to assess whether these situations are buying opportunities. Our exposure to the health care sector continues to grow. It is probably the best place to find ‘forgotten middle’ names at present, with valuations looking increasingly attractive as a few temporary headwinds have masked the structural tailwinds from demographics, innovation and outsourcing.

It has been unrewarding in recent months to be invested in stocks with poor relative earnings momentum in a market which, in the short term, is as much an extrapolating machine as a voting machine. We will continue to ensure the portfolio has a good balance between companies with strong execution trading at reasonable valuations and companies on much more compelling valuations but with weaker current execution, which we believe is leading investors to ignore a strong longer-term outlook.

Total Return (%)

Data as at April 30, 2024
  1 Month Total Return 3 Month Total Return YTD Total Return 1 Year Total Return Cumulative Since Inception
Institutional Shares Net -2.39 3.90 3.64 12.58 68.24
Benchmark -2.56 2.49 3.08 9.28 62.85

Annualised Return (%)

Data as at March 31, 2024
  1 Year 2 Year 3 Year 4 Year 5 Year 10 Year Annualized Since Inception
Institutional Shares Net 17.70 14.53 7.87 14.13 8.62 7.53
Benchmark 15.32 6.64 4.78 13.56 7.33 7.09

Monthly returns (%)

Data as at 30 April 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Fund 2016 -0.24 -3.28 -2.60 2.01 -4.13
Benchmark 2016 -0.29 -2.05 -1.99 3.42
Fund 2017 0.85 1.95 1.91 2.88 5.22 -0.99 2.18 1.26 1.32 0.71 -0.15 -0.18 18.17
Benchmark 2017 2.90 1.43 2.75 2.54 3.67 -0.18 2.88 -0.04 2.49 1.52 1.05 1.61 25.02
Fund 2018 1.56 -3.12 1.58 1.23 -1.02 -0.34 1.09 -0.66 1.23 -6.16 1.00 -3.88 -7.58
Benchmark 2018 5.02 -4.51 -1.80 2.28 -2.25 -1.22 2.46 -1.93 0.87 -7.96 -0.13 -4.85 -13.79
Fund 2019 5.08 2.00 1.63 2.83 -4.76 5.27 -2.07 -0.74 1.93 2.75 0.40 2.92 18.15
Benchmark 2019 6.57 2.55 0.63 2.81 -4.80 5.93 -1.27 -2.59 2.87 3.59 1.13 3.25 22.01
Fund 2020 -0.92 -6.55 -11.34 3.46 5.38 2.02 4.34 2.42 -2.90 -4.26 15.23 3.50 8.20
Benchmark 2020 -2.09 -9.04 -13.35 6.46 4.35 3.40 2.33 5.14 -2.60 -3.99 15.50 4.65 7.82
Fund 2021 -1.67 1.78 2.54 4.30 2.35 -1.98 -0.20 0.11 -5.77 2.16 -6.63 5.79 2.02
Benchmark 2021 -1.07 2.24 2.30 3.01 3.59 -1.44 0.75 1.76 -2.90 2.46 -4.65 5.12 11.26
Fund 2022 0.11 -0.83 -3.04 -1.97 2.22 -8.45 6.10 -5.49 -8.09 7.25 12.79 0.99 -0.59
Benchmark 2022 -4.83 -1.77 0.64 -6.47 0.75 -9.28 4.98 -4.75 -9.35 5.38 11.26 0.08 -14.45
Fund 2023 7.54 -1.68 2.00 2.05 -4.11 5.33 2.80 -2.37 -2.25 -3.13 7.71 5.07 19.54
Benchmark 2023 8.10 -2.09 2.48 2.82 -4.23 4.55 3.24 -3.83 -3.42 -4.05 9.28 5.31 18.24
Fund 2024 -0.25 3.39 2.95 -2.39 3.64
Benchmark 2024 0.58 1.83 3.29 -2.56 3.08

Expense Ratio (%)

Data as at March 31, 2024
Share Class Gross Expense* Net Expense*
Institutional 4.20% 0.50%

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 EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. Any Indicies mentioned are unmanaged statistical composites of stock market performance. Investing in an index is not possible.

 

*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, 2026.

Top 10 holdings and active weights

Data as at 30 April 2024
Top 10 holdings
Northern Institutional Treasury Portfolio 4.65%
Shellé 4.34%
Deutsche Bérse 3.85%
Compass Group 3.81%
Thales Group 3.81%
Intact 3.63%
Sanofi 3.49%
Komatsué 3.42%
Merck KGaA 3.31%
Total 3.21%
Top 10 active weights
Northern Institutional Treasury Portfolio +4.65%
Thales Group +3.71%
Deutsche Börse +3.63%
Intact +3.63%
Compass Group +3.52%
Komatsu  +3.24%
Merck KGaA +3.19%
Publicis Groupe +2.94%
Shell  +2.92%
Fujifilm +2.90%

Regional / Country breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Canada 7.61% 0% 7.61%
France 16.73% 12.08% 4.64%
Germany 11.31% 8.59% 2.71%
Ireland 3.10% 0.68% 2.42%
Japan 19.63% 23.06% -3.43%
Singapore 2.36% 1.39% 0.96%
Sweden 3.97% 3.07% 0.9%
Switzerland 4.33% 9.11% -4.78%
United Kingdom 15.94% 14.89% 1.04%
United States 7.55% 0% 7.55%
Cash 0.46% 0% 0.46%

Sector breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Financials 48.42% 19.20% 29.20%
Industrials 24.07% 16.84% 7.30%
Consumer Discretionary 15.29% 12.61% 2.70%
Health Care 9.96% 12.82% -2.80%
Consumer Staples 9.12% 8.71% 0.40%
Energy 8.83% 3.93% 4.90%
Information Technology 5.51% 9.52% -4.00%
Communication Services 5.27% 4.10% 1.20%
Materials 1.47% 7.11% -5.60%
Real Estate 0.00% 2.03% -2.00%
Utilities 0.00% 3.07% -3.10%
Cash -27.99% 0.00% -27.99%

Market cap breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
<10BN 11.37% 8.63% 2.73%
>10BN 83.69% 91.37% -7.68%

Fund

As at noon Share class Currency CUSIP Number NAV Change Change % Previous
JOHCM International Select Fund 12/06/2024 Institutional USD 46653M849 24.13 0.17 0.71% 23.96
Investor USD 46653M823 24.18 0.17 0.71% 24.01
JOHCM Emerging Markets Opportunities Fund 12/06/2024 Advisor USD 46653M203 11.20 -0.02 -0.18% 11.22
Institutional USD 46653M104 11.23 -0.01 -0.09% 11.24
Investor USD 46653M302 11.19 -0.01 -0.09% 11.20
JOHCM Global Select Fund 12/06/2024 Advisor USD 46653M807 13.64 0.09 0.66% 13.55
Institutional USD 46653M708 13.67 0.09 0.66% 13.58
JOHCM Emerging Markets Discovery Fund 12/06/2024 Advisor USD 46653M500 14.73 0.04 0.27% 14.69
Institutional USD 46653M401 14.72 0.04 0.27% 14.68
JOHCM International Opportunities Fund 12/06/2024 Institutional USD 46653M872 12.70 0.11 0.87% 12.59
Regnan Global Equity Impact Solutions 12/06/2024 Institutional USD 46653M716 7.66 0.06 0.79% 7.60
TSW Large Cap Value Fund 12/06/2024 Institutional USD 46653M641 13.10 -0.02 -0.15% 13.12
TSW Emerging Markets Fund 12/06/2024 Institutional USD 46653M666 9.35 0.05 0.54% 9.30
TSW High Yield Bond Fund 12/06/2024 Institutional USD 46653M658 9.14 0.03 0.33% 9.11

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 EAFE Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US & Canada. Any Indicies mentioned are unmanaged statistical composites of stock market performance. Investing in an index is not possible.

 

*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, 2026.

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