JOHCM International Select Fund (JOHIX)

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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 intuitive “4-Dimensional” investment process (stocks, sectors, countries, time/change) focuses on the behavior 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 international 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.- The fund managers 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 JOHCM International Select Fund (the “Fund”) is to seek long-term capital appreciation. The Fund invests, under normal market conditions, primarily in equity securities of companies headquartered outside the United States, including those in emerging market countries. The Fund may invest in foreign companies of any size, including small and mid-capitalization companies, in order to achieve its objective. 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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Other International Equity Funds

JOHCM International Opportunities Fund (JOPSX)

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-qua...

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Fund details

Data as at 31 August 2023
Fund size $5.60bn
Strategy size $7.04bn
Benchmark MSCI EAFE NR
Share classes
Institutional (Launch date) 29-July-2009
Investor (Launch date) 31-March-2010
Minimum investment
Institutional $1,000,000
Investor $0
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOHIX Institutional 180 46653M849
JOHAX Investor 280 46653M823
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOHIX Institutional 0.98% 0.98%
JOHAX Investor 1.19% 1.19%

*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.

Fund ratings

Data as at 31 August 2023
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     3-Star
1 year 359/447 79% 2-Star
3 years 332/407 83% 2-Star
5 years 285/351 81% 2-Star
10 years 72/238 35% 4-Star
Morningstar Category Foreign Large Growth

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. Past performance is no guarantee of future results.

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

Investment Background

Data as at 31 August 2023

Strategy Highlights

As at 28 July 2023

The main positive stock contributors in Q2 included:

  • In the Technology sector, Advantest the Japanese semiconductor testing company benefitting from AI’s need for more complex chip testing.

  • In the Financial sector, B3 benefited from improving local country specific financial conditions.

  • In the Consumer Discretionary sector, B&M Bargains the leading UK discount retailer expanding into Europe, and Compass the UK based global catering services company.

The main negative detractor in Q2 was being overweight the Healthcare sector, where Sartorius, Merck KGA and Ono Pharmaceutical were all weak after strong relative share prices last year. We think this weakness is temporary so we are buyers of their dips.

In Q2 we sold ICON on concerns over deteriorating future earnings, and bought Danone on expectations of improving future earnings growth.

Statistically there is now a high probability the 10 largest USA stocks start underperforming and other stocks/sectors/regions start outperforming
during the second half of 2023. The largest 10 USA stocks are up 59% year to date, versus 7% for the equally weighted S&P 500 index, and 11.3% for the MSCI World ex USA index. The outperformance of the 10 largest S&P 500 stocks relative to the equally weighted S&P 500 index is at its widest since records began. The current 1,100 basis points contribution from the largest 10 USA stocks to total index performance year to date is the highest by far of any half-year period. It is around 60% greater than the second & third six month periods which were the Tech bubbles of 2020 & 1999 (690 & 680 basis points contributions).

Given that just a handful of technology-related stocks drove the firsthalf rally, sector performance has been extremely lopsided, and several defensive sectors have now reached statistically significant oversold levels. For example, the Ned Davies defensive SHUT (Staples, Healthcare, Utilities, Telecoms) index is almost 3.0 standard deviations oversold, its worst firsthalf performance of any year since it began in 1972. There is a high probability of this mean reverting, driven by the Fed tightening cycle and a deteriorating economic outlook, leading to a defensive-sector resurgence in the second half.

Outside the US equity market, we have not seen this extraordinary disparity between the top 10 largest companies and the rest. The most notable thing we are seeing is the deterioration in the Chinese stock market due to economic and geo-political concerns, versus the improvement in the Japanese stock market due to corporate restructuring that is being driven by the Tokyo Stock Exchange insistence that listed firms take action to raise their price-to-book ratio above one. In other words, “Abenomics third arrow” of corporate restructuring to increase profitability is finally being implemented. As a result, Japan is probably transitioning from ‘sell the rallies’ to ‘buy the dips’.

 

 

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

Total Return (%)

Data as at August 31, 2023
  1 Month Total Return 3 Month Total Return YTD Total Return 1 Year Total Return Cumulative Since Inception
Institutional Shares Net -3.54 3.28 11.64 14.89 187.70
Investor Shares Net -3.58 3.18 11.46 14.60 150.68
Benchmark -3.83 3.80 10.87 17.92 123.45

Annualised Return (%)

Data as at June 30, 2023
  1 Year 2 Year 3 Year 4 Year 5 Year 10 Year Annualized Since Inception
Institutional Shares Net 12.73 -10.25 1.38 2.96 2.54 6.52 8.02
Investor Shares Net 12.44 -10.46 1.15 2.71 2.29 6.26 7.32
Benchmark 18.77 -1.17 8.93 5.23 4.39 5.41 6.00

Monthly returns (%)

Data as at 31 August 2023
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Fund 2009 0.30 2.39 2.24 -4.19 5.47 1.25 7.42
Benchmark 2009 2.77 5.44 3.83 -1.25 2.00 1.44 14.96
Fund 2010 -4.10 0.68 7.34 1.53 -12.93 1.73 9.00 -3.94 15.38 6.62 1.01 7.00 29.74
Benchmark 2010 -4.41 -0.69 6.24 -1.81 -11.31 -1.21 9.48 -3.10 9.80 3.61 -4.81 8.10
Fund 2011 -0.87 0.80 -0.14 5.95 -1.64 -1.60 -2.26 -5.21 -14.73 11.55 -0.16 -5.84 -15.24
Benchmark 2011 2.36 3.30 -2.24 5.98 -2.95 -1.25 -1.59 -9.03 -9.53 9.64 -4.85 -0.95
Fund 2012 7.49 7.05 -0.30 -2.40 -10.61 2.84 0.84 4.56 3.57 -0.08 0.08 2.75 15.48
Benchmark 2012 5.33 5.74 -0.46 -1.96 -11.48 7.01 1.13 2.69 2.96 0.83 2.42 3.20 17.32
Fund 2013 6.82 1.82 3.31 3.94 -0.58 -1.81 5.33 -1.75 7.81 1.83 3.22 3.38 38.22
Benchmark 2013 5.27 -0.95 0.84 5.19 -2.41 -3.55 5.28 -1.32 7.39 3.36 0.77 1.50 22.78
Fund 2014 -2.79 5.99 -2.77 -1.79 4.03 3.16 -2.68 2.45 -0.55 0.63 2.20 -2.14 5.36
Benchmark 2014 -4.03 5.56 -0.64 1.45 1.62 0.96 -1.96 -0.15 -3.84 -1.45 1.36 -3.46 -4.90
Fund 2015 1.62 7.38 1.28 1.34 3.01 -6.10 0.34 -8.81 -5.32 4.32 -1.43 -0.59 -4.08
Benchmark 2015 0.49 5.98 -1.52 4.08 -0.51 -2.83 2.08 -7.36 -5.08 7.82 -1.56 -1.35 -0.81
Fund 2016 -2.37 0.36 3.70 1.80 -1.07 2.05 4.32 -0.11 3.13 -3.13 -4.01 0.82 5.22
Benchmark 2016 -7.23 -1.83 6.51 2.90 -0.91 -3.36 5.07 0.07 1.23 -2.05 -1.99 3.42 1.01
Fund 2017 5.12 0.00 2.57 1.03 2.69 -0.17 3.05 2.28 0.34 2.57 -0.21 1.62 22.84
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 5.98 -2.72 0.38 0.73 1.53 -0.99 -0.13 -1.06 1.43 -8.04 -0.54 -4.50 -8.27
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 6.75 2.26 2.91 0.33 -3.21 5.64 -1.21 -2.28 -0.52 1.88 3.32 2.21 19.08
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 0.25 -7.95 -8.37 10.13 8.00 3.76 5.95 3.44 0.22 -2.65 11.97 3.82 29.69
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 0.02 0.04 0.21 3.03 1.37 -0.58 0.35 2.96 -4.50 4.31 -2.09 4.11 9.22
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 -9.69 -4.46 -0.68 -9.84 0.70 -12.48 5.54 -8.58 -10.22 4.30 12.71 -2.48 -32.38
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 8.15 -2.77 3.04 0.14 -0.37 5.04 1.94 -3.54 11.64
Benchmark 2023 8.10 -2.09 2.48 2.82 -4.23 4.55 3.24 -3.83 10.87

Expense Ratio (%)

Data as at February 28, 2022
Share Class Gross Expense* Net Expense*
Institutional 0.98% 0.98%
Investor 0.94% 0.94%

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.

Historical performance of the International Select Fund for Class II Shares prior to its inception is based on the performance of Class I Shares. The performance of Class II Shares has been adjusted to reflect differences in expenses.

*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.

Top 10 holdings and active weights

Data as at 31 August 2023
Top 10 holdings
Air Liquide 2.48%
Northern Institutional Treasury Portfolio 2.41%
Mercado Libre 2.39%
Compass Group 2.36%
Novo Nordisk 2.35%
B&M European Value Retail 2.34%
Schneider Electric 2.32%
Ashtead Group 2.30%
Linde 2.29%
Sanofi 2.28%
Top 10 active weights
Northern Institutional Treasury Portfolio +2.41%
Mercado Libre +2.39%
B&M European Value Retail +2.34%
Linde +2.29%
Bank Rakyat Indonesia +2.22%
Qiagen +2.21%
Japan Exchange +2.17%
Accenture +2.14%
Socionext +2.13%
Ashtead Group +2.10%

Regional / Country breakdown

Data as at 31 August 2023
Portfolio Benchmark Relative
Brazil 3.75% 0% 3.75%
Denmark 3.03% 3.22% -0.18%
France 9.18% 12.25% -3.06%
Germany 10.43% 8.5% 1.92%
Indonesia 2.22% 0% 2.22%
Italy 3.85% 2.61% 1.24%
Japan 16.85% 22.79% -5.94%
Switzerland 10.36% 10.1% 0.25%
United Kingdom 20.51% 14.62% 5.88%
United States 8.90% 0% 8.9%
Cash 0.75% 0% 0.75%

Sector breakdown

Data as at 31 August 2023
Portfolio Benchmark Relative
Health Care 23.04% 13.40% 9.60%
Financials 20.50% 18.66% 1.80%
Consumer Discretionary 12.96% 12.23% 0.80%
Industrials 12.81% 16.12% -3.30%
Materials 10.33% 7.45% 2.80%
Information Technology 10.29% 8.05% 2.20%
Consumer Staples 6.61% 9.98% -3.40%
Energy 1.98% 4.42% -2.40%
Utilities 0.68% 3.42% -2.70%
Communication Services 0.00% 4.04% -4.00%
Real Estate 0.00% 2.17% -2.20%
Cash 0.75% 0.00% 0.75%

Market cap breakdown

Data as at 31 August 2023
Portfolio Benchmark Relative
Large 86.32% 89.50% -3.18%
Mid 10.67% 10.50% 0.17%
Small 0.00% 0.00% 0.00%

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 29/09/2023 Institutional USD 46653M849 21.37 -0.06 -0.28% 21.43
Investor USD 46653M823 21.39 -0.07 -0.33% 21.46
JOHCM Emerging Markets Opportunities Fund 29/09/2023 Advisor USD 46653M203 10.35 0.06 0.58% 10.29
Institutional USD 46653M104 10.38 0.06 0.58% 10.32
Investor USD 46653M302 10.33 0.05 0.49% 10.28
JOHCM Global Select Fund 29/09/2023 Advisor USD 46653M807 12.26 -0.04 -0.33% 12.30
Institutional USD 46653M708 12.30 -0.04 -0.32% 12.34
JOHCM Emerging Markets Small-Mid Cap Equity Fund 29/09/2023 Advisor USD 46653M500 12.59 0.05 0.40% 12.54
Institutional USD 46653M401 12.60 0.05 0.40% 12.55
JOHCM International Opportunities Fund 29/09/2023 Institutional USD 46653M872 10.85 -0.08 -0.73% 10.93
Regnan Global Equity Impact Solutions 29/09/2023 Institutional USD 46653M716 7.14 0.02 0.28% 7.12
TSW Large Cap Value Fund 29/09/2023 Institutional USD 46653M641 12.66 -0.03 -0.24% 12.69
TSW High Yield Bond Fund 29/09/2023 Institutional USD 46653M658 8.71 0.01 0.11% 8.70

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.

Historical performance of the International Select Fund for Class II Shares prior to its inception is based on the performance of Class I Shares. The performance of Class II Shares has been adjusted to reflect differences in expenses.

*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.

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. 

      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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