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" (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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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 30 April 2024
Fund size $4.85bn
Strategy size $6.40bn
Benchmark MSCI EAFE NR
Share classes
Institutional (Launch date) 29-July-2009
Investor (Launch date) 31-March-2010
Minimum investment
Institutional $100,000
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 1.21% 1.23%

*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 April 2024
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     3-Star
1 year 60/407 20% 2-Star
3 years 269/383 72% 2-Star
5 years 258/327 79% 2-Star
10 years 87/223 44% 3-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 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

The portfolio outperformed its benchmark index during the quarter. This was primarily due to positive sector allocation (overweight technology and underweight consumer staples). Positive stock selection in the healthcare and industrial sectors was slightly offset by negative stock selection in the consumer discretionary and financial sectors.

Q1 winners included Zealand, Disco, Tokyo Electron, Advantest and Japan Exchange, all due to positive news. We trimmed them back to model weight. Q1 losers included Aixtron, B3, Globant, Fortescue and AstraZeneca, all due to disappointing news. We sold Aixtron and AstraZeneca due to deteriorating earnings outlook; the rest are currently under review.

Year-to-date transactions and themes:

  1. Weed out the losers quicker: sold Aixtron, AstraZeneca, Novartis, and Rio Tinto as their earnings outlook and price momentum deteriorated.
  2. New bull market in Japan: bought NEC as its earnings outlook and price momentum improved.
  3. New bull market in small-mid cap biotechnology: bought next-generation anti-obesity company Zealand Pharma with positive drug results.
  4. Obesity drug success is bad news for the consumer staples sector: consumer staples is our biggest underweight relative to the index.
  5. European companies with the majority US revenues relisting in the US creates significant value: holdings CRH and Linde continue to outperform since they moved their listing from Europe to the US last year.
  6. Emerging markets growth stocks (avoid the value traps): holdings Mercadolibre (Latin American retail) and Hynix (Korean high bandwidth memory).
  7. Growth stocks in the financial sector are working again, and now the rate shock is over: holdings Partners Group and EQT(European private equity).
  8. Broadening bull market into mid-caps away from mega-caps: bought mid-cap Publicis (digital marketing) and will probably continue increasing mid-caps.
  9. Our momentum stocks (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 appears to be ending and 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 Google earnings are now being questioned.
Scenario 2 = 70% probability of a 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 Healthcare and Consumer Staples sectors (i.e. less comorbidities and less food & beverage consumption).

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 -8.06 -0.43 -0.60 8.22 202.56
Investor Shares Net -8.04 -0.47 -0.69 8.02 163.29
Benchmark -2.56 2.49 3.08 9.28 145.64

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 17.86 0.38 -2.02 9.67 5.33 5.71 8.46
Investor Shares Net 17.58 0.12 -2.26 9.40 5.07 5.45 7.80
Benchmark 15.32 6.64 4.78 13.56 7.33 4.80 6.51

Monthly returns (%)

Data as at 30 April 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
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 -4.34 -4.77 9.83 5.76 18.12
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 -0.17 6.18 1.99 -8.06 -0.60
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 0.98% 0.98%
Investor 1.23% 1.21%

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 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. 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 April 2024
Top 10 holdings
Northern Institutional Treasury Portfolio 3.11%
Hitachi 2.90%
Novo Nordisk 2.88%
Zealand Pharma 2.87%
NEC Corporation 2.86%
Ferguson 2.81%
Schneider Electric 2.77%
Komatsué 2.66%
CRH 2.65%
Publicis Groupe 2.61%
Top 10 active weights
Northern Institutional Treasury Portfolio +3.11%
Zealand Pharma +2.87%
Ferguson +2.81%
NEC Corporation +2.75%
Linde +2.52%
Japan Exchange +2.50%
Komatsu  +2.49%
Lundin Mining Corp +2.47%
Publicis Groupe +2.46%
SK Hynix +2.45%

Regional / Country breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Australia 2.60% 7.19% -4.59%
Canada 4.31% 0% 4.31%
Denmark 5.76% 3.72% 2.04%
France 10.14% 12.08% -1.94%
Germany 6.70% 8.59% -1.88%
Ireland 2.65% 0.68% 1.96%
Japan 29.44% 23.06% 6.37%
Switzerland 4.60% 9.11% -4.51%
United Kingdom 12.03% 14.89% -2.86%
United States 5.14% 0% 5.14%
Cash 2.02% 0% 2.02%

Sector breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
Financials 25.45% 19.20% 6.30%
Industrials 19.38% 16.84% 2.60%
Information Technology 18.09% 9.52% 8.60%
Health Care 15.41% 12.82% 2.60%
Consumer Discretionary 8.07% 12.61% -4.50%
Materials 6.56% 7.11% -0.50%
Communication Services 2.28% 4.10% -1.80%
Consumer Staples 2.17% 8.71% -6.50%
Energy 2.11% 3.93% -1.80%
Real Estate 0.00% 2.03% -2.00%
Utilities 0.00% 3.07% -3.10%
Cash 0.43% 0.00% 0.43%

Market cap breakdown

Data as at 30 April 2024
Portfolio Benchmark Relative
82.67% 91.37% -8.69%
13.65% 8.63% 5.01%

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 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.

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. 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. 

      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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