Christopher Lees
Senior Fund Manager
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.
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.
Senior Fund Manager
Senior Fund Manager
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...
Read MoreFund size | $5.84bn | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Strategy size | $7.02bn | ||||||||||||
Benchmark | MSCI EAFE NR | ||||||||||||
Share classes |
|
||||||||||||
Minimum investment |
|
||||||||||||
Fund codes |
|
||||||||||||
Fees and Expenses |
|
Morningstar Rating Rank |
|
||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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. |
Investment Advisor | JOHCM (USA) Inc. |
---|---|
Transfer Agent | Northern Trust |
Custodian | Northern Trust |
The portfolio underperformed its benchmark index in Q4, mainly due to our Brazilian financial sector holdings Banco Itau and B3, which both fell significantly given the events after the election. We think Brazil is now past the worst and have confidence in our holdings there. Globant (a leading digital consultancy company) was the major individual stock detractor to performance despite reporting excellent results and medium term outlook, as the market worried about short term temporary cost headwinds.
The MSCI EAFE NR Index fell 14.45% in 2022, despite rallying 17.34% in the fourth quarter. Inflation reached 40-year highs in many parts of the world, prompting central banks to hike interest rates much more than expected, leading to fears of a global recession and financial crisis. This market crisis was very different because previously ‘safe haven’ government bonds fell along with equities and 2022 was the worst year for combined equity and bond losses in most investors’ memory.
In 2022 we underperformed for 5 main reasons:
All the above meant we did not deliver our usual ‘relative downside protection’ in 2022.
During the 4th quarter we purchased high quality economically resilient stocks given our expectation of a recession, such as Unilever (UK consumer staples), Richemont (Swiss luxury products) and Partners Group (Swiss private equity). We followed our investment process of weeding out the losers such as Hong Kong Exchange, Alibaba, Tencent and Prosus. However these four Chinese stock sales significantly detracted from performance as they and the whole Chinese equity market subsequently rallied very strongly after we had sold them.
We think most equity markets are in a drawn out bottoming process, with risk on/off rotations as inflation and interest rates peak, and equity markets try to look through the probable recession. We see improving relative fundamentals, attractive valuation, and improving relative share price trends in the following neighbourhoods:
But given the Q4 rally and 2023 recession risks we will wait to buy the dips throughout the year.
Our current scenario analysis is 50% bullish and 50% bearish. Short term reasons to be bearish include a recession potentially becoming a financial crisis/contagion. Medium term reasons to be bullish include the Fed regaining credibility with inflation & interest rates stabilising this year.
Scenario 1 = 40% probability of rally led by quality growth stocks. It is probably nearer the end of the bear market for economically resilient quality growth stocks that are already down 30-50% after their 2022 interest rate shock.
Scenario 2 = 10% probability of rally led by cyclical value stocks. It is probably nearer the beginning of the Bear market for these stocks given their recessionary earnings risk, but will the equity market look through this?
Scenario 3 = 50% probability equity market keeps falling. Healthcare is our biggest position relative to benchmark given the sectors positive fundamentals, valuation and trend.
One of our greatest frustrations and disappointments of 2022 was that many of the profitable quality growth stocks we own fell about as much as the unprofitable negative cash flow growth stocks that we do not own. We call the latter ‘Concept Capital’ and think they still have a long way to fall. We are positive about the relative prospects of our profitable quality growth stocks, with low debt-to-equity balance sheets going into the probable 2023 earnings recession - an environment when quality stocks with great balance sheets usually shine (on a relative basis).
Sources for all data: JOHCM/Bloomberg (unless otherwise stated).
1 Month Total Return | 3 Month Total Return | YTD Total Return | 1 Year Total Return | Cumulative Since Inception | |
---|---|---|---|---|---|
Institutional Shares Net | -2.77 | 2.54 | 5.15 | -17.61 | 170.96 |
Investor Shares Net | -2.76 | 2.49 | 5.13 | -17.79 | 136.45 |
Benchmark | -2.09 | 5.93 | 5.84 | -3.14 | 113.33 |
1 Year | 2 Year | 3 Year | 4 Year | 5 Year | 10 Year | Annualized Since Inception | |
---|---|---|---|---|---|---|---|
Institutional Shares Net | -32.38 | -14.07 | -1.42 | 3.34 | 0.90 | 6.57 | 7.31 |
Investor Shares Net | -32.55 | -14.26 | -1.67 | 3.09 | 0.66 | 6.31 | 6.56 |
Benchmark | -14.45 | -2.44 | 0.87 | 5.78 | 1.54 | 4.67 | 5.36 |
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 | 5.15 | ||||||||||
Benchmark | 2023 | 8.10 | -2.09 | 5.84 |
Share Class | Gross Expense* | Net Expense* |
---|---|---|
Institutional | 0.98% | 0.98% |
Investor | 0.94% | 0.94% |
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.
Ferguson | 2.59% |
Aptiv | 2.58% |
STMicroelectronics | 2.52% |
Richemont | 2.48% |
Advantest | 2.46% |
L'Oréal | 2.41% |
Novo Nordisk | 2.41% |
B&M European Value Retail | 2.40% |
Orix | 2.39% |
Lonza | 2.39% |
Ferguson | +2.59% |
Aptiv | +2.58% |
B&M European Value Retail | +2.40% |
Advantest | +2.36% |
STMicroelectronics | +2.30% |
Orix | +2.25% |
ICON | +2.24% |
Linde | +2.22% |
CNH Industrial N.V. | +2.20% |
Unibanco | +2.13% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
Australia | 2.24% | 7.73% | -5.48% | |
Brazil | 3.97% | 0% | 3.97% | |
Denmark | 4.30% | 2.93% | 1.37% | |
France | 11.63% | 12.4% | -0.77% | |
Germany | 10.40% | 8.48% | 1.91% | |
Italy | 4.46% | 2.51% | 1.94% | |
Japan | 15.24% | 21.25% | -6% | |
Switzerland | 10.89% | 9.85% | 1.04% | |
United Kingdom | 21.76% | 15.25% | 6.51% | |
United States | 4.50% | 0% | 4.5% | |
Cash | 0.63% | 0% | 0.63% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
Health Care | 25.03% | 12.77% | 12.20% | |
Financials | 18.02% | 19.32% | -1.30% | |
Consumer Discretionary | 12.02% | 11.65% | 0.30% | |
Industrials | 11.63% | 15.40% | -3.80% | |
Information Technology | 10.99% | 8.07% | 2.90% | |
Materials | 10.70% | 7.71% | 3.00% | |
Consumer Staples | 6.90% | 10.09% | -3.20% | |
Energy | 2.15% | 4.82% | -2.60% | |
Utilities | 1.89% | 3.31% | -1.40% | |
Communication Services | 0.00% | 4.42% | -4.40% | |
Real Estate | 0.00% | 2.39% | -2.40% | |
Cash | 0.63% | 0.00% | 0.63% |
Portfolio | Benchmark | Relative | ||
---|---|---|---|---|
Large | 93.23% | 89.43% | 3.80% | |
Mid | 6.34% | 10.57% | -4.23% | |
Small | 0.00% | 0.00% | 0.00% |
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 | 27/03/2023 | Institutional | USD | 46653M849 | 21.04 | 0.15 | 0.72% | 20.89 | |
Investor | USD | 46653M823 | 21.09 | 0.15 | 0.72% | 20.94 | |||
JOHCM Emerging Markets Opportunities Fund | 27/03/2023 | Advisor | USD | 46653M203 | 10.39 | -0.11 | -1.05% | 10.50 | |
Institutional | USD | 46653M104 | 10.41 | -0.12 | -1.14% | 10.53 | |||
Investor | USD | 46653M302 | 10.38 | -0.12 | -1.14% | 10.50 | |||
JOHCM Global Select Fund | 27/03/2023 | Advisor | USD | 46653M807 | 12.36 | 0.07 | 0.57% | 12.29 | |
Institutional | USD | 46653M708 | 12.40 | 0.07 | 0.57% | 12.33 | |||
JOHCM Emerging Markets Small-Mid Cap Equity Fund | 27/03/2023 | Advisor | USD | 46653M500 | 11.41 | 0.00 | 0.00% | 11.41 | |
Institutional | USD | 46653M401 | 11.42 | 0.01 | 0.09% | 11.41 | |||
JOHCM Global Income Builder Fund | 27/03/2023 | Advisor | USD | 46653M799 | 9.72 | -0.07 | -0.72% | 9.79 | |
Institutional | USD | 46653M815 | 9.73 | -0.07 | -0.71% | 9.80 | |||
Investor | USD | 46653M781 | 9.72 | -0.06 | -0.61% | 9.78 | |||
JOHCM International Opportunities Fund | 27/03/2023 | Institutional | USD | 46653M872 | 10.38 | 0.08 | 0.78% | 10.30 | |
JOHCM Credit Income Fund | 27/03/2023 | Institutional | USD | 46653M740 | 8.95 | -0.02 | -0.22% | 8.97 | |
Regnan Global Equity Impact Solutions | 27/03/2023 | Institutional | USD | 46653M716 | 7.21 | 0.05 | 0.70% | 7.16 | |
TSW Large Cap Value Fund | 27/03/2023 | Institutional | USD | 46653M641 | 12.32 | 0.09 | 0.74% | 12.23 | |
TSW High Yield Bond Fund | 27/03/2023 | Institutional | USD | 46653M658 | 8.63 | 0.01 | 0.12% | 8.62 |
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.
What Senior Fund Managers Christopher Lees and Nudgem Richyal are most excited about looking into 2023 in a short video presentation.
Christopher addresses the past quarter and shares what he and Nudgem Richyal, CFA, are excited about moving into the new market regime.
The fund has started tiptoeing slowly into new “neighborhoods” where we see positive relative fundamentals and valuations, plus stabilizing relative share price trends.
"Beware good houses in bad neighborhoods..."
Senior Fund Manager, Chris Lees, reviews the Ukraine invasion and his outlook and positioning for the future.
Updated probability-based scenario analysis from the JOHCM International Select team
Thoughts on the coronavirus and the subsequent market correction from the JOHCM International Select Fund team.
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.
For a better experience, we recommend viewing this website in landscape orientation.