JOHCM Emerging Markets Discovery Fund (JOMMX)

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Fund Description

Experienced emerging equity market investors Emery Brewer, Dr Ivo Kovachev and Stephen Lew use a predominantly stock-picking approach in finding opportunities in the fast-growing developing markets. They focus on growth companies that have the potential to develop world-class products or become industry leaders in local markets.

Investment Strategy
  • The team follows a predominantly bottom-up, stock selection-driven process, complemented by a sector and country overlay, that seeks to identify the most dynamic small-cap growth stocks within their investment universe
  • The team believes share prices follow growth - by making extensive use of screening tools and closely tracking corporate news flow, the team aims to identify companies demonstrating strong revenue and earnings growth, positive earnings revisions and other signs of improvement in operational performance;
  • A flexible investment approach that identifies three types of growth stocks: classic growth e.g. smartphone manufacturers; commodities growth e.g. resources companies growing reserves or production; and recovery growth, typically sectors or countries that appear oversold;
  • Portfolio typically comprises 70-120 stocks with market caps of less than US$8 billion and maximum weights in any one sector or country of 30%
  • Dr Ivo Kovachev

    Senior Fund Manager

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  • Emery Brewer

    Senior Fund Manager

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  • Stephen Lew

    Senior Fund Manager

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Other Emerging Markets Equity Funds

JOHCM Emerging Markets Opportunities Fund (JOEMX)

For fund managers James Syme, Paul Wimborne and Ada Chan, identifying the most attractive emerging markets in which to invest is the most important influence on investment performance. Through an extensive process that focuses on growth, liquidity, currency, management/politics and valuations, they produce country allocation targets for each...

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Fund details

Data as at 31 August 2024
Fund size $65.56mn
Strategy size $290.53mn
Benchmark MSCI Emerging Markets Small Cap NR
Share classes
Advisor (Launch date) 28-January-2016
Institutional (Launch date) 17-December-2014
Minimum investment
Advisor $0
Institutional $100,000
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOMEX Advisor 285 46653M500
JOMMX Institutional 685 46653M401
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOMEX Advisor 1.34% 1.72%
JOMMX Institutional 1.24% 1.62%

*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 31 August 2024
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     5-Star
1 year 118/804 17% 2-Star
3 years 31/718 7% 5-Star
5 years 4/646 1% 5-Star
Morningstar Category Diversified Emerging Markets

Morningstar rankings are based on the Institutional share class 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.

 

Administration

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

Investment Background

Data as at 31 August 2024

Strategy Highlights

As at 30 June 2024

As we cross the midpoint of the year, it’s heartening to see that emerging markets are on an upward trajectory. This positive trend reaffirms the core principles of our investment strategy, which are predicated on better growth, attractive valuations and more traditional economic policies.

The journey hasn’t been smooth. We’ve weathered three corrections approximately every two months. These volatile shifts test not only our trading skills and long-term predictions but also our faith in the system. They challenge our belief that markets function as effective discounting mechanisms and that, over time, they reward deserving participants.

In emerging markets, we’re all too aware that markets are often less efficient, even among the larger, liquid index names. There are periods when good stocks are discarded along with the bad, leading to frustrating inconsistencies. For instance, India and Mexico, both market favourites until their respective elections, experienced significant declines for different reasons. India managed to rebound, while Mexico did not, possibly due to fears of Mr. Trump’s potential return to power. As a result, Turkey emerged as our top-performing country for the quarter.

Returning to the winners, we must mention Exide, an Indian leader in lead-acid batteries for the auto and industrial sectors. The company has been pioneering local production of lithium batteries in India, securing major customers like Hyundai/Kia. It seems that national champions, particularly in countries like India, can yield attractive returns. MLP Saglik Hizmetleri, a Turkish hospital group, drove positive performance during the quarter on the back of improvement in rates and client uptake of its services. VA Tech Wabag, an Indian water and sewage plant builder, also performed positively, which is attributed to continuing improvement in orders and a rising Indian equities market.

On the detractor front, Tongcheng Travel, a Chinese online travel agency, delivered negative performance during the quarter due to the company announcing increased spending on expanding its international business. Marcopolo, a Brazilian bus manufacturer, also drove negative performance due to heavy profit-taking during the period. Lastly, ZJLD Group, a Chinese manufacturer of baijiu, was a detractor to performance due to a correction in the Chinese equities market.

Despite facing negativity, concerns, opposition, easy selling, and multiple elections, we’ve managed to make gains. This success prompts a somewhat sarcastic contemplation of the upcoming election cycle in several developed countries. While emerging markets may lack the ‘Aspen’ effect typical of the US stock market, their relative advantages continue to offer enticing returns, which our dual philosophy is well-positioned to capture.

 

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

Total Return (%)

Data as at August 31, 2024
  1 Month Total Return 3 Month Total Return YTD Total Return 1 Year Total Return Cumulative Since Inception
Advisor Shares Net 0.47 1.71 9.90 14.44 149.52
Institutional Shares Net 0.47 1.78 9.91 14.53 151.51
Benchmark 1.78 4.98 8.89 16.20 115.28

Annualised Return (%)

Data as at June 30, 2024
  1 Year 2 Year 3 Year 4 Year 5 Year 10 Year Annualized Since Inception
Advisor Shares Net 18.02 16.88 3.15 13.86 11.84 10.08
Institutional Shares Net 18.11 16.91 3.22 13.94 11.93 10.17
Benchmark 20.04 16.61 2.54 15.27 9.99 6.62

Monthly returns (%)

Data as at 31 August 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Fund 2014 1.97 1.97
Benchmark 2014 3.30 3.30
Fund 2015 1.49 3.66 3.77 9.30 1.72 -2.94 -7.44 -10.36 -0.57 7.03 -0.96 -0.20 2.81
Benchmark 2015 1.44 2.26 -0.14 9.06 0.41 -4.57 -7.77 -9.65 0.00 5.91 -2.57 0.08 -6.84
Fund 2016 -5.96 -0.53 9.27 3.64 -1.79 3.84 5.15 2.47 0.74 -0.93 -5.95 -0.97 8.18
Benchmark 2016 -7.88 -0.36 10.00 1.49 -3.53 2.54 4.28 1.84 1.31 -1.48 -4.67 -0.16 2.26
Fund 2017 4.43 4.59 3.31 3.33 2.81 -0.02 6.59 3.86 -1.09 3.78 1.65 3.72 43.58
Benchmark 2017 4.68 5.20 2.63 1.13 0.69 0.78 3.57 1.95 0.04 3.51 1.76 3.70 33.82
Fund 2018 4.94 -2.62 0.98 -1.90 -1.13 -3.58 -1.89 -3.73 -4.04 -10.45 4.69 -2.64 -20.16
Benchmark 2018 5.80 -4.10 -1.27 -0.11 -2.08 -6.56 1.22 -2.11 -3.32 -10.55 5.47 -1.60 -18.59
Fund 2019 6.54 1.86 1.32 0.46 -6.53 6.40 -0.43 -2.35 1.03 4.90 -1.80 6.26 18.12
Benchmark 2019 5.38 1.30 0.94 0.21 -4.92 3.92 -1.49 -5.01 1.96 3.82 -0.59 6.11 11.50
Fund 2020 0.36 -6.66 -20.59 14.12 5.30 8.30 9.89 1.93 -2.29 -0.83 9.78 7.04 23.49
Benchmark 2020 -3.99 -7.05 -23.09 13.94 2.36 9.01 9.24 4.10 -1.64 -0.55 14.09 7.72 19.29
Fund 2021 -1.08 5.67 2.19 6.70 2.62 2.68 -1.83 2.14 -2.03 -0.07 -0.45 4.04 22.11
Benchmark 2021 0.08 5.96 1.53 6.04 1.93 2.93 -1.31 1.16 -1.99 0.18 -2.94 4.21 18.75
Fund 2022 -4.53 -3.54 2.11 -6.36 0.36 -10.59 2.29 0.13 -8.61 0.74 8.88 -3.09 -21.33
Benchmark 2022 -4.42 -2.50 2.66 -5.02 -1.64 -10.53 2.76 2.48 -10.03 -0.07 9.41 -1.03 -18.02
Fund 2023 6.77 -2.83 3.70 -0.51 2.14 6.36 5.98 -2.82 -3.82 -5.08 10.71 3.03 24.71
Benchmark 2023 5.93 -2.85 0.93 0.67 1.11 4.52 6.53 -1.35 -2.05 -4.83 9.64 4.42 23.92
Fund 2024 1.70 4.14 -0.07 1.05 1.04 1.85 -0.60 9.39
Benchmark 2024 -1.73 2.75 0.08 1.98 3.73 3.20 -0.05 6.99

Expense Ratio (%)

Data as at March 31, 2024
Share Class Gross Expense* Net Expense*
Advisor 1.97% 1.59%
Institutional 1.87% 1.49%

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 Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small capitalization equities in the emerging markets. The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. 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.

Historical performance of the Emerging Markets Opportunities Fund for Class II Shares prior to its inception is based on the performance of Class I Shares, the share class most similar to Class II. 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 31 August 2024
Top 10 holdings
ASPEED 1.67%
Shriram Transport Finance 2.17%
Varun Beverages 1.76%
Genus Power Infrastructures 1.98%
Phoenix Mills 2.71%
VA Tech Wabag 1.53%
Asia Vital Components 1.72%
Marcopolo 1.58%
King Yuan Electronics 1.45%
Northern Institutional Treasury Portfolio 3.77%
Top 10 active weights
Northern Institutional Treasury Portfolio +3.77%
Phoenix Mills +2.71%
Shriram Transport Finance +2.17%
Genus Power Infrastructures +1.95%
PB Fintech +1.82%
Varun Beverages +1.76%
Asia Vital Components +1.72%
Marcopolo +1.51%
VA Tech Wabag +1.49%
NH Investment & Securities +1.38%

Regional / Country breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Brazil 8.47% 3.43% 5.03%
China 3.84% 7.79% -3.95%
India 29.40% 29.97% -0.56%
Indonesia 3.45% 1.96% 1.48%
Mexico 2.83% 1.24% 1.58%
Saudi Arabia 2.27% 3.81% -1.53%
South Africa 3.27% 3.42% -0.15%
South Korea 7.17% 11.52% -4.35%
Taiwan 19.42% 22.29% -2.86%
United States 5.49% 0% 5.49%

Sector breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Industrials 22.42% 18.40% 4.00%
Information Technology 21.38% 17.37% 4.00%
Financials 14.64% 10.80% 3.80%
Consumer Discretionary 10.98% 11.85% -0.90%
Consumer Staples 8.74% 6.24% 2.50%
Health Care 7.47% 9.14% -1.60%
Real Estate 6.24% 6.18% 0.00%
Materials 4.69% 11.20% -6.50%
Utilities 1.85% 3.38% -1.50%
Energy 1.37% 1.79% -0.40%
Communication Services 1.18% 3.59% -2.40%
Cash -1.01% 0.00% -1.01%

Market cap breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Large 33.21% 6.11% 27.11%
Mid 47.52% 71.65% -24.13%
Small 14.39% 22.24% -7.85%

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 19/09/2024 Institutional USD 46653M849 25.23 0.43 1.73% 24.80
Investor USD 46653M823 25.27 0.44 1.77% 24.83
JOHCM Emerging Markets Opportunities Fund 19/09/2024 Advisor USD 46653M203 11.66 0.17 1.48% 11.49
Institutional USD 46653M104 11.69 0.17 1.48% 11.52
Investor USD 46653M302 11.64 0.17 1.48% 11.47
JOHCM Global Select Fund 19/09/2024 Advisor USD 46653M807 14.61 0.25 1.74% 14.36
Institutional USD 46653M708 14.65 0.25 1.74% 14.40
JOHCM Emerging Markets Discovery Fund 19/09/2024 Advisor USD 46653M500 15.03 0.16 1.08% 14.87
Institutional USD 46653M401 15.02 0.16 1.08% 14.86
JOHCM International Opportunities Fund 19/09/2024 Institutional USD 46653M872 13.38 0.20 1.52% 13.18
Regnan Global Equity Impact Solutions 19/09/2024 Institutional USD 46653M716 7.47 0.13 1.77% 7.34
TSW Large Cap Value Fund 19/09/2024 Institutional USD 46653M641 14.01 0.07 0.50% 13.94
TSW Emerging Markets Fund 19/09/2024 Institutional USD 46653M666 9.53 0.11 1.17% 9.42
TSW High Yield Bond Fund 19/09/2024 Institutional USD 46653M658 9.35 0.01 0.11% 9.34

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 Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure the performance of small capitalization equities in the emerging markets. The MSCI Emerging Markets Small Cap Index includes small cap representation across 23 Emerging Markets countries. 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.

Historical performance of the Emerging Markets Opportunities Fund for Class II Shares prior to its inception is based on the performance of Class I Shares, the share class most similar to Class II. 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.

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