JOHCM Global Select Fund (JOGIX)

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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 distinct “4-Dimensional” investment process (stocks, sectors, countries, time/change) focuses on the behaviour 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 global (including the United States) 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.
  • They 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 Global Select Fund (the “Fund”) is to seek long-term capital appreciation.

The Fund invests, under normal circumstances, at least 80% of its assets in equity securities of U.S. and foreign companies. The Fund can invest without limit in foreign securities and can invest in any country, including countries with developing or emerging markets. The normally will invest in at least three countries (one of which may be the US) with at least 40% of its assets invested in countries other than the U.S. However, the Fund may invest at least 30% of its assets outside the U.S. when market conditions are favorable. Typically, the Fund invests in a number of different countries. The Fund is not required to allocate its investments in any set percentages in any particular countries. The Fund may invest in U.S. and foreign companies of any size, including small and mid-capitalization companies.

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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Fund details

Data as at 31 August 2024
Fund size $61.48mn
Strategy size $3.00bn
Benchmark MSCI AC World NR
Share classes
Institutional (Launch date) 21-March-2013
Advisor (Launch date) 21-March-2013
Minimum investment
Institutional $100,000
Advisor $0
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOGIX Institutional 382 46653M708
JOGEX Advisor 182 46653M807
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOGIX Institutional 0.99% 1.02%
JOGEX Advisor 1.09% 1.12%

*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™     2-Star
1 year 151/343 40% 2-Star
3 years 280/321 82% 2-Star
5 years 255/277 86% 2-Star
10 years 182/188 94% 2-Star
Morningstar Category World Stock

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. 

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 31 August 2024

Strategy Highlights

As at 30 June 2024

After a difficult April and May, the fund bounced back and outperformed in June, underperforming its benchmark index during the quarter but ahead of the benchmark year to date:

  • Negative regional allocation, overweight Latin America and underweight Europe.
  • Negative stock selection in the materials, energy and financial
  • Our best performing stocks were Zealand Pharma, SK Hynix, Recruit, BroadcomandNECCorp, all driven by positive earnings and news flow.
  • Our worst performing stocks included Viking Therapeutics, NVIDIA, Apple (which we don’t own) Daifukuand Tenarisand we sold the latter three due to deteriorating fundamentals and trend.

Q2 2024 transactions included:

  • Weeded out the losers (mostly software, healthcare and emerging markets). We sold Accenture, AP Memory, CBOE, Daifuku, Dynatrace, Elevance, Globantand Tenaris, as their earnings and price momentum deteriorated.
  • Increased Semiconductors and App monetisation. We bought Applovin, Micron, Spotifyand neutralised Nvidia.
  • Increased electrification, focusing on pure play mid-cap copper/wiring growth stocks. We bought Antofagasta, Ivanhoe and

Our top-down scorecard showed several important changes:

  • The technology sector still has positive fundamentals and trend, but the software industry is deteriorating at the expense of the semiconductor industry. For the first time in history, the semiconductor industry is now bigger than the software industry within the S&P500.
  • Some commodity sectors, like the materials sector and the copper industry, have improved, driven mostly by relative price trends as the market begins to anticipate improving earnings.
  • Within the traditional low-beta defensive sectors, fundamentals and trend remain poor, with the success of the new anti-obesity drugs becoming bad news for the healthcare sector (fewer co-morbidities) and consumer staples sector (less food & beverage consumption).

Our scenario analysis is bullish. The prospect of falling interest rates and positive earnings will probably lead to a catch-up bull market in lagging areas beyond the Magnificent 7.

  • Scenario 1 = 20% probability that the current mega-cap leadership continues. The US’s Magnificent 7 is now down to the Magnificent 4, as Tesla and Apple earnings disappointed, and Meta’s earnings outlook is now being questioned by the market. Their leadership has been replaced by mega-caps we own, such as Novo Nordisk.
  • Scenario 2 = 70% probability of a broadening catch-up bull market in lagging areas. The world ex-US industrial/manufacturing/commodity recession is ending, and we expect better performance from non-US stocks/sectors/regions.
  • Scenario 3 = 10% probability of a zig-zag or bear market. The risk of resurgent inflation and rising interest rates has reduced, but risks remain from elections in 49% of the worlds population this year, geopolitics, and Middle-East or Ukraine wars escalating.

Second half of 2024 themes:

  • Keep weeding out any fundamental losers, and keep buying the dips in our high-conviction neighbourhoods of semiconductors, anti-obesity, electrification, financial growth stocks, Japanese restructuring and emerging markets domestic growth.
  • Most low beta sectors have poor or deteriorating fundamentals and price trends. Remain underweight the benchmark index in consumer staples, real estate, telecoms and utilities.
  • After the first half of 2024 US mega-cap rally, we expect a catch up rally in other areas. We think Brazil, Indonesia, Japan, the UK and S&P 500 Equal Weighted indices all recover from their first half of 2024 underperformance – but we worry about Europe ex UK .

 

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 2.57 6.37 15.62 24.42 164.36
Benchmark 2.49 6.36 15.58 24.52 166.85

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 19.85 10.06 -2.38 7.55 7.85 6.41 8.71
Benchmark 19.95 10.17 -2.31 7.63 7.94 6.51 8.80

Monthly returns (%)

Data as at 31 August 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
Fund 2013 1.20 1.58 1.46 -2.30 5.79 -1.39 6.96 3.34 4.05 4.48 27.75
Benchmark 2013 0.73 2.86 -0.27 -2.92 4.79 -2.08 5.17 4.02 1.42 1.73 16.15
Fund 2014 -1.97 7.12 -4.14 -0.99 4.55 3.49 -2.58 4.58 -1.65 -0.51 1.07 -1.46 7.06
Benchmark 2014 -4.00 4.83 0.44 0.95 2.13 1.88 -1.21 2.21 -3.24 0.70 1.67 -1.93 4.16
Fund 2015 1.62 7.08 -0.44 -1.07 3.99 -5.93 0.43 -8.91 -6.30 4.46 -1.37 -0.61 -7.98
Benchmark 2015 -1.56 5.57 -1.55 2.90 -0.13 -2.35 0.87 -6.86 -3.62 7.85 -0.83 -1.80 -2.36
Fund 2016 -3.49 -0.22 4.03 1.34 -0.83 2.38 4.49 -0.83 1.43 -1.58 -3.15 -0.99 2.27
Benchmark 2016 -6.03 -0.69 7.41 1.48 0.13 -0.61 4.31 0.34 0.61 -1.70 0.76 2.16 7.86
Fund 2017 6.65 -1.00 2.29 -0.35 0.98 0.84 4.40 1.78 1.07 3.07 0.43 2.80 25.22
Benchmark 2017 2.73 2.81 1.22 1.56 2.21 0.45 2.79 0.38 1.93 2.08 1.94 1.61 23.96
Fund 2018 7.28 -1.74 -0.31 -0.12 2.62 -1.75 0.93 -0.61 -1.19 -6.59 0.60 -6.21 -7.56
Benchmark 2018 5.64 -4.20 -2.14 0.95 0.12 -0.54 3.02 0.79 0.44 -7.49 1.46 -7.04 -9.42
Fund 2019 7.76 3.08 2.29 1.41 -4.51 7.24 0.53 -1.39 -0.45 0.21 2.85 2.22 22.70
Benchmark 2019 7.90 2.67 1.26 3.38 -5.93 6.55 0.29 -2.37 2.10 2.74 2.44 3.52 26.60
Fund 2020 0.19 -6.91 -10.11 12.13 8.51 2.79 6.74 4.24 -1.32 -1.70 12.18 5.10 33.43
Benchmark 2020 -1.10 -8.08 -13.50 10.71 4.35 3.20 5.29 6.12 -3.22 -2.43 12.33 4.64 16.26
Fund 2021 1.03 3.97 0.73 4.31 -0.20 2.60 2.01 2.45 -4.59 8.07 -1.05 3.86 25.16
Benchmark 2021 -0.45 2.32 2.67 4.37 1.51 1.36 0.69 2.50 -4.13 5.10 -2.41 4.00 18.54
Fund 2022 -12.05 -4.27 1.59 -10.77 1.70 -10.70 5.98 -5.91 -9.49 5.25 6.83 -4.62 -32.91
Benchmark 2022 -4.91 -2.58 2.17 -8.00 0.12 -8.43 6.98 -3.68 -9.57 6.03 7.76 -3.94 -18.37
Fund 2023 6.41 -4.19 1.67 -1.64 -2.71 5.32 2.56 -3.18 -4.07 -3.51 10.65 5.06 11.63
Benchmark 2023 7.17 -2.87 3.08 1.44 -1.07 5.81 3.66 -2.79 -4.14 -3.01 9.23 4.80 22.20
Fund 2024 2.33 8.10 1.46 -5.60 2.58 3.19 0.50 12.72
Benchmark 2024 0.59 4.29 3.14 -3.30 8.88 2.23 1.61 13.10

Expense Ratio (%)

Data as at March 31, 2024
Share Class Gross Expense* Net Expense*
Advisor 1.12% 1.09%
Institutional 1.02% 0.99%

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 All Country World Index (ACWI) is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging market countries in North and South American, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars. Indexes mentioned are unmanaged statistical composites of stock market performance. 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.

*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
Northern Institutional Treasury Portfolio 4.50%
Nvidia 3.89%
Microsoft 3.83%
Alphabet 2.93%
Eli Lilly 2.91%
Nu Holdings 2.89%
Recruit Holdings 2.87%
NEC Corporation 2.79%
Applovin 2.76%
CRH 2.72%
Top 10 active weights
Northern Institutional Treasury Portfolio +4.50%
Nu Holdings +2.83%
NEC Corporation +2.76%
Recruit Holdings +2.75%
Applovin +2.74%
Viking Therapeutics +2.71%
Mitsubishi Electric Corp +2.66%
CRH +2.63%
Compass Group +2.61%
Mercado Libre +2.59%

Regional / Country breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Brazil 5.20% 0.52% 4.67%
Canada 2.47% 2.74% -0.26%
Denmark 4.89% 0.85% 4.03%
Germany 4.98% 1.99% 2.99%
Indonesia 2.49% 0.17% 2.31%
Ireland 2.72% 0.06% 2.65%
Italy 2.54% 0.62% 1.91%
Japan 10.98% 5.18% 5.79%
United Kingdom 5.16% 3.37% 1.79%
United States 56.00% 64.33% -8.32%
Cash 0.25% 0% 0.25%

Sector breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Information Technology 25.24% 24.58% 0.60%
Financials 22.51% 16.38% 6.10%
Health Care 15.83% 11.40% 4.40%
Consumer Discretionary 10.64% 10.13% 0.50%
Materials 10.19% 3.95% 6.20%
Industrials 9.89% 10.56% -0.70%
Communication Services 5.41% 7.53% -2.10%
Consumer Staples 0.00% 6.40% -6.40%
Energy 0.00% 4.22% -4.20%
Real Estate 0.00% 2.15% -2.20%
Utilities 0.00% 2.64% -2.60%
Cash 0.25% 0.00% 0.25%

Market cap breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
<10BN 6.88% 4.14% 2.74%
>10BN 88.57% 95.86% -7.29%

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 All Country World Index (ACWI) is a market-capitalization-weighted index composed of over 2,000 companies, and is representative of the market structure of 48 developed and emerging market countries in North and South American, Europe, Africa, and the Pacific Rim. The index is calculated with net dividends reinvested in U.S. dollars. Indexes mentioned are unmanaged statistical composites of stock market performance. 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.

*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. 

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