Ben Leyland
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-quality, cash-flow-generative companies. They blend the best of quality investing with the best of value investing in order to avoid the two major sources of capital destruction at market turning points: overvaluation and overleverage. They prioritize businesses with strong franchises, strong balance sheets and the ability to create shareholder value by reinvesting in areas of competitive advantage, but they only commit capital where they see a favorable risk/reward ratio, i.e., limited downside and substantial upside on a 3- to 5-year horizon. They emphasize absolute rather than relative returns and are prepared to hold up to 20% cash in the fund when valuations are unattractive.
The team aims to deliver above-average risk-adjusted equity returns over the medium term. They believe this is best achieved by investing in a concentrated, unconstrained portfolio of attractively valued compound growth companies. They prioritize companies that are able to reliably generate cash flow and reinvest it at high marginal returns in order to grow their intrinsic value. As a result, the companies become more valuable over time.
The investment objective of the JOHCM International Opportunities Fund is to achieve long-term total return by investing in a concentrated portfolio of international equity securities. The Fund invests, under normal market conditions, primarily in equity securities of companies headquartered outside the U.S., including those in emerging markets. The Fund may invest in foreign companies of any size, including small- and mid-capitalization companies, in order to achieve its objective. Equity securities include common and preferred stocks, rights and warrants. The Fund may also invest in equity related instruments, such as equity linked notes and participation notes, all of which derive their value from equities. Equity linked notes and participation notes will be securitized, freely transferable and the Fund will not be leveraged as a result of investing in them. The portfolio typically contains 25 to 40 stocks,* with position sizes of 2% to 5%. The Fund is benchmarked against the MSCI EAFE Index, but their process is benchmark-agnostic: The team aims to cluster exposure around particularly attractive areas and have zero exposure to overleveraged or overvalued areas of the market. The process is biased toward larger-cap (>$5 billion) multinationals listed in developed markets.
*The number of stocks in the portfolio will be fewer than 50.
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 be...
Read MoreFund size | $2.02mn | ||||||||
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Benchmark | MSCI EAFE Index | ||||||||
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Investment Advisor | JOHCM (USA) Inc. |
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Transfer Agent | Northern Trust |
Custodian | Northern Trust |
Equity markets were strong overall in Q2, and volatility fell further, but under the surface there were some notable rotations. As in Q1, the vast majority of index performance came from technology and related sectors, which rallied powerfully in May, when Nvidia’s first-quarter report and guidance was the catalyst for renewed excitement about Artificial Intelligence. For the index as a whole, most of the increase came in the final month, as most other sectors recovered somewhat after a weak May, although in the context of a falling oil price, rising US yields and an increasingly inverted US yield curve, resources and most of the ‘bond proxy’ sectors were still down over the three months.
A large proportion of the fund’s marginal outperformance during the quarter, especially in May, is explained by our relative underexposure to technology. Many of our holdings in the healthcare, utilities and financials sectors were weak, and we used this as an opportunity to top up weights in names such as Deutsche Boerse. On the other hand, we benefitted from strong performance in CRH, Cameco and Komatsu.
We continue to be overweight in the utilities and consumer staples sectors. It is important to note that this is not simply defensive positioning due to a negative short-term macroeconomic view. Bear in mind, we are also overweight in the energy and industrials sectors. The reason we own names like Philip Morris and Heineken is because we believe their growth potential is underappreciated and, therefore, attractively valued at present. Merck and LG Household also contributed negatively to the portfolio this quarter. In 2021 we talked a lot about the emergence of a ‘forgotten middle’ of high-quality companies with strong multi-year growth potential, generally outside the technology sector and, in many cases, with more idiosyncratic than thematic growth drivers. They were ignored in the stampede towards tech-focused ‘lockdown winners’ during Covid, and it is happening again. While everyone else seems to have been reading research notes about how AI is going to transform various sectors and companies, we have been reading about the ongoing nuclear renaissance, the improving corporate governance at various Japanese and Emerging Market companies, and attending investor days with companies like Sanofi and Shell.
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 | |
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Institutional Shares Net | -2.37 | 5.71 | 11.56 | 25.24 | 51.50 |
Benchmark | -3.83 | 3.80 | 10.87 | 17.92 | 48.14 |
1 Year | 2 Year | 3 Year | 4 Year | 5 Year | 10 Year | Annualized Since Inception | |
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Institutional Shares Net | 25.20 | 2.48 | 10.14 | 6.44 | 5.95 | 6.29 | |
Benchmark | 18.77 | -1.17 | 8.93 | 5.23 | 4.39 | 6.11 |
Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Annual | ||
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Fund | 2016 | -0.24 | -3.28 | -2.60 | 2.01 | -4.13 | ||||||||
Benchmark | 2016 | -0.29 | -2.05 | -1.99 | 3.42 | |||||||||
Fund | 2017 | 0.85 | 1.95 | 1.91 | 2.88 | 5.22 | -0.99 | 2.18 | 1.26 | 1.32 | 0.71 | -0.15 | -0.18 | 18.17 |
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 | 1.56 | -3.12 | 1.58 | 1.23 | -1.02 | -0.34 | 1.09 | -0.66 | 1.23 | -6.16 | 1.00 | -3.88 | -7.58 |
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 | 5.08 | 2.00 | 1.63 | 2.83 | -4.76 | 5.27 | -2.07 | -0.74 | 1.93 | 2.75 | 0.40 | 2.92 | 18.15 |
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 | -0.92 | -6.55 | -11.34 | 3.46 | 5.38 | 2.02 | 4.34 | 2.42 | -2.90 | -4.26 | 15.23 | 3.50 | 8.20 |
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 | -1.67 | 1.78 | 2.54 | 4.30 | 2.35 | -1.98 | -0.20 | 0.11 | -5.77 | 2.16 | -6.63 | 5.79 | 2.02 |
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 | 0.11 | -0.83 | -3.04 | -1.97 | 2.22 | -8.45 | 6.10 | -5.49 | -8.09 | 7.25 | 12.79 | 0.99 | -0.59 |
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 | 7.54 | -1.68 | 2.00 | 2.05 | -4.11 | 5.33 | 2.80 | -2.37 | 11.56 | ||||
Benchmark | 2023 | 8.10 | -2.09 | 2.48 | 2.82 | -4.23 | 4.55 | 3.24 | -3.83 | 10.87 |
Share Class | Gross Expense* | Net Expense* |
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Institutional | 1.93% | 0.88% |
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.
*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.
Northern Institutional Treasury Portfolio | 4.61% |
Sanofi | 4.42% |
Merck KGaA | 4.31% |
CRH | 4.31% |
Shellé | 3.90% |
Deutsche Bérse | 3.79% |
Compass Group | 3.72% |
Thales Group | 3.71% |
Heineken | 3.65% |
Roche | 3.50% |
Northern Institutional Treasury Portfolio | +4.61% |
Merck KGaA | +4.16% |
CRH | +4.04% |
Sanofi | +3.63% |
Thales Group | +3.61% |
Heineken | +3.59% |
Deutsche Börse | +3.57% |
Compass Group | +3.43% |
B&M European Value Retail | +3.39% |
Philip Morris International | +3.01% |
Portfolio | Benchmark | Relative | ||
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Canada | 5.96% | 0% | 5.96% | |
France | 15.39% | 12.25% | 3.13% | |
Germany | 12.64% | 8.5% | 4.14% | |
Ireland | 4.31% | 0.84% | 3.46% | |
Japan | 15.20% | 22.79% | -7.59% | |
Netherlands | 5.31% | 4.46% | 0.84% | |
Sweden | 4.10% | 3.02% | 1.07% | |
Switzerland | 3.50% | 10.1% | -6.6% | |
United Kingdom | 16.01% | 14.62% | 1.39% | |
United States | 7.63% | 0% | 7.63% |
Portfolio | Benchmark | Relative | ||
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Financials | 18.75% | 18.66% | 0.10% | |
Industrials | 15.90% | 16.12% | -0.20% | |
Health Care | 12.24% | 13.40% | -1.20% | |
Consumer Discretionary | 12.16% | 12.23% | 0.00% | |
Consumer Staples | 12.05% | 9.98% | 2.10% | |
Energy | 11.33% | 4.42% | 6.90% | |
Communication Services | 6.26% | 4.04% | 2.30% | |
Materials | 5.47% | 7.45% | -2.00% | |
Utilities | 3.70% | 3.42% | 0.30% | |
Information Technology | 2.20% | 8.05% | -5.90% | |
Real Estate | 0.00% | 2.17% | -2.20% | |
Cash | -0.10% | 0.00% | -0.10% |
Portfolio | Benchmark | Relative | ||
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<10BN | 18.40% | 10.50% | 7.89% | |
>10BN | 76.85% | 89.50% | -12.64% |
Fund |
As at noon | Share class | Currency | CUSIP Number | NAV | Change | Change % | Previous | |
JOHCM International Select Fund | 03/10/2023 | Institutional | USD | 46653M849 | 20.85 | -0.29 | -1.37% | 21.14 | |
Investor | USD | 46653M823 | 20.87 | -0.29 | -1.37% | 21.16 | |||
JOHCM Emerging Markets Opportunities Fund | 03/10/2023 | Advisor | USD | 46653M203 | 10.18 | -0.13 | -1.26% | 10.31 | |
Institutional | USD | 46653M104 | 10.21 | -0.13 | -1.26% | 10.34 | |||
Investor | USD | 46653M302 | 10.16 | -0.14 | -1.36% | 10.30 | |||
JOHCM Global Select Fund | 03/10/2023 | Advisor | USD | 46653M807 | 12.00 | -0.20 | -1.64% | 12.20 | |
Institutional | USD | 46653M708 | 12.04 | -0.21 | -1.71% | 12.25 | |||
JOHCM Emerging Markets Small-Mid Cap Equity Fund | 03/10/2023 | Advisor | USD | 46653M500 | 12.47 | -0.10 | -0.80% | 12.57 | |
Institutional | USD | 46653M401 | 12.48 | -0.10 | -0.79% | 12.58 | |||
JOHCM International Opportunities Fund | 03/10/2023 | Institutional | USD | 46653M872 | 10.58 | -0.10 | -0.94% | 10.68 | |
Regnan Global Equity Impact Solutions | 03/10/2023 | Institutional | USD | 46653M716 | 6.91 | -0.11 | -1.57% | 7.02 | |
TSW Large Cap Value Fund | 03/10/2023 | Institutional | USD | 46653M641 | 12.42 | -0.10 | -0.80% | 12.52 | |
TSW High Yield Bond Fund | 03/10/2023 | Institutional | USD | 46653M658 | 8.62 | -0.05 | -0.58% | 8.67 |
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.
*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.
A number of capital cycles are turning. We believe investors need to shift their focus towards sectors which have been overlooked.
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