JOHCM International Opportunities Fund (JOPSX)

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Fund Description

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.

Investment Strategy

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. 

Investment Objective

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.

  • Ben Leyland

    Senior Fund Manager

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  • Robert Lancastle

    Senior Fund Manager

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  • Jasmeet Munday

    Analyst

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Other International Equity Funds

JOHCM International Select Fund (JOHIX)

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...

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Fund details

Data as at 31 August 2024
Fund size $34.15mn
Benchmark MSCI EAFE Index
Share classes
Institutional (Launch date) 30-September-2016
Minimum investment
Institutional $100,000
Fund codes
Fund Ticker Share Class Fund Number CUSIP
JOPSX Institutional 46653M872
Fees and Expenses
Fund Ticker Share Class Net Expense Ratio* Gross Expense Ratio*
JOPSX Institutional 0.50% 4.20%

*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, 2026.

Fund ratings

Data as at 31 August 2024
Morningstar Rating Rank
  Rank Percentile Rating
Overall Morningstar Rating™     5-Star
1 year 180/734 24% 2-Star
3 years 15/679 4% 5-Star
5 years 96/639 15% 5-Star

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

Volatility increased in Q2 compared to Q1, with a dip in early April. However, by the quarter’s end, equity markets showed a return to narrow leadership. The ‘Mag-7’ remained prominent, but within the technology sector, there were significant subsector differences. Software and Services dropped 7% in the first two months and only recovered to a 2% decline for the quarter. In contrast, semiconductors and hardware surged by over 15% during the three months. Four mega-cap companies (all non-US) experienced gains exceeding 20% each in the quarter. These companies were responsible for nearly all market growth and now hold a dominant position. Additionally, twelve mega-cap companies (including the ‘Mag-7’ plus other major semiconductor firms and pharmaceutical players) represent a significant portion of the global market. Notably, the number of companies with a market capitalisation exceeding $1 trillion has doubled in under six years.

With little exposure to this group of stocks, the fund was negative during the quarter, outperforming the drawdown in April but lagging the tech-driven recovery.

When leadership is this narrow, it is easy to assume that there is only one way to deliver returns, and that requires you to get a handful of big thematic and macro calls right. We disagree - there are a lot of interesting things going on beyond AI, GLP-1s, inflation and interest rates. Since Covid, there has been an unusual lack of coordination between cycles, and this has created some real disconnects between valuations and fundamentals. Currently, there is a multitude of sectors worth monitoring closely, including traditionally stable areas such as staples (eg spirits) and healthcare (eg life sciences), as well as more classically cyclical areas like industrial automation and automotive semiconductors. By triangulating compounding potential, valuation and execution, our process allows us to recognise when these disconnects represent genuine opportunities and are likely todrive strong medium-term returns.

We added four new names to the portfolio towards the end of the quarter, such as the Australian insurer QBE and the Japanese electronics company Murata. Given we were already at our maximum of forty stocks, these were funded by the sale of Continental, Wartsila, Bankinter and Tokio Marine Holdings.

 

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
Institutional Shares Net 3.81 4.95 12.94 21.03 83.35
Benchmark 3.25 4.56 11.96 19.40 76.88

Annualised Return (%)

Data as at June 30, 2024
  1 Year 2 Year 3 Year 4 Year 5 Year 10 Year Annualized Since Inception
Institutional Shares Net 12.37 18.61 5.67 10.69 7.60 7.05
Benchmark 11.54 15.10 2.89 9.58 6.46 6.79

Monthly returns (%)

Data as at 31 August 2024
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
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 -2.25 -3.13 7.71 5.07 19.54
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 -0.25 3.39 2.95 -2.39 3.84 -2.91 4.13 8.80
Benchmark 2024 0.58 1.83 3.29 -2.56 7.07 -1.61 2.93 8.43

Expense Ratio (%)

Data as at March 31, 2024
Share Class Gross Expense* Net Expense*
Institutional 4.20% 0.50%

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.

 

*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, 2026.

Top 10 holdings and active weights

Data as at 31 August 2024
Top 10 holdings
Merck KGaA 4.11%
Deutsche Bérse 4.07%
Compass Group 3.77%
Shellé 3.77%
Intact 3.62%
Sanofi 3.45%
CRH 3.43%
Roche 3.31%
Philip Morris International 3.28%
Daifuku 2.99%
Top 10 active weights
Merck KGaA +3.96%
Deutsche Börse +3.83%
Intact +3.62%
Compass Group +3.47%
CRH +3.43%
Philip Morris International +3.28%
Daifuku +2.95%
Nitori +2.84%
Sanofi +2.72%
SoftBank Group +2.61%

Regional / Country breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Australia 2.69% 7.47% -4.78%
Canada 9.00% 0% 9%
France 15.10% 11.3% 3.8%
Germany 12.29% 8.75% 3.53%
Ireland 3.43% 0.29% 3.13%
Japan 17.89% 22.78% -4.89%
Sweden 3.92% 3.27% 0.65%
Switzerland 5.80% 10.07% -4.26%
United Kingdom 17.17% 14.82% 2.34%
United States 5.18% 0% 5.18%
Cash 0.28% 0% 0.28%

Sector breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
Financials 18.76% 20.40% -1.60%
Industrials 17.50% 17.02% 0.50%
Consumer Discretionary 13.11% 10.97% 2.10%
Consumer Staples 12.17% 8.69% 3.50%
Health Care 10.88% 14.23% -3.30%
Energy 8.57% 3.86% 4.70%
Information Technology 6.34% 8.92% -2.60%
Communication Services 5.53% 4.22% 1.30%
Materials 4.32% 6.44% -2.10%
Utilities 2.48% 3.31% -0.80%
Real Estate 0.00% 1.89% -1.90%
Cash 0.28% 0.00% 0.28%

Market cap breakdown

Data as at 31 August 2024
Portfolio Benchmark Relative
<10BN 9.53% 7.34% 2.19%
>10BN 88.38% 92.66% -4.28%

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 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. 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, 2026.

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