JOHCM Global Opportunities Fund GBP A

Global Growth

Rated Fund 2017-2018. Prioritises positive gains and capital protection

This fund won Money Observer's Best Smaller Global Growth Fund award in 2016, and although it underperformed during 2017 we are retaining it as a Rated Fund on the strength of its focus on capital preservation.

Although not officially an absolute return fund, achieving positive gains and capital protection are the managers' main aims — this is what they have in mind when they assess companies' cash flows and business models.

Managers Ben Leyland and Rob Lancastle adopt a 'heads we win, tails we don't lose too much' philosophy. A 19 per cent allocation to cash — the maximum the fund can have — at the end of 2017 highlighted their cautious outlook.

They point to many equity markets being overvalued with little differentiation between richly valued stocks and those that offer better value, making it difficult to find the types of companies they like on valuations they are happy to pay.

Their approach results in some biases, for example towards developed markets, though they can also invest in emerging markets. They tend to invest in certain sectors where they find high-quality intellectual property or brand-driven businesses. They are particularly interested in barriers to entry and franchise value in companies, as this gives them confidence that the businesses will still exist in 10 or 20 years. They also like other characteristics such as recurring revenues.

Only 20 per cent of their investible universe meets their criteria. From these, they select just 25 to 40 holdings. These are sold when they become overvalued, often during rising markets, and cash held until better opportunities come along. As a result, the fund performs best in volatile markets.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
JOHCM Global Opportunities Fund GBP A
Manager
J O Hambro Capital Management Limited
Type
Open Ended Investment Company
ISIN
IE00B89PQM59
Sector
Global
Launched
29/06/2012
OCF
0.86 %
Risk Rating
1
3 Year Sharpe
1.51
3 Year Alpha
1.68
Yield
2.4 %
Benchmark
MSCI ACWI NR EUR
The investment objective of the Fund is to achieve long-term total return by investing in a concentrated portfolio of global equity securities. It is anticipated that the Fund’s portfolio will comprise fewer than 50 holdings. The investment policy of the Fund is to invest in a portfolio of global equity securities listed on any Recognised Market. The selection of equity securities will primarily be driven by a cashflow analysis from the perspective of a long-term business owner. At no time will less than 80% of the Fund’s total net assets be invested in such securities. The benchmark of the Fund, for performance fee calculation purposes, will be the Index but the Fund will be managed on an ‘unconstrained basis’ with no restrictions in terms of regional or sector allocation versus this benchmark.
Holding %
Oracle Corp 4.03 %
Enel SpA 3.60 %
Safran SA 3.58 %
Sempra Energy 3.28 %
Public Service Enterprise Group Inc 3.18 %
Compass Group PLC 3.15 %
Wolters Kluwer NV 3.14 %
Galp Energia SGPS SA 3.00 %
Rio Tinto PLC 2.98 %
TJX Companies Inc 2.94 %
Region %
United States 38.98 %
Eurozone 26.56 %
Japan 14.65 %
United Kingdom 13.33 %
Sector %
Consumer Defensive 19.82 %
Utilities 15.55 %
Consumer Cyclical 15.48 %
Industrials 10.24 %
Technology 9.66 %
Energy 9.32 %
Basic materials 6.82 %
Healthcare 6.06 %
Name
J O Hambro Capital Management Limited
Address
SW1Y 6QB, LONDON, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Ben Leyland
Joined 06/29/2012

Ben Leyland will be Senior Fund Manager of the J O Hambro Capital Management Limited (JOHCM) Global Opportunities strategy which is due to launch in Q2 2012. Ben Leyland joined JOHCM in 2006 as an analyst and was subsequently promoted to Fund Manager. Prior to joining JOHCM, Ben worked at Schroder Investment Management from October 2001 to 2006 as a financial analyst in their Pan-European equity research department, he was responsible for covering UK diversified financials and southern European banks. Ben is a CFA charterholder and holds a MA (Hons) in History from the University of Cambridge.

Data provided by Morningstar.

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