Investment Strategies

Global and International Equities

JOHCM Global and International Equities

Our larger Global and International equities strategies enjoyed a solid year in performance terms, with the highlight being significant outperformance by the International Select strategy. The Global Opportunities strategy benefited from good outperformance and growing commercial traction over the year.

FUND NAME Benchmark Base Currency 1 year % 3 years % pa 5 years % pa
JOHCM Global Opportunities Fund A GBP 36.97 19.02 N/A
JOHCM Global Select Fund A GBP 33.64 15.52 17.78
QInvest JOHCM Sharia 'A Fund B USD 6.83 N/A N/A
AIT International Select CL1 C USD 15.94 8.35 14.89
AIT Intl Small Cap ex US Fund Inst D USD 12.95 N/A N/A
JOHCM Global Smaller Companies Fund E USD 9.75 N/A N/A
BENCHMARK
A: MSCI All Country World NR Index 12 noon adjusted £ GBP 31.64 12.81 14.36
B: MSCI AC World Islamic Composite NR** USD 13.69 N/A N/A
C: MSCI EAFE NR Index USD 6.52 0.48 7.39
D: MSCI AC World ex US SMC NR 4pm Adj Index USD 13.33 N/A N/A
E: MSCI AC World SMID $ Adjusted USD 13.35 N/A N/A
**Fund changed benchmark 29/05/2015 to MSCI from Russell Islamic Global TR

Our Global and International (Global ex US) Select equity strategies performed well in the volatile market environment. The Singapore-based team correctly anticipated a change in market leadership and moved to a decisive overweight in the materials sector and underweight in financials. These sector moves and good stock selection in the materials and consumer discretionary areas, positively influenced investment returns, leading to marked outperformance in the 2016 Financial Year for the International Select strategy. Our Global Select strategy modestly outperformed the benchmark; the impact of being underweight European financials was less significant versus a global index. As detailed earlier, having reached full capacity, both the International and Global Select strategies are now closed to new investors.

While the Global and International Select Singapore team employs a growth-oriented investment approach, the London-based JOHCM Global Opportunities strategy has different style characteristics, emphasising quality and valuation. This strategy has now been open for four years and has a strong long term performance record, helped by further outperformance in the 2016 Financial Year. With markets in a nervous mood, the high quality, high return businesses which the team’s approach prioritises remained in demand. Examples of stocks that performed well for the strategy included Dutch publisher Wolters Kluwer and US biopharmaceutical company Baxalta.

2016 has been a break-out year in terms of the success of the Global Opportunities strategy (the imminent funding of a major institutional mandate will take strategy assets over £1 billion). The launch of the International Opportunities Fund for the US market at the end of September, will build further momentum.

In late 2013, we launched an International (Global ex US) Smaller Companies Fund, managed from New York. The strategy has steadily gained commercial traction, although the fund finished the 12-month period behind its benchmark.