JO Hambro CM Global Opportunities A GBP

Global equity fund with a quality growth style.

  • 215.20p Price (Inc)
  • - Price (Acc)
  • 5.00% 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.83% Ongoing charges
  • 0.50% Yield

Prices as at 19 October 2015, fund data last updated 20 November 2019

The fund aims to achieve long-term total return by investing in a concentrated portfolio of global equities across developed and emerging markets. 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 fund will be managed on an ‘unconstrained basis’ with no restrictions in terms of regional or sector allocation versus this benchmark.

Fund summary

Sector Global
Structure OFFSHORE FUND
Launched June, 2012
Size £492m
Yield 0.50%
Charging basis Income
Dividends paid Acc units only

Charges

Initial charge 5.00%
Initial charge via Bestinvest 5.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.83%

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Investment process

Managers Ben Leyland and Robert Lancaster select from a universe of circa 3000 global companies. Stock selection criteria favour capital light cash generative businesses with high marginal return on invested capital, able to demonstrate pricing power, high barriers to entry, recurring revenue business models, and ability to grow their earnings and dividends. The fund's watch list typically consists of circa 200 companies, broadly spread across sectors and geographies. These are then subjected to valuation control, which emphasises absolute rather than relative value. Position size is based on the upside/downside ratio, typically ranging from 1.5-5%. The portfolio will typically include clusters of stocks – allocating capital to companies within the same sectors, which managers find particularly attractive. The portfolio is managed on an unconstrained basis and will typically include between 20-45 companies.

This is a relatively new fund from an established group JO Hambro Capital Management. Fund manager Ben Leyland and co-manager Rob Lancastle are primarily responsible for running the fund. Leyland was a co-manager on the highly successful UK Opportunities fund alongside the manager John Wood for five years having joined the group in April 2006 from Schroder Investment Management. The fund is primarily bottom-up and seeks quality cash generative businesses with strong balance sheets, capable of compounding growth over the long term. The manager is benchmark agnostic, which means the fund can significantly deviate from its index. The fund will typically have lower volatility compared to the broader market and offers defensive characteristics.

Manager research

Average monthly relative returns

  • 14/15 0.70%
  • 15/16 0.00%
  • 16/17 -0.55%
  • 17/18 -0.16%
  • 18/19 0.23%

Bestinvest MRI

  • 3 years -0.16%
  • 5 years 0.00%
  • Career 0.06%
  • 3 years 35.60%
  • 5 years 0.00%
  • Career 86.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Ben Leyland

Leyland joined JO Hambro Capital Management in April 2006. He previously worked at Schroder Investment Management (between October 2001 and 2006) in their equity research department. As an analyst in their financials team, he was responsible for covering UK diversified financials and southern European banks. Leyland is a CFA charterholder and holds a MA (Hons) in History from the University of Cambridge.

Track record

Ben Leyland has 7.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.06%. During the worst period of relative performance (from February 2016 - January 2018) there was a decline of 17% relative to the index. The worst absolute loss has been 8%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 86%.

Periods of worst performance

Absolute -8.00% (May 2015 - September 2015)
Relative -17.00% (February 2016 - January 2018)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 30 June 2015

Oracle 4.18
Wolters Kluwer 4.09
Capita 3.72
RELX (NL) 3.55
Experian 3.47
Grainger 3.05
Mastercard 2.79
United Technologies 2.65
Japan Tobacco 2.61
Ultra Electronic 2.55
Source: Factsheet

Portfolio

25-40 stocks. Unconstrained by sector / geography. Can hold up to 20% in cash.

Constraints

Position size 1.5-5%. Up to 20% in cash. 40-60% annual turnover.

Key Investor Information

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