JOHCM Emerging Markets Opportunities Fund Investor Shares (JOEAX)

Overview

The specified fund is designed to primarily invest in the equity securities of companies that are situated within emerging market countries, dedicating at least 80% of its net assets for this purpose. It has the capacity to allocate up to 5% of its total assets towards frontier markets, which are identifiable by their smaller scale, reduced liquidity, and lower level of development in comparison to their emerging market counterparts. This investment strategy aims to provide investors with a diversified exposure to the growth potential present in these regions, taking advantage of the dynamic nature of emerging and frontier markets. The fund seeks to achieve its investment objectives by directly purchasing equity securities or indirectly gaining exposure through various financial instruments such as depositary receipts and participatory notes.

Products and Services

• Equity Securities of Emerging Market Companies

  The fund predominantly invests in equity securities, such as stocks, of companies that are based in emerging market countries. These markets are characterized by their potential for rapid economic growth and increased investment returns, albeit accompanied by higher volatility and risk. The fund's strategy focuses on leveraging the growth dynamics of these markets, aiming to benefit from the expanding economic activities in such regions.

• Investment in Frontier Markets

  A smaller portion of the fund's assets, up to 5%, may be invested in frontier markets. Frontier markets are one step behind emerging markets in terms of market development, liquidity, and size. This investment is aimed at capturing the higher growth potential of these markets which, despite being riskier, offer the possibility of significant returns due to their early stage of development and lower correlation with global markets.

• Indirect Exposure Through Depoistary Receipts and Participatory Notes

  To achieve exposure to its targeted equity securities, the fund may utilize financial instruments like depositary receipts (DRs) and participatory notes (PNs). DRs are negotiable securities issued by a bank that represents a specified number of shares in a foreign company for trade on a local stock exchange. PNs are issued by financial institutions and provide exposure to underlying assets without direct investment. These tools enable the fund to efficiently and effectively gain exposure to markets that might otherwise be inaccessible or pose significant direct investment challenges.

• Concentrated Investments

  While the fund has a broad mandate to invest across various emerging and frontier markets, it may occasionally choose to invest a significant portion of its assets in a single country or a limited number of countries. This strategic concentration can allow for in-depth exposure to specific markets that the fund management team identifies as having exceptional growth opportunities or value propositions. However, it also increases the risk profile of the fund due to the potential for geopolitical, economic, or market-specific disruptions.