JOHCM Emerging Markets Discovery Fund Institutional Shares (JOMMX)

Overview

The fund primarily focuses on investing in equity securities of companies located within emerging and frontier markets, illustrating a strategic approach to capitalizing on the potential high-growth opportunities presented by these regions. With an investment strategy that commits at least 80% of its net assets into such markets, the fund demonstrates a strong preference for diversification and growth potential inherent in emerging economies. Through a combination of direct and indirect investment vehicles, including depositary receipts, exchange-traded funds (ETFs), and participatory notes, the fund maintains a flexible and adaptive investment approach. This strategy allows for a broad exposure to the unique economic dynamics of these markets while seeking to balance the investment risks associated with them.

Products and Services

• Equity Securities in Emerging Markets

  At the core of its investment strategy, the fund concentrates on acquiring equity securities issued by companies based in emerging and frontier markets. This includes direct investments in stocks and shares of companies that are poised for growth within these rapidly developing regions. By focusing on equity securities, the fund aims to leverage the potential high returns from these markets, which often experience faster growth rates compared to developed markets.

• Depositary Receipts

  To facilitate diversified and global investment opportunities, the fund employs depositary receipts as a means of indirect investment in foreign companies. Depositary receipts represent shares in a foreign company and are traded on a local stock exchange, allowing investors to gain exposure to overseas markets without the complexities of direct foreign investment. This method supports the fund's objective of tapping into emerging market growth while managing the inherent risks.

• Exchange-Traded Funds (ETFs)

  The use of exchange-traded funds (ETFs) enables the fund to invest in a basket of securities, providing diversified exposure to a wide range of assets within emerging and frontier markets. ETFs are known for their liquidity, cost-effectiveness, and ease of trading, making them a valuable tool for the fund to achieve its investment goals while maintaining flexibility in its portfolio management.

• Participatory Notes

  Participatory notes (P-notes) offer another indirect route to investing in emerging markets, allowing the fund to invest in these regions without directly purchasing securities in the local market. P-notes are financial instruments issued by brokers that derive their value from an underlying security. This option can be beneficial for accessing markets with regulatory or operational barriers, aligning with the fund's strategy of diversified, global investment.

• Developed Market Securities with Emerging Market Exposure

  Recognizing the interconnectedness of global economies, the fund also invests in securities from developed markets companies that derive, or are anticipated to derive, significant revenue from operations in emerging or frontier markets. This strategic investment approach capitalizes on the stability of developed markets while gaining exposure to the growth dynamics of emerging economies, thereby aiming for a balanced risk-return profile.