Johim fund’s stock picks deliver strong returns

Morningstar data revealed that the £58.35m portfolio is placed 18th out of 109 funds within the Investment Management Association’s Flexible Investment category, with three-year returns some 9.48 percentage points higher than the sector average of 29.59 per cent.

The fund, which was launched in March 2007, is managed by Capita Financial Managers, and has been run by Johim manager Algernon Percy since November 2009.

Mr Percy invests within a range of direct equities, bonds, and other funds, with an objective of providing long-term capital growth from a range of quality stocks and mutual funds on a global basis, but with a bias towards the UK, with a 50.87 per cent exposure.

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Elsewhere, the fund has a 19.61 per cent exposure to the US, and 10.25 per cent to Europe, excluding the eurozone.

Morningstar data revealed the fund has delivered year-to-date trailing returns of 12.55 per cent, and 12-month yields of 1.57 per cent.

The largest of its 34 holdings is the ¤87.67m (£75.71m) Waverton European Fund, followed by the $2.57bn (£1.69bn) Findlay Park American Fund.

Other key holdings include Microsoft, luxury goods firm Compagnie Financière Richemont, BT Group and HSBC Holdings.

The fund has a minimum investment of £5000, with a maximum AMC of 1.00 per cent, and a total expense ratio of 1.35 per cent.

In contrast, City Financial’s £15.30m Dynamic Fund has fared worse. It returned 17.66 per cent in the past three years, just under 12 percentage points lower than the peer average, and placing it in 95th position among the IMA sector.

The fund, which was launched in 2008, also aims to provide long-term capital growth, with assets predominantly distributed within the UK (37.80 per cent) and the US (30.30 per cent of total assets).

Its largest holding is the £165.65m River & Mercantile UK Equity Long Term Recovery Fund at 10.36 per cent, followed by the £18.89m CF Miton US Opportunities Fund.

The portfolio has a minimum investment of £1000 and has a maximum initial charge of 5.50 per cent. The fund has an AMC of 1.50 per cent, and a TER of 2.41 per cent.

Adviser says...

Carl Lamb, managing director of Norfolk-based Almary Green, said: “Both funds have a similar investment objective, investing for capital growth for the long term, with the Johim fund having more of a bias towards the UK market. Due to good stock picking, the returns on the Johim fund have not been particularly exposed to falling markets, providing a higher return.”