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Asset Allocator

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DFMs abandon JOHCM fund

Asset Allocator has been updating its database over the past week or so and an interesting pattern has been the deep sell-off by DFMs of the JOHCM UK Opportunities fund. 

Our database shows three allocators have exited it so far this year, while there has been a pattern of sell orders in recent years. 

Once upon a time it was owned by five DFMs which would have made it a relatively popular fund (though just outside the top tier of most popular).

This fund is now owned by no one in our database.

Noticing this decline we naturally had a look under the bonnet. 

The first thing to note is that the fund's size has shrivelled recently. In 2019 it was £470mn in size but now it is just £170mn.

Its cumulative performance over the past three years has been bottom quartile driven largely by poor performance in 2019 and 2021.

The biggest sector exposures are to consumer, industrials and financials, placing this fund firmly in the value segment, and UK value has been a tough place to be until fairly recently.  

One of the reasons this sell-off attracted our attention was because the fund's "sister", the £1.2bn JOHCM UK Dynamic, has been growing in popularity among DFMs and now sits among some of the most popular UK growth funds.

This fund, managed by Alex Savvides, also takes a value approach and has performed slightly better.

The JOHCM UK Opportunities fund takes a more defensive approach (for example it has no allocation to tech and more than twice as much in the money market), which has perhaps been a turn off for some DFMs despite the recent market volatility.

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