J O Hambro Capital Management UK Umbrella Fund. Short Report for the six months ended 30 June 2014

Transcription

1 J O Hambro Capital Management UK Umbrella Fund Short Report for the six months ended 30 June 2014

2 Contents General information 1 JOHCM UK Dynamic Fund 2 JOHCM UK Equity Income Fund 8 JOHCM UK Opportunities Fund 14 Directory 20

3 General information J O Hambro Capital Management UK Umbrella Fund The J O Hambro Capital Management UK Umbrella Fund ( the Company ) was authorised by the Financial Conduct Authority ( FCA ) (previously the Financial Services Authority) on 25 October This Short Report reviews and reports on the financial results of the Company s sub-funds for the six months ended 30 June The Company has been established as a UCITS scheme in the form of an umbrella company, currently with three sub-funds. Each sub-fund has segregated liability. The sub-funds are: J O Hambro Capital Management UK Dynamic Fund J O Hambro Capital Management UK Equity Income Fund J O Hambro Capital Management UK Opportunities Fund Risk profile There can be no assurance that the Funds will achieve their investment objectives. The value of, and the income from them, can fall as well as rise and should not be seen as indicative of future trends. Shares should generally be regarded as long-term investments. The Funds may invest in smaller companies, in which there may be no established market for the, or the market may be highly illiquid. It is the Authorised Corporate Director s ( ACD ) intention that derivatives will only be used for hedging purposes using efficient portfolio management techniques. Where an initial charge is imposed, if you sell your after a short period, you may not (even if there has not been a fall in the value of the underlying investments) get back the amount you originally invested. If you have invested a lump sum and you cancel your investment within the 14 day cancellation period, you may not get back your full investment, as the value of bought may have fallen. A dilution levy may be charged on the purchase or sale of in certain circumstances. In certain circumstances the right to redeem may be suspended. Although each sub-fund of the Company will be treated as being responsible for meeting its own liabilities, if it is not able to do so, the ACD may reallocate assets, liabilities, charges, expenses and costs between the other sub-funds of the Company (when launched) in a manner, which is fair to all the Company s investors generally. A shareholder is not, however, liable for the debts of the Company and will never be liable to make any further payment to the company after paying the purchase price of. Prevailing tax levels and reliefs are liable to change and their value will depend on your individual circumstances. An individual s circumstances are important and the Funds may not be suitable for all recipients of this document. You should therefore consult your financial advisor if you have any doubt as to whether an investment is suitable for you. Depositary The FCA has approved the transfer of the Depositary from HSBC Bank plc to Northern Trust Global Services Limited. This is due to be effective on 8 September Settlement cycle Central Securities Depositary Regulation (CSDR) is implementing a shorter, harmonised settlement cycle across the European Economic Area (EEA). Many European Countries have confirmed that they will implement T+2 settlement from 6 October In order to ensure there is not an inappropriate gap between the settlement cycle of the funds and that for the underlying equities, we will be changing the settlement cycle for both subscriptions and redemptions for the Funds to T+3 from 1 November Other information Further information about the activities and performance of the Funds for the period can be obtained from the ACD or via the website The Long Form Annual Report & Audited Financial Statements are available free of charge from the ACD on request or via the website Key Investor Information Documents (KIIDs) On 1 July 2012 JOHCM introduced KIIDs for our OEIC funds. A KIID is a stand-alone document and one is published for every active share class. We also publish a Supplementary Information Document for investors ( SID ). Prior to investing, investors must receive, and confirm receipt of, the appropriate KIID and SID. These documents are available on line at and also on request from the ACD. 1

4 JOHCM UK Dynamic Fund A Sub-Fund of J O Hambro Capital Management UK Umbrella Fund Investment objective & policy The investment objective of the JOHCM UK Dynamic Fund is to achieve long-term capital growth. Investments will primarily be drawn from companies listed on either of the two primary markets of the London Stock Exchange: the main market and AIM. At least 75 of the JOHCM UK Dynamic Fund s total assets will at all times be invested in equity securities of companies domiciled or exercising the predominant part of their economic activity in the United Kingdom. The JOHCM UK Dynamic Fund may on occasion utilise this provision to invest a proportion of its assets in equities listed on a recognised exchange outside the UK. Investment will be made primarily in equity securities which are readily marketable, but investments will also be made in equity securities of smaller companies which can be more lightly traded. The portfolio is likely to be fairly concentrated with the JOHCM UK Dynamic Fund typically holding equity interests in between 35 and 50 different companies. The benchmark for the JOHCM UK Dynamic Fund is the FTSE All Share Total Return index. This is a capitalisation weighted index comprising FTSE 350 and FTSE Smallcap indices. 2

5 JOHCM UK Dynamic Fund Investment Management report for the six months ended 30 June 2014 Alex Savvides Senior Fund Manager 17 years industry experience Joined JOHCM in March 2003 Performance The JOHCM UK Dynamic Fund returned 0.92 in sterling terms, net of fees for the B share class, for the six-month period ended 30 June Over the same period the FTSE All-Share Total Return Index (adjusted) 1 returned Investment background In comparison to last year s buoyant stock market conditions that saw double-digit gains over 2013, the opening six months of 2014 were marked by far more muted progress in UK equities. These limited gains at the headline level belied volatility within the underlying sectors amid a pronounced rotation away from the growth-biased, smaller stocks and momentum trades that had served investors well over the past two years into large-cap, so-called value stocks and more defensive sectors. The healthcare sector was the stand-out performer over the period, benefiting from a surge in M&A activity, including Pfizer s ultimately unsuccessful takeover approach to AstraZeneca and US rival AbbVie s bid for Shire. Other areas of strength were utilities and consumer goods, while laggards included the telecommunications, technology, industrials, consumer services and financials sectors. On the economic front, the UK s increasingly impressive growth has prompted much debate as to when the Bank of England should begin to raise its base interest rate from its current historic low of 0.5. The prospect of the UK being the first major economy to start tightening monetary policy some six years after the eruption of the financial crisis has led to marked appreciation in sterling against the US dollar and the euro. Investment strategy The Fund modestly trailed the index over the period despite positive stock picking and evidence of further progress across a number of our core holdings. Our sector exposure was detrimental to returns, in particular our underweight exposure to the consumer goods sector, home of many expensive defensives in our opinion not owning British American Tobacco, for example, adversely affected the Fund s relative performance. Individual holdings that fared well over the period included our healthcare names Smith & Nephew and AstraZeneca, which benefited from the M&A speculation and activity enveloping the sector, as described above. In a similar vein, not owning fellow healthcare Shire was a drag upon relative returns as it was on the receiving end of a bid approach. In financials, Man Group was boosted by the well-received acquisition of US peer Numeric Holdings, while Aviva and 3i Group also made progress. Elsewhere, there were minor negative relative contributions from Clinigen and Johnston Press. Clinigen suffered from speculation that its full-year results would be hurt by a slowdown in the group s Clinical Trial Supply division. The revenues in this division can be lumpy and in many cases the contracts are low margin. We therefore already ascribe a relatively low valuation to this part of the business. We have slowly been rebuilding this position into recent share price declines. Our attraction to Johnston Press is based on a substantial change in the profile of the business, particularly around margins, cash generation and return on capital, as it transitions from being a traditional regional publisher to a broader, digital-led regional media business. The company s share price suffered from short-term effects associated with a capital-raising exercise. Firstly, the debt component of the refinancing was undertaken at a higher coupon than we and the company had anticipated, leading to higherthan-expected annual interest costs. Secondly, the rights issue, given its scale, was not fully backed by the top two shareholders (who owned c. 20 of the stock), and who both needed to sell stock to fund a partial take-up of their rights. This left a short-term overhang of stock. Changes to the composition of the Fund over the period included exiting our position in ICAP, held since May Our view that volumes in the core global broking business would trough has been challenged given ongoing regulatory pressure amongst the company s client base banks and ongoing reductions in volatility more generally. We also sold the Fund s position in Lookers in April after a very successful 1 Adjusted for 12 noon 3

6 JOHCM UK Dynamic Fund Investment Management report continued two-year holding period. We used the capital to re-enter Taylor Wimpey, where the had declined by nearly 33 relative to Lookers in the prior two months. We thought this was odd given that both were interest rate-sensitive and given that Taylor Wimpey, having committed to excess cash returns over the next two years (at least) was yielding substantially more than Lookers (7 vs. 2). Prospects We remain true to our core focus of backing positive change within businesses with good market positions and have had a busy period for new idea generation. Looking ahead, we remain broadly positive on the market outlook despite well-trailed expectations of interest rate rises in the not too distant future, although we recognise that valuations now expect reasonable growth. Alex Savvides Senior Fund Manager Past performance is not necessarily a guide to future performance. The price of may go up as well as down and future income is not guaranteed. 4

7 JOHCM UK Dynamic Fund JOHCM UK Dynamic Fund (continued) Price history High Low High Low High Low High Low High Low High Low STERLING (pence per share) Net asset value Net asset value of share class ( ) Shares in issue Net asset value per share (p) change since launch STERLING 1 49,908,978 30,258, p ,361,026 12,869, p ,111,576 16,811, p ,476,640 11,740, p ,441,060 29,612, p ,960,195 72,176, p 3.61 Total fund size 229,259,475 Distribution history STERLING (pence per share) (1) and and accumulation share classes launched on 23 October (2) The share class was created through an amalgamation with the same share class of the Ryder Court UK Dynamic Fund on 23 October (3) launched on 31 October Past performance is not necessarily a guide to future performance. The price of may go up as well as down and future income is not guaranteed. 5

8 JOHCM UK Dynamic Fund JOHCM UK Dynamic Fund (continued) Sector allocation Percentage of net asset value Oil & Gas Producer Banks 9.53 Pharmaceuticals & Biotechnology 8.81 Mining 7.53 Financial Services 6.44 Insurance 5.10 Real Estate 4.60 Support Services 4.30 Equity Investment Instrument 3.72 Software & Computer Services 3.53 Aerospace & Defence 3.27 Gas, Water & Multiutilities 3.01 Construction & Materials 2.90 Healthcare Equipment & Services 2.67 Mobile Telecommunication 2.56 Media 2.40 Leisure 2.22 Environment Services & Recycling 1.74 Travel & Leisure 1.66 Food & Distilleries 1.57 General Industries 1.53 Beverages 1.46 Commercial Services 1.06 Miscellaneous Manufacturing 1.06 Electronic & Electrical Equipment 0.99 Graphic Art & Publishing 0.98 Semiconductors 0.58 Oil Equipment & Services 0.49 Net other assets 1.93 Total

9 JOHCM UK Dynamic Fund JOHCM UK Dynamic Fund (continued) Top ten holdings Percentage of net asset value Percentage of net asset value BP i Group 3.72 Royal Dutch Shell 'B' 4.87 AstraZeneca 3.67 HSBC Holdings 4.53 QinetiQ 3.27 GlaxoSmithKline 4.10 SEGRO (REIT) 3.06 Anglo American 3.88 Centrica 3.01 Ongoing charge Ongoing charge Performance fees Portfolio turnover rate 30 June June 2013 Portfolio turnover rate Distribution and payment dates Income allocation Income payment Final distribution 31 December 28 February 7

10 JOHCM UK Equity Income Fund A Sub-Fund of J O Hambro Capital Management UK Umbrella Fund Investment objective & policy The aim of the Fund is to achieve long-term capital appreciation and generate an above average dividend yield which will grow over time primarily through investment in transferable securities, although the Fund may also be invested in money market instruments, deposits, warrants and units in other collective investment schemes. The Fund will aim to achieve this objective mainly through investments in equity securities that are listed on the London Stock Exchange (or other relevant UK exchanges). The vast majority of stocks selected will be constituents of the FTSE 350 Index although there may be a handful of smaller stocks at times. Performance of the Fund will be measured against the FTSE All Share Total Return Index (the UK Index ). At all times at least two thirds of the Fund s assets will be invested in equity securities of companies domiciled or exercising the predominant part of their economic activity in the United Kingdom. The Fund will exclusively concentrate on stocks that generate a prospective yield above that of the FTSE All Share average, with a strict selling discipline once a stock s yield falls below the average level. This approach will naturally give the Fund a contrarian style and also means that the portfolio will be very different from the UK Index. There will be no maximum overweight or underweight limits on stocks or sectors. The focus on dividends also means the Fund will have a bias toward cash generative companies (as measured by free cash flow and EBITDA), particularly those that can grow their dividends regularly through different investment and economic cycles. The bias towards higher yielding stocks is based on a belief that managers of businesses in the UK use their dividend distributions as an indication of the medium term earnings power of the company and these payments tend to be much less volatile than earnings per share. This will often mean that the Fund will invest in stocks with no immediate catalyst, but which are materially undervalued. Furthermore, historical evidence has shown that dividend income has consistently contributed a very high proportion of the UK market s real return and we expect that to continue. 8

11 JOHCM UK Equity Income Fund Investment Management report for the six months ended 30 June 2014 James Lowen Senior Fund Manager 20 years industry experience Joined JOHCM in September 2004 Clive Beagles Senior Fund Manager 25 years industry experience Joined JOHCM in September 2004 Performance The JOHCM UK Equity Income Fund returned 1.20 in sterling terms, net of fees for the B share class, for the six-month period ended 30 June Over the same period the FTSE All-Share Total Return Index (adjusted) 1 returned Investment background In comparison to last year s buoyant stock market conditions that saw double-digit gains over 2013, the opening six months of 2014 were marked by far more muted progress in UK equities. These limited gains at the headline level belied volatility within the underlying sectors amid a pronounced rotation away from the growth-biased, smaller stocks and momentum trades that had served investors well over the past two years into large-cap, so-called value stocks and more defensive sectors. The healthcare sector was the stand-out performer over the period, benefiting from a surge in M&A activity, including Pfizer s ultimately unsuccessful takeover approach to AstraZeneca and US rival AbbVie s bid for Shire. Other areas of strength were utilities and consumer goods, while laggards included the telecommunications, technology, industrials, consumer services and financials sectors. On the economic front, the UK s increasingly impressive growth has prompted much debate as to when the Bank of England should begin to raise its base interest rate from its current historic low of 0.5. The prospect of the UK being the first major economy to start tightening monetary policy some six years after the eruption of the financial crisis has led to marked appreciation in sterling against the US dollar and the euro, undermining dividend growth and hurting earnings of UK companies with considerable overseas earnings. Investment strategy The Fund ended the six-month period slightly behind the index. This modest underperformance stemmed from the portfolio s sector exposure a function of our bottomup investment process as our very limited exposure to the consumer goods sector, sizeable underweight in healthcare and large overweight in financials detracted from relative performance; more encouragingly, our stock selection made a materially positive contribution. Our financial names performed well, with Investec, Aviva and F&C Asset Management adding value, although Aberdeen Asset Management was hurt by portfolio outflows following weakness in emerging markets. Elsewhere, Balfour Beatty s share price struggled after it issued two profit warnings, while packaging company DS Smith was hurt by macro concerns over Europe despite the business continuing to perform well. A theme of the first half of the year has been a number of our large portfolio voids being the subject of either takeover approaches or M&A speculation. While we did benefit from owning F&C Asset Management (it was acquired by a Canadian asset manager) not owning Shire and being underweight AstraZeneca for most of the period (the stock is now owned in the Fund after a switch out of GlaxoSmithKline), as well as not holding SAB Miller and Smith & Nephew, collectively cost the Fund approximately 1 in relative performance. Besides adding AstraZeneca to the portfolio, other notable portfolio activity included the sale of Lloyds Banking Group. This was driven by two factors: the regulatory environment continues to be difficult for incumbent banks, which is moving the dividend agenda back; and, net of some money invested back into UK domestic exposure (principally the addition of One Saving Bank to the portfolio), the sale continued the trend of slowly reducing our UK domestic exposure as we move towards the turn in the interest rate cycle. Prospects Compared to the past few years, we have been highlighting for some time that 2014 was more likely to be a tougher year for markets to make considerable progress given that valuations are higher and that developed world monetary policy will progressively tighten as the punchbowl is taken away. Consequently, Western equities will have to generate earnings growth to make meaningful progress. This is 1 Adjusted for 12 noon 9

12 JOHCM UK Equity Income Fund Investment Management report (continued) likely to happen at the aggregate level but there will be individual casualties along the way, making stock selection more important than ever. The aggressive rotation that has been seen within markets over the last few months simply emphasises how important it is to remain vigilant on valuation. However, recent setbacks amongst small and mid- cap stocks have begun to present opportunities, which is welcome news. We are also starting to see an acceleration / improvement in fundamentals across our holdings. The combination of this and the valuation agenda is leaving us more positive. Compared to other major asset classes, equities still offer better value than other areas such as corporate or government bonds, and we continue to find many undervalued bottom-up situations. Furthermore, companies appear to have rediscovered their animal spirits, with major M&A picking up quite dramatically of course, this has historically tended to happen quite late in stock market cycles. We would still expect a positive total return in 2014 but of a lower magnitude compared to The strong balance sheets running through the Fund and aggregate dividend growth of high single-digits should also underpin absolute and relative performance. James Lowen and Clive Beagles Senior Fund Managers Past performance is not necessarily a guide to future performance. The price of may go up as well as down and future income is not guaranteed. 10

13 JOHCM UK Equity Income Fund JOHCM UK Equity Income Fund (continued) Price history High Low High Low High Low High Low High Low High Low STERLING (pence per share) Net asset value Net asset value of share class ( ) Shares in issue Net asset value per share (p) change since launch STERLING 1 846,541, ,543, p ,342, ,653, p ,265, ,062, p ,813, ,650, p ,882, ,718, p ,375, ,951, p Total fund size 2,620,220,567 Distribution history STERLING (pence per share) (1) and share classes launched on 30 November (2) launched on 4 January Past performance is not necessarily a guide to future performance. The price of may go up as well as down and future income is not guaranteed. 11

14 JOHCM UK Equity Income Fund JOHCM UK Equity Income Fund (continued) Sector allocation Percentage of net asset value Oil & Gas Producers Insurance Mining 7.63 Real Estate 7.47 Banks 6.54 Travel & Leisure 5.34 Mobile Telecommunications 4.99 Construction & Materials 4.67 Pharmaceuticals & Biotechnology 3.31 Media 3.22 Food Retailers 3.19 Financial Services 3.14 Electronic & Electrical Equipment 2.62 Support Services 2.48 Equity Investment Instruments 2.29 Non-Life Insurance 2.18 General Industries 2.14 Gas, Water & Multiutilities 2.12 Holding & Finance Companies 1.94 Investment Funds 1.31 Graphic Art & Publishing 1.29 General Retailers 1.20 General Financial 1.12 Miscellaneous Manufacturing 1.10 Household Goods 0.94 Commercial Services 0.73 Semiconductors 0.64 Chemicals 0.61 Software & Computer Services 0.52 Photography & Optics 0.43 Net other assets (0.26) Total

15 JOHCM UK Equity Income Fund JOHCM UK Equity Income Fund (continued) Top ten holdings Percentage of net asset value Percentage of net asset value BP 7.04 Glencore Xstrata 3.65 Royal Dutch Shell 'B' 6.98 Aviva 3.03 HSBC Holdings 6.00 ITV 2.85 Rio Tinto 3.98 Standard Life 2.77 Vodafone Group 3.80 AstraZeneca 2.63 Ongoing charge Ongoing charge Performance fees Portfolio turnover rate 30 June June 2013 Portfolio turnover rate Distribution and payment dates Income allocation Income payment First interim distribution 31 March 31 May Second interim distribution 30 June 31 August Third interim distribution 30 September 30 November Final distribution 31 December 28 February 13

16 JOHCM UK Opportunities Fund A Sub-Fund of J O Hambro Capital Management UK Umbrella Fund Investment objective & policy The objective of the Fund is to achieve long-term capital appreciation through investment in a concentrated portfolio primarily invested in transferable securities of UK companies. Up to 10 of the value of the Fund may be invested in non-uk companies. The Fund may also invest in money market instruments, deposits, warrants and units in other collective investment schemes. The benchmark against which performance is measured is the FTSE All Share Total Return Index in Sterling. At all times at least two thirds of the Fund s total assets will be invested in equity securities of companies domiciled or exercising the predominant part of their economic activity in the United Kingdom. 14

17 JOHCM UK Opportunities Fund Investment Management report for the six months ended 30 June 2014 John Wood Senior Fund Manager 24 years industry experience Joined JOHCM in October 2005 Performance The JOHCM UK Opportunities Fund returned 3.08 in sterling terms, net of fees for the B share class, for the six-month period ended 30 June Over the same period the FTSE All-Share Total Return Index (adjusted) 1 returned Investment background In comparison to last year s buoyant stock market conditions that saw double-digit gains over 2013, the opening six months of 2014 were marked by far more muted progress in UK equities. These limited gains at the headline level belied volatility within the underlying sectors amid a pronounced rotation away from the growth-biased, smaller stocks and momentum trades that had served investors well over the past two years into large-cap, so-called value stocks and more defensive sectors. The healthcare sector was the stand-out performer over the period, benefiting from a surge in M&A activity, including Pfizer s ultimately unsuccessful takeover approach to AstraZeneca and US rival AbbVie s bid for Shire. Other areas of strength were utilities and consumer goods, while laggards included the telecommunications, technology, industrials, consumer services and financials sectors. On the economic front, the UK s return to sustained growth has prompted much debate as to when the Bank of England should begin to raise its base interest rate from its current historic low of 0.5. The prospect of the UK being the first major economy to start tightening monetary policy some six years after the eruption of the financial crisis has led to marked appreciation in sterling against the US dollar and the euro. Investment Strategy The Fund outperformed the index materially over the sixmonth period. This outperformance was achieved despite the Fund s high cash balance that reflects our discomfort with the prevailing level of valuations within the UK stock market; current high valuations owe more to the artificial stimulus of quantitative easing rather than any improvement in underlying corporate fundamentals, in our opinion. Our strict adherence to our absolute valuation controls ensured we maintained a high cash balance throughout the period under review. Our outperformance stemmed from positive stock selection, aided by strong displays from Sage Group, Next, Stagecoach Group and Smith & Nephew, the latter benefiting from the M&A speculation sweeping the sector following Pfizer s failed bids for AstraZeneca, another portfolio holding. Publisher Pearson was the worst performer for the Fund after it issued a weaker earnings forecast in January, citing lower demand in its US and UK educational businesses. Prospects Our emphasis as long-term investors remained, as ever, on a concentrated portfolio of companies capable of growing and developing their businesses over time. With strong balance sheets, the companies held within our portfolio have the ability to reinvest in themselves to generate compounding growth irrespective of the economic environment. As we look for improving cash flows, not a re-rating of the same cash flows, we continue to struggle to find investments in this environment. We are prepared to be patient until asset prices fall or, perhaps more importantly, cash flows improve. John Wood Senior Fund Manager Past performance is not necessarily a guide to future performance. The price of may go up as well as down and future income is not guaranteed. 1 Adjusted for 12 noon 15

18 JOHCM UK Opportunities Fund JOHCM UK Opportunities Fund (continued) Price history High Low High Low High Low High Low High Low High Low STERLING (pence per share) Class X 3 High Low STERLING (pence per share) Net asset value Net asset value of share class ( ) Shares in issue Net asset value per share (p) change since launch STERLING 1 333,102, ,334, p ,594, ,055, p ,217,557 50,090, p ,530, ,226, p ,348,519 46,429, p ,509,154 41,423, p Class X 3 19,372,625 19,536, p (0.90) Total fund size 1,393,675,606 (1) Share classes launched on 8 December (2) launched on 4 January (3) Class X launched on 18 June

19 JOHCM UK Opportunities Fund JOHCM UK Opportunities Fund (continued) Distribution history STERLING (pence per share) Class X 3 STERLING (pence per share) (1) Share classes launched on 8 December (2) launched on 4 January (3) Class X launched on 18 June Past performance is not necessarily a guide to future performance. The price of may go up as well as down and future income is not guaranteed. 17

20 JOHCM UK Opportunities Fund JOHCM UK Opportunities Fund (continued) Sector allocation Percentage of net asset value Tobacco Oil & Gas Producers Investment Funds (money market funds) 8.97 Media 7.67 Pharmaceuticals & Biotechnology 6.19 Travel & Leisure 5.73 Support Services 5.25 Gas, Water & Multiutilities 4.70 Aerospace & Defence 4.53 Food Producer 4.07 Software & Computer Services 3.59 Aerospace Technology 3.50 Household Goods 2.89 Packaging & Container 2.77 General Retailers 2.65 Healthcare Equipment & Services 2.28 Holding & Finance Companies 1.91 Chemicals 0.88 Net other assets Total Top ten holdings Percentage of net asset value Percentage of net asset value Reed Elsevier 5.06 Compass 3.95 British American Tobacco 4.91 Royal Dutch Shell 'B' 3.83 GlaxoSmithKline 4.73 Imperial Tobacco 3.76 National Grid 4.70 Sage Group 3.59 Unilever 4.07 BP

21 JOHCM UK Opportunities Fund JOHCM UK Opportunities Fund (continued) Ongoing charge All (Inc) (Acc) (Inc) (Acc) Class X (Inc) Ongoing charge Performance fees Portfolio turnover rate 30 June June 2013 Portfolio turnover rate Distribution and payment dates Income allocation Income payment Final distribution 31 December 28 February 19

22 Directory Company and Registered Office J O Hambro Capital Management UK Umbrella Fund Ground Floor Ryder Court 14 Ryder Street London SW1Y 6QB Authorised Corporate Director J O Hambro Capital Management Limited Ground Floor Ryder Court 14 Ryder Street London SW1Y 6QB Communications (FAO OEIC Dealing) J O Hambro Capital Management Limited Ground Floor Ryder Court 14 Ryder Street London SW1Y 6QB Dealing telephone number Retail enquiries Representative and paying agent in Switzerland RBC Investor Services Bank S.A., Esch-sur-Alzette, Zurich Branch Badenerstrasse 567 PO Box 101 CH-8066 Zurich Switzerland Paying and information agent in Germany Marcard, Stein & Co AG Ballindamm 36 D Hamburg Germany Representative and paying agent in Austria Erste Bank der Osterreichischen Sparkassen AG Garben 21 A-1010 Vienna Austria Investment Manager J O Hambro Capital Management Limited Ground Floor Ryder Court 14 Ryder Street London SW1Y 6QB Depositary HSBC Bank plc 8 Canada Square London E14 5HQ Administrator, Registrar and Transfer Agent RBC Investor Services Trust Riverbank House, 2 Swan Lane London EC4R 3AF Auditor Ernst & Young LLP Ten George Street Edinburgh EH2 2DZ Facilities agent in Ireland RBC Investor Services Ireland Limited George s Quay House 43 Townsend Street Dublin 2, Ireland 20

23 J O Hambro Capital Management Limited Ground Floor, Ryder Court 14 Ryder Street London SW1Y 6QB Tel: Fax: