J O Hambro Capital Management Umbrella Fund

J O Hambro Capital Management Umbrella Fund plc 2019 Annual Report & Financial Statements www.johcm.com for the financial year ended 31 December 2019 General information

Contents Reporting fund status Where “reporting fund” status is obtained, General Information 1 Shareholders who are resident in the United Directors’ Report 2 Kingdom for tax purposes (other than persons who are dealing in the Shares who are subject to Corporate Governance Statement 5 different rules) should be liable to capital gains tax Report of the Depositary to the Shareholders 7 (or corporation tax on chargeable gains) in respect of any gain realised on disposal or repurchase of Independent Auditors’ Report 8 the Shares or on conversion from one sub-fund to another within the Company. Consolidated information Each sub-fund has received certification as a Statement of Financial Position 10 “reporting fund” under the UK reporting fund Statement of Comprehensive Income 20 regime. It is intended that the Company will conduct its affairs so as to enable each sub-fund Statement of Changes in Net Assets Attributable to 28 to maintain “reporting fund” status. Holders of Redeemable Participating Shares

Market Update - coronavirus 32 It cannot, however, be guaranteed that “reporting fund” status will be maintained in respect of any relevant period of account. It should be noted that Sub-fund reporting it is not necessary to obtain “reporting fund” status JOHCM Continental European Fund 33 on an annual or certificated basis; a sub-fund that

JOHCM UK Growth Fund 43 obtains “reporting fund” status will maintain that status until such time as a material breach of the JOHCM European Select Values Fund 51 reporting regime occurs (for example, if the sub-fund does not report its income as required). JOHCM Japan Fund 61

JOHCM Global Select Fund 70 Further information The following information is available free of JOHCM Emerging Markets Fund 81 charge at www.johcm.com: JOHCM Global Emerging Markets Opportunities Fund 85 • The Key Investor Information Documents JOHCM Asia ex-Japan Fund 95 (“KIIDs”), Prospectus, Annual and Interim reports of the Company. Hard copies are JOHCM Asia ex-Japan Small and Mid-Cap Fund 103 available upon written request to the Investment

JOHCM Global Opportunities Fund 113 Manager or the Administrator. • Information on the sub-funds and their share JOHCM Japan Dividend Growth Fund 121 classes. JOHCM US Small Mid Cap Equity Fund 129 • Share prices. JOHCM European Concentrated Value Fund 133 Further information is available from JOHCM Global Smaller Companies Fund 141 the Administrator, JOHCM UK Dynamic Fund 145 RBC Investor Services Ireland Limited 4th Floor, One George’s Quay Plaza JOHCM Global Income Builder Fund 153 George’s Quay JOHCM Concentrated Global Share Fund 167 Dublin 2 Ireland Notes to the Financial Statements 175

Supplemental information

Appendix 1 236

Appendix 2 240

Appendix 3 241

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 General information (continued)

J O Hambro Capital Management Umbrella Fund plc An umbrella type open-ended investment company with variable capital incorporated with limited liability in Ireland. Registration number 345142.

Board of Directors Robert Burke (Independent non-executive director) Graham Warner (Independent non-executive director. Graham Warner resigned on 30 September 2019) Helen Vaughan (Non-executive director) Máire O’Connor (Independent non-executive director) Markus Lewandowski (Non-executive director. Appointed 25 February 2020) Alexandra Altinger (Non-executive director. Appointed 25 March 2020)

Designated Person to the Manager Manager Paying Agent in Liechtenstein Carne Global Financial Services Limited (effective from 1 November 2019) VP Fund Solutions (Liechtenstein) AG 2nd Floor, Block E JOHCM Funds (Ireland) Limited Aeulestrasse 6 Iveagh Court, Harcourt Road Riverside One 9490 Vaduz Dublin Sir John Rogerson’s Quay Liechtenstein Ireland Dublin 2 D02 X576 Ireland

Company Secretary and Depositary Swiss Representative & Paying Registered Office RBC Investor Services Bank S.A. Agent in Switzerland HMP Secretarial Limited Dublin Branch, RBC Investor Services Bank S.A. Riverside One 4th Floor, One George’s Quay Plaza Esch-sur-Alzette, Zürich Branch Sir John Rogerson’s Quay George’s Quay, Dublin 2 Bleicherweg 7 Dublin 2 D02 X576 Ireland CH-8027 Zurich Ireland Switzerland

Legal advisers in Ireland Administrator, Registrar and Paying Agent and Tax McCann FitzGerald Transfer Agent Representative in Austria Riverside One RBC Investor Services Ireland Limited Erste Bank der Osterreichischen Sir John Rogerson’s Quay 4th Floor, One George’s Quay Plaza Sparkassen AG Dublin 2 George’s Quay Graben 21, A-1010 Ireland Dublin 2 Vienna Ireland Austria

Legal advisers in the Paying Agent in Luxembourg Paying Agent in Sweden United Kingdom RBC Investor Services Bank S.A. Skandinaviska Enskilda Banken AB MacFarlanes 14 Porte de France (publ) 20 Cursitor Street L-4360 Esch-sur-Alzette Sergels Torg 2 London EC4A 1LT Luxembourg SE-106 40 Stockholm England Sweden

Auditors Information Agent in Germany Paying Agent, Distributor and Ernst & Young German Fund Information Service Nominee in Spain Chartered Accountants UG (publ) Bancoval Securities Services, S.A. Ernst & Young Building Zum Eichhagen 4 Fernando el Santo, 20 Harcourt Centre, Harcourt Street D-21382 Brietlingen Madrid Dublin 2, D02 YA40 Ireland Germany Spain

Promoter, Investment Manager, Centralising Correspondent in Distributor and UK Facilities France Agent RBC Investor Services Bank France J O Hambro Capital Management 105 Rue Réaumur Limited 75002 Paris Level 3, 1 St James’s Market France London SW1Y 4AH England

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 1 Directors’ report for the financial year ended 31 December 2019

The Directors of the Company (the “Directors”) submit Statement as to Disclosure of Information their report, together with the audited financial statements to Auditor for the financial year ended 31 December 2019. Each of the Directors who were members of the Board at the date of approval of this Annual Report confirms that, Statement of Directors’ Responsibilities in to the best of his or her knowledge and belief, there is Respect of the Financial Statements no information relevant to the preparation of the Annual Irish company law requires the Directors to prepare Report of which the Company’s Auditor has not been made financial statements for each financial year, which give a aware and he or she has taken all the steps a Director true and fair view of the state of affairs of the Company might reasonably be expected to have taken to be aware and of the profit or loss of the Company for the financial of relevant audit information and to establish that the year. In preparing those financial statements, the Directors Company’s Auditor is aware of that information. are required to: Principal Activities • select suitable accounting policies and then apply them The Company was incorporated on 3 July 2001 and was consistently; authorised by the Central Bank in accordance with the • make judgments and estimates that are reasonable and UCITS Regulations. The Company is organised as an open- prudent; ended investment company with variable capital pursuant to the UCITS Regulations. The Company is organised in the • state whether the financial statements have been form of an umbrella fund with segregated liability between prepared in accordance with the applicable accounting sub-funds. standards, identify those standards, and note the effect and the reasons for any material departure from those As at 31 December 2019 the Company had fourteen active standards; and sub-funds in respect of which 96 classes of shares have • prepare the financial statements on the going concern been offered for investment. basis unless it is inappropriate to presume that the Company will continue in business. Principal Risks Investment in the Company carries with it a degree of risk. Information about the material risks of the Company, the The Directors are responsible for keeping adequate financial risk management objectives and policies of the accounting records which disclose with reasonable accuracy Company are disclosed in Note 8 to the financial statements. at any time the assets, liabilities, financial position and profit and loss of the Company and which enable them Review of Business and Future Developments to ensure that the financial statements are prepared The level of business and the financial position at the in accordance with accounting standards generally financial year-end were satisfactory and the Directors accepted in Ireland and comply with the provisions of expect this to continue in the coming financial year. the Companies Act 2014 (the “Act”), as amended, the A more comprehensive overview of the Company’s European Communities (Undertakings for Collective investment activities is detailed in the Investment Investment in Transferable Securities) Regulations, Management Reports. 2011 (as amended) and the Central Bank of Ireland (the “Central Bank”) (Supervision and Enforcement) Act 2013 Results for the Financial Year and State of (Section 48(1)) (Undertakings for Collective Investment Affairs at 31 December 2019 in Transferable Securities) Regulations 2019, as amended, The state of affairs of the Company at 31 December (the “UCITS Regulations”) and that they can be audited. 2019 is set out on pages 10 to 19 and the results for the They are also responsible for safeguarding the assets of financial year are set out on pages 20 to 27. the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Directors The directors are responsible for ensuring that adequate The names of the persons who were Directors at any time accounting records are kept that are sufficient to correctly during the financial year are set out on page 1. record and explain the transactions of the Company.

2 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Directors’ report (continued)

Secretary Connected persons HMP Secreterial Limited acted as Secretary throughout the In accordance with the requirements of UCITS, any financial year. transactions carried out with a UCITS by a manager, depositary, investment manager and/or associated or group Directors’ and Secretary’s Interests companies of these (“connected persons”) must be carried On 30 September 2019, Helen Vaughan retired as Chief out as if negotiated at arm’s length. Transactions must be Operating Officer of J O Hambro Capital Management in the best interests of the Shareholders. Limited. Details of Directors’ and Secretary’s interests are shown in Note 7 to the financial statements. The Directors confirm that there are arrangements (evidenced by written procedures) in place to ensure Directors’ Compliance Statement that any transactions carried out with the Company It is the policy of the Company to comply with its relevant by its manager, investment manager, depositary and/ obligations (as defined in the Companies Act 2014, as or associated or group companies of these (“Connected amended). As required by Section 225(2) of the Companies Persons”) are carried out as if negotiated at arm’s length Act 2014, as amended, the Directors acknowledge that they and are in the best interests of the Shareholders. The are responsible for securing the Company’s compliance with Directors are satisfied that the transactions with Connected the relevant obligations. Persons during the financial year were carried out as if negotiated at arm’s length and in the best interests of the The Directors have drawn up a compliance policy statement Shareholders. as defined in Section 225(3)(a) of the Companies Act 2014, as amended and a compliance policy which refers to the Accounting Records arrangements and structures that are in place and which To ensure that adequate accounting records are kept in are, in the Directors’ opinion, designed to secure material accordance with Section 281 to 285 of the Companies Act compliance with the Company’s relevant obligations. In 2014, as amended, the Company has employed a service discharging their responsibilities under Section 225, the organisation, RBC Investor Services Ireland Limited (“the Directors relied upon, among other things, the services Administrator’’). The books of account are located at the provided, advice and/or representations from third parties, offices of the Administrator as stated on page 1. whom the Directors believe have the requisite knowledge and experience in order to secure material compliance with Securities Financing Transactions the Company’s relevant obligations. As the Company undertakes securities lending, it is required to report on Securities Financing Transactions The Directors confirm that the three assurance measures (as defined in Article 3 of Regulation (EU) 2019/2365, have been implemented during the financial year end 31 securities financing transactions include repurchase December 2019 as follows: transactions, securities on commodities lending and securities on commodities borrowing and margin lending a. Drawing up a compliance policy statement that sets out transactions). In accordance with Article 13 of the the Company’s policies respecting compliance by the Regulation, the Company’s involvement in and exposures Company with its relevant obligations; relating to securities lending for the accounting year ended b. Putting in place appropriate arrangements or structures 31 December 2019 are detailed in Appendix 3. that are designed to secure material compliance with the Company’s relevant obligations; and Audit Committee The Company has not established a separate audit c. Conducting an annual review during the financial year of committee as the Directors operate as a unitary Board any arrangements or structures referred to in (b) that whilst considering such related matters. The Directors have been put into place. believe that the Company’s straightforward structure, together with the delegation of responsibilities to the Administrator does not warrant such a function. This is reviewed by the Board annually.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 3 Directors’ report (continued)

Independent Auditors Subsequent Events The Auditors, Ernst & Young, Chartered Accountants, Markus Lewandowski was appointed as a non-executive have indicated their willingness to continue in office in director of the Company on 25 February 2020. accordance with Section 383(2) of the Companies Act 2014, as amended. Alexandra Altinger was appointed as a non-executive director of the Company on 25 March 2020. Basis of Accounting The Company’s financial statements have been prepared On 19 March 2020 six new share classes were launched in compliance with FRS 102 as it applies to the financial for JOHCM UK Growth Fund being USD Non - Distributing statements of the Company for the financial year ended X Shares, EUR Non - Distributing X Shares, GBP X Shares, 31 December 2019. EUR Hedged Non - Distributing X Shares, USD Non - Distributing R Shares and EUR Non - Distributing R Shares. Distributions to Shareholders Distributions during the financial year are disclosed in note COVID-19 9 to the financial statements. While containment efforts have been and continue to be made to slow the spread of the COVID-19 epidemic the Remuneration Policy outbreak has now spread globally and has led the World The European Union Directive 2014/91/EU (known Health Organisation to declare the COVID-19 outbreak a as “UCITS V Directive”) came into effect on 18 March pandemic on 11 March 2020. 2016. The Company operates a remuneration policy in accordance with applicable UCITS requirements and which The Board is aware that global financial markets have been is summarised in the Company’s Remuneration Policy in monitoring and reacting to the outbreak. All markets have Appendix 2. incurred increased volatility and uncertainty since the onset of the pandemic. Brexit In a referendum held on 23 June 2016, the electorate of The Board has also noted the operational risks that are the United Kingdom resolved to leave the European Union. posed to the Company and its service providers due to The United Kingdom formally left the European Union at global and local movement restrictions that have been 11pm GMT on 31 January 2020. However whilst the terms enacted by various governments. The COVID-19 pandemic of departure have been agreed, the United Kingdom and is an unprecedented event and the eventual impact on the EU are currently in a transition period which will last until global economy and markets will largely depend on the 31 December 2020. At the end of the transition period the scale and duration of the outbreak. The Board will continue United Kingdom will leave the single market and customs to monitor this situation. union with a free trade agreement intact or without an agreement in place which will ultimately depend upon There are no other significant events that require the result of negotiations in the 11 month period. The recognition or disclosure in the financial statements after Company has given careful consideration to the potential the financial year end. effects of Brexit on its operations and the Directors believe that the action it has taken in appointing a Dublin based On Behalf of the Board management company will enable those operations to continue. The effects on the Company’s investments of market volatility or a possible decline in the value of Sterling caused by the timing or terms of the United Kingdom’s exit are not possible to predict at this time.

Robert Burke Máire O’Connor Significant Events during the year Director Director Significant events during the year are disclosed in Note 16. 27 March 2020 27 March 2020

Subsequent Events during the year There have been no material subsequent events since 31 December 2019.

4 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Corporate Governance statement for the financial year ended 31 December 2019

The Company is subject to and complies with Irish Statute Risk Assessment comprising the Companies Act 2014, as amended, the The Board is responsible for assessing the risk of European Communities (Undertakings for Collective irregularities whether caused by fraud or error in financial Investment in Transferable Securities) Regulations, 2011, reporting and ensuring that processes are in place for the the Central Bank (Supervision and Enforcement) Act 2013 timely identification of internal and external matters with a (Section 48(1)) (Undertakings for Collective Investment potential effect on financial reporting. The Board has also in Transferable Securities) Regulations 2019 (the “UCITS put in place processes to identify changes in accounting Regulations”). The Board resolved to adopt the Corporate rules and recommendations and to ensure that these Governance Code issued by Irish Funds (“IF”) in 2011 (the changes are accurately reflected in the Company’s financial “Code”) from 1 January 2013. Each of the service providers statements. engaged by the Company is subject to their own corporate governance requirements. Control Activities The Administrator is contractually obliged to design and Financial Reporting Process - description of maintain control structures to manage the risks which main features the Board judges to be significant for internal control The Board of Directors (‘‘the Board’’) is responsible for over financial reporting. These control structures include establishing and maintaining adequate internal control and appropriate division of responsibilities and specific control risk management systems of the Company in relation to activities aimed at detecting or preventing the risk of the financial reporting process. significant deficiencies in financial reporting for every significant account in the financial statements and the The Board has established processes regarding internal related notes in the Company’s annual report. Examples control and risk management systems to ensure its of control activities exercised by the Administrator effective oversight of the financial reporting process. These include approval of transactions, analytical procedures, include appointing the Administrator, RBC Investor Services reconciliations and automatic controls in IT systems. Prices Ireland Limited, to maintain the accounting records of the not available from external independent sources are subject Company independently of the Investment Manager and to Board review and approval. the Depositary. The Administrator is contractually obliged to keep adequate accounting records in line with the new Information and Communication Companies Act 2014, as amended sections 281 to 285. To The Company’s policies and the Board’s instructions that end the Administrator performs regular reconciliations with relevance for financial reporting are updated and of its records to those of the Depositary. The Administrator communicated via appropriate channels, such as e-mail, is also contractually obliged to prepare for review and correspondence and meetings to ensure that all financial approval by the Board, the annual report including financial reporting information requirements are met in a complete statements intended to give a true and fair view, and the and accurate manner. half yearly financial statements. Monitoring The Board evaluates and discusses significant accounting The Board receives regular presentations and reviews and reporting issues as the need arises. The Board also reports from the Depositary, Investment Manager and assesses and evaluates the Administrator’s financial Administrator. accounting and reporting routines and further assesses and evaluates the external auditors’ performance, The Board also has an annual process to ensure that qualifications and independence. The Administrator has appropriate measures are taken to consider and address operating responsibility for internal control in relation to the shortcomings identified and measures recommended by the financial reporting process and the Administrator’s the independent auditors. Given the contractual obligations report to the Board. of the Administrator, the Board has concluded that there is currently no need for the Company to have a separate internal audit function in order for the Board to perform effective monitoring and oversight of the internal control and risk management systems of the Company in relation to the financial reporting process.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 5 Corporate Governance statement (continued)

Shareholder Meetings Composition and Operation of Board and The Annual General Meetings of the Company are held Committees in Ireland. Twenty-one days’ notice is given in respect of There are three Directors currently, all of whom are each general meeting. A proxy may attend on behalf of non-executive Directors and two of whom are independent any Shareholder. An ordinary resolution is a resolution of the Investment Manager. None of the Directors has passed by a plurality of votes cast and a special resolution entered into an employment or service contract with is a resolution passed by a majority of 75% or more of the the Company. The Articles of Association do not provide votes cast. for retirement of Directors by rotation. However, the Directors may be removed by the Shareholders by ordinary Each of the subscriber and participating shares entitles the resolution in accordance with the procedures established holder to attend and vote at any general meeting provided under the Irish Companies Act 2014, as amended. that the holder of a subscriber share shall not be entitled Currently the Board of Directors meets at least quarterly. to exercise any voting rights in respect of any subscriber There are no standing sub-committees of the Board of share at any time that participating shares are held by Directors; however a sub- committee of any two Directors more than one Shareholder. can convene on an ad hoc basis if required to do so.

Matters may be determined by a meeting of Shareholders on a show of hands unless a poll is requested. Each Shareholder has one vote on a show of hands. Each share gives the holder one vote in relation to any matters relating to the Company which are submitted to Shareholders for a vote by poll.

No class of share confers on the holder thereof any preferential or pre-emptive rights or any rights to participate in the profits and dividends of any other share class or any voting rights in relation to matters relating solely to any other share class.

Any resolution to alter the class rights of the shares requires the approval of three quarters of the holders of the shares represented or present and voting at a general meeting of the class. The quorum for any general meeting of the class convened to consider any alteration to the class rights of the shares shall be such number of Shareholders being two or more persons whose holdings comprise one third of the shares.

Each of the shares, other than subscriber shares, entitles the Shareholder to participate equally on a pro-rata basis in the dividends and net assets of the sub-fund in respect of which the shares have been issued, save in the case of dividends declared prior to becoming a Shareholder.

Subscriber shares entitle the Shareholders holding them to attend and vote at all general meetings of the Company but do not entitle the holders to participate in the dividends or net assets of the Company.

6 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Report of the Depositary to the Shareholders for the year ended 31 December 2019

As required by the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended) (“the Regulations”), and solely within the context of our oversight duties as depositary, we are pleased to present our report as follows.

In our opinion, J O Hambro Capital Management Umbrella Fund Plc (the “Company”) has been managed for the year ended 31 December 2019:

(i) In accordance with the limitations imposed on the investment and borrowing powers of the Company by the Memorandum & Articles of Association and the Regulations; and

(ii) Otherwise in accordance with the provisions of the Memorandum & Articles of Association and the Regulations.

RBC INVESTOR SERVICES BANK S.A. Date: 03 March 2020 DUBLIN BRANCH

RBC Investor Services Bank S.A. RBC Investor Services Bank S.A., Dublin Branch Dublin Branch is a branch of RBC Investor Services Bank S.A. One George’s Quay Plaza Registered office: 14, Porte de France, L-4360 Esch-sur-Alzette, Luxembourg George’s Quay Registered in Ireland 905449 Dublin 2, Ireland Incorporated in Luxembourg with Limited Liability Registered in Luxembourg B 47 192 T +353 1 613 0400 F +353 1 613 1198

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 7 Independent Auditor’s report to the members of J O Hambro Capital Management Umbrella Fund plc

Opinion • the directors have not disclosed in the financial We have audited the financial statements of J O Hambro statements any identified material uncertainties that Capital Management Umbrella Fund plc (the “Company”) may cast significant doubt about the Company’s for the year ended 31 December 2019, which comprise ability to continue to adopt the going concern basis of the Statement of Financial Position, Statement of accounting for a period of at least twelve months from Comprehensive Income, Statement of Changes in Net the date when the financial statements are authorised Assets Attributable to Holders of Redeemable Participating for issue. Shares and notes to the financial statements, including the summary of significant accounting policies set out in note Other information 2. The financial reporting framework that has been applied The directors are responsible for the other information. in their preparation is Irish Law and Accounting Standards The other information comprises the information included including FRS 102. The Financial Reporting Standard in the Annual Report other than the financial statements applicable in the UK and Republic of Ireland (Irish Generally and our auditor’s report thereon. Our opinion on the Accepted Accounting Practice). financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our In our opinion the financial statements: report, we do not express any form of assurance conclusion thereon. • give a true and fair view of the assets, liabilities and financial position of the Company as at 31 December In connection with our audit of the financial statements, 2019 and of its income for the year then ended; our responsibility is to read the other information and, • have been properly prepared in accordance with Irish in doing so, consider whether the other information is Generally Accepted Accounting Practice; and materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears • have been properly prepared in accordance with the to be materially misstated. If we identify such material requirements of the Companies Act 2014, the European inconsistencies or apparent material misstatements, we Communities (Undertakings for Collective Investment are required to determine whether there is a material in Transferable Securities) Regulations, 2011, and the misstatement in the financial statements or a material Central Bank (Supervision and Enforcement) Act 2013 misstatement of the other information. If, based on the (Section 48(1)) (Undertakings for Collective Investment work we have performed, we conclude that there is a in Transferable Securities) Regulations 2015. material misstatement of this other information, we are required to report that fact. Basis for opinion We conducted our audit in accordance with International We have nothing to report in this regard. Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards Opinions on other matters prescribed by the are further described in the Auditor’s Responsibilities Companies Act 2014 for the Audit of the Financial Statements section of our Based solely on the work undertaken in the course of the report. We are independent of the Company in accordance audit, we report that: with ethical requirements that are relevant to our audit of financial statements in Ireland, including the Ethical • in our opinion, the information given in the directors’ Standard issued by the Irish Auditing and Accounting report is consistent with the financial statements; and Supervisory Authority (IAASA), and we have fulfilled our • in our opinion, the directors’ report has been prepared other ethical responsibilities in accordance with these in accordance with the Companies Act 2014 requirements.

We have obtained all the information and explanations We believe that the audit evidence we have obtained which we consider necessary for the purposes of our audit. is sufficient and appropriate to provide a basis for our opinion. In our opinion the accounting records of the Company Conclusions relating to going concern were sufficient to permit the financial statements to be We have nothing to report in respect of the following readily and properly audited and the Company statement matters, in relation to which ISAs (Ireland) require us to of financial position is in agreement with the accounting report to you where: records.

• the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate: or

8 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Independent Auditor’s report (continued)

Matters on which we are required to report by The purpose of our audit work and to whom we exception owe our responsibilities Based on the knowledge and understanding of the Our report is made solely to the Company’s members, as Company and its environment obtained in the course of the a body, in accordance with section 391 of the Companies audit, we have not identified material misstatements in the Act 2014. Our audit work has been undertaken so that we directors’ report. might state to the Company’s members those matters we are required to state to them in an auditor’s report and The Companies Act 2014 requires us to report to you if, in for no other purpose. To the fullest extent permitted by our opinion, the disclosures of directors’ remuneration and law, we do not accept or assume responsibility to anyone transactions required by sections 305 to 312 of the Act are other than the Company and the Company’s members, as a not made. We have nothing to report in this regard. body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities Responsibilities of directors for the financial statements As explained more fully in the directors’ responsibilities statement set on page 2, the directors are responsible for Aidan Tiernan the preparation of the financial statements and for being for and on behalf of Ernst & Young satisfied that they give a true and fair view, and for such Chartered Accountants and Statutory Audit Firm internal control as they determine is necessary to enable Dublin the preparation of financial statements that are free from 27 March 2020 material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the IAASA’s website at: http://www.iaasa.ie/getmedia/b2389013- 1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_ responsiblities_for_audit.pdf.

This description forms part of our auditor’s report.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 9 Statement of Financial Position as at 31 December 2019

JOHCM Continental JOHCM European Select European Fund JOHCM UK Growth Fund Values Fund JOHCM Japan Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 ASSETS Financial assets at fair value through profit or loss: (£’000) Investments in transferable securities (note 8) 1,009,922 1,265,347 238,220 349,275 1,158,187 1,958,535 239,039 354,469 Investments in financial derivative instruments (note 8) 536 62 - - 356 22,158 1,011 9 Cash and cash equivalents (note 2) 9,365 61,533 943 - 63,502 48,268 517 1,372 Cash collateral - - - - 165 - - - Dividends and interest receivable (note 2) - 763 439 591 371 - 225 384 Subscriptions receivable (note 2) 772 1,126 1,408 464 770 198 68 262 Amounts due from brokers (note 2) 4,712 6,669 297 337 117 890 38 4,178 Other receivables 957 682 - 9 695 712 - 1 Total assets 1,026,264 1,336,182 241,307 350,676 1,224,163 2,030,761 240,898 360,675

LIABILITIES Financial liabilities at fair value through profit or loss: (£’000) Investments in financial derivative instruments (note 8) 292 106 - - 166 1 1 295 Bank overdraft (note 2) - 76 - 941 5 347 - 4,638 Redemptions payable (note 2) 1,635 2,486 255 202 329 991 198 2,364 Amounts due to brokers (note 2) 2,067 17,721 1,152 239 2,497 225 - - Management, directors’ and advisory fees payable (note 6) 624 934 167 255 1,009 1,813 173 270 Performance fee payable (note 6) - 145 ------Administration and transfer agency fee payable (note 6) 62 25 16 10 23 19 27 19 Other payables 125 173 28 22 135 192 47 47 Liabilities (excluding net assets attributable to holders of redeemable participating shares) 4,805 21,666 1,618 1,669 4,164 3,588 446 7,633 Net assets attributable to holders of redeemable participating shares 1,021,459 1,314,516 239,689 349,007 1,219,999 2,027,173 240,452 353,042 REDEEMABLE PARTICIPATING SHARES Class A GBP Class A Shares in issue (‘000) 21,318.424 67,923.138 59,847.970 102,451.851 5,399.414 7,478.893 62,028.960 109,726.264 Net asset value per Share £4.612 £4.029 £3.465 £3.055 £5.217 £5.232 £2.480 £2.201 GBP Hedged Class A Shares in issue (‘000) 33,127.784 53,024.293 - - - - 24,071.261 44,020.410 Net asset value per Share £1.290 £1.126 - - - - £1.719 £1.492 EUR Class A Shares in issue (‘000) 39,064.937 66,863.338 - - 243,907.574 367,423.368 424.861 1,982.554 Net asset value per Share €3.785 €3.174 - - €3.413 €3.239 €1.846 €1.579 JPY Class A Shares in issue (‘000) ------3,436.722 4,624.858 Net asset value per Share ------¥342.922 ¥298.186 USD Class A Shares in issue (‘000) 9,687.274 16,405.973 ------Net asset value per Share $1.448 $1.179 ------Class B GBP Class B Shares in issue (‘000) 10,844.664 14,460.768 10,775.609 13,617.640 470.029 637.159 2,742.662 3,330.038 Net asset value per Share £4.439 £3.884 £2.999 £2.645 £4.766 £4.768 £2.414 £2.139 GBP Hedged Class B Shares in issue (‘000) ------16,652.137 16,797.753 Net asset value per Share ------£1.750 £1.516 EUR Class B Shares in issue(‘000) 5,699.436 8,292.474 - - 238,302.996 356,320.231 32.649 40.287 Net asset value per Share €3.804 €3.153 - - €2.279 €2.164 €1.772 €1.486 JPY Class B Shares in issue (‘000) - - - - - 238.008 307.208 Net asset value per Share - - - - - ¥338.046 ¥293.132 USD Hedged Class B Shares in issue (‘000) 11,769.643 15,668.471 - - - - - Net asset value per Share $1.476 $1.190 - - - - - X Shares EUR X Shares in issue (‘000) - - - - 14,314.834 49,289.014 - - Net asset value per Share - - - - €1.628 €1.545 - - GBP Hedged X Shares in issue (‘000) 189.970 5,365.940 ------Net asset value per Share £0.973 £0.912 ------Y Shares GBP Y Shares in issue (‘000) 321,766.815 351,315.803 ------Net asset value per Share £1.699 £1.486 ------EUR Y Shares in issue (‘000) 82,204.756 104,436.719 ------Net asset value per Share €1.459 €1.187 ------GBP Hedged Y Shares in issue (‘000) 11,451.762 39,306.861 ------Net asset value per Share £1.345 £1.103 ------Non-Distributing EUR E Shares in issue (‘000) - - - - 418.605 150,204.146 - - Shares Net asset value per Share - - - - €1.249 €1.170 - -

The accompanying notes form an integral part of the financial statements

10 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Financial Position (continued)

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 11 Statement of Financial Position (continued)

JOHCM Global Emerging Markets JOHCM Global Select Fund JOHCM Emerging Markets Fund 3 Opportunities Fund JOHCM Asia ex-Japan Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 ASSETS Financial assets at fair value through profit or loss: (£’000) Investments in transferable securities (note 8) 1,263,996 1,664,090 - 8,452 354,540 282,494 117,687 171,180 Investments in financial derivative instruments (note 8) 23 - - - - - 23 1 Cash and cash equivalents (note 2) 26,912 205,966 1,555 332 7,847 9,657 845 2,461 Dividends and interest receivable (note 2) 862 1,470 1 16 1,054 1,109 108 220 Subscriptions receivable (note 2) 1,022 1,039 - 2 46 1 57 86 Amounts due from brokers (note 2) - - - 8 - 605 - 1 Receivable from investment manager - - - 176 25 33 - - Other receivables - 13 - - - - - 3 Total assets 1,292,815 1,872,578 1,556 8,986 363,512 293,899 118,720 173,952

LIABILITIES Financial liabilities at fair value through profit or loss: (£’000) Investments in financial derivative instruments (note 8) 3 1 - - - 1 - - Bank overdraft (note 2) 51 ------Redemptions payable (note 2) 580 871 - - 61 51 3,575 2,733 Amounts due to brokers (note 2) 4,312 - - 41 - 2,554 - - Management, directors’ and advisory fees payable (note 6) 1,371 1,544 - - 194 174 132 198 Performance fee payable (note 6) - - - 10 - - - - Administration and transfer agency fee payable (note 6) 21 18 12 13 18 18 17 13 Provision on capital gain tax ------25 - Other payables 127 261 1,544 5 67 45 161 41 Liabilities (excluding net assets attributable to holders of redeemable participating shares) 6,465 2,695 1,556 69 340 2,843 3,910 2,985 Net assets attributable to holders of redeemable participating shares 1,286,350 1,869,883 - 8,917 363,172 291,056 114,810 170,967 REDEEMABLE PARTICIPATING SHARES Class A GBP Class A Shares in issue (‘000) 11,662.027 11,568.953 - 300.708 3,057.495 5,100.552 5,156.612 19,726.732 Net asset value per Share £3.337 £2.805 - £1.154 £1.372 £1.251 £2.017 £1.805 EUR Class A Shares in issue (‘000) 91,638.414 88,611.237 - 2.325 7,436.198 7,266.849 2,754.173 8,202.144 Net asset value per Share €3.161 €2.515 - €1.284 €1.518 €1.311 €2.000 €1.762 USD Class A Shares in issue (‘000) 19,278.732 27,489.616 - 113.526 18,380.901 16,201.661 7,738.341 13,538.488 Net asset value per Share $1.819 $1.477 - $1.288 $1.168 $1.032 $1.664 $1.491 Class B GBP Class B Shares in issue (‘000) 8,256.756 29,973.819 - 205.256 147.280 149.152 58.639 96.716 Net asset value per Share £3.202 £2.689 - £1.280 £1.315 £1.201 £1.987 £1.777 EUR Class B Shares in issue (‘000) 316,477.341 329,466.716 - 540.099 1,401.049 100.217 1,306.238 1,665.954 Net asset value per Share €3.045 €2.423 - €1.258 €1.495 €1.286 €2.029 €1.725 USD Class B Shares in issue (‘000) 43,562.234 31,527.704 - 2,834.518 89,781.092 88,830.422 65,819.895 89,507.362 Net asset value per Share $2.063 $1.674 - $1.279 $1.522 $1.341 $1.692 $1.461 Y Shares GBP Y Shares in issue (‘000) - - - 3,789.685 19,584.859 13,880.844 - - Net asset value per Share - - - £1.251 £1.655 £1.514 - - USD Y Shares in issue (‘000) - - - - 24,850.409 8,186.454 - - Net asset value per Share - - - - $1.423 $1.265 - - Z Shares GBP Z Shares in issue (‘000) 3,474.963 242,658.678 - - 247.223 179.522 1,114.668 1,133.916 Net asset value per Share £2.385 £2.018 - - £1.734 £1.585 £1.436 £1.283 USD Z Shares in issue (‘000) 2 34,438.707 75,900.761 - - - 1,971.817 - Net asset value per Share $2.032 $1.650 - - - $1.115 - CAD Z Shares in issue (‘000) - - - - 134,262.580 117,727.170 - - Net asset value per Share - - - - CA$1.605 CA$1.484 - - AUD Z Shares in issue (‘000) - - - - 42,186.277 42,603.206 - - Net asset value per Share - - - - AU$1.915 AU$1.683 - - Non-Distributing EUR E Shares in issue (‘000) 1 - 207,261.756 ------Shares Net asset value per Share - €0.970 ------

1. This share class was terminated on 16 April 2019 for JOHCM Global Select Fund. 2. This share class was launched on 12 February 2019 for JOHCM Asia ex-Japan Fund. 3. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

The accompanying notes form an integral part of the financial statements

12 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Financial Position (continued)

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 13 Statement of Financial Position (continued)

JOHCM Asia ex-Japan Small JOHCM Global JOHCM Japan Dividend JOHCM US Small Mid Cap and Mid-Cap Fund Opportunities Fund Growth Fund Equity Fund 5 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 ASSETS Financial assets at fair value through profit or loss: (£’000) Investments in transferable securities (note 8) 14,196 13,788 390,709 256,439 7,372 61,368 - 44,937 Investments in financial derivative instruments (note 8) - - 157 75 23 - - - Cash and cash equivalents (note 2) 196 279 38,851 17,151 139 143 38 641 Dividends and interest receivable (note 2) 2 2 240 263 5 59 - 20 Subscriptions receivable (note 2) 1 - 3,250 609 - 26 - 1 Amount due from brokers (note 2) 227 - 2,268 - - - - - Receivable from investment manager 26 38 - 15 36 - - 41 Other receivables - 53 - 1 - 3 - 5 Total assets 14,648 14,160 435,475 274,553 7,575 61,599 38 45,645 LIABILITIES Financial liabilities at fair value through profit or loss: (£’000) Investments in financial derivative instruments (note 8) - - 26 6 1 10 - - Bank overdraft (note 2) 150 - 3 - - 8 - 2 Redemptions payable (note 2) 3 - 237 130 21 4 - 128 Amounts due to brokers (note 2) 233 27 435 1,924 - - - - Management, directors’ and advisory fees payable (note 6) 6 7 280 180 6 20 - 14 Performance fee payable (note 6) ------323 Administration and transfer agency fee payable (note 6) 10 13 26 17 8 13 6 12 Provision on capital gain tax - - 40 - - - - - Other payables 32 5 48 15 22 6 32 16 Liabilities (excluding net assets attributable to holders of redeemable participating shares) 434 52 1,095 2,272 58 61 38 495 Net assets attributable to holders of redeemable participating shares 14,214 14,108 434,380 272,281 7,517 61,538 - 45,150 REDEEMABLE PARTICIPATING SHARES Class A GBP Class A Shares in issue (‘000) 1,560.662 2,072.518 65,829.736 33,434.644 3,089.784 2,496.486 - 1,099.488 Net asset value per Share £2.020 £1.836 £2.132 £1.900 £1.361 £1.237 - £1.633 GBP Hedged Class A Shares in issue (‘000) - - - - 1,414.253 2,418.720 - - Net asset value per Share - - - - £1.132 £1.080 - - EUR Class A Shares in issue (‘000) 226.295 250.633 60,782.134 53,692.472 - - - 106.807 Net asset value per Share €1.805 €1.778 €2.375 €1.990 - - - €1.416 EUR Hedged Class A Shares in issue (‘000) 1 - - 49.826 - - - - - Net asset value per Share - - €1.011 - - - - - USD Class A Shares in issue (‘000) 1,527.992 1,956.612 3,266.743 1,342.770 211.868 211.868 - 10.000 Net asset value per Share $1.773 $1.549 $2.103 $1.816 $1.119 $0.986 - $1.288 USD Hedged Class A Shares in issue (‘000) - - - - 207.646 207.646 - - Net asset value per Share - - - - $1.169 $1.106 - - Class B GBP Class B Shares in issue (‘000) 137.465 159.761 2,963.076 2,426.484 - - - - Net asset value per Share £1.980 £1.776 £2.371 £2.140 - - - - EUR Class B Shares in issue (‘000) 39.165 53.964 11,126.984 4,702.821 1,062.821 1,143.186 - 20.706 Net asset value per Share €2.046 €1.744 €2.209 €1.875 €1.462 €1.265 - €1.377 USD Class B Shares in issue (‘000) 22.000 15.722 969.406 1,836.421 - - - 10.000 Net asset value per Share $1.697 $1.480 $2.022 $1.756 - - - $1.254 X Shares GBP X Shares in issue (‘000) - - 13,668.521 40,536.628 - - - - Net asset value per Share - - £1.817 £1.615 - - - - GBP Hedged X Shares in issue (‘000) - - 6,822.700 22,328.924 - - - - Net asset value per Share - - £1.086 £0.954 - - - - EUR X Shares in issue (‘000) 3 - - 50,700.000 - - - - - Net asset value per Share - - €1.069 - - - - - Z Shares GBP Z Shares in issue (‘000) 5,446.658 5,173.276 328.943 322.355 - - - - Net asset value per Share £1.523 £1.381 £0.839 £0.742 - - - - EUR Z Shares in issue (‘000) 2 - - 11,850.000 - - - - - Net asset value per Share - - €1.046 - - - - - Seed Shares GBP Shares in issue (‘000) - - - - 18.470 42,815.316 - - Net asset value per Share - - - - £1.392 £1.266 - - USD Shares in issue (‘000) ------41,791.181 Net asset value per Share ------$1.319 Non-Distributing GBP Z Shares in issue (‘000) - - 6,079.042 6,354.066 - - - - Shares Net asset value per Share - - £1.523 £1.318 - - - - Non-Distributing GBP X Shares in issue (‘000) 4 - - 38,640.190 - - - - - Shares Net asset value per Share - - £0.990 - - - - -

1. This share class was launched on 12 December 2019. 2. This share class was launched on 25 April 2019 for JOHCM Global Opportunities Fund. 3. This share class was launched on 10 May 2019 for JOHCM Global Opportunities Fund. 4. This share class was launched on 20 September 2019 for JOHCM Global Opportunities Fund. 5. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. The accompanying notes form an integral part of the financial statements

14 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Financial Position (continued)

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 15 Statement of Financial Position (continued)

JOHCM European Concentrated JOHCM Global Smaller JOHCM Global Income Value Fund Companies Fund 3 JOHCM UK Dynamic Fund Builder Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 ASSETS Financial assets at fair value through profit or loss: (£’000) Investments in transferable securities (note 8) 162,074 382,507 - 3,802 17,351 13,027 36,159 17,882 Investments in financial derivative instruments (note 8) - 569 - - - - 23 - Cash and cash equivalents (note 2) 11,443 14,891 23 33 - 179 1,982 372 Dividends and interest receivable (note 2) 102 107 - 3 55 57 208 117 Subscriptions receivable (note 2) - - - - 151 195 - - Amount due from brokers (note 2) 45,518 - - - 10 33 - - Receivable from investment manager 31 34 - 44 85 86 100 32 Other receivables 154 86 - 8 - 2 14 17 Total assets 219,322 398,194 23 3,890 17,652 13,579 38,486 18,420

LIABILITIES Financial liabilities at fair value through profit or loss: (£’000) Investments in financial derivative instruments (note 8) 89 - - - - - 11 - Bank overdraft (note 2) - - - - 54 - 79 - Redemptions payable (note 2) 49,136 - - - - - 2 5 Amounts due to brokers (note 2) - - - - 20 104 - 108 Management, directors’ and advisory fees payable (note 6) 130 334 - 4 10 8 10 5 Performance fee payable (note 6) - 285 - 4 - - - - Administration and transfer agency fee payable (note 6) 7 10 - 6 6 6 16 9 Other payables 37 19 23 10 25 9 25 4 Liabilities (excluding net assets attributable to holders of redeemable participating shares) 49,399 648 23 24 115 127 143 131 Net assets attributable to holders of redeemable participating shares 169,923 397,546 - 3,866 17,537 13,452 38,343 18,289 REDEEMABLE PARTICIPATING SHARES Class A GBP Class A Shares in issue (‘000) ------929.279 59.803 Net asset value per Share ------£1.065 £0.968 EUR Class A Shares in issue (‘000) 14,855.808 15,204.947 - - - - 431.617 1.430 Net asset value per Share €1.053 €0.980 - - - - €1.106 €0.951 USD Class A Shares in issue (‘000) 4 - - - 4,461.600 - - 1,358.466 - Net asset value per Share - - - $1.106 - - $1.049 - SGD Class A Shares in issue (‘000) 4 ------1,838.645 - Net asset value per Share ------SGD 1.043 - Class B EUR Class B Shares in issue (‘000) 63,569.207 132,732.691 - - - - 1.237 1.236 Net asset value per Share €1.045 €0.972 - - - - €1.086 €0.944 USD Class B Shares in issue (‘000) 6,220.891 5,744.307 ------Net asset value per Share $1.155 $1.098 ------SGD Hedged Class B Shares in issue (‘000) 2 - 300,659.440 ------Net asset value per Share - SGD 0.934 ------Z Shares AUD Z Shares in issue (‘000) 131,862.107 159,621.855 ------Net asset value per Share AU$1.220 AU$1.154 ------EUR Z Shares in issue (‘000) 1 11,300.000 ------Net asset value per Share €0.965 ------Seed Shares GBP Shares in issue (‘000) ------29,548.004 18,171.722 Net asset value per Share ------£1.109 £1.003 EUR Shares in issue (‘000) 5 ------2,250.000 - Net asset value per Share ------€1.016 - Non-Distributing GBP Y Shares in issue (‘000) - - - - 15,930.570 14,418.191 - - Shares Net asset value per Share - - - - £1.100 £0.933 - - GBP A Share in issue (‘000) 6 - - - - 12.500 - 84.921 - Net asset value per Share - - - - £0.993 - £1.016 -

1. This share class was launched on 25 April 2019 for JOHCM European Concentrated Value Fund. 3. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019. 2. This share class was terminated on 24 December 2019. 4. These share classes were launched on 04 April 2019 for JOHCM Global Income Builder Fund. 5. This share class was launched on 26 November 2019 for JOHCM Global Income Builder Fund. 6. These share classes were launched on 10 December 2019 for JOHCM Global Income Builder Fund and on 24 December 2019 for JOHCM Dynamic Fund.

The accompanying notes form an integral part of the financial statements

16 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Financial Position (continued)

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 17 Statement of Financial Position (continued)

JOHCM Concentrated Global Share Fund TOTAL 31 December 31 December 31 December 31 December 2019 2018 2019 2018 ASSETS Financial assets at fair value through profit or loss: (£’000) Investments in transferable securities (note 8) 2,068 1,624 5,011,520 6,849,216 Investments in financial derivative instruments (note 8) - - 2,152 22,874 Cash and cash equivalents (note 2) 58 243 164,216 363,521 Cash collateral - - 165 - Dividends and interest receivable (note 2) - 2 3,672 5,183 Subscriptions receivable (note 2) - - 7,545 4,009 Amounts due from brokers (note 2) - - 53,187 12,721 Receivable from investment manager 36 4 339 503 Other receivables - - 1,820 1,595 Total assets 2,162 1,873 5,244,616 7,259,622

LIABILITIES Financial liabilities at fair value through profit or loss: (£’000) Investments in financial derivative instruments (note 8) - - 589 420 Bank overdraft (note 2) - - 342 6,012 Redemptions payable (note 2) - - 56,032 9,965 Amounts due to brokers (note 2) - - 10,716 22,943 Management, directors’ and advisory fees payable (note 6) 2 2 4,114 5,772 Performance fee payable (note 6) - 4 - 761 Administration and transfer agency fee payable (note 6) 5 2 280 223 Provision on capital gain tax - - 65 - Other payables 10 2 2,488 872 Liabilities (excluding net assets attributable to holders of redeemable participating shares) 17 10 74,626 46,968 Net assets attributable to holders of redeemable participating shares 2,145 1,863 5,169,990 7,212,654 REDEEMABLE PARTICIPATING SHARES Class A GBP Class A Shares in issue (‘000) 2,001.907 2,000.000 Net asset value per Share £1.072 £0.931

The accompanying notes form an integral part of the financial statements

18 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Financial Position (continued)

Robert Burke Máire O’Connor Director Director 27 March 2020 27 March 2020

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 19 Statement of Comprehensive Income for the financial year ended 31 December 2019

JOHCM Continental JOHCM European Select European Fund JOHCM UK Growth Fund Values Fund JOHCM Japan Fund JOHCM Global Select Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

INCOME (£’000) Dividends 38,169 51,512 8,267 11,109 37,412 67,236 7,232 11,601 29,170 36,643 Bank interest 2 - 2 - 83 40 1 - 2,909 2,985 Expense reimbursement from investment manager (note 6) ------Other income 1,052 1,311 145 40 819 2,448 32 - 999 948 Net gain/(loss) on financial assets/liabilities at fair value through profit or loss (note 12) 171,993 (193,002) 35,121 (67,978) 46,568 (382,971) 37,279 (92,259) 331,938 (26,142) Total investment income/(loss) 211,216 (140,179) 43,535 (56,829) 84,882 (313,247) 44,544 (80,658) 365,016 14,434

EXPENSES (£’000) Management fees (note 6) (8,336) (12,943) (2,154) (3,254) (17,054) (25,155) (2,268) (3,666) (15,916) (18,428) Performance fees (note 6) - (145) ------Administration fees (note 6) (49) (102) (29) (40) (55) (132) (41) (59) (56) (110) Depositary fees (note 6) (140) (212) (13) (10) (131) (164) (30) (49) (41) (160) Depositary oversight fees (note 6) (47) (238) (9) (61) (75) (333) (9) (68) (75) (298) Transfer and domiciliary agency fees (note 6) (397) (206) (84) (44) (123) (125) (150) (100) (96) (69) Directors’ fees (note 6) (6) (10) (3) (3) (7) (14) (3) (4) (7) (12) Audit fees (note 6) (24) (25) (5) (7) (36) (34) (6) (10) (36) (28) Legal fees (75) (14) (10) (5) (81) (40) (11) (4) (52) (18) Printing and publication expenses (48) (37) (18) (10) (71) (49) (12) (12) (61) (46) Bank interest and charges (336) (357) (25) (45) (9) (2) (34) (46) (4) (1) Transaction costs (3,427) (6,182) (204) (248) (795) (1,015) (203) (469) (887) (980) Swap interest fees - - - - (4) (47) - - - - Withholding tax (note 4) (2,484) (6,600) - - (2,966) (10,308) (1,074) (1,700) (3,362) (5,029) Other charges (117) (192) (53) (55) (160) (253) (55) (73) (121) (2,626) Total Operating Expenses (15,486) (27,263) (2,607) (3,782) (21,567) (37,671) (3,896) (6,260) (20,714) (27,805) Net income/(loss) (£’000) 195,730 (167,442) 40,928 (60,611) 63,315 (350,918) 40,648 (86,918) 344,302 (13,371)

FINANCE COSTS (£) Distributions to holders of redeemable participating shares (note 9) (31,565) (29,051) (7,590) (5,308) (31,429) (21,752) (5,763) (4,249) (15,552) (12,732) Total comprehensive income/(loss) 164,165 (196,493) 33,338 (65,919) 31,886 (372,670) 34,885 (91,167) 328,750 (26,103)

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

The accompanying notes form an integral part of the financial statements

20 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Comprehensive Income (continued)

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 21 Statement of Comprehensive Income (continued)

JOHCM Global Emerging Markets JOHCM JOHCM Asia ex-Japan Small JOHCM Global JOHCM Emerging Markets Fund 1 Opportunities Fund Asia ex-Japan Fund and Mid Cap Fund Opportunities Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

INCOME (£’000) Dividends 147 523 13,177 9,313 2,991 7,767 354 572 10,528 5,988 Bank interest 2 6 213 84 46 121 2 3 591 335 Expense reimbursement from investment manager (note 6) 236 221 - - - - 60 41 - 23 Other income 16 14 69 92 19 381 83 195 72 185 Net gain/(loss) on financial assets/liabilities at fair value through profit or loss (note 12) 553 (3,337) 25,202 (36,273) 17,993 (65,768) 1,447 (4,723) 39,651 (2,257) Total investment income/(loss) 954 (2,573) 38,661 (26,784) 21,049 (57,499) 1,946 (3,912) 50,842 4,274

EXPENSES (£’000) Management fees (note 6) (66) (212) (2,191) (1,925) (1,798) (3,683) (63) (159) (2,885) (1,783) Performance fees (note 6) - - - - - (2) - - - - Administration fees (note 6) (43) (50) (47) (66) (42) (57) (39) (50) (48) (62) Depositary fees (note 6) (81) (123) (137) (179) (53) (258) (16) (59) (37) (20) Depositary oversight fees (note 6) (5) (7) (23) (52) (10) (54) (7) (8) (19) (39) Transfer and domiciliary agency fees (note 6) (18) (28) (58) (42) (76) (77) (26) (33) (129) (96) Directors’ fees (note 6) (3) (2) (3) (3) (2) (3) (2) (2) (3) (3) Audit fees (note 6) - (10) (7) (14) (3) (20) - (19) (8) (11) Legal fees (9) (4) (11) (7) (9) (6) (7) (4) (19) (5) Printing and publication expenses (2) (4) (9) (10) (10) (8) (3) (4) (15) (8) Bank interest and charges - - (1) (6) (6) (29) - (1) (7) (2) Transaction costs (17) (60) (224) (220) (142) (521) (13) (63) (207) (196) Withholding tax (note 4) (9) (63) (1,154) (1,157) (271) (788) - (46) (1,465) (818) Other charges (113) (147) (97) (114) (194) (87) (115) (42) (86) (68) Total operating expenses (366) (710) (3,962) (3,795) (2,616) (5,593) (291) (490) (4,928) (3,111) Net income/(loss) (£’000) 588 (3,283) 34,699 (30,579) 18,433 (63,092) 1,655 (4,402) 45,914 1,163

FINANCE COSTS (£) Distributions to holders of redeemable participating shares (note 9) (82) (115) (5,913) (3,655) (3,167) (5,029) (273) (217) (5,056) (6,704) Total comprehensive income/(loss) 506 (3,398) 28,786 (34,234) 15,266 (68,121) 1,382 (4,619) 40,858 (5,541)

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

The accompanying notes form an integral part of the financial statements

22 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Comprehensive Income (continued)

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 23 Statement of Comprehensive Income (continued)

JOHCM Japan JOHCM US Small Mid Cap JOHCM European JOHCM Global Dividend Growth Fund Equity Fund 1 Concentrated Value Fund Smaller Companies Fund 2 JOHCM UK Dynamic Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

INCOME (£’000) Dividends 1,035 2,654 427 457 9,560 9,729 44 53 679 338 Bank interest 3 - 27 19 - - 1 2 1 - Expense reimbursement from investment manager (note 6) 36 - 36 42 - - 64 71 114 125 Other income 232 68 34 35 323 268 7 2 10 4 Net gain/(loss) on financial assets/liabilities at fair value through profit or loss (note 12) 4,379 (15,291) 10,757 (1,332) 21,017 (39,026) 553 (263) 2,135 (2,233) Total investment income/(loss) 5,685 (12,569) 11,281 (779) 30,900 (29,029) 669 (135) 2,939 (1,766)

EXPENSES (£’000) Management fees (note 6) (119) (296) (122) (128) (3,283) (3,860) (26) (32) (98) (54) Performance fees (note 6) - - - (323) - (285) - (4) - - Administration fees (note 6) (36) (49) (39) (46) (36) (52) (25) (34) (28) (35) Depositary fees (note 6) (7) (10) (7) (6) (27) (34) (7) (7) (16) (35) Depositary oversight fees (note 6) (5) (16) (3) (10) (13) (65) (4) (8) (7) (7) Transfer and domiciliary agency fees (note 6) (20) (28) (3) (24) (12) (26) (1) (4) (7) (6) Directors’ fees (note 6) (2) (2) (2) (2) (3) (4) (2) (1) (2) (1) Audit fees (note 6) (1) (9) (1) (9) (8) (14) - (9) (6) (8) Legal fees (8) (4) (9) (4) (15) (6) (8) (1) (8) (3) Printing and publication expenses (6) (5) (5) (4) (20) (10) (9) (2) (3) - Bank interest and charges (9) (15) - - (83) (90) - - - (1) Transaction costs (43) (126) (36) (43) (184) (100) (3) (3) (9) (12) Withholding tax (note 4) (155) (389) (126) (135) (542) (1,036) (10) (12) (1) - Other charges (49) (52) (48) (53) (81) (73) (29) (26) (45) (32) Total operating expenses (460) (1,001) (401) (787) (4,307) (5,655) (124) (143) (230) (194) Net income/(loss) (£’000) 5,225 (13,570) 10,880 (1,566) 26,593 (34,684) 545 (278) 2,709 (1,960)

FINANCE COSTS (£) Distributions to holders of redeemable participating shares (note 9) (2,106) (2,171) - - (4,439) (2,582) - - (336) - Total comprehesive (loss)/income 3,119 (15,741) 10,880 (1,566) 22,154 (37,266) 545 (278) 2,373 (1,960)

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

The accompanying notes form an integral part of the financial statements

24 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Comprehensive Income (continued)

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 25 Statement of Comprehensive Income (continued)

JOHCM Global Income JOHCM Concentrated Builder Fund Global Share Fund TOTAL 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018

INCOME (£’000) Dividends 532 337 53 3 159,777 215,835 Bank interest 16 8 2 - 3,901 3,603 Bond interest 440 341 - - 440 341 Expense reimbursement from investment manager (note 6) 113 39 60 4 719 566 Other income - 3 - - 3,912 5,994 Net gain/(loss) on financial assets/liabilities at fair value through profit or loss (note 12) 2,564 66 264 (133) 749,414 (932,922) Total investment income/(loss) 3,665 794 379 (126) 918,163 (706,583)

EXPENSES (£’000) Management fees (note 6) (82) (34) (16) (1) (56,477) (75,613) Performance fees (note 6) - - - (4) - (763) Administration fees (note 6) (36) (29) (29) (2) (678) (975) Depositary fees (note 6) (15) (7) (5) - (763) (1,333) Depositary oversight fees (note 6) (7) (5) (7) (1) (325) (1,270) Transfer and domiciliary agency fees (note 6) (64) (12) (1) - (1,265) (920) Directors’ fees (note 6) (2) - (2) - (54) (66) Audit fees (note 6) (1) - - - (142) (227) Legal fees (11) (1) (7) - (350) (126) Printing and publication expenses (3) - (2) - (297) (209) Bank interest and charges (1) - - - (515) (595) Transaction costs (9) (9) - (1) (6,403) (10,248) Swap interest fees - - - - (4) (47) Withholding tax (note 4) (92) (53) (10) (1) (13,721) (28,135) Other charges (54) (17) (18) (1) (1,435) (3,911) Total operating expenses (377) (167) (97) (11) (82,429) (124,438) Net income/(loss) (£’000) 3,288 627 282 (137) 835,734 (831,021)

FINANCE COSTS (£) Distributions to holders of redeemable participating shares (note 9) (1,363) (599) (2) - (114,636) (94,164) Total comprehesive income/(loss) 1,925 28 280 (137) 721,098 (925,185)

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

The accompanying notes form an integral part of the financial statements

26 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Comprehensive Income (continued)

JOHCM Global Income JOHCM Concentrated Builder Fund Global Share Fund TOTAL 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018

FINANCE COSTS (£) Distributions to holders of redeemable participating shares (note 9) (1,363) (599) (2) - (114,636) (94,164) Total comprehesive income/(loss) 1,925 28 280 (137) 721,098 (925,185)

All results arise from continuing operations. There are no recognised gains and losses for the current and preceding financial years other than those shown above.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 27 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares for the financial year ended 31 December 2019

JOHCM Continental JOHCM European Select JOHCM European Fund JOHCM UK Growth Fund Values Fund JOHCM Japan Fund Global Select Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable participating shares at the beginning of the financial year (£’000) 1,314,516 1,941,835 349,007 395,174 2,027,173 3,026,204 353,042 512,949 1,869,883 2,290,545 Increase/(decrease) in net assets attributable to holders of redeemable participating shares 164,165 (196,493) 33,338 (65,919) 31,886 (372,670) 34,885 (91,167) 328,750 (26,103)

CAPITAL TRANSACTIONS (£’000) Proceeds from issuance of shares 325,761 563,306 38,501 111,158 308,472 457,915 45,267 159,243 234,473 320,401 Payments on redemption of shares (782,983) (994,132) (181,157) (91,406) (1,147,532) (1,084,276) (192,742) (227,983) (1,146,756) (714,960)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) 1,021,459 1,314,516 239,689 349,007 1,219,999 2,027,173 240,452 353,042 1,286,350 1,869,883

Redeemable participating shares in issue at the beginning of the financial period 743,063,778.744 962,889,279.114 116,069,490.645 111,118,154.789 931,352,812.182 1,206,696,030.310 180,829,370.973 216,019,742.226 1,044,459,240.516 1,207,219,681.294 Shares issued during the financial year 190,214,888.104 322,264,342.426 12,231,634.839 32,184,826.842 120,372,443.095 188,570,636.767 23,324,440.099 71,972,766.764 112,088,648.504 188,580,577.476 Shares redeemed during the financial year (386,153,202.800) (542,089,842.796) (57,677,545.925) (27,233,490.986) (548,911,803.674) (463,913,854.895) (94,526,552.049) (107,163,138.017) (627,758,715.610) (351,341,018.254)

Redeemable participating shares in issue at the end of the financial year 547,125,464.048 743,063,778.744 70,623,579.559 116,069,490.645 502,813,451.603 931,352,812.182 109,627,259.023 180,829,370.973 528,789,173.410 1,044,459,240.516

JOHCM Emerging JOHCM Global Emerging JOHCM JOHCM Asia ex-Japan JOHCM Global Markets Fund 1 Markets Opportunities Fund Asia ex-Japan Fund Small and Mid-Cap Fund Opportunities Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable participating shares at the beginning of the financial year (£’000) 8,917 29,817 291,056 326,423 170,967 568,138 14,108 34,991 272,281 275,643 Increase/(decrease) in net assets attributable to holders of redeemable participating shares 506 (3,398) 28,786 (34,234) 15,266 (68,121) 1,382 (4,619) 40,858 (5,541)

CAPITAL TRANSACTIONS (£’000) Proceeds from issuance of shares 393 3,086 73,976 26,242 19,577 83,406 1,265 2,377 368,679 126,613 Payments on redemption of shares (9,816) (20,588) (30,646) (27,375) (91,000) (412,456) (2,541) (18,641) (247,438) (124,434)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) - 8,917 363,172 291,056 114,810 170,967 14,214 14,108 434,380 272,281

Redeemable participating shares in issue at the beginning of the financial period 7,786,116.293 22,145,250.314 300,226,050.129 300,688,440.075 133,871,311.494 350,512,498.014 9,682,486.096 18,618,489.778 166,977,585.929 160,078,448.176 Shares issued during the financial year 306,672.792 2,423,331.309 64,160,678.506 23,982,418.594 15,321,524.626 54,327,500.946 684,718.753 1,276,310.325 245,201,519.548 81,114,087.536 Shares redeemed during the financial year (8,092,789.085) (16,782,465.330) (23,051,365.894) (24,444,808.540) (63,272,452.733) (270,968,687.466) (1,406,967.961) (10,212,314.007) (139,101,805.274) (74,214,949.783)

Redeemable participating shares in issue at the end of the financial year - 7,786,116.293 341,335,362.741 300,226,050.129 85,920,383.387 133,871,311.494 8,960,236.888 9,682,486.096 273,077,300.203 166,977,585.929

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

The accompanying notes form an integral part of the financial statements

28 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (continued)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) - 8,917 363,172 291,056 114,810 170,967 14,214 14,108 434,380 272,281

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 29 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (continued)

JOHCM Japan JOHCM US Small Mid JOHCM European JOHCM Global Smaller Dividend Growth Fund Cap Equity Fund 1 Concentrated Value Fund Companies Fund 2 JOHCM UK Dynamic Fund 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable participating shares at the beginning of the financial year (£’000) 61,538 137,771 45,150 44,490 397,546 389,820 3,866 4,144 13,452 1,947 Increase/(decrease) in net assets attributable to holders of redeemable participating shares 3,119 (15,741) 10,880 (1,566) 22,154 (37,266) 545 (278) 2,373 (1,960)

CAPITAL TRANSACTIONS (£’000) Proceeds from issuance of shares 1,579 7,783 303 4,265 38,961 79,244 - - 10,005 16,019 Payments on redemption of shares (58,719) (68,275) (56,333) (2,039) (288,738) (34,252) (4,411) - (8,293) (2,554)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) 7,517 61,538 - 45,150 169,923 397,546 - 3,866 17,537 13,452

Redeemable participating shares in issue at the beginning of the financial period 49,293,221.149 94,781,721.188 43,038,181.221 41,347,384.719 613,963,239.945 574,593,114.362 4,461,600.000 4,461,600.000 14,418,191.313 1,854,400.000 Shares issued during the financial year 1,266,692.884 5,720,067.207 165,295.321 3,106,338.968 46,264,761.634 87,730,278.502 - - 9,758,061.861 14,954,716.093 Shares redeemed during the financial year (44,555,072.472) (51,208,567.246) (43,203,476.542) (1,415,542.466) (432,419,989.745) (48,360,152.919) (4,461,600.000) - (8,233,183.123) (2,390,924.780)

Redeemable participating shares in issue at the end of the financial year 6,004,841.561 49,293,221.149 - 43,038,181.221 227,808,011.834 613,963,239.945 - 4,461,600.000 15,943,070.051 14,418,191.313

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

JOHCM Global Income JOHCM Concentrated Global Builder Fund Share Fund TOTAL 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018

Net assets attributable to holders of redeemable participating shares at the beginning of the financial year (£’000) 18,289 - 1,863 - 7,212,654 9,979,891 Increase/(decrease) in net assets attributable to holders of redeemable participating shares 1,925 28 280 (137) 721,098 (925,185)

CAPITAL TRANSACTIONS (£’000) Proceeds from issuance of shares 20,748 18,269 2 2,000 1,487,962 1,981,327 Payments on redemption of shares (2,619) (8) - - (4,251,724) (3,823,379)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) 38,343 18,289 2,145 1,863 5,169,990 7,212,654

Redeemable participating shares in issue at the beginning of the financial period 18,234,190.756 - 2,000,000.000 - Shares issued during the financial year 20,664,693.785 18,242,733.092 1,906.555 2,000,000.000 Shares redeemed during the financial year (2,456,714.992) (8,542.336) - -

Redeemable participating shares in issue at the end of the financial year 36,442,169.549 18,234,190.756 2,001,906.555 2,000,000.000

The accompanying notes form an integral part of the financial statements

30 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Statement of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares (continued)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) 7,517 61,538 - 45,150 169,923 397,546 - 3,866 17,537 13,452

Redeemable participating shares in issue at the end of the financial year 6,004,841.561 49,293,221.149 - 43,038,181.221 227,808,011.834 613,963,239.945 - 4,461,600.000 15,943,070.051 14,418,191.313

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

JOHCM Global Income JOHCM Concentrated Global Builder Fund Share Fund TOTAL 31 December 31 December 31 December 31 December 31 December 31 December 2019 2018 2019 2018 2019 2018

CAPITAL TRANSACTIONS (£’000) Proceeds from issuance of shares 20,748 18,269 2 2,000 1,487,962 1,981,327 Payments on redemption of shares (2,619) (8) - - (4,251,724) (3,823,379)

Net assets attributable to holders of redeemable participating shares at the end of the financial year (£’000) 38,343 18,289 2,145 1,863 5,169,990 7,212,654

Redeemable participating shares in issue at the end of the financial year 36,442,169.549 18,234,190.756 2,001,906.555 2,000,000.000

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 31 INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Market update – coronavirus The sub-fund report commentaries below are based on the calendar year 2019. In light of the recent spread of Covid-19 and the subsequent global market sell-off towards the end of February and beginning of March, it is worth providing an update.

As preventative measures to stop the spread of the coronavirus become more severe, investors’ concern over the impact on global economic growth has led to a sharp and indiscriminate selling of risk assets. Whilst the relatively recent experiences of SARS and swine flu can provide a useful road map, the scale and footprint of this outbreak is likely to be more severe and could cause a short-term period of economic contraction. Most central banks have limited capacity to provide conventional stimulus via monetary easing, but we may see some form of globally co-ordinated response which will include a combination of monetary easing, liquidity provision and fiscal stimulus.

It is impossible to know how things will play out, but eventually the effects of the virus will subside. In the meantime, the sub-fund managers have a wealth of investment experience to draw from. There are always unique challenges ahead and whilst constant evolution is required, the core tenets of their proven investment processes remain robust.

32 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Continental European Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Paul Wild, CFA Senior Fund Manager Paul joined JOHCM in March 2003 and has 22 years industry experience.

Investment Management Report 34

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 35 B) OTC financial derivative instruments: open foreign currency contracts 38 Geographic division of investments 39 Economic division of investments 40 Significant portfolio changes 41

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 33 JOHCM Continental European Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance The notable sector tilts which hurt think the mix change will be driven by The JOHCM Continental European performance over the year were valuation spreads having become too Fund returned 16.76%, net of fees our overweights in energy and wide and improving prospects within and in sterling terms for the ‘A’ share communication services, whilst our areas such as financials, materials, class, for the calendar year 2019. cash position also provided a drag energy and restocking beneficiaries The MSCI Europe ex UK NR Index in the rising market. Our financials in technology. Ownership of so- (12pm adjusted) returned 20.76% were strong but the positive here was called quality stocks is at extreme over the same period. not enough to offset weakness in our levels, which, when combined with industrials, healthcare and utilities extreme valuations, is a dangerous Portfolio review names. combination. We have to be cognisant The Fund’s weaker performance came that the cycle is long and later-cycle predominantly in the first half of the Individual stock drivers of note include beneficiaries with strong revenue year as we were overweight large Societe Generale and BW LPG. The visibility are attractive, but not at any value names and stock picking here latter is a Norwegian operator of very price. 2020 could well be the year showed weakness (EDF, Sanofi). large gas carriers for propane and where many investors and the quants We came into the year with a butane. BW has around 15% market are rudely reminded that valuations do conservative market outlook share in an industry that is starting actually matter. given elevated GDP and earnings to enjoy high day rates on the back expectations. Whilst this was correct, of quickly rising capacity utilisation Paul Wild we suffered from the more dovish tilt post the working through of the Senior Fund Manager from central banks and the precipitous supply influx in 2016 and 2017, whilst decline in bond yields. demand is propelled by growth in US Past performance is not necessarily a exports. guide to future performance. The price Underperformance can most of shares may go down as well as up significantly be explained, at a factor Among the laggards were EDF, and future income is not guaranteed. level, by being underweight quality Lagardere and Thales. Thales is a (as defined by high return on assets/ French defence electronics supplier return on equity and cash flow/ with very high barriers to entry and sales). We were underweight quality export opportunities for growth. throughout the period and the factor Recent weakness in short-term trading return, up until the end of the summer, was driven by a softening satellite was extremely strong. Given the cycle. Fund’s valuation-driven focus we sold out of many of the quality areas far In terms of our outlook, we think a too early. In many instances within the change of mix will be the dominant higher quality sectors we have focused theme for the first half of 2020, upon intra-sector value, but this helped by mildly improving economic approach (with stocks such as Sanofi, indicators and the possibility of a Axa and Danone) was not rewarded. modest inventory restocking. We

34 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Continental European Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

AUSTRIA BAWAG Group 666 EUR 20,939 22,966 2.25 Erste Group Bank 183 EUR 5,237 5,233 0.51 Raiffeisen Bank International 754 EUR 14,443 14,343 1.40

40,619 42,542 4.16

BELGIUM Anheuser-Busch InBev 172 EUR 12,189 10,725 1.05 Euronav 1,942 EUR 16,894 18,106 1.77

29,083 28,831 2.82

BERMUDA BW LPG 1,893 NOK 9,381 12,045 1.18

9,381 12,045 1.18

DENMARK Novo Nordisk 59 DKK 2,306 2,608 0.26 Orsted 6 DKK 533 507 0.05 Vestas Wind Systems 25 DKK 1,790 1,932 0.19

4,629 5,047 0.50

FINLAND Konecranes 42 EUR 1,008 977 0.10 Metso Oyj 102 EUR 3,039 3,061 0.30 Neste Oyj 172 EUR 4,464 4,538 0.44

8,511 8,576 0.84

FRANCE Accor 460 EUR 15,323 16,401 1.61 Alstom 743 EUR 24,911 26,761 2.62 Arkema 370 EUR 28,637 29,701 2.91 AXA 2,037 EUR 40,213 43,285 4.24 Cap Gemini 103 EUR 9,083 9,624 0.94 Cie de Saint-Gobain 721 EUR 22,872 22,423 2.20 Cie Generale des Etablissements Michelin 294 EUR 27,077 27,157 2.66 Danone 293 EUR 18,025 18,307 1.79 Kering 47 EUR 19,896 23,612 2.31 Lagardere 128 EUR 2,668 2,122 0.21 Peugeot 655 EUR 12,245 11,927 1.17 Sanofi 568 EUR 38,249 43,319 4.24 Schneider Electric SE 129 EUR 8,882 10,050 0.98 Societe Generale 1,380 EUR 30,898 36,413 3.56 Thales 257 EUR 23,154 20,141 1.97 Ubisoft Entertainment 193 EUR 9,035 10,090 0.99 Vinci 180 EUR 14,075 15,136 1.48 Vivendi 1,146 EUR 24,364 25,141 2.46

369,607 391,610 38.34

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 35 JOHCM Continental European Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GERMANY Bayer 182 EUR 10,711 11,233 1.10 Deutsche Post 1,239 EUR 33,356 35,819 3.51 HeidelbergCement 243 EUR 13,920 13,429 1.31 HUGO BOSS 162 EUR 5,875 5,974 0.58 Infineon Technologies 569 EUR 8,461 9,829 0.96 RWE 805 EUR 16,005 18,719 1.83 SAP 351 EUR 30,611 35,857 3.51 Siemens 321 EUR 29,068 31,751 3.11

148,007 162,611 15.91

IRELAND CRH 566 EUR 14,068 17,159 1.68

14,068 17,159 1.68

ITALY Enel 4,422 EUR 26,310 26,579 2.60 UniCredit 3,438 EUR 35,119 38,048 3.72

61,429 64,627 6.32

NETHERLANDS Airbus 203 EUR 20,493 22,472 2.20 ASML Holding 92 EUR 17,568 20,754 2.03 Koninklijke Philips 538 EUR 18,534 19,977 1.96 STMicroelectronics 1,025 EUR 17,213 20,884 2.04

73,808 84,087 8.23

NORWAY DNB 145 NOK 2,005 2,052 0.20 Mowi 644 NOK 11,539 12,677 1.24

13,544 14,729 1.44

PORTUGAL EDP - Energias de Portugal 4,982 EUR 15,404 16,332 1.60

15,404 16,332 1.60

SPAIN Banco Santander 1,723 EUR 6,055 5,422 0.53 Repsol 1,305 EUR 15,908 15,520 1.52 Repsol 1,305 EUR 450 470 0.05

22,413 21,412 2.10

SWEDEN Tele2 833 SEK 9,322 9,215 0.90 Telefonaktiebolaget LM Ericsson 5,409 SEK 36,650 35,908 3.52

45,972 45,123 4.42

3636 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Continental European Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

SWITZERLAND Nestle 235 CHF 16,431 19,260 1.89 Novartis 651 CHF 43,822 46,848 4.59 Roche Holding 86 CHF 17,794 21,244 2.08 Zurich Insurance Group 25 CHF 7,039 7,839 0.77

85,086 95,191 9.33

Transferable securities admitted to an official stock exchange listing 941,561 1,009,922 98.87

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 37 JOHCM Continental European Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg GBP 25 EUR (30) - - 02.01.20 RBC Investor Services Luxembourg GBP 213 EUR (250) 1 - 02.01.20 RBC Investor Services Luxembourg EUR 68 USD (76) 1 - 02.01.20 RBC Investor Services Luxembourg EUR 126 GBP (108) (1) - 02.01.20 RBC Investor Services Luxembourg GBP 146 EUR (171) 1 - 02.01.20 RBC Investor Services Luxembourg GBP 9 EUR (11) - - 03.01.20 RBC Investor Services Luxembourg EUR 51 GBP (44) - - 03.01.20 RBC Investor Services Luxembourg GBP 32 EUR (37) - - 03.01.20 RBC Investor Services Luxembourg GBP 13 EUR (16) - - 03.01.20 RBC Investor Services Luxembourg GBP 372 EUR (436) 2 - 03.01.20 RBC Investor Services Luxembourg GBP 27 EUR (32) - - 31.01.20 RBC Investor Services Luxembourg GBP 184 EUR (215) 2 - 31.01.20 RBC Investor Services Luxembourg GBP 15,663 EUR (18,241) 142 0.01 31.01.20 RBC Investor Services Luxembourg GBP 42,704 EUR (49,734) 387 0.04 31.01.20 RBC Investor Services Luxembourg USD 17,306 EUR (15,572) (161) (0.02) 31.01.20 RBC Investor Services Luxembourg USD 14,022 EUR (12,617) (130) (0.01)

Total as at 31 December 2019 244 0.02

38 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Continental European Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

France 38.34 35.56 Germany 15.91 14.47 Switzerland 9.33 13.09 Netherlands 8.23 10.18 Italy 6.32 2.27 Sweden 4.42 2.18 Austria 4.16 1.31 Belgium 2.82 0.96 Spain 2.10 3.90 Ireland 1.68 0.64 Portugal 1.60 - Norway 1.44 0.91 Bermuda Islands 1.18 - Finland 0.84 2.63 Denmark 0.50 2.32 Great Britain - 4.95 Luxembourg - 0.89

Total investments 98.87 96.26 Open foreign currency contracts 0.02 -

Total investments at fair value through profit or loss 98.89 96.26 Other net assets 1.11 3.74

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 88.36% (2018: 83.17%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 39 JOHCM Continental European Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Banks and financial institutions 12.17 10.07 Pharmaceuticals and cosmetics 11.17 13.73 Electronic semiconductor 6.99 2.42 Electronics and electrical equipment 6.71 - Construction and building material 6.67 4.96 Public services 6.27 6.80 Internet software 5.44 3.83 Transportation 5.28 2.34 Insurance 5.01 5.13 News transmission 4.42 7.38 Aerospace technology 4.17 4.81 Chemicals 4.01 2.98 Food and distilleries 3.68 7.81

Petrol 3.19 6.43 Graphic art and publishing 2.67 4.62 Tyre and rubber 2.66 1.42 Retail 2.31 1.46 Leisure 1.61 - Automobile industry 1.27 1.02 Agriculture and fishing 1.24 - Tobacco and spirits 1.05 2.49 Textile 0.58 - Mechanics and machinery 0.30 - Holding and finance companies - 4.61 Forest products and paper industry - 0.91 Other services - 0.55 Consumer goods - 0.49

Total investments 98.87 96.26 Open foreign currency contracts 0.02 -

Total investments at fair value through profit or loss 98.89 96.26 Other net assets 1.11 3.74

Total net assets attributable to redeemable participating shareholders 100.00 100.00

40 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Continental European Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Cost

’000 £ ’000 £

PURCHASES PURCHASES Roche Holding 505 102,991 Volkswagen 297 38,932 Siemens 1,047 92,778 Kering 89 38,245 UniCredit 6,334 65,046 Neste Oyj 1,476 37,596 Novartis 856 58,459 Nokia 9,081 37,414 Repsol 4,503 57,032 Cap Gemini 400 34,912 Airbus 559 55,839 ThyssenKrupp 3,241 34,874 Anheuser-Busch InBev 839 55,643 Zurich Insurance Group 123 34,415 Cie de Saint-Gobain 1,743 53,794 Fortum 1,981 34,103 Thales 579 53,401 Electricite de France 2,902 33,084 AXA 2,738 53,278 Arkema 418 32,295 Deutsche Post 2,076 53,204 Banco Santander 8,811 32,175 Vivendi 2,278 49,725 Nestle 414 31,863 Alstom 1,496 48,849 Novo Nordisk 837 31,659 Total 1,056 45,104 Danone 506 31,519 Vinci 598 44,905 Koninklijke Vopak 873 31,289 Sanofi 654 44,001 Peugeot 1,612 30,446 Fresenius 1,020 42,870 KBC Group 551 29,995 Societe Generale 1,890 41,935 HUGO BOSS 616 29,828 Telefonaktiebolaget LM Ericsson 6,181 41,677 ASML Holding 162 28,861 Accor 1,270 41,501 Swedish Match 805 28,399 Cie Generale des Etablissements EDP - Energias de Portugal 9,152 28,300 Michelin 429 39,092 CRH 1,117 27,312 RWE 1,944 38,942 Fresenius Medical Care 474 27,111

The significant changes to the portfolio for the financial year are the aggregate purchases of a security exceeding 1% of the total value of purchases for the financial year. Where the number of purchases transactions exceeding 1% of the total value of purchases for the financial year is less than 20, then a minimum of 20 purchases will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 41 JOHCM Continental European Fund

SCHEDULE OF INVESTMENTS for the financial year ended 31 December 2019

Significant portfolio changes (continued)

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

SALES SALES Total 2,474 105,048 AXA 2,144 41,872 Nestle 1,305 100,549 UniCredit 4,411 40,790 Roche Holding 418 92,218 Kering 94 40,623 Airbus 742 75,348 Fresenius 1,020 40,361 Sanofi 1,088 74,851 Repsol 3,198 40,145 Novartis 1,090 73,912 SAP 424 39,989 Siemens 727 63,648 Lagardere 2,206 39,939 Vinci 751 59,279 Deutsche Post 1,593 39,529 Vivendi 2,719 59,179 ING Groep 3,976 36,998 Bouygues 2,118 58,967 AstraZeneca 605 36,890 Nokia 14,103 57,129 DNB 2,608 36,836 Novo Nordisk 1,428 57,028 Safran 363 35,672 Banco Santander 16,317 56,991 BNP Paribas 957 35,480 Volkswagen 404 52,486 UPM-Kymmene 1,615 35,346 RWE 2,542 51,270 Neste Oyj 1,304 34,786 Danone 780 50,485 Fortum 1,981 34,550 Anheuser-Busch InBev 791 49,643 Cie Generale des Etablissements Electricite de France 4,674 48,159 Michelin 374 34,342 ASML Holding 326 47,447 ThyssenKrupp 3,241 34,335 Bayer 842 46,699 Koninklijke Vopak 873 32,844 Zurich Insurance Group 163 45,556 Orange 2,617 31,422 Engie 3,692 44,274 The significant changes to the portfolio for the financial Cap Gemini 467 43,039 year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

42 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Growth Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Mark Costar Senior Fund Manager Mark joined JOHCM in August 2001 and has 27 years industry experience

Investment Management Report 44

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 45 B) Other transferable securities dealt on an other regulated market 47 C) Other transferable securities 47 Geographic division of investments 48 Economic division of investments 49 Significant portfolio changes 50

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 43 JOHCM UK Growth Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance demonstrated less revenue traction The JOHCM UK Growth Fund returned than we had been anticipating. 16.02%, in sterling terms and net of Although there were no changes fees for the ‘A’ share class, for the to its forecasts and it has very calendar year 2019. Over the same strong valuation and balance sheet period the FTSE All-Share Total Return support, nevertheless it was a slightly Index (12pm adjusted) returned underwhelming release. IGas also 19.29%. lagged, suffering (unfairly) from Brexit/UK perceptions. It did, however, Portfolio review see a decent bounce back towards the The portfolio’s underperformance end of the year. over the year came in the main from weaker stock selection, which offset After the election result and the positive sector allocation effects. Our relative clarity it brought with it, significant overweight in the strong- companies can (and are) restarting performing technology sector was investment and signing contracts. helpful and our stocks here performed Capital flows (of which more than well. However, these positives were £160 billion drained away since the outweighed by weakness in our EU referendum result) can return to healthcare and financials names. the market. Finally, after a significant hiatus, M&A can also resume. Rank Group was the top performer Combined with US$1.5 billion trillion over the period, with Volex and of private equity dry powder, of which Gresham Technologies also only a small amount needs to reach contributing well. We had excellent these shores to have a real impact, results from Rank during the year and then we think it is fair to say that at numbers from Gresham Technologies the very least the metabolic rate of the were similarly encouraging. UK equity market should start to show palpable improvement. Volex is a value-added provider of complex and critical assemblies to From a UK Growth perspective, the electric vehicles and data centres. It other significant consequence will be is hard to argue the world is going a return to fundamental influences cordless when just one hyperscale on share prices and, as a bottom-up, datacentre requires 25,000 miles of stock picking product, by extension cable. Likewise with only five million this should prove to be a far more electric vehicles currently on the fertile backdrop than the harsher road globally, the growth potential is conditions that have prevailed in more huge if one ascribes any credibility to recent years. manufacturers’ expansion plans and the IEA forecast of 125 million vehicles Mark Costar by 2030. The shares have had material Senior Fund Manager profit upgrades this year. Past performance is not necessarily a Goal Soccer Centres was the chief guide to future performance. The price laggard for the year. A change of shares may go down as well as up of auditor and a forensic review and future income is not guaranteed. earlier in the year uncovered past misstatements, which tipped the business into a perilous financial position. Elsewhere, Ebiquity

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 44 JOHCM UK Growth Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GREAT BRITAIN 1Spatial 8,250 GBP 4,143 2,228 0.93 Alfa Financial Software Holdings 775 GBP 608 921 0.38 Alpha FX Group 230 GBP 1,485 2,872 1.20 Anglo American 375 GBP 5,553 8,108 3.38 Associated British Foods 361 GBP 8,848 9,321 3.89 AstraZeneca 21 GBP 1,365 1,546 0.64 Avacta Group 16,233 GBP 7,317 2,841 1.19 Barclays 4,910 GBP 9,521 8,836 3.69

Blancco Technology Group 4,039 GBP 4,579 6,866 2.86 BP 3,275 GBP 14,961 15,522 6.48 BT Group 2,625 GBP 5,239 5,054 2.11 Chemring 2,751 GBP 4,883 6,613 2.76 Draper Esprit 233 GBP 1,040 1,120 0.47 Ebiquity 9,049 GBP 7,997 3,439 1.43 Elecosoft 4,900 GBP 3,072 3,830 1.60 Escape Hunt 3,214 GBP 3,153 514 0.21 Fastjet 36,175 GBP 11,092 65 0.03 First Derivatives 270 GBP 6,365 7,493 3.13 Goals Soccer Centres 8,329 GBP 10,512 - - GoCo Group 6,100 GBP 6,000 6,314 2.63 Gresham Computing 5,450 GBP 6,270 6,724 2.80 HSBC Holdings 690 GBP 4,365 4,079 1.70 IGas Energy 7,449 GBP 5,590 3,605 1.50 ITV 2,700 GBP 3,849 4,065 1.70 Just Retirement Group 9,000 GBP 7,083 7,173 2.99 Mind Gym 1,100 GBP 1,343 1,898 0.79 N Brown Group 2,242 GBP 2,788 3,577 1.49 NCC 1,800 GBP 3,068 4,088 1.71 Oxford Metrics 4,450 GBP 2,521 4,695 1.96 Rank 2,199 GBP 4,418 6,103 2.55 Reabold Resources 340,000 GBP 2,590 2,611 1.09 Rio Tinto 166 GBP 5,044 7,449 3.11 Rolls-Royce Holdings 1,335 GBP 10,892 9,150 3.82 Royal Bank of Scotland 2,850 GBP 7,074 6,891 2.87 Royal Dutch Shell - Class B 480 GBP 9,969 10,765 4.49 S4 Capital 985 GBP 1,441 1,914 0.80 Severfield 6,900 GBP 4,779 5,848 2.44 Sigma Capital 7,638 GBP 5,420 8,478 3.54

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 45 JOHCM UK Growth Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GREAT BRITAIN SiS Science in Sport 10,130 GBP 6,526 4,356 1.82 (continued) Smartspace Software 3,226 GBP 4,017 1,907 0.80 Speedy Hire 3,740 GBP 2,372 2,825 1.18 Standard Chartered 15 GBP 108 107 0.04 Standard Chartered 1,325 GBP 8,493 9,425 3.93 Standard Life Aberdeen 1,255 GBP 4,231 4,140 1.73 Tekmar Group 1,800 GBP 1,973 2,732 1.14 Vectura Group 2,625 GBP 2,293 2,415 1.01 Venture Life Group 8,250 GBP 5,021 2,475 1.03 Volex 4,860 GBP 3,751 7,478 3.12

245,022 230,476 96.16

UNITED STATES Enova Systems 620 GBP 801 - - Enova Systems – Reg S 708 GBP 1,830 - -

2,631 - -

VIRGIN ISLANDS HaloSource 7,499 GBP 1,467 - - HaloSource – Reg S 29,082 GBP 741 - - Ocean Outdoor 125 USD 767 688 0.29

2,975 688 0.29

46 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Growth Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) Other transferable securities dealt on an other regulated market

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GREAT BRITAIN Aquis Exchange 580 GBP 2,760 2,346 0.98 Dotdigital Group 1,300 GBP 705 1,209 0.50 Equals Group 4,000 GBP 3,382 3,443 1.44

6,847 6,998 2.92

Other transferable securities dealt on an other regulated market - equities 6,847 6,998 2.92

C) Other transferable securities

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GREAT BRITAIN Rolls-Royce Holdings - Preference shares 58,420 GBP 58 58 0.02

58 58 0.02

Transferable securities admitted to an official stock exchange listing - equities 58 58 0.02

GREAT BRITAIN Fastjet 3,741 GBP - - -

- - -

Transferable securities admitted to an official stock exchange listing - warrants - - -

Investments in Transferable securities 257,533 238,220 99.39

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 47 JOHCM UK Growth Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Great Britain 99.10 98.19 Virgin Islands 0.29 0.03 Jersey - 1.86

Total investments at fair value through profit or loss 99.39 100.08 Other net assets/(liabilities) 0.61 (0.08)

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 99.10% (2018: 98.19%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

4848 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Growth Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Banks and financial institutions 15.77 16.16 Internet software 14.27 15.38 Petrol 10.97 13.55 Holding and finance companies 6.63 6.62 Aerospace technology 6.60 6.74 Non-ferrous metals 6.49 7.76 News transmission 6.04 3.12 Food and distilleries 5.71 5.02 Other services 5.31 3.20 Electronics and electrical equipment 3.12 1.55 Construction and building material 2.78 1.04 Pharmaceuticals and cosmetics 2.68 2.05 Leisure 2.55 6.06

Mines and heavy machinery 2.44 2.59 Insurance 1.73 4.52 Public services 1.50 1.55 Retail 1.49 0.61 Biotechnology 1.19 1.10 Mechanics and machinery 1.14 0.65 Miscellaneous 0.98 0.66 Healthcare education and social services - 0.15

Total investments at fair value through profit or loss 99.39 100.08 Other net assets/(liabilities) 0.61 (0.08)

Total net assets attributable to redeemable participating shareholders 100.00 100.00

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 49 JOHCM UK Growth Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES SALES Just Retirement Group 11,496 6,755 Merlin Entertainments 3,540 14,112 Rolls-Royce Holdings 810 6,379 BP 2,495 13,234 BT Group 2,625 5,239 First Derivatives 445 11,727 First Derivatives 190 4,569 Rio Tinto 263 11,657 Royal Bank of Scotland 1,835 4,043 Aviva 2,610 10,823 Associated British Foods 166 3,880 Royal Dutch Shell - Class B 428 10,365 NCC 2,246 3,500 Just Group 13,846 10,085 Merlin Entertainments 965 3,289 NCC 5,146 8,918 Barclays 1,900 3,063 Associated British Foods 368 8,827 Equals Group 3,050 2,796 Rolls-Royce Holdings 1,015 8,775 N Brown Group 2,242 2,788 Standard Chartered 1,265 8,340 ITV 2,175 2,753 Anglo American 417 8,256 Anglo American 127 2,595 Royal Bank of Scotland 3,535 8,235 Speedy Hire 3,740 2,372 Chemring 4,632 7,847 BP 445 2,351 Dotdigital Group 8,452 7,612 Vectura Group 2,750 2,228 Rank 3,669 7,190 S4 Capital 1,332 1,948 Barclays 4,430 7,085 Standard Chartered 285 1,877 Oxford Metrics 6,945 6,128 Standard Life Aberdeen 700 1,777 Standard Life Aberdeen 1,945 5,645 GoCo Group 2,031 1,602 Stride Gaming 3,395 5,030 Mind Gym 1,250 1,526 YouGov 1,000 4,711 Blancco Technology Group 1,077 1,328 HSBC Holdings 721 4,509 Reabold Resources 141,808 1,319 Severfield 5,573 4,037 Chemring 783 1,315 Blancco Technology Group 2,817 3,823 IGas Energy 2,227 1,246 GoCo Group 3,834 3,493 AstraZeneca 17 1,200 Experian 135 3,021 Aquis Exchange 197 1,058 AstraZeneca 50 3,007 Rank 675 1,033 Equals Group 2,850 2,965 Volex 1,052 912 Volex 2,442 2,915 Gresham Computing 2,440 2,767 The significant changes to the portfolio for the financial GAME Digital 9,185 2,394 year are the aggregate purchases of a security exceeding 1% of the total value of purchases for the financial year. The significant changes to the portfolio for the financial Where the number of purchases transactions exceeding 1% year are the aggregate sales of a security exceeding 1% of the total value of purchases for the financial year is less of the total value of sales for the financial year. Where the than 20, then a minimum of 20 purchases will be disclosed. number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

50 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Select Values Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Robrecht Wouters Senior Fund Manager Robrecht joined JOHCM in September 2003 and has 29 years industry experience

Investment Management Report 52

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 53 B) OTC financial derivative instruments 55 C) Open foreign currency contracts 56 Geographic division of investments 57 Economic division of investments 58 Significant portfolio changes 59

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 51 JOHCM European Select Values Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Nokia was the worst performer over to talk positive too soon, but the The JOHCM European Select Values the year after a sharp share price fall carve-out of the elevator business unit Fund returned 1.77%, net of fees and following its Q3 results. Nokia’s share should highlight that a lot of value can in sterling terms for the ‘A’ share class, price is notoriously volatile on results, be unlocked in the medium term. for the calendar year 2019. The MSCI and we have been here before. But Europe NR Index (12pm adjusted) we have always been patient investors Rolls-Royce was the other material returned 19.58% over the same whilst awaiting the 5G investment laggard. The market has been period. cycle start. The company’s share focussed on issues surrounding its price has duly recovered each time. troubled Trent 1000 engine and Portfolio review With 5G investments underway, Nokia towards the end of the year the Macro headwinds and stock specific should benefit from revenue tailwinds, company announced some further cost setbacks made for an extremely and it is indeed winning its fair share remediation. challenging year for the portfolio. In of deals. This share price setback May, eurozone government bonds followed after the company shocked Despite these setbacks, we remain yields turned negative (and remained the market with a margin downgrade. invested in these three names as we negative for the rest of the year), Margins on very competitive land grab see significant recovery potential. revaluing large cap growth and low- contracts seemed below average. volatility, defensive equities (far This is not unusual, albeit difficult to Over the last few years, the Fund’s beyond reasonable valuations) and quantify. There were also temporary disciplined absolute value focus has led devaluing cyclicals and mid- and cost issues (a supplier problem led to to a gradual shift of the portfolio from small-caps. This provided a headwind less efficient, higher cost component what we call ‘quality value’ stocks to for our strategy. In addition, the alternatives), which further pressured typical ‘classic value’ stocks, because, portfolio faced some material stock- margins. In response, management after a long bull market, the face of specific setbacks with too few positive reduced its long-term mid-point value has changed. This value style compensations. margin target from 14% to 13%. This, shift did not work in 2019, but we in itself, was not dramatic. However, believe it will over the longer term. Stock selection provided the main in combination with a delay in the source of weakness over the period, margin recovery (time value), all other although sector allocation effects things being equal, the net present Robrecht Wouters also weighed (albeit to a much lesser value of Nokia’s intrinsic value declined Senior Fund Manager degree) on returns. Our significant by 15-18% to €6.1-6.3 per share. We overweight in communication services believe the share price correction was Past performance is not necessarily a was the main culprit in terms of sector a huge overreaction and the shares guide to future performance. The price tilts. Turning to stock selection, the have since recovered somewhat. of shares may go down as well as up main laggards were our technology, and future income is not guaranteed. consumer staples, materials and Industrial conglomerate ThyssenKrupp industrials holdings. saw its shares fall sharply towards the end of the year. It reported results Looking at individual stock and net debt in line with expectations contributions, there were three key but the new management was laggards which provided a +500bps understandably cautious on the short- headwind. term outlook. There is no incentive

52 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Select Values Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

BELGIUM D'ieteren 702 EUR 21,133 37,193 3.05

21,133 37,193 3.05

BERMUDA Borr Drilling 286 USD 4,007 1,878 0.15 Borr Drilling 530 NOK 8,178 3,462 0.28

12,185 5,340 0.43

FINLAND Konecranes 711 EUR 15,882 16,563 1.36 Nokia 8,822 EUR 34,651 24,716 2.03 Wartsila - Class B 2,840 EUR 28,181 23,774 1.95

78,714 65,053 5.34

FRANCE Danone 637 EUR 32,016 39,819 3.26 Elior Group 2,025 EUR 21,305 22,307 1.83 Imerys 772 EUR 33,145 24,675 2.02 JCDecaux 1,466 EUR 33,879 34,136 2.80 Lagardere 1,317 EUR 24,695 21,844 1.79 Sanofi 423 EUR 27,163 32,230 2.64 Solocal Group 41,173 EUR 38,288 19,283 1.58 Technicolor 27,701 EUR 69,194 16,176 1.33 Vivendi 1,730 EUR 24,799 37,955 3.11

304,484 248,425 20.36

GERMANY 1&1 Drillisch 746 EUR 19,157 14,516 1.19 Bayer 536 EUR 36,162 33,161 2.72 Biotest 936 EUR 19,696 15,271 1.25 Ceconomy 10,129 EUR 63,053 46,542 3.81 Metro 3,679 EUR 59,737 44,878 3.68 SAP 301 EUR 18,156 30,755 2.52 Siemens 183 EUR 18,348 18,148 1.49 ThyssenKrupp 4,748 EUR 77,183 48,588 3.98 United Internet 874 EUR 25,160 21,760 1.78

336,652 273,619 22.42

GREAT BRITAIN Liberty Global - Class C 3,138 USD 65,798 51,256 4.20 Reckitt Benckiser Group 477 GBP 27,380 29,111 2.39 Rolls-Royce Holdings 5,157 GBP 39,306 35,347 2.90

132,484 115,714 9.49

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 53 JOHCM European Select Values Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

ITALY SOL 2,429 EUR 13,116 21,681 1.78

13,116 21,681 1.78

NETHERLANDS Corbion 1,248 EUR 17,908 29,936 2.45 Heineken Holding 497 EUR 23,182 36,678 3.01 OCI 2,069 EUR 43,734 32,925 2.70 SBM Offshore 3,430 EUR 33,555 48,507 3.98 Sligro Food 979 EUR 24,082 19,934 1.63 Wolters Kluwer 94 EUR 1,768 5,192 0.43

144,229 173,172 14.20

SPAIN Grifols 779 EUR 11,940 20,798 1.70 Laboratorios Farmaceuticos Rovi 969 EUR 10,805 20,090 1.65

22,745 40,888 3.35

SWITZERLAND Aryzta 58,525 CHF 69,700 49,579 4.06 Burckhardt Compression Holding 90 CHF 20,420 18,754 1.54 OC Oerlikon 3,771 CHF 40,855 33,538 2.75 Schindler Holding 125 CHF 21,372 24,182 1.98

152,347 126,053 10.33

UNITED STATES Oracle 1,280 USD 37,197 51,049 4.18

37,197 51,049 4.18

Transferable securities admitted to an official stock exchange listing 1,255,286 1,158,187 94.93

54 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Select Values Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments

Acquisition Net Description Quantity Currency Cost Fair Value Assets

’000 ₤’000 ₤’000 %

OPTIONS

UNITED STATES Put Russel 2000 Index 28/02/2020 1430.0 1 USD 846 229 0.02 Put Russel 2000 Index 31/01/2020 1400.0 1 USD 1,239 114 0.01 Put Russel 2000 Index 31/12/2019 1380.0 1 USD 1,586 11 -

3,671 354 0.03

Options 3,671 354 0.03

SWAPS

Germany Siemens 71 EUR 7,109 (49) - Siemens Healthineers (198) EUR (7,124) (109) (0.01)

(15) (158) (0.01)

Swaps (15) (158) (0.01)

Total quoted securities - investments 1,258,942 1,158,383 94.95

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 55 JOHCM European Select Values Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

C) Open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg EUR 49 GBP (42) - - 02.01.20 RBC Investor Services Luxembourg GBP 7 EUR (8) - - 02.01.20 RBC Investor Services Luxembourg EUR 492 GBP (421) (3) - 02.01.20 RBC Investor Services Luxembourg GBP 4 EUR (5) - - 02.01.20 RBC Investor Services Luxembourg EUR 982 GBP (839) (5) - 02.01.20 RBC Investor Services Luxembourg GBP 5 EUR (6) - - 03.01.20 RBC Investor Services Luxembourg EUR 51 GBP (43) - - 03.01.20 RBC Investor Services Luxembourg EUR 13 GBP (11) - - 03.01.20 RBC Investor Services Luxembourg GBP 356 EUR (417) 2 -

Total as at 31 December 2019 (6) -

56 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Select Values Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Germany 22.41 18.81 France 20.36 18.46 Netherlands 14.20 17.99 Switzerland 10.33 5.63 Great Britain 9.49 12.99 Finland 5.34 7.22 United States 4.21 5.76 Spain 3.35 4.61 Belgium 3.05 3.56 Italy 1.78 1.97 Bermuda 0.43 0.6 Canada - 0.11

Total investments at fair value through profit or loss 94.95 97.71 Other net assets 5.05 2.29

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 79.98% (2018: 85.61%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 57 JOHCM European Select Values Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Food and distilleries 17.26 16.79 Internet software 10.06 8.44 Mechanics and machinery 8.65 5.89 Graphic art and publishing 8.13 12.90 News transmission 7.42 9.99 Chemicals 7.20 6.61 Automobile industry 4.41 3.73 Pharmaceuticals and cosmetics 4.28 3.50 Petrol 3.98 4.16 Mines and heavy machinery 3.98 3.96 Tobacco and spirits 3.01 3.53 Biotechnology 2.95 5.56 Aerospace technology 2.90 4.72

Consumer goods 2.39 2.49

Construction and building materials 2.02 1.44 Holding and finance companies 1.83 - Retail 1.63 1.33 Electronics and electrical equipment 1.49 - Electronic semiconductor 1.33 1.46 Miscellaneous 0.03 1.10 Public services - 0.11

Total investments at fair value through profit or loss 94.95 97.71 Other net assets 5.05 2.29

Total net assets attributable to redeemable participating shareholders 100.00 100.00

58 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Select Values Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES SALES OCI 2,530 53,747 Metro 7,133 90,106 Schindler Holding 221 37,720 Liberty Global - Class C 3,957 79,340 Elior Group 2,840 29,881 Wolters Kluwer 1,287 68,832 United Internet 1,002 28,955 Danone 1,105 68,476 Aryzta 30,281 24,005 Oracle 1,364 58,256 1&1 Drillisch 892 22,895 Akzo Nobel 872 57,625 Bayer 389 20,657 SBM Offshore 3,828 54,815 Liberty Global - Class C 997 19,089 Nokia 13,659 53,142 Siemens 183 18,348 Rolls-Royce Holdings 6,611 51,456 Nokia 4,399 16,947 Grifols 2,078 49,880 Ceconomy 4,140 16,668 Heineken Holding 622 48,468 ThyssenKrupp 1,325 14,225 Vivendi 2,074 45,233 Imerys 402 13,629 SAP 462 44,549 Wartsila - Class B 1,362 13,376 Telenet Group Holding 852 33,630 Pearson 1,452 12,772 Pearson 4,767 32,900 Sligro Food 470 11,140 D'ieteren 761 31,010 Sanofi 136 9,871 Corbion 1,178 28,563 Reckitt Benckiser Group 148 8,857 JCDecaux 1,242 28,252 SAP 83 6,835 ThyssenKrupp 2,546 27,322 JCDecaux 257 5,015 Biotest Vorzugsaktien 1,495 27,292 OC Oerlikon 471 4,802 Reckitt Benckiser Group 416 25,904 Danone 72 4,634 Bayer 439 25,671 Laboratorios Farmaceuticos Rovi 1,300 25,216 The significant changes to the portfolio for the financial Konecranes 662 18,431 year are the aggregate purchases of a security exceeding Schindler Holding 96 17,904 1% of the total value of purchases for the financial year. Sanofi 250 17,213 Where the number of purchases transactions exceeding 1% Ceconomy 3,895 16,249 of the total value of purchases for the financial year is less than 20, then a minimum of 20 purchases will be disclosed. SOL 1,664 15,665 OC Oerlikon 1,803 15,656 Lagardere 826 15,161 Burckhardt Compression Holding 73 14,785 Aryzta 17,220 14,053 Imerys 408 13,273

The significant changes to the portfolio for the financial year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 59 60 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Scott McGlashan Ruth Nash Senior Fund Manager Senior Fund Manager Scott joined JOHCM in April Ruth joined JOHCM in April 2004 and has 43 years industry 2005 and has 34 years industry experience. experience.

Investment Management Report 62

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 63 B) OTC financial derivative instruments: open foreign currency contracts 65 Geographic division of investments 66 Economic division of investments 67 Significant portfolio changes 68

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 61 JOHCM Japan Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance After a negative start to the fiscal year, They regard the market as little The JOHCM Japan Fund returned earnings momentum in Japan is likely more than a geared play on global 14.46%, net of fees and in sterling to turn more positive in the second growth. It would be nice to think terms for the ‘A’ share class, for the half. Whilst a “V” shaped recovery is that in 2020 they might look beyond calendar year 2019. Over the same unlikely, the gradual bottoming out a macro-driven view of the Nikkei period the Topix Total Return Index of the OECD leading indicator series index and examine the fundamentals (12pm adjusted) returned 15.62% in suggests that the worst is behind us. of some of Japan’s extraordinarily sterling terms. After a year of aggressive selling, the cheap companies, many of which improving earnings, as well as the are global leaders in their field and Portfolio review continued rise of activist activity in the have made great strides in corporate The portfolio modestly underperformed market, should entice foreign investors governance. Moreover, in an age of for the year. Although investors to look again at the Japanese market. political uncertainty, the stability of continued their pursuit of overvalued Japan’s government should count for large-cap growth names during Despite the current dip in profits, something. the year, stock selection within our dividends should collectively continue value-oriented portfolio was positive. to increase and buy-backs carry on Scott McGlashan However, good stock picking was at a record pace. Once profits turn Senior Fund Manager cancelled out by negative sector up again, as they should, returns to allocation effects. Whilst our zero shareholders should accelerate. As Ruth Nash weighting in electric power & gas more than half of listed companies Senior Fund Manager proved helpful, it was offset by our have net cash on their balance sheets, underweight in the strong-performing and as the overwhelming majority Past performance is not necessarily a manufacturing sector, albeit the of companies use cash in the bank guide to future performance. The price manufacturing names we did hold rather than borrow to fund dividends of shares may go down as well as up fared well. and buy-backs, the impact is wholly and future income is not guaranteed. benign. Shareholders should see There was a strong contribution improved cash flows, corporate returns from our Hitachi Group companies. on equity improve and balance sheets The plan to integrate its automotive stay strong. systems business with Honda’s autoparts business seems sensible. Having successfully hosted the Rugby We like this deal because it transforms World Cup, the eyes of the world will the business from a small player turn again to Japan in the summer as in the auto industry to a global it hosts the Olympic and Paralympic mega-supplier in some of the key games. Investors may start to worry technologies for the auto sector, such about a possible post-Olympics as electric vehicles and automated economic slowdown, but the Abe driving. And Hitachi is not having to government is likely to announce inject any capital into the new joint further fiscal stimulus measures to venture. ensure that economic momentum is maintained. Japan’s popularity as a Seibu Holdings and Tokyu Construction tourist destination will continue to topped the list of laggards. Shares grow. in the latter trended lower after conservative guidance mid-way Foreign investors tend to approach through the year. Japan from a top-down perspective.

62 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

JAPAN Ahresty 625 JPY 4,121 2,440 1.01 Airport Facilities 465 JPY 2,200 1,799 0.75 Daibiru 800 JPY 6,009 7,324 3.05 Denso 210 JPY 7,754 7,271 3.02 Fuji Electric 125 JPY 2,986 2,915 1.21 Fujifilm Holdings 150 JPY 5,373 5,470 2.27 Hitachi 310 JPY 6,929 9,998 4.16 Hitachi Construction Machinery 130 JPY 2,467 2,978 1.24 Hitachi High-Technologies 70 JPY 1,623 3,778 1.57

Ichiyoshi Securities 750 JPY 5,770 3,368 1.40 Iino Kaiun Kaisha 1,650 JPY 5,911 4,280 1.78 Inaba Denki Sangyo 155 JPY 1,548 3,004 1.25 J Front Retailing 455 JPY 4,378 4,854 2.02 Japan Excellent 4 JPY 2,998 4,597 1.91 JX Holdings 900 JPY 3,506 3,124 1.30 Keisei Electric Railway 190 JPY 3,276 5,617 2.34 Kyoritsu Maintenance 135 JPY 4,631 4,876 2.03 Kyowa Exeo 440 JPY 4,344 8,489 3.53 Kyudenko 170 JPY 4,271 3,834 1.59 Maeda 1,300 JPY 7,867 9,690 4.03 Meidensha 190 JPY 2,586 3,209 1.33 Mimasu Semiconductor Industry 200 JPY 2,071 3,066 1.27 Minebea 275 JPY 2,580 4,366 1.82 Mitsubishi Chemical Holdings 750 JPY 4,290 4,275 1.78 Mitsubishi Electric 455 JPY 4,803 4,754 1.98 Mizuho Leasing 300 JPY 5,038 7,164 2.98 NGK Spark Plug 200 JPY 3,088 2,976 1.24 Nishi-Nippon Railroad 335 JPY 6,028 5,886 2.45 Nishio Rent All 220 JPY 4,373 4,778 1.99 Nomura Real Estate Holdings 360 JPY 4,905 6,576 2.73 NS Solutions 160 JPY 3,293 4,016 1.67 Okuma 70 JPY 2,820 2,831 1.18 Outsourcing 300 JPY 2,888 2,422 1.01 Penta-Ocean Construction 600 JPY 2,780 2,832 1.18 Resona Holdings 1,450 JPY 4,944 4,843 2.01 Sankyu 155 JPY 3,247 5,944 2.47 Seibu Holdings 455 JPY 6,185 5,695 2.37 Seino Holdings 350 JPY 3,535 3,604 1.50

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 63 JOHCM Japan Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

JAPAN Shin-Etsu Chemical 45 JPY 3,080 3,784 1.57 (continued) Sumitomo Densetsu 240 JPY 2,494 4,921 2.05 TechnoPro Holdings 70 JPY 2,360 3,734 1.55 Tokio Marine Holdings 170 JPY 5,979 7,253 3.02 Tokyo Dome 300 JPY 2,322 2,272 0.94 Tokyotokeiba 155 JPY 3,771 3,718 1.55 Tokyu 400 JPY 4,620 5,631 2.34 Tokyu Fudosan Holdings 1,350 JPY 5,987 7,107 2.96 Toyobo 355 JPY 4,711 4,124 1.71 Toyota Industries 200 JPY 8,253 8,827 3.67 Tsubaki Nakashima 250 JPY 3,872 2,787 1.16 Tsumura 145 JPY 3,259 3,245 1.35 United Arrows 125 JPY 3,120 2,693 1.12

211,244 239,039 99.41

Transferable securities admitted to an official stock exchange listing 211,244 239,039 99.41

64 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

06.01.20 RBC Investor Services Luxembourg JPY 16 GBP - - - 06.01.20 RBC Investor Services Luxembourg JPY 1,146 GBP (8) - - 06.01.20 RBC Investor Services Luxembourg JPY 377 GBP (3) - - 06.01.20 RBC Investor Services Luxembourg JPY 138 GBP (1) - - 06.01.20 RBC Investor Services Luxembourg JPY 1,939 GBP (14) - - 06.01.20 RBC Investor Services Luxembourg JPY 11 GBP - - - 06.01.20 RBC Investor Services Luxembourg JPY 2,009 GBP (14) (1) - 06.01.20 RBC Investor Services Luxembourg JPY 293 GBP (2) - - 06.01.20 RBC Investor Services Luxembourg JPY 5,339 GBP (37) - - 06.01.20 RBC Investor Services Luxembourg JPY 143 GBP (1) - - 31.01.20 RBC Investor Services Luxembourg GBP 41,986 JPY (5,931,137) 596 0.25 31.01.20 RBC Investor Services Luxembourg GBP 29,287 JPY (4,137,227) 415 0.17

Total as at 31 December 2019 1,010 0.42

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 65 JOHCM Japan Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Japan 99.41 100.40

Total investments 99.41 100.40 Open foreign currency contracts 0.42 (0.08)

Total investments at fair value through profit or loss 99.83 100.32 Other net (liabilities)/asset 0.17 (0.32)

Total net assets attributable to redeemable participating shareholders 100.00 100.00

66 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Holding and finance companies 21.39 23.76 Construction and building material 12.38 8.55 Transportation 11.38 13.20 Automobile industry 8.94 8.87 Real estate companies 8.67 8.32 Electronics and electrical equipment 6.13 6.38 Electronic semiconductor 5.43 8.31 Other services 4.55 2.50 Leisure 4.52 1.33 Banks and financial institutions 4.38 2.76 Mechanics and machinery 4.22 7.46 Textile 1.71 1.28 Internet software 1.67 - Chemicals 1.57 4.90

Pharmaceuticals and cosmetics 1.35 - Retail 1.12 2.08 Mines and heavy industries - 0.70

Total investments 99.41 100.40 Open foreign currency contracts 0.42 (0.08)

Total investments at fair value through profit or loss 99.83 100.32 Other net assets/(liabilities) 0.17 (0.32)

Total net assets attributable to redeemable participating shareholders 100.00 100.00

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 67 JOHCM Japan Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost

’000 £

PURCHASES Fujifilm Holdings 150 5,373 Kyoritsu Maintenance 155 5,317 Resona Holdings 1,450 4,944 Hitachi Construction Machinery 240 4,555 Taiyo Yuden 320 4,388 KDDI 225 4,357 Mitsubishi Chemical Holdings 750 4,290 Kyudenko 170 4,271 NS Solutions 195 4,007 Aeon Fantasy 205 3,858 Tokyotokeiba 155 3,771 Seino Holdings 355 3,585 JX Holdings 900 3,506 Tsumura 145 3,259 Outsourcing 325 3,128 United Arrows 125 3,120 Fuji Electric 125 2,986 UUUM 85 2,872 Penta-Ocean Construction 600 2,780 Tokio Marine Holdings 65 2,754 Tokyo Dome 300 2,322 Denso 60 2,031 Mizuho Leasing 75 1,380 TechnoPro Holdings 35 1,255 Daibiru 160 1,145 Alps Electric 75 1,145

68 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Fund

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

Sales Sales Mitsubishi UFJ Financial Group 3,000 11,796 Omron 160 4,585 Fukuoka Financial 695 10,651 Aeon Fantasy 205 4,424 Keisei Electric Railway 240 6,979 Nomura Real Estate Holdings 270 4,233 Hokuhoku Financial Group 800 6,310 Tokyu Construction 750 4,190 H2O Retailing 665 6,248 Nisshinbo Holdings 625 4,153 Shinmaywa Industries 614 6,177 Mitsubishi Motors 1,000 4,055 Japan Post Holdings 800 6,113 Taiyo Holdings 165 4,013 Taiyo Yuden 320 5,887 Daibiru 510 4,002 Japan Excellent 5 5,738 Tokai Tokyo Financial Holdings 1,300 3,833 Denka 250 5,693 KDDI 225 3,832 Hitachi 210 5,628 Hitachi High-Technologies 115 3,804 Aida Engineering 900 5,621 Denso 120 3,763 Tokyu 395 5,590 Albis 215 3,748 Tokio Marine Holdings 135 5,548 Mitsubishi Electric 370 3,721 Tokyo Electron 50 5,231 TechnoPro Holdings 75 3,701 Toray Industries 975 5,087 Tokyu Fudosan Holdings 750 3,637 Seibu Holdings 370 5,059 Izumi 100 3,249 Resorttrust 410 4,855 J Front Retailing 295 2,774 Shin-Etsu Chemical 70 4,803 Maeda 365 2,724 Minebea 375 4,756 Okuma 65 2,697 Komatsu 260 4,727 Alps Electric 350 4,641 Tokyo Rope Manufacturing 375 2,611 Mimasu Semiconductor Industry 380 4,613 UUUM 85 2,544 Toyota Industries 110 4,593 The significant changes to the portfolio for the financial year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 69 70 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Select Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Christopher Lees, CFA Nudgem Richyal, CFA Senior Fund Manager Senior Fund Manager Christopher joined JOHCM in Nudgem joined JOHCM in September 2008 and has September 2008 and has 30 years industry experience 20 years industry experience

Investment Management Report 72

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 73 B) OTC financial derivative instruments: open foreign currency contracts 75 Geographic division of investments 76 Economic division of investments 77 Significant portfolio changes 78

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 71 JOHCM Global Select Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Will the rotation into value names the market rotation into value and The JOHCM Global Select Fund become the new trend, or is this yet cyclicals will probably be sustainable. returned 20.03% in sterling terms, another false dawn for value stocks? net of fees for the ‘A’ share class, Our probability/evidence-based Scenario 3: markets stop going up in 2019. Over the same period the process says it needs more than three- (e.g. sideways volatility or bull market MSCI AC World NR (noon adjusted) month relative highs to confirm a trend correction or bear market). For the returned 22.76%. change. Any stocks/sectors/regions first half of 2020, this is the least reaching 6-12 month relative highs likely scenario if central banks remain Portfolio review are an important trend signal and friendly and credit markets stable. We underperformed the index in become potential buys for our process, 2019, mainly due to the equity market but only if their fundamentals are Our process suggests a combination rotation out of quality/growth stocks improving. The good news is that the of Scenarios 1 and 2 is more likely and into cyclical/value stocks towards global earnings revision ratio showed than Scenario 3 during the first half of the end of the year. Sector allocation signs of stabilisation in December after 2020. As ever, we remain eyes wide effects accounted for more of the falling for 10 months, and the ratio open for any changes or surprises underperformance than stock selection jumped the most for semiconductors, (positive or negative) and will follow although a significant proportion of which usually leads the global earnings our ruthless sell discipline by “weeding this was down to our cash position revisions cycle. Our updated market out the losers” if they are broken in the strongly rising market. Our outlook scenario analysis and portfolio fundamentally or technically. We will technology names also provided a positioning is below: try to replace them with interesting material source of weakness as Elastic idiosyncratic stocks (relatively low and Citrix Systems lagged. Additionally Scenario 1: markets go up with the correlation to sector or country) that our portfolio void in Apple weighed on old leadership (e.g. technology, USA, are less affected by the short-term relative returns. On the positive side, growth). This is clearly under threat, machine-driven flows and the long- Carbon Black was the top performer and the catalyst for the abrupt change term passive flows that dominate after it was bought out. in sentiment was probably WeWork’s today’s highly correlated investment cancelled IPO fiasco that highlighted environment. Our process usually struggles at major the poor corporate governance, market inflection points and whipsaws questionable business models and Christopher Lees (as we are currently witnessing) excessive overvaluation of many Senior Fund Manager until it locks onto the new trends ‘unicorns’. in fundamentals and price as they Nudgem Richyal emerge. This is exactly what happened Scenario 2: markets go up with new Senior Fund Manager in the cyclical-growth semiconductor leadership. For example, if the US/ sector during the final quarter, so we China trade war and Brexit turn out to Past performance is not necessarily a started buying some new names there. be less bad than currently feared, then guide to future performance. The price of shares may go down as well as up and future income is not guaranteed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 72 JOHCM Global Select Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

AUSTRALIA Newcrest Mining 2,262 AUD 20,597 36,331 2.82

20,597 36,331 2.82

BERMUDA IHS Markit 572 USD 14,348 32,358 2.52

14,348 32,358 2.52

CAYMAN ISLANDS Momo 1,192 USD 32,799 30,719 2.39

32,799 30,719 2.39

DENMARK Orsted 455 DKK 34,003 35,634 2.77 Vestas Wind Systems 435 DKK 29,771 33,282 2.59

63,774 68,916 5.36

GERMANY SAP 343 EUR 19,024 35,062 2.73

19,024 35,062 2.73

GREAT BRITAIN Atlassian 371 USD 34,587 33,501 2.60 Rio Tinto 784 GBP 18,680 35,232 2.74

53,267 68,733 5.34

HONG KONG Hong Kong Exchanges and Clearing 1,341 HKD 25,565 32,983 2.56

25,565 32,983 2.56

IRELAND Accenture 234 USD 17,273 37,338 2.90 Medtronic 428 USD 32,067 36,549 2.84

49,340 73,887 5.74

JAPAN Kao 563 JPY 22,563 35,402 2.75 Nippon Telegraph & Telephone 1,683 JPY 23,842 32,356 2.51 PeptiDream 898 JPY 22,309 35,059 2.73 Rakuten 5,130 JPY 38,132 33,445 2.60 Recruit Holdings 1,176 JPY 27,283 33,604 2.61 SBI Holdings 2,061 JPY 28,314 33,264 2.59

162,443 203,130 15.79

JERSEY Aptiv 464 USD 33,338 33,450 2.60

33,338 33,450 2.60

NETHERLANDS Koninklijke DSM 333 EUR 32,282 32,911 2.56

32,282 32,911 2.56

NEW ZEALAND a2 Milk 4,588 AUD 19,698 34,837 2.71

19,698 34,837 2.71

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 73 JOHCM Global Select Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

TAIWAN MediaTek 3,151 TWD 33,565 35,373 2.75

33,565 35,373 2.75

UNITED STATES Agilent Technologies 522 USD 30,305 33,555 2.61 Cboe Global Markets 362 USD 19,070 32,713 2.54 CME Group 217 USD 16,206 32,652 2.54 Cree 926 USD 32,151 32,563 2.53 Estee Lauder Cos 236 USD 27,154 36,856 2.86 Intercontinental Exchange 501 USD 17,756 35,067 2.73 Intuit 167 USD 16,472 33,224 2.58 Keysight Technologies 422 USD 33,600 32,620 2.54 Medpace Holdings 569 USD 26,597 35,845 2.79 Microsoft 307 USD 14,542 36,618 2.85 Nasdaq 401 USD 17,663 32,459 2.52 NextEra Energy 191 USD 16,911 34,972 2.72 Oracle 821 USD 26,085 32,740 2.54 PayPal Holdings 411 USD 27,679 33,564 2.61 PRA Health Sciences 420 USD 36,220 34,999 2.72 Thermo Fisher Scientific 142 USD 26,831 34,859 2.71

385,242 545,306 42.39

Transferable securities admitted to an official stock exchange listing 945,282 1,263,996 98.26

74 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Select Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg USD - GBP - - - 02.01.20 RBC Investor Services Luxembourg USD 106 GBP (82) (2) - 02.01.20 RBC Investor Services Luxembourg AUD 1,556 USD (1,088) 3 - 03.01.20 RBC Investor Services Luxembourg USD 446 EUR (399) (1) - 03.01.20 RBC Investor Services Luxembourg EUR 19 USD (21) - - 03.01.20 RBC Investor Services Luxembourg USD 20 GBP (15) - - 03.01.20 RBC Investor Services Luxembourg AUD 343 USD (240) - - 06.01.20 RBC Investor Services Luxembourg JPY 25,777 USD (236) 2 - 06.01.20 RBC Investor Services Luxembourg JPY 52,910 USD (483) 3 - 07.01.20 RBC Investor Services Luxembourg JPY 375,184 USD (3,438) 14 - 07.01.20 RBC Investor Services Luxembourg JPY 19,885 USD (182) 1 -

Total as at 31 December 2019 20 -

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 75 JOHCM Global Select Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

United States 42.39 42.58 Japan 15.79 15.82 Ireland 5.74 4.56 Denmark 5.36 - Great Britain 5.34 4.76 Australia 2.82 4.90 Taiwan 2.75 - Germany 2.73 2.21 New Zealand 2.71 2.45 Jersey 2.60 - Netherlands 2.56 - Hong Kong 2.56 2.26 Bermuda 2.52 2.25 Cayman Islands 2.39 1.43 France - 2.26 Norway - 2.09 Canada - 1.42

Total investments at fair value through profit or loss 98.26 88.99 Other net assets 1.74 11.01

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 21.73% (2018: 15.88%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

76 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Select Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Holding and finance companies 18.05 19.71 Internet software 15.69 15.16 Pharmaceuticals and cosmetics 11.18 11.52 Biotechnology 8.12 6.55 Public services 8.08 2.48 Electronics and electrical equipment 5.29 - Electronic semiconductor 5.24 4.55 Other services 2.90 2.19 Precious metals 2.82 2.46 Non-ferrous metals 2.74 2.23 Consumer goods 2.71 2.45 Graphic art and publishing 2.61 - Retail 2.60 - Automobile industry 2.60 - Chemicals 2.56 - Banks and financial institutions 2.56 2.26 News transmission 2.51 4.46 Mines and heavy industries - 6.39

Petrol - 4.35 Business houses - 2.23

Total investments at fair value through profit or loss 98.26 88.99 Other net assets 1.74 11.01

Total net assets attributable to redeemable participating shareholders 100.00 100.00

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 77 JOHCM Global Select Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost

’000 £

PURCHASES1 Elastic 769 54,672 Rakuten 7,035 52,444 Vestas Wind Systems 745 51,087 Atlassian 525 49,009 Orsted 649 48,546 Recruit Holdings 1,962 45,470 Carbon Black 2,844 38,128 Koninklijke DSM 363 35,259 Aptiv 484 34,818 Keysight Technologies 422 33,600 MediaTek 3,151 33,565 Cree 457 19,995 First Quantum Minerals 2,153 16,672 a2 Milk 1,390 10,400 PRA Health Sciences 119 9,265 Momo 305 8,656 Agilent Technologies 151 8,502 Hong Kong Exchanges and Clearing 324 7,850 Newcrest Mining 424 6,636 Kao 103 6,398

1 Represents total purchases during the year.

78 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Select Fund

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

SALES SALES Carbon Black 2,844 60,276 Nasdaq 323 25,231 BHP Group 3,146 54,500 Thermo Fisher Scientific 110 24,543 Alphabet 55 53,839 Intuit 120 23,735 TD Ameritrade Holding 1,100 46,336 Kao 393 23,632 Citrix Systems 596 45,625 PeptiDream 625 23,294 Elastic 769 45,562 PRA Health Sciences 273 22,631 South32 24,685 44,513 Oracle 525 22,090 Takeda Pharmaceutical 1,580 44,357 Accenture 149 21,742 Total 1,014 41,459 SAP 221 21,405 Mitsui 3,463 39,888 PayPal Holdings 268 21,356 E*TRADE Financial 1,110 39,678 Vestas Wind Systems 311 21,053 Cree 891 38,100 Recruit Holdings 786 20,410 First Quantum Minerals 6,457 37,451 Nippon Telegraph & Telephone 512 20,308 NTT DOCOMO 2,278 36,279 Hong Kong Exchanges and Clearing 845 20,165 Equinor 2,361 35,985 CME Group 112 18,901 Newcrest Mining 1,984 35,118 Rio Tinto 443 18,469 Medpace Holdings 562 34,971 Medtronic 206 18,255 a2 Milk 4,829 34,392 Cboe Global Markets 193 18,216 Microsoft 309 31,285 Intercontinental Exchange 214 16,084 IHS Markit 562 28,479 Atlassian 154 15,950 NextEra Energy 165 27,889 Rakuten 1,905 15,059 Estee Lauder Cos 179 26,542 Orsted 194 14,552 Agilent Technologies 426 25,965 The significant changes to the portfolio for the financial year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 79 80 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Emerging Markets Fund*

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Emery Brewer Dr Ivo Kovachev Senior Fund Manager Senior Fund Manager Emery joined JOHCM in March Ivo joined JOHCM in March 2010 and has 29 years industry 2010 and has 25 years industry experience experience

Investment Management Report 82

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 83 B) OTC financial derivative instruments: open foreign currency contracts •• Geographic division of investments •• Economic division of investments •• Significant portfolio changes ••

* JOHCM Emerging Markets Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 81 JOHCM Emerging Markets Fund*

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance also raised 2019 guidance, boosting The JOHCM Emerging Markets Fund investor sentiment. returned 8.78%, net of fees and in sterling terms for the ‘A’ share class MediaTek was another strong during the 10-month period to its performer. The Taiwanese integrated closure. Over the same period the circuit designer benefited from the MSCI Emerging Markets NR Index 5G rollout. It now has competitive (12pm adjusted) returned 8.76%. products and is penetrating new markets (auto, smart speakers) and is Portfolio review benefiting from issues at competitor Emerging market equities advanced Huawei. over the period despite the macroeconomic headwinds. Trade On the negative side, China Taiping tensions between the US and China Insurance was one of the main dominated headlines for much of the laggards. The Chinese insurer suffered period and fears over slowing global from the decreasing long-term bond growth mounted. Indicies were also yields in China in May and June dragged lower by the political and and the A-share weakness in May. economic travails in Argentina and Elsewhere, our industrials holdings CJ Chile. The Merval index plunged 40% Logistics and LG Corp also suffered. in August with the Argentine peso also selling-off after Alberto Fernandez beat Despite good performance, the market-friendly President Mauricio Investment Manager was unable Macri in the primary elections. In to attract significant inflows from Chile, a peaceful protest over a metro investors for the JOHCM Global fare increase in Santiago escalated Emerging Markets Fund. It was into violent protests over rising therefore decided that the most inequality. appropriate course of action would be to close the sub-fund. The JOHCM The portfolio performed in line with Global Emerging Markets Fund was the benchmark over the period. terminated on 07 November 2019. Sector tilts provided a broadly neutral effect, although our cash position Emery Brewer did weigh on relative returns given Senior Fund Manager the rising markets. Turning to stock selection, our discretionary names Dr Ivo Kovachev were the strongest with holdings Senior Fund Manager such as Cyrela Brazil Realty and Anta Sports performing well. The former, Past performance is not necessarily a a Brazilian real estate developer, guide to future performance. The price benefited from the recovering real of shares may go down as well as up estate market in Brazil after years of and future income is not guaranteed. downturn. This enabled the company to significantly decrease inventory levels and accelerate new launches. Chinese shoe and apparel retailer Anta Sports reported first-half results above expectations due to very strong growth in its Fila brand and subsequent revenue acceleration for the Anta brand. The management

* JOHCM Emerging Markets Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 82 JOHCM Emerging Markets Fund*

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES SALES Telekomunikasi Indonesia Persero 588 130 Samsung Electronics 14 447 Taiwan Semiconductor Taiwan Semiconductor Manufacturing 4 117 Manufacturing 13 436 Sunac China Holdings 34 114 Tencent Holdings 11 372 Sberbank of Russia 10 112 Alibaba Group Holding 3 363 Samsung Electronics 4 108 Industrial & Commercial Bank of Hana Financial Group 4 104 China 577 325 Grupo Financiero Banorte 22 100 ICICI Bank 58 267 ZTO Express Cayman 7 100 Reliance Industries 15 232 Ayala Land 134 97 China Mobile 30 213 Cia Brasileira de Distribuicao 5 96 Bank Rakyat Indonesia Persero 950 210 Nedbank Group 7 92 Sberbank of Russia 19 209 Haier Electronics 42 90 Naspers 1 191 REC 57 90 Larsen & Toubro 12 187 Kia Motors 3 86 SJM Holdings 221 186 Geely Automobile Holdings 52 85 Wal-Mart de Mexico 82 186 Kakao 1 85 Axis Bank 22 186 Mando 3 85 Powszechna Kasa Oszczednosci Emaar Properties 81 84 Bank Polski 23 184 New Oriental Education & Cyrela Brazil Realty Technology Group 1 82 Empreendimentos e Participacoes 43 178 First Quantum Minerals 9 82 AngloGold Ashanti 13 168 Yandex 3 80 Banco Bradesco 24 166 Axis Bank 10 80 Anglo American 8 165 Alibaba Group Holding 1 77 The significant changes to the portfolio for the financial Bancolombia 2 76 year are the aggregate sales of a security exceeding 1% Oppein Home Group 6 76 of the total value of sales for the financial year. Where the CTBC Financial Holding 142 76 number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a The significant changes to the portfolio for the financial minimum of 20 sales will be disclosed. year are the aggregate purchases of a security exceeding 1% of the total value of purchases for the financial year. Where the number of purchases transactions exceeding 1% of the total value of purchases for the financial year is less than 20, then a minimum of 20 purchases will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 83 * JOHCM Emerging Markets Fund was terminated on 07 November 2019.

84 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Emerging Markets Opportunities Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

James Syme, CFA Paul Wimbourne Senior Fund Manager Senior Fund Manager James joined JOHCM in Paul joined JOHCM in April May 2011 and has 25 years 2011 and has 21 years industry experience. industry experience.

Investment Management Report 86

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 87 B) Other transferable securities C) OTC financial derivative instruments: open foreign currency contracts 89 Geographic division of investments 90 Economic division of investments 91 Significant portfolio changes 92

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 85 JOHCM Global Emerging Markets Opportunities Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance serious drag on the country’s credit The JOHCM Global Emerging Markets In Taiwan, our underweight position rating and growth rate in 2020. And, Opportunities Fund returned 11.48%, meant we missed out on some of of course, the web of trans-Pacific net of fees and in sterling terms for the tech-fuelled gains (not owning trading relationships continues to face the ‘A’ share class, in 2019. Over Taiwan Semiconductor Manufacturing a difficult future. the same period the MSCI Emerging Company, for example). Although Markets NR Index (12pm adjusted) our technology weighting is broadly Overall, though, we see the potential returned 14.44%. neutral, it is skewed more towards for significant positive surprises Korea, with Samsung Electronics being in 2020. A weaker US dollar and Portfolio review among the top performers for the year. improved global liquidity and investor The portfolio underperformed over However, Taiwanese exports held up sentiment towards EM would be the the year, with weaker stock selection better than their Korean counterparts. big one, but there are others. One offsetting marginally positive country quietly positive development in the allocation effects. The story of 2019 in EM equity last few years has been the jump in was one of the stresses placed on corporate governance and treatment India was the main laggard at the emerging economies and markets by of minority shareholders in Russian country level. The drop-off in the rate the twin forces of a stronger US dollar and Brazilian state-owned enterprises, of credit growth seen in 2019 had and a slowing Chinese economy. As as well as in the Korean chaebol a highly differentiated effect on the in previous risk-off cycles in the asset sector. We think this improvement Indian economy, with real estate/ class, this has led to slower growth could continue into 2020, with China construction/cement and vehicle sales in the healthier economies and crises and India interesting spaces to watch. the hardest hit. With our pro-cyclical in the weaker ones. What has been tilt in India, we had some exposure new in this cycle has been a new James Syme, CFA to these industries. The year saw a political and social volatility. 2020 is Senior Fund Manager continuation of the negative market going to see a continuation of this sentiment towards India, with GDP trend, no doubt, with Latin America Paul Wimbourne growth expectations being revised and the Middle East remaining the Senior Fund Manager down, although there was a bounce flashpoints. What we believe we will in some oversold parts of the equity also see, though, is US political and Past performance is not necessarily a market. In some places this had a policy pressures leading to a weaker guide to future performance. The price positive impact on the portfolio but US dollar, which should significantly of shares may go down as well as up some of our more cyclical names improve the outlook for emerging and future income is not guaranteed. continued to struggle. Apollo Tyres, market assets of all kinds. Mahindra & Mahindra and Indiabulls Housing Finance were the main Significant risks remain in parts of portfolio laggards here. Nevertheless, EM. Mexico, for all its institutional we continue to see the potential for a strengths, faces a volatile and return to credit-led growth in India, uncertain relationship with its key and like the valuations at which we trade partner to the north, while to the can get exposure to that opportunity. south the various populist movements We think that interest rate cuts and go from strength to strength. South government stimulus will also support Africa’s long decay of governance Indian growth in 2020. and policy choices may well cause a

86 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Emerging Markets Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

BRAZIL Petroleo Brasileiro 372 USD 3,589 4,213 1.16 3,589 4,213 1.16

CANADA Barrick Gold 869 USD 9,799 12,249 3.37 9,799 12,249 3.37

CAYMAN China High Precision Automation 238 HKD 119 - - ISLANDS China Overseas Property Holdings 10,485 HKD 2,703 4,995 1.37 China Resources Land 2,153 HKD 4,963 8,123 2.24 Chow Tai Fook Jewellery Group 3,885 HKD 2,816 2,814 0.77 ENN Energy Holdings 1,234 HKD 5,888 10,213 2.81 Longfor Group Holdings 2,229 HKD 5,198 7,910 2.18 Tencent Holdings 548 HKD 18,222 19,997 5.51 Xinyi Solar Holdings 13,291 HKD 3,309 7,146 1.97 43,218 61,198 16.85

CHINA China Petroleum & Chemical 9,569 HKD 5,494 4,363 1.20 China Petroleum & Chemical 108 USD 6,100 4,864 1.34 Zhejiang Expressway 6,805 HKD 5,208 4,697 1.29 16,802 13,924 3.83

CYPRUS Globaltrans Investment 513 USD 3,992 3,438 0.95 3,992 3,438 0.95

CZECH Komercni banka 180 CZK 5,386 5,007 1.38 5,386 5,007 1.38

HONG KONG China Mobile 111 USD 4,042 3,550 0.98 China Overseas Land & Investment 2,896 HKD 5,947 8,546 2.35 CNOOC 58 USD 7,330 7,258 2.00 CNOOC 4,792 HKD 5,903 6,038 1.66 23,222 25,392 6.99

INDIA Apollo Tyres 3,209 INR 7,780 5,577 1.54 Container Corp Of India 799 INR 4,676 4,843 1.33 HDFC Bank 259 USD 8,943 12,349 3.40 ICICI Bank 209 USD 1,203 2,399 0.66 ITC 2,478 INR 6,577 6,248 1.72 Larsen & Toubro 589 INR 10,082 8,112 2.23 Mahindra & Mahindra 1,046 INR 8,820 5,898 1.62 Reliance Industries 317 INR 2,773 5,090 1.40 State Bank of India 1,014 INR 3,535 3,589 0.99 54,389 54,105 14.89

JERSEY Centamin 2,927 GBP 3,192 3,712 1.02 3,192 3,712 1.02

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 87 JOHCM Global Emerging Markets Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

MEXICO Bolsa Mexicana de Valores 1,622 MXN 2,160 2,725 0.75 Grupo Financiero Banorte 1,680 MXN 6,751 7,040 1.94 Wal-Mart de Mexico 4,569 MXN 8,641 9,900 2.73

17,552 19,665 5.42

NETHERLANDS Prosus 118 EUR 4,609 6,712 1.85

4,609 6,712 1.85

RUSSIA Sberbank of Russia 1,043 USD 10,998 13,042 3.59

10,998 13,042 3.59

SOUTH AFRICA MultiChoice Group 105 ZAR 344 657 0.18 Naspers 115 ZAR 8,542 14,152 3.90

8,886 14,809 4.08

SOUTH KOREA Cheil Worldwide 466 KRW 6,793 7,360 2.03 Hyundai Motor 42 KRW 3,610 3,311 0.91 Hyundai Motor pref. 79 KRW 4,632 3,715 1.02 Samsung Electronics 567 KRW 12,165 20,776 5.72 Samsung Electronics 14 USD 8,412 12,707 3.50 SK Hynix 105 KRW 4,131 6,455 1.78 SK Telecom 67 KRW 11,370 10,417 2.87

51,113 64,741 17.83

TAIWAN Cathay Financial Holding 4,499 TWD 4,580 4,846 1.33 Cleanaway 356 TWD 1,438 1,404 0.39 Fubon Financial Holding 3,389 TWD 3,733 3,981 1.10 MediaTek 567 TWD 4,372 6,364 1.75 Primax Electronics 1,233 TWD 1,797 1,979 0.54 Tong Yang Industry 3,972 TWD 5,656 4,691 1.29

21,576 23,265 6.40

TURKEY BIM Birlesik Magazalar 349 TRY 3,792 2,090 0.57 Coca-Cola Icecek 472 TRY 1,800 2,359 0.65 Turkcell Iletisim Hizmetleri 1,054 TRY 1,729 1,850 0.51 Turkiye Garanti Bankasi 4,050 TRY 5,128 5,723 1.58

12,449 12,022 3.31

VIRGIN ISLANDS Xinyi Energy Holdings 1,329 HKD 261 264 0.07

261 264 0.07

Transferable securities admitted to an official stock exchange listing 291,033 337,758 92.99

88 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Emerging Markets Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) Other transferable securities

Acquisition Fair Net Description Quantity Currency cost value assets

’000 £’000 £’000 %

SOUTH KOREA Com2uS 45 KRW 3,580 3,158 0.87

3,580 3,158 0.87

UNITED ARAB Aldar Properties 7,328 AED 3,587 3,262 0.90 EMIRATES Emaar Malls 13,345 AED 4,608 5,033 1.39 Emaar Properties 6,432 AED 6,163 5,329 1.47

14,358 13,624 3.76

Other transferable securities 17,938 16,782 4.63

Transferable securities admitted to an official stock exchange listing 308,971 354,540 97.62

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 89 JOHCM Global Emerging Markets Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

C) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg USD - GBP - - - 02.01.20 RBC Investor Services Luxembourg USD 1 GBP (1) - - 03.01.20 RBC Investor Services Luxembourg USD 1 EUR (1) - - 03.01.20 RBC Investor Services Luxembourg GBP 50 USD (65) - - 03.01.20 RBC Investor Services Luxembourg GBP 4 USD (5) - -

Total as at 31 December 2019 - -

90 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Emerging Markets Opportunities Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

South Korea 18.70 19.91 Cayman Islands 16.85 12.27 India 14.89 16.72 Hong Kong 6.99 10.90 Taiwan 6.40 10.01 Mexico 5.42 4.73 South Africa 4.08 5.67 China 3.83 3.19 United Arab Emirates 3.76 - Russia 3.59 2.76 Canada 3.37 - Turkey 3.31 - Netherlands 1.85 - Czech 1.38 1.07 Brazil 1.16 4.50 Jersey 1.02 2.63 Cyprus 0.95 1.14 Virgin Islands 0.07 1.56

Total investments at fair value through profit or loss 97.62 97.06 Other net assets 2.38 2.94

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding for 31 December 2019 was 4.18% (2018: 2.21%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 91 JOHCM Global Emerging Markets Opportunities Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Banks and financial institutions 13.54 13.43 Real estate companies 11.90 8.76 Electronic semiconductor 11.00 9.53 Holding and finance companies 8.69 6.93 Petrol 7.36 8.19 Graphic art and publishing 5.93 6.97 Electronics and electrical equipment 5.55 4.33 News transmission 4.36 7.70 Transportation 3.57 2.44 Automobile industry 3.55 3.78 Precious metals 3.37 2.63 Internet software 2.90 3.54 Public services 2.88 2.66

Retail 2.73 3.34 Construction and building material 2.23 - Tobacco and spirits 1.72 1.06 Tires and rubber 1.54 2.70 Chemicals 1.40 1.02 Food and distilleries 1.22 1.05 Mines and heavy machinery 1.02 2.12 Clock and watch-making industry 0.77 - Environmental services and recycling 0.39 0.57 Other services - 2.32 Pharmaceuticals and cosmetics - 1.99

Total investments at fair value through profit or loss 97.62 97.06 Other net assets 2.38 2.94

Total net assets attributable to redeemable participating shareholders 100.00 100.00

92 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Emerging Markets Opportunities Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES SALES* Tencent Holdings 548 18,222 ICICI Bank 1,218 11,223 Larsen & Toubro 589 10,082 S-1 96 6,585 HDFC Bank 224 7,235 Axis Bank 853 6,460 Indiabulls Housing Finance 951 6,954 Vale 605 5,977 Emaar Properties 6,432 6,163 China Mobile 194 5,935 Zhejiang Expressway 7,289 5,578 Hengan International Group 1,112 5,578 Turkiye Garanti Bankasi 4,050 5,128 Naver 47 4,876 Prosus 118 4,609 Banco Bradesco 492 4,535 Emaar Malls 13,345 4,608 Samsung Electronics 5 4,424 Grupo Financiero Banorte 979 4,224 China Overseas Property Holdings 9,224 4,109 ITC 1,501 4,175 Info Edge India 169 3,566 Samsung Electronics 127 3,893 China Mobile 556 3,454 Cheil Worldwide 226 3,825 Tingyi Cayman Islands Holding 2,931 3,297 BIM Birlesik Magazalar 349 3,792 Shin Kong Financial Holding 13,760 2,995 Wal-Mart de Mexico 1,784 3,742 Wal-Mart de Mexico 1,211 2,833 Hyundai Motor 42 3,610 Mail.Ru Group 198 2,781 Aldar Properties 7,328 3,587 Mega Financial Holding 4,189 2,730 State Bank of India 1,014 3,535 Lenta 802 2,198 Centamin 2,927 3,192 MediaTek 352 2,053 SK Telecom 18 3,029 Cathay Financial Holding 1,971 2,052 Chow Tai Fook Jewellery Group 3,885 2,816 Indiabulls Housing Finance 951 2,025 Barrick Gold 189 2,439 Longfor Group Holdings 644 1,980 Naspers 13 2,438 Grupo Financiero Banorte 345 1,499 SK Hynix 46 2,402 Fubon Financial Holding 1,300 1,467 Komercni banka 75 2,227 * Represents total sales during the year. China Petroleum & Chemical 3,924 2,122 CNOOC 1,333 1,806 The significant changes to the portfolio for the financial Coca-Cola Icecek 472 1,800 year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the Turkcell Iletisim Hizmetleri 1,054 1,729 number of sales transactions exceeding 1% of the total The significant changes to the portfolio for the financial value of sales for the financial year is less than 20, then a year are the aggregate purchases of a security exceeding minimum of 20 sales will be disclosed. 1% of the total value of purchases for the financial year. Where the number of purchases transactions exceeding 1% of the total value of purchases for the financial year is less than 20, then a minimum of 20 purchases will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 93 94 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Samir Mehta, CFA Senior Fund Manager Samir joined JOHCM in May 2011 and has 29 years industry experience

Investment Management Report 96

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 97 B) OTC financial derivative instruments: open foreign currency contracts 99 Geographic division of investments 100 Economic division of investments 101 Significant portfolio changes 102

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 95 JOHCM Asia ex-Japan Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Li Ning was the top performer by some it could lead to pressure on Asian The JOHCM Asia ex Japan Fund distance. The Chinese sporting goods economies. returned 13.79%, net of fees and in company has undergone somewhat sterling terms for the ‘A’ share class, of a transformation in recent years. Nevertheless, there are positives. in the calendar year 2019. Over the Starting with a focus on tighter Faster-than-expected 5G adoption same period the MSCI AC Asia ex working capital and optimising costs, in Asia will open the door for new Japan NR Index (12pm adjusted) the company has followed a textbook business opportunities. A benign returned 14.17%. example of reinvestment in the US dollar environment will provide brand to drive sales and lift margins. tremendous liquidity support, enabling Portfolio review Sales and profit growth have been an easing of fiscal (and to some A strong year for Asian equities ended particularly strong. degree) monetary policy in the region, on a high as trade war concerns allowing China, India and regional receded. The US agreed to delay On the negative side, our portfolio void economies to stabilise. This could be a indefinitely the new tariffs that were in Alibaba hindered relative returns big positive for asset prices in Asia. set to take effect on the 15th of as the stock re-rated. Elsewhere, the December on an additional US$160 Philippine fast food chain Jollibee and As we go to press, the coronavirus billion of Chinese imports. And, for Indonesian cigarette company Gudang infection is still in its infancy. Health the first time since the trade tensions Garam also provided a drag. authorities are trying to get to grips erupted in July 2018, the tariff on with its contagion. We can only look US$120 billion of Chinese imports will As we head into 2020, there are a back at history on similar episodes to be cut from 15% to 7.5%. Weakness number of macroeconomic factors give us some outline of how this might on the economic front prompted to consider. Geopolitical rivalry could play out. Once science has a cure, we further accommodative monetary intensify as the US heads into an should be able to mitigate the impact policy by central banks globally while election year. Equally, though, we on human life. Economic activity will tentative signs of a recovery in China’s could see a more conciliatory tone certainly suffer in the near term, but growth outlook also added to the from the maverick in the White House. apart from the most discretionary positive sentiment. of activities, normality will return. On the opposing side, China has other Though difficult to predict the timing of The portfolio performed broadly in line concerns. Not only is it facing an when we attain stability, panic selling with the benchmark over the year as economic slowdown but also political is hardly remunerative if history is sector allocation effects partly offset challenge from Hong Kong. We must any guide. positive stock picking. By sector, also be cognisant of social unrest our consumer staples names were stemming from wealth inequality Samir Mehta particularly strong, although our spreading to Asia (as recently seen in Senior Fund Manager significant overweight position in the Chile, Bolivia and Lebanon) and other weaker performing sector largely offset countries where income growth has Past performance is not necessarily a the positives from stock picking. Our stagnated and job opportunities are guide to future performance. The price other significant overweight, consumer scant. If US inflation picks up and the of shares may go down as well as up discretionary, did provide a boost. Federal Reserve changes tack again, and future income is not guaranteed.

96 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

BERMUDA Cafe de Coral Holdings 857 HKD 1,894 1,538 1.34

1,894 1,538 1.34

CAYMAN ENN Energy Holdings 399 HKD 2,956 3,304 2.88 ISLANDS Li Ning 3,141 HKD 2,404 7,130 6.21 Sands China 985 HKD 2,445 3,990 3.48 Tencent Holdings 177 HKD 3,008 6,456 5.62

10,813 20,880 18.19

CHINA China Merchants Bank 440 HKD 1,113 1,714 1.49 Foshan Haitian Flavouring & Food 356 CNY 3,576 4,160 3.62 Ping An Insurance Group of China 343 HKD 2,459 3,070 2.68 Shenzhen Mindray Bio-Medical Electronics 172 CNY 3,250 3,407 2.97 Wuliangye Yibin 311 CNY 4,193 4,505 3.92 Yonyou Network Technology 317 CNY 1,195 978 0.85

15,786 17,834 15.53

GREAT BRITAIN HSBC Holdings 285 HKD 2,077 1,688 1.47

2,077 1,688 1.47

HONG KONG AIA Group 265 HKD 2,129 2,108 1.84 China Mobile 347 HKD 2,526 2,210 1.92

4,655 4,318 3.76

INDIA Asian Paints 211 INR 2,473 4,000 3.49 Astral Poly Technik 153 INR 1,906 1,914 1.67 Bata India 215 INR 2,125 3,992 3.48 Dabur India 704 INR 3,312 3,421 2.98 ITC - INR - - - Kotak Mahindra Bank 184 INR 3,230 3,287 2.86 Nestle India 32 INR 3,242 4,963 4.32 Ramco Systems 365 INR 1,169 656 0.57 Tata Consultancy Services 149 INR 2,828 3,420 2.98

20,285 25,653 22.35

INDONESIA Ace Hardware Indonesia 19,659 IDR 1,876 1,603 1.40 AKR Corporindo 12,221 IDR 3,659 2,632 2.29 Bank Central Asia 1,207 IDR 1,803 2,199 1.92 Gudang Garam - IDR 1 2 -

7,339 6,436 5.61

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 97 JOHCM Asia ex-Japan Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

ITALY PRADA 1,375 HKD 4,480 4,304 3.75

4,480 4,304 3.75

PHILIPPINES Jollibee Foods 733 PHP 2,898 2,368 2.06

2,898 2,368 2.06

SINGAPORE Jardine Cycle & Carriage 178 SGD 3,687 3,008 2.62

3,687 3,008 2.62

SOUTH KOREA LG Household & Health Care 4 KRW 3,060 3,255 2.84 Orion 55 KRW 3,800 3,780 3.29 Samsung Electronics 168 KRW 5,531 6,168 5.37

12,391 13,203 11.50

TAIWAN Elite Material - TWD - - - Makalot Industrial 1 TWD 3 4 - Nien Made Enterprise 297 TWD 1,634 2,082 1.81 Taiwan Semiconductor Manufacturing 844 TWD 3,913 7,071 6.16

5,550 9,157 7.97

THAILAND CP ALL 1,828 THB 3,549 3,356 2.92 Thai Beverage 7,875 SGD 3,217 3,944 3.44

6,766 7,300 6.36

Transferable securities admitted to an official stock exchange listing 98,621 117,687 102.51

98 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg USD - GBP - - - 03.01.20 RBC Investor Services Luxembourg GBP 3,295 USD (4,323) 23 0.02

Total as at 31 December 2019 23 0.02

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 99 JOHCM Asia ex-Japan Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

India 22.35 27.04 Cayman Islands 18.19 19.03 China 15.53 3.44 South Korea 11.50 8.03 Taiwan 7.97 10.69 Thailand 6.36 5.15 Indonesia 5.61 6.76 Hong Kong 3.76 6.13 Italy 3.75 3.53 Singapore 2.62 3.30 Philippines 2.06 3.67 Great Britain 1.47 1.48 Bermuda 1.34 - Malaysia - 1.87

Total investments 102.51 100.12 Open foreign currency contracts 0.02 -

Total investments at fair value through profit or loss 102.53 100.12 Other net liabilities (2.53) (0.12)

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 5.22% (2018: 5.01%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

100 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Electronic semiconductor 11.53 5.96 Banks and financial institutions 11.36 4.46 Retail 10.53 5.88 Pharmaceuticals and cosmetics 8.79 6.13 Food and distilleries 7.61 4.16 Tobacco and spirits 7.36 10.03 Textile 7.23 9.01 Leisure 6.88 9.11 Chemicals 5.78 8.68 Holding and finance companies 5.62 7.81 Insurance 4.52 1.78 Internet software 3.55 7.28 Public services 2.88 5.83 Automobile industry 2.62 1.00 News transmission 1.92 2.09

Business houses 1.81 1.58 Other services 1.67 - Office Equipment and Computers 0.85 - Graphic art and publishing - 5.00 Mines and heavy industries - 3.13 Electronics and electrical equipment - 1.20

Total investments 102.51 100.12 Open foreign currency contracts 0.02 -

Total investments at fair value through profit or loss 102.53 96.26 Other net assets (2.53) 3.74

Total net assets attributable to redeemable participating shareholders 100.00 100.00

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 101 JOHCM Asia ex-Japan Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES1 SALES Samsung Electronics 171 5,606 Reliance Industries 391 5,719 Dabur India 998 4,701 Li Ning 3,679 5,616 Wuliangye Yibin 333 4,477 Gudang Garam 1,475 5,606 Foshan Haitian Flavouring & Food 418 4,194 ITC 1,882 5,453 Orion 55 3,800 Makalot Industrial 1,104 5,414 Jardine Cycle & Carriage 179 3,735 Foshan Haitian Flavouring & Food 540 5,156 Shenzhen Mindray Bio-Medical CLP Holdings 559 4,620 Electronics 189 3,565 Taiwan Semiconductor Kotak Mahindra Bank 190 3,328 Manufacturing 751 4,512 Bank Central Asia 1,615 2,413 CK Hutchison Holdings 493 3,859 AIA Group 276 2,217 LG Household & Health Care 4 3,825 Astral Poly Technik 153 1,906 Biocon 846 3,736 Cafe de Coral Holdings 857 1,894 Tencent Holdings 105 3,689 Ace Hardware Indonesia 19,659 1,876 Elite Material 1,222 3,582 Yonyou Network Technology 340 1,282 Genting Malaysia 5,601 3,291 CLP Holdings 131 1,180 Nestle India 26 3,229 LG Household & Health Care 1 530 Sands China 822 3,080 Taiwan Semiconductor Tata Consultancy Services 129 2,981 Manufacturing 71 475 Jollibee Foods 747 2,927 ENN Energy Holdings 54 459 Weibo 84 2,915 Ping An Insurance Group of China 46 386 KB Financial Group 83 2,484 China Mobile 42 337 Hana Financial Group 96 2,405 Bata India 152 2,394 1 Represents total purchases during the year. GAIL India 669 2,390 The significant changes to the portfolio for the financial POSCO 15 2,389 year are the aggregate purchases of a security exceeding PRADA 962 2,304 1% of the total value of purchases for the financial year. Hang Seng Bank 129 2,230 Where the number of purchases transactions exceeding 1% of the total value of purchases for the financial year is less China Merchants Bank 626 2,229 than 20, then a minimum of 20 purchases will be disclosed. Thai Beverage 4,975 2,229 Vedanta 1,209 2,154 AKR Corporindo 8,970 2,023 Asian Paints 118 1,892 CP ALL 877 1,657 Jardine Cycle & Carriage 85 1,598 Dabur India 294 1,303 AAC Technologies Holdings 306 1,262 Ping An Insurance Group of China 144 1,261

102 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Small and Mid-Cap Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Cho-Yu Kooi, CFA Senior Fund Manager Cho-Yu joined JOHCM in May 2011 and has 26 years industry experience

Investment Management Report 104

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 105 B) Other transferable securities 107 C) Other transferable securities - Warrants 107 D) OTC financial derivative instruments: open foreign currency contracts 108 Geographic division of investments 109 Economic division of investments 110 Significant portfolio changes 111

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 103 JOHCM Asia ex-Japan Small and Mid-Cap Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Sales and profit growth have been The JOHCM Asia ex Japan Small and particularly strong. Mid Cap Fund returned 12.07% in sterling terms, net of fees for the ‘A’ As we head into 2020, there are a share class, in 2019. Over the same number of macroeconomic factors period the MSCI AC Asia ex Japan to consider. Geopolitical rivalry Small Cap NR Index (12pm adjusted) could intensify as the US heads into returned 3.60%. an election year. Hard line political machismo from President Trump Portfolio review could see the trade war morph into A strong year for Asian equities ended a war for capital in an extreme case. on a high as trade war concerns Equally, though, we could see a more receded. The US agreed to delay conciliatory tone from the maverick in indefinitely the new tariffs that were the White House. set to take effect on the 15th of December on an additional US$160 On the opposing side, China has other billion of Chinese imports. And, for concerns. Not only is it facing an the first time since the trade tensions economic slowdown but also political erupted in July 2018, the tariff on challenge from Hong Kong. We must US$120 billion of Chinese imports will also be cognisant of social unrest be cut from 15% to 7.5%. Weakness stemming from wealth inequality on the economic front prompted spreading to Asia (as recently seen in further accommodative monetary Chile, Bolivia and Lebanon) and other policy by central banks globally while countries where income growth has tentative signs of a recovery in China’s stagnated and job opportunities are growth outlook also added to the scant. If US inflation picks up and the positive sentiment. Federal Reserve changes tack again, it could lead to pressure on Asian The portfolio materially outperformed economies. the benchmark over the year, with stock selection the main driver Nevertheless, there are positives. of returns. Sector tilts acted as Faster-than-expected 5G adoption a hindrance, with our substantial in Asia will open the door for new overweights in the consumer sectors business opportunities. A benign and underweight in the strong- US dollar environment will provide performing technology sector providing tremendous liquidity support, enabling a drag. Nevertheless, these negatives an easing of fiscal (and to some were eclipsed by strength in our degree) monetary policy in the region, consumer, healthcare and financials allowing China, India and regional holdings. economies to stabilise. This could be a big positive for asset prices in Asia. Li Ning was the top performer by some distance. The Chinese sporting goods Cho-Yu Kooi company has undergone somewhat Senior Fund Manager of a transformation in recent years. Starting with a focus on tighter Past performance is not necessarily a working capital and optimising costs, guide to future performance. The price the company has followed a textbook of shares may go down as well as up example of reinvestment in the and future income is not guaranteed. brand to drive sales and lift margins.

104 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Small and Mid-Cap Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

CAYMAN Ausnutria Dairy 430 HKD 391 469 3.30 ISLANDS China Education Group Holdings 534 HKD 698 530 3.73 Convenience Retail Asia 648 HKD 257 221 1.55 Kingdee International Software Group 311 HKD 263 236 1.66 Li Ning 391 HKD 275 887 6.24 Luckin Coffee 9 USD 218 271 1.91 Pacific Textiles Holdings 341 HKD 234 177 1.24 Ping An Healthcare and Technology 56 HKD 284 311 2.19

Silergy 9 TWD 216 216 1.52 Union Medical Healthcare 539 HKD 180 281 1.98 Yihai International Holding 65 HKD 322 290 2.04

3,338 3,889 27.36

CHINA Beijing Thunisoft 91 CNY 224 251 1.77 Venustech Group 31 CNY 122 115 0.81

346 366 2.58

INDIA AU Small Finance Bank 37 INR 280 313 2.20 Prataap Snacks 19 INR 186 170 1.20

466 483 3.40

INDONESIA Ace Hardware Indonesia 2,862 IDR 240 233 1.64 Arwana Citramulia 21,397 IDR 671 509 3.58 Bank Tabungan Pensiunan Nasional Syariah 3,197 IDR 295 740 5.21 BFI Finance Indonesia 9,807 IDR 388 299 2.10 Mayora Indah 2,094 IDR 285 234 1.64 Medikaloka Hermina 2,614 IDR 496 510 3.59 Mitra Adiperkasa 6,073 IDR 279 349 2.45 Nippon Indosari Corpindo 5,320 IDR 394 377 2.65 Sumber Alfaria Trijaya 11,542 IDR 392 553 3.89

3,440 3,804 26.75

LUXEMBOURG L'Occitane International 183 HKD 303 329 2.31

303 329 2.31

MALAYSIA Mynews Holdings 1,648 MYR 452 342 2.41

452 342 2.41

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 105 JOHCM Asia ex-Japan Small and Mid-Cap Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

PHILIPPINES Bloomberry Resorts 1,810 PHP 260 306 2.15 Max's Group 1,025 PHP 183 190 1.34 Philippine Seven 218 PHP 384 462 3.25 Shakey's Pizza Asia Ventures 892 PHP 157 132 0.93 Wilcon Depot 1,255 PHP 326 338 2.38

1,310 1,428 10.05

SINGAPORE Synagie 2,853 SGD 334 207 1.46

334 207 1.46

SOUTH KOREA Douzone Bizon 9 KRW 377 479 3.37

377 479 3.37

Transferable securities admitted to an official stock exchange listing 10,366 11,327 79.69

106 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Small and Mid-Cap Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) Other transferable securities

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

CAYMAN ISLANDS Parade Technologies 12 TWD 185 187 1.32

185 187 1.32

TAIWAN eMemory Technology 20 TWD 173 180 1.27 Poya International 46 TWD 417 489 3.44 Taiwan FamilyMart 30 TWD 133 166 1.17 TCI 28 TWD 322 199 1.40 Vanguard International Semiconductor 110 TWD 220 221 1.55

1,265 1,255 8.83

Other transferable securities 1,450 1,442 10.15

C) Other transferable securities - Warrants

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

SINGAPORE Chongqing Brewery 53 USD 207 300 2.11 Chongqing Fuling Zhacai Group 64 USD 227 182 1.28 Ezion Holdings 2,153 SGD - - Jiangsu Hengshun Vinegar Industry 125 USD 170 199 1.40 Jonjee Hi-Tech Industrial And Commercial Holding 76 USD 325 316 2.22 Venustech Group 45 USD 176 165 1.16

1,105 1,162 8.17

VIETNAM Saigon Beer Alcohol Beverage 36 USD 312 265 1.86

312 265 1.86

Other transferable securities - warrants 1,417 1,427 10.03

Investment in Transferable securities 13,233 14,196 99.87

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 107 JOHCM Asia ex-Japan Small and Mid-Cap Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

D) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg USD - GBP - - - 02.01.20 RBC Investor Services Luxembourg GBP 1 USD (1) - - 03.01.20 RBC Investor Services Luxembourg GBP 1 USD (2) - - 03.01.20 RBC Investor Services Luxembourg USD 1 GBP (1) - - 03.01.20 RBC Investor Services Luxembourg USD 13 HKD (104) - - 03.01.20 RBC Investor Services Luxembourg USD 52 HKD (406) - -

Total as at 31 December 2019 - -

108 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Small and Mid-Cap Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Cayman Islands 28.68 38.10 Indonesia 26.75 18.85 Philippines 10.05 3.79 Singapore 9.63 11.15 Taiwan 8.83 10.16 India 3.40 1.10 South Korea 3.37 3.34 China 2.58 - Malaysia 2.41 4.64 Luxembourg 2.31 - Vietnam 1.86 - Hong Kong - 4.82 Bermuda - 1.78

Total investments at fair value through profit or loss 99.87 97.73 Other net assets/(liabilities) 0.13 2.27

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 2.31% (2018: Nil%) (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 109 JOHCM Asia ex-Japan Small and Mid-Cap Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Retail 21.20 21.78 Food and distilleries 13.57 1.91 Holding and finance companies 12.47 2.52 Healthcare education and social services 9.51 9.93 Internet software 8.07 3.83 Business houses 7.47 11.46 Banks and financial institutions 7.07 4.02 Electronics and electrical equipment 6.05 4.65 Pharmaceuticals and cosmetics 4.29 9.22 Electronic semiconductor 2.87 2.98 Graphic art and publishing 2.41 2.44 News transmission 1.91 5.48 Textile 1.24 2.55 Leisure 0.93 3.24 Office Equipment and Computers 0.81 - Tobacco and spirits - 2.20 Real estate companies - 2.20 Photography and optics - 2.15 Mechanics and machinery - 1.99 Chemicals - 1.81 Consumer goods - 1.37

Total investments at fair value through profit or loss 99.87 97.73 Other net assets 0.13 2.27

Total net assets attributable to redeemable participating shareholders 100.00 100.00

110 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Asia ex-Japan Small and Mid-Cap Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Cost

’000 £ ’000 £

PURCHASES1 PURCHASES1 Ausnutria Dairy 430 396 D&L Industries 1,172 203 Nippon Indosari Corpindo 5,320 394 Shakey's Pizza Asia Ventures 1,089 191 Douzone Bizon 9 377 Sabina 283 187 Wilcon Depot 1,255 326 MK Restaurants Group 100 187 Jonjee Hi-Tech Industrial And Prataap Snacks 19 186 Commercial Holding 76 325 Parade Technologies 12 185 TCI 28 322 Max's Group 1,025 183 Yihai International Holding 65 322 Philippine Seven 93 178 Saigon Beer Alcohol Beverage 36 312 L'Occitane International 183 303 Venustech Group 45 176 Mayora Indah 2,094 285 eMemory Technology 20 173 Ping An Healthcare and Technology 56 284 Medikaloka Hermina 904 171 AU Small Finance Bank 37 280 Venustech Group 31 122 Kingdee International Software Mynews Holdings 436 115 Group 311 263 Synagie 1,039 92 Jiangsu Hengshun Vinegar China Education Group Holdings 80 89 Industry 188 255

Ace Hardware Indonesia 2,862 240 1 Represents total purchases during the year. Chongqing Fuling Zhacai Group 64 227 Beijing Thunisoft 91 224 The significant changes to the portfolio for the financial Vanguard International year are the aggregate purchases of a security exceeding Semiconductor 110 220 1% of the total value of purchases for the financial year. Where the number of purchases transactions exceeding 1% Luckin Coffee 9 218 of the total value of purchases for the financial year is less Silergy 9 216 than 20, then a minimum of 20 purchases will be disclosed. Chongqing Brewery 53 207

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 111 JOHCM Asia ex-Japan Small and Mid-Cap Fund

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

Sales Sales Health Management International 1,436 611 Sabina 283 201 XL Axiata 2,583 496 Gourmet Master 51 193 Hua Hong Semiconductor 290 447 Chinasoft International 478 182 Singapore O&G 2,399 443 MK Restaurants Group 100 177 Baozun 15 428 SmarTone Telecommunications Xiabuxiabu Catering Management Holdings 290 167 China Holdings 370 421 D&L Industries 1,172 161 Shanxi Xinghuacun Fen Wine British American Tobacco Malaysia 45 153 Factory 40 384 mm2 Asia 1,343 150 Union Medical Healthcare 733 378 Greentown Service Group 516 361 Xin Point Holdings 454 142 Taiwan FamilyMart 64 356 Emami 33 140 Basso Industry 223 334 Cosmo Lady China Holdings 722 113 Sunny Optical Technology 44 330 Jiangsu Hengshun Vinegar Convenience Retail Asia 856 306 Industry 62 101 Lifestyle International Holdings 319 304 Arwana Citramulia 3,796 98 Golden Eagle Retail Group 305 281 Dah Sing Banking Group 188 272 The significant changes to the portfolio for the financial year are the aggregate sales of a security exceeding 1% Sembcorp Marine 317 269 of the total value of sales for the financial year. Where the KMC Kuei Meng International 92 251 number of sales transactions exceeding 1% of the total China Yuhua Education 768 237 value of sales for the financial year is less than 20, then a Lock&Lock 18 231 minimum of 20 sales will be disclosed. Korea Kolmar 4 201

112 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Opportunities Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Ben Leyland, CFA Senior Fund Manager Ben joined JOHCM in April 2006 and has 18 years industry experience

Investment Management Report 114

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 115 B) OTC financial derivative instruments: open foreign currency contracts 117 Geographic division of investments 118 Economic division of investments 119 Significant portfolio changes 120

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 113 JOHCM Global Opportunities Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance to find companies with strong, well- The JOHCM Global Opportunities Fund The main laggard, however, was invested franchises where market returned 14.78%, net of fees and in Wartsila – a new position in 2019. enthusiasm has ebbed away because sterling terms for the ‘A’ share class, We had previously owned the stock short-term earnings momentum isn’t over the calendar year 2019. The MSCI but sold it on valuation grounds. As it very good or they are not in the right AC World NR Index (12pm adjusted) came back in line, we re-established a basket. In this vein, we added a new returned 22.76% in sterling terms position. It manufactures engines for position in Thales. We opportunistically over the same period. marine and power industries, but the started a position in niche US retailer main attraction for us was its engine Tractor Supply Company and also Portfolio review service business, which provides a repurchased National Grid now the 2019 was a strong year for equities stable base of cash flows through nationalisation risk is off the table. We globally with accommodating monetary the cycle. It suffered from cyclical also added Henkel, a combination of policy underpinning both fixed headwinds for much of the period. a world-class adhesives business and income and equity markets - allowing regionally strong beauty and laundry investors to shrug off a number of TD Ameritrade was the other main brands. macro headwinds. Investors had to laggard over the year. Increasingly contend with trade tensions, slowing irrational pricing behaviour in the Ben Leyland global growth, political turbulence discount brokerage market led us to Senior Fund Manager and widespread street protests from sell our position. We added another US Hong Kong to India, Chile and France. financial, M&T Bank, instead. It is one Past performance is not necessarily a Nevertheless the year ended on a of the very few banks we regard as guide to future performance. The price positive note as two important political investable on account of its consistent of shares may go down as well as up risks, namely US tariffs on China and record of capital discipline. and future income is not guaranteed. Europe and the fear of an adverse UK election outcome, were avoided. Positives over the year mainly came from companies with more predictable In this environment, the portfolio earnings, such as Raytheon and ENEL. is unlikely to outperform. Ferguson and wealth manager St Underperformance over the period James’s Place were also up strongly came almost entirely from two over the period. Having made sure areas: the technology sector and our we had some cyclicals in the portfolio, cash position. Given the strength it was good to see these serve us in markets, our large cash position well. Dollar General also contributed weighed heavily on relative returns positively, although valuation stretch while our underweight position in the led us to sell our holding. strong-performing (albeit narrowly- led) technology sector also provided a Elsewhere in portfolio activity, we material drag. To illustrate, the NYSE also sold both Akzo Nobel and Kao on FANG+ Index was up 22% for the last valuation grounds while selling the quarter of the year, against 9% for the last of our position in Ain Holdings, MSCI AC World Index as a whole. Not where changes in government policy owning companies such as Apple and undermined our previous thesis based Microsoft therefore hampered relative on profitable consolidation of market returns. share. Turning to the buys, we like

114 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

FINLAND Nokian Renkaat 460 EUR 11,502 10,015 2.31 Wartsila - Class B 1,529 EUR 16,292 12,802 2.95

27,794 22,817 5.26

FRANCE Safran 84 EUR 6,431 9,865 2.27 Sanofi 225 EUR 15,047 17,174 3.95

Thales 141 EUR 10,759 10,992 2.53

32,237 38,031 8.75

GERMANY CECONOMY 47 EUR 410 217 0.05 Henkel 131 EUR 10,043 10,287 2.37

10,453 10,504 2.42

GREAT BRITAIN Compass Group 571 GBP 9,127 10,812 2.49 National Grid 548 GBP 5,184 5,195 1.20 Rio Tinto 275 GBP 10,343 12,342 2.84 Royal Dutch Shell - Class B 516 GBP 12,148 11,577 2.67 Sage Group 801 GBP 4,992 5,994 1.38 St James's Place 635 GBP 6,146 7,399 1.70

47,940 53,319 12.28

HONG KONG China Mobile 1,044 HKD 7,651 6,647 1.53

7,651 6,647 1.53

ITALY Enel 3,624 EUR 16,271 21,784 5.01

16,271 21,784 5.01

JAPAN Mitsubishi Electric 527 JPY 5,768 5,510 1.27 Nippon Telegraph & Telephone 595 JPY 10,144 11,441 2.63 Sugi Holdings 237 JPY 8,662 9,537 2.20

24,574 26,488 6.10

JERSEY Ferguson 157 GBP 7,782 10,871 2.50

7,782 10,871 2.50

NETHERLANDS Unilever 190 EUR 7,975 8,304 1.91

7,975 8,304 1.91

PORTUGAL Galp Energia 1,080 EUR 12,352 13,767 3.17

12,352 13,767 3.17

SWITZERLAND Roche Holding 39 CHF 7,462 9,497 2.19

7,462 9,497 2.19

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 115 JOHCM Global Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

UNITED STATES Cognizant Technology Solutions 92 USD 4,654 4,302 0.99 Exelon 191 USD 7,044 6,564 1.51 Fastenal 212 USD 4,532 5,926 1.36 M&T Bank 67 USD 8,212 8,577 1.98 Oracle 523 USD 19,474 20,870 4.80 O'Reilly Automotive 17 USD 3,708 5,564 1.28 PepsiCo 53 USD 4,704 5,505 1.27 Philip Morris International 331 USD 20,641 21,478 4.94 Public Service Enterprise Group 236 USD 9,287 10,474 2.41 Raytheon 79 USD 10,555 13,140 3.03 TJX Cos 219 USD 7,315 10,139 2.33 Tractor Supply 147 USD 10,934 10,342 2.38 United Technologies 63 USD 5,189 7,123 1.64

116,249 130,004 29.92

Transferable securities admitted to an official stock exchange listing - equities 318,740 352,033 81.04

IRELAND BlackRock ICS US Treasury Fund 17,030 USD 13,278 12,892 2.97 Goldman Sachs - US$ Treasury Liquid Reserves Fund 17,030 USD 13,279 12,892 2.97

26,557 25,784 5.94

JPMorgan Liquidity Funds - US Dollar LUXEMBOURG Treasury Liquidity Fund 17,030 USD 13,276 12,892 2.97

13,276 12,892 2.97

Transferable securities admitted to an official stock exchange listing - investment fund 39,833 38,676 8.91

Transferable securities admitted to an official stock exchange listing 358,573 390,709 89.95

116 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Opportunities Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg GBP 20 USD (26) - - 02.01.20 RBC Investor Services Luxembourg USD 172 GBP (133) (3) - 02.01.20 RBC Investor Services Luxembourg USD 9 GBP (7) - - 02.01.20 RBC Investor Services Luxembourg USD 270 GBP (208) (4) - 02.01.20 RBC Investor Services Luxembourg USD 1,200 EUR (1,082) (12) - 02.01.20 RBC Investor Services Luxembourg USD 33 EUR (30) - - 03.01.20 RBC Investor Services Luxembourg EUR 13 USD (15) - - 03.01.20 RBC Investor Services Luxembourg GBP 51 USD (67) 1 - 03.01.20 RBC Investor Services Luxembourg GBP 22 USD (29) - - 03.01.20 RBC Investor Services Luxembourg GBP 23 USD (31) - - 03.01.20 RBC Investor Services Luxembourg USD 229 GBP (174) (1) - 03.01.20 RBC Investor Services Luxembourg USD 361 GBP (276) (2) - 03.01.20 RBC Investor Services Luxembourg USD 1,818 EUR (1,623) (4) - 31.01.20 RBC Investor Services Luxembourg EUR 50 USD (56) 1 - 31.01.20 RBC Investor Services Luxembourg GBP 7,404 USD (9,583) 155 0.03

Total as at 31 December 2019 131 0.03

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 117 JOHCM Global Opportunities Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

United States 29.92 34.10 Great Britain 12.28 12.64 France 8.75 6.24 Japan 6.10 8.58 Ireland 5.94 5.94 Finland 5.26 2.51 Italy 5.01 3.41 Portugal 3.17 2.64 Luxembourg 2.97 2.97 Jersey 2.50 2.80 Germany 2.42 0.05 Switzerland 2.19 2.88 Netherlands 1.91 6.91 Hong Kong 1.53 2.51

Total investments at fair value through profit or loss 89.95 94.18 Open foreign currency contracts 0.03 0.03

Total investments at fair value through profit or loss 89.98 94.21 Other net assets 10.02 5.79

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 47.71% (2018: 43.31%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

118 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Opportunities Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Public services 10.13 9.11 Aerospace technology 9.47 8.10 Investment funds 8.91 8.91 Internet software 7.17 10.24 Pharmaceuticals and cosmetics 6.14 9.30 Petrol 5.84 4.19 Tobacco and spirits 4.94 3.77 Retail 4.71 5.74 Mechanics and machinery 4.31 1.64 Consumer goods 4.28 2.19 News transmission 4.16 3.72 Holding and finance companies 3.48 10.95 Non-ferrous metals 2.84 2.50 Construction and building material 2.50 2.80 Leisure 2.49 - Tires and rubber 2.31 2.51 Banks and financial institutions 1.98 -

Insurance 1.70 - Food and distilleries 1.32 2.04 Electronics and electrical equipment 1.27 1.75 Graphic art and publishing - 2.37 Chemicals - 2.35

Total investments 89.95 94.18 Open foreign currency contracts 0.03 0.03

Total investments at fair value through profit or loss 89.98 94.21 Other net assets 10.02 5.79

Total net assets attributable to redeemable participating shareholders 100.00 100.00

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 119 JOHCM Global Opportunities Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES SALES Wartsila - Class B 1,768 18,910 Cognizant Technology Solutions 234 11,395 BlackRock ICS US Treasury Fund 20,486 16,035 Dollar General 95 11,277 JPMorgan Liquidity Funds - US JPMorgan Liquidity Funds - US Dollar Treasury Liquidity Fund 20,484 16,031 Dollar Treasury Liquidity Fund 13,949 10,907 Goldman Sachs - US$ Treasury BlackRock ICS US Treasury Fund 13,951 10,906 Liquid Reserves Fund 16,704 13,099 TD Ameritrade Holding 316 9,315 Henkel 168 12,882 Goldman Sachs - US$ Treasury Liquid Reserves Fund 11,135 8,721 Philip Morris International 198 12,262 Wolters Kluwer 160 8,644 Tractor Supply 157 11,681 Raytheon 53 8,471 Thales 148 11,299 Ferguson 117 7,525 Oracle 260 11,165 Akzo Nobel 101 6,906 Enel 2,206 11,074 Ain Holdings 147 6,657 Royal Dutch Shell - Class B 404 9,689 National Grid 804 6,456 Sanofi 142 9,593 Public Service Enterprise Group 130 6,060 Raytheon 66 9,164 Compass Group 282 5,461 M&T Bank 72 8,894 Kao 85 5,098 St James's Place 888 8,597 Sage Group 686 5,022 Cognizant Technology Solutions 155 8,368 China Mobile 656 4,808 Galp Energia 671 8,121 Safran 40 4,678 Nippon Telegraph & Telephone 534 8,004 TJX Cos 105 4,555 Exelon 207 7,626 O'Reilly Automotive 14 4,222 Rio Tinto 160 6,832 Philip Morris International 62 4,044 Nokian Renkaat 272 6,465 Sugi Holdings 90 3,811 Public Service Enterprise Group 125 5,759 Enel 632 3,574 National Grid 588 5,513 Oracle 76 3,190 China Mobile 791 5,485 Henkel 37 2,978 Sugi Holdings 150 5,207 Roche Holding 14 2,928 Compass Group 244 4,440 St James's Place 253 2,913 TD Ameritrade Holding 104 4,104 Rio Tinto 66 2,895 Ferguson Holdings 76 3,867 Mitsubishi Electric 263 2,746 Ferguson 60 3,255 Fastenal 77 2,516 PepsiCo 27 2,515 TJX Cos 76 3,119 Nokian Renkaat 96 2,245 Goldman Sachs - USD Treasury Instruments Liquid Reserves Fund 3,854 2,993 Goldman Sachs - USD Treasury Instruments Liquid Reserves Fund 2,888 2,245 The significant changes to the portfolio for the financial Wartsila - Class B 239 2,183 year are the aggregate purchases of a security exceeding Galp Energia 173 2,145 1% of the total value of purchases for the financial year. Sanofi 30 2,102 Where the number of purchases transactions exceeding 1% of the total value of purchases for the financial year is less The significant changes to the portfolio for the financial than 20, then a minimum of 20 purchases will be disclosed. year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

120 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Dividend Growth Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Investment Management Report 122

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 123 B) OTC financial derivative instruments: open foreign currency contracts 124 Geographic division of investments 125 Economic division of investments 126 Significant portfolio changes 127

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 121 JOHCM Japan Dividend Growth Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance After a year of aggressive selling, the a macro-driven view of the Nikkei The JOHCM Japan Dividend Growth improving earnings, as well as the index and examine the fundamentals Fund returned 12.86%, net of fees continued rise of activist activity in the of some of Japan’s extraordinarily and in sterling terms for the ‘A’ share market, should entice foreign investors cheap companies, many of which class, for the calendar year 2019. Over to look again at the Japanese market. are global leaders in their field and the same period the Topix 100 Index have made great strides in corporate (12pm adjusted) returned 16.93% in Despite the current dip in profits, governance. Moreover, in an age of sterling terms. dividends should collectively continue political uncertainty, the stability of to increase and buy-backs carry on Japan’s government should count for Portfolio review at a record pace. Once profits turn something. Investors continued their pursuit of up again, as they should, returns to overvalued large-cap growth names shareholders should accelerate. As during the year. The Fund, with its more than half of listed companies Scott McGlashan value focus, underperformed the have net cash on their balance sheets, Senior Fund Manager benchmark as a result, although the and as the overwhelming majority portfolio benefited from a market of companies use cash in the bank Ruth Nash rotation towards value in the final rather than borrow to fund dividends Senior Fund Manager calendar quarter that helped a modest and buy-backs, the impact is wholly recovery in relative returns as the year benign. Shareholders should see Past performance is not necessarily a concluded. improved cash flows, corporate returns guide to future performance. The price on equity improve and balance sheets of shares may go down as well as up Both sector allocation effects and stay strong. and future income is not guaranteed. stock selection contributed to the overall underperformance. Weakness Having successfully hosted the Rugby was concentrated primarily among World Cup, the eyes of the world will our services holdings including Japan turn again to Japan in the summer as Post Holdings. Z Holdings (formerly it hosts the Olympic and Paralympic Yahoo! Japan) was the top contributor games. Investors may start to worry to performance. Having recently about a possible post-Olympics announced that it was buying Zozo, economic slowdown, but the Abe Japan’s top online fashion website, the government is likely to announce company also announced a business further fiscal stimulus measures to integration with Line, a messaging ensure that economic momentum is app with more than 190 million users maintained. Japan’s popularity as a globally. tourist destination will continue to grow. After a negative start to the fiscal year, earnings momentum in Japan is likely Foreign investors tend to approach to turn more positive in the second Japan from a top-down perspective. half. Whilst a “V” shaped recovery is They regard the market as little unlikely, the gradual bottoming out more than a geared play on global of the OECD leading indicator series growth. It would be nice to think suggests that the worst is behind us. that in 2020 they might look beyond

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 122 JOHCM Japan Dividend Growth Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

JAPAN Asahi Glass 6 JPY 181 164 2.18 Canon 7 JPY 188 146 1.94 Dai Nippon Printing 5 JPY 101 104 1.38 Daiwa Securities 35 JPY 168 135 1.80 Denso 5 JPY 172 173 2.30 East Japan Railway 3 JPY 196 172 2.29 Fuji Heavy Industries 11 JPY 261 208 2.77 Fujifilm Holdings 6 JPY 178 219 2.91 Hankyu Hanshin Holdings 5 JPY 142 163 2.17

Hitachi 9 JPY 169 290 3.86 Japan Airlines 9 JPY 224 213 2.83 Japan Post Holdings 28 JPY 238 200 2.66 JX Holdings 58 JPY 185 201 2.67 KDDI 8 JPY 142 181 2.41 Minebea 12 JPY 137 187 2.49 Mitsubishi 12 JPY 245 243 3.23 Mitsubishi Chemical Holdings 42 JPY 242 239 3.18 Mitsubishi Electric 13 JPY 138 137 1.82 Mitsubishi Estate 15 JPY 212 219 2.91 MS&AD Insurance Group Holdings 7 JPY 158 176 2.34 Nippon Express 5 JPY 237 224 2.98 Nippon Steel 15 JPY 182 173 2.30 ORIX 17 JPY 187 215 2.86 Resona Holdings 55 JPY 204 184 2.45 Sekisui Chemical 14 JPY 160 186 2.47 Sekisui House 16 JPY 163 260 3.46 Seven & i Holdings 7 JPY 206 195 2.59 Shin-Etsu Chemical 2 JPY 137 168 2.23 Sumitomo Electric Industries 13 JPY 138 150 2.00 Sumitomo Mitsui Trust Holdings 5 JPY 135 151 2.01 Taisei 8 JPY 257 254 3.38 TDK 3 JPY 186 259 3.45 Tokio Marine Holdings 6 JPY 172 256 3.41 Toyota Industries 5 JPY 198 221 2.94 Toyota Motor 8 JPY 362 430 5.72 Z Holdings 86 JPY 184 276 3.67

6,785 7,372 98.06

Transferable securities admitted to an official stock exchange listing 6,785 7,372 98.06

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 123 JOHCM Japan Dividend Growth Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

06.01.20 RBC Investor Services Luxembourg JPY 1 GBP - - - 06.01.20 RBC Investor Services Luxembourg JPY 117 GBP (1) - - 06.01.20 RBC Investor Services Luxembourg JPY 14 GBP - - - 31.01.20 RBC Investor Services Luxembourg GBP 1,599 JPY (225,863) 23 0.31 31.01.20 RBC Investor Services Luxembourg USD 245 JPY (26,742) (1) (0.01)

Total as at 31 December 2019 22 0.30

124 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Dividend Growth Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Japan 98.06 99.72

Total investments 98.06 99.72 Open foreign currency contracts 0.30 (0.01)

Total investments at fair value through profit or loss 98.36 99.71 Other net assets 1.64 0.29

Total net assets attributable to redeemable participating shareholders 100.00 100.00

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 125 JOHCM Japan Dividend Growth Fund

ECONOMIC OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Holding and finance companies 21.14 23.75 Automobile industry 13.73 11.21 Construction and building material 11.49 9.45 Transportation 10.76 10.08 Electronic semiconductor 9.25 9.78 Banks and financial institutions 4.66 4.90 Electronics and electrical equipment 3.82 5.42 Internet software 3.67 - Business houses 3.23 3.92 Real estate companies 2.91 3.60 Retail 2.59 2.44 Mechanics and machinery 2.49 5.50 News transmission 2.41 3.80 Mines and heavy machinery 2.30 - Chemicals 2.23 4.27 Graphic art and publishing 1.38 1.60

Total investments at fair value through profit or loss 98.06 99.72 Open foreign currency contracts 0.30 (0.01)

Total investments at fair value through profit or loss 98.36 99.71 Other net assets 1.64 0.29

Total net assets attributable to redeemable participating shareholders 100.00 100.00

126 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Japan Dividend Growth Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost

’000 £

PURCHASES Aisin Seiki 41 1,206 Z Holdings 470 1,006 Takeda Pharmaceutical 32 987 Seven & i Holdings 31 914 East Japan Railway 12 901 Ryohin Keikaku 5 820 Denso 23 790 Nippon Express 17 763 TDK 13 720 KDDI 35 622 Hitachi Construction Machinery 35 619 Hulic 95 615 Hankyu Hanshin Holdings 21 595 Taisei 19 575 Mitsubishi 27 567 Dai Nippon Printing 20 404 Shin-Etsu Chemical 6 396 Fuji Heavy Industries 18 329 Mitsubishi Electric 35 314 Mitsubishi Estate 21 310 Resona Holdings 83 272 Sumitomo Mitsui Trust Holdings 10 268 Mitsubishi Chemical Holdings 40 219 Sumitomo 20 211 Nippon Steel 15 182 West Japan Railway 3 171 Toyota Motor 3 168

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 127 JOHCM Japan Dividend Growth Fund

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

SALES SALES KDDI 152 2,826 West Japan Railway 26 1,664 Mitsubishi UFJ Financial Group 700 2,697 Sumitomo 140 1,649 Mitsubishi Estate 186 2,509 TDK 23 1,625 Denso 73 2,463 Sekisui Chemical 128 1,614 Seven & i Holdings 68 2,228 Sekisui House 109 1,568 Toyota Motor 43 2,222 Toyota Industries 37 1,532 Resona Holdings 623 2,201 Sumitomo Mitsui Trust Holdings 52 1,522 Shin-Etsu Chemical 31 2,191 Hitachi 83 2,184 Japan Post Holdings 182 1,508 Fujifilm Holdings 62 2,136 MS&AD Insurance Group Holdings 58 1,394 Mitsubishi Electric 197 1,981 Dai Nippon Printing 75 1,386 Komatsu 105 1,948 Asahi Glass 51 1,365 Taisei 57 1,864 Mitsubishi 65 1,356 ORIX 157 1,843 JX Holdings 332 1,186 Minebea 138 1,826 Tokyo Electron 11 1,175 Nippon Express 38 1,812 Aisin Seiki 41 1,142 Canon 80 1,767 Z Holdings 384 1,023 Sumitomo Electric Industries 162 1,760 Tokio Marine Holdings 43 1,732 Daiwa Securities 265 1,023 Japan Airlines 66 1,725 Nitto Denko 25 1,001 Mitsubishi Chemical Holdings 298 1,721 Takeda Pharmaceutical 32 910 Fuji Heavy Industries 87 1,680 Hulic 95 748

128 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM US Small Mid Cap Equity Fund*

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Thorsten Becker Arun Daniel Vincent Rivers Senior Fund Manager Senior Fund Manager Senior Fund Manager Thorsten joined JOHCM in June Arun joined JOHCM in June Vincent joined JOHCM in June 2014 and has 23 years industry 2014 and has 28 years industry 2014 and has 23 years industry experience experience experience

Investment Management Report 130

Schedule of investments Significant portfolio changes 131

* JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 129 JOHCM US Small Mid Cap Equity Fund*

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Building supplies manufacturer Masco The JOHCM US Small Mid Cap Equity also contributed well over the period. Fund returned 21.49%, net of fees and in sterling terms for the ‘A’ share class Turning to the laggards, benefit for the 10-month period to its closure management platform for employers, on 31 October 2019. Over the same Benefitfocus, was the main source of period the Russell 2500 NR Index weakness at the stock level. Its shares (12pm adjusted) returned 19.69%. trended lower for much of the year after it reported a quarterly loss Portfolio review in May. US equities enjoyed a particularly strong period. The year started well Luxury fashion company Tapestry with markets supported by the Federal dipped on the back of weaker-than- Reserve’s more dovish stance on expected guidance. Its shares dropped monetary policy signalling there would materially in August despite revenue be no further interest rate hikes in growth in its Kate Spade and Stuart the year. Further comments in June Weitzman brands. signalling further accommodative policy also helped strengthen Despite good performance, the this position. Investor positivity Investment Manager was unable surrounding the US-China trade talks to attract significant inflows from also boosted sentiment. investors for the JOHCM US Small and Mid Cap Equity Fund. It was therefore The portfolio outperformed over the decided that the most appropriate period with stock selection the sole course of action would be to close the driver of returns (sector allocation sub-fund. The JOHCM US Small and effects were neutral in aggregate). Mid Cap Equity Fund was terminated on 07 November 2019. Individual stocks of note include Carbon Black, which was the top Thorsten Becker performer over the period. Its shares Senior Fund Manager rose after a deal was agreed for software company VMware to purchase Arun Daniel the cybersecurity company for Senior Fund Manager US$2.1bn. Vincent Rivers Elsewhere, Leidos performed well. Senior Fund Manager The company provides technology, engineering and science solutions Past performance is not necessarily a services to defence, intelligence, guide to future performance. The price homeland security, civil and health of shares may go down as well as up sectors. Its shares jumped significantly and future income is not guaranteed. at the end of April on the back of strong revenue growth, beating analyst expectations.

* JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 130 JOHCM US Small Mid Cap Equity Fund*

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost

’000 £

PURCHASES1 FLIR Systems 29 1,141 Huntington Ingalls Industries 7 1,117 Lamb Weston Holdings 22 1,087 EVERTEC 40 1,067 Cogent Communications Holdings 18 857 Canada Goose Holdings 26 833 Monolithic Power Systems 7 735 Benefitfocus 23 662 Tiffany 9 611 HD Supply Holdings 17 533 Martin Marietta Materials 1 290 Rapid7 6 277 SVB Financial Group 2 275 Carbon Black 24 256 Jones Lang LaSalle 2 252 Terex 5 134 FMC 2 131 Sabre 7 131 Masco 5 128 ForeScout Technologies 4 114 Livent 14 110

1 Represents total purchases during the year.

* JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 131 JOHCM US Small Mid Cap Equity Fund*

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

SALES1 SALES1 Rapid7 65 2,344 Sabre 73 1,274 MasTec 41 1,967 FMC 17 1,244 Allegion 22 1,938 Tableau Software 9 1,222 Leidos Holdings 28 1,912 FLIR Systems 29 1,177 First American Financial 39 1,859 Huntington Ingalls Industries 7 1,156 Woodward 23 1,818 Post Holdings 14 1,136 Jacobs Engineer Group 24 1,798 Conmed 13 1,107 Carbon Black 84 1,780 Martin Marietta Materials 9 1,760 Terex 49 1,033 Masco 48 1,716 Jazz Pharmaceuticals 10 966 Zayo Group Holdings 64 1,672 Great Western Bancorp 35 962 Burlington Stores 11 1,590 Heska 15 961 ForeScout Technologies 60 1,554 MGM Growth Properties 39 960 Tiffany 16 1,538 Evertec 40 944 Nomad Foods 97 1,535 Benefitfocus 48 921 SVB Financial Group 9 1,534 Monolithic Power Systems 7 900 Raymond James Financial 22 1,457 CommVault Systems 22 855 Jones Lang LaSalle 13 1,448 First Republic Bank 17 1,370 Canada Goose Holdings 26 855 HD Supply Holdings 44 1,355 Tapestry 47 817 Syneos Health 34 1,346 Toll Brothers 26 817 Lamb Weston Holdings 22 1,323 Cogent Communications Holdings 18 817 Service Corp International 38 1,317 Iberiabank 14 799 HubSpot 10 1,296 SEI Investments 15 724 ServiceMaster Global Holdings 39 1,286 Mosaic 45 724 Wright Medical Group 41 684

1 Represents total sales during the year.

* JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019.

132 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Concentrated Value Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Robrecht Wouters Senior Fund Manager Robrecht joined JOHCM in September 2003 and has 29 years industry experience

Investment Management Report 134

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 135 B) OTC financial derivative instruments: open foreign currency contracts 136 Geographic division of investments 137 Economic division of investments 138 Significant portfolio changes 139

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 133 JOHCM European Concentrated Value Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Nokia was the worst performer over to talk positive too soon, but the The JOHCM European Concentrated the year after a sharp share price fall carve-out of the elevator business unit Value Fund returned 8.77%, net of following its Q3 results. Nokia’s share should highlight that a lot of value can fees and in euro terms for the ‘A’ share price is notoriously volatile on results, be unlocked in the medium term. class, for the calendar year 2019. and we have been here before. But The MSCI Europe NR Index (12pm we have always been patient investors Rolls-Royce was the other material adjusted) returned 26.18% over the whilst awaiting the 5G investment laggard. The market has been focussd same period. cycle start. The company’s share on issues surrounding its troubled price has duly recovered each time. Trent 1000 engine and towards Portfolio review With 5G investments underway, Nokia the end of the year the company Macro headwinds and stock-specific should benefit from revenue tailwinds, announced some further cost setbacks made for an extremely and it is indeed winning its fair share remediation. challenging year for the portfolio. In of deals. This share price setback May, eurozone government bonds followed after the company shocked Despite these setbacks, we remain yields turned negative (and remained the market with a margin downgrade. invested in these three names as we negative for the rest of the year), Margins on very competitive land grab see significant recovery potential. revaluing large cap growth and low- contracts seemed below average. volatility, defensive equities (far This is not unusual, albeit difficult to Over the last few years, the Fund’s beyond reasonable valuations) and quantify. There were also temporary disciplined absolute value focus has led devaluing cyclicals and mid- and cost issues (a supplier problem led to to a gradual shift of the portfolio from small-caps. This provided a headwind less efficient, higher cost component what we call ‘quality value’ stocks to for our strategy. In addition, the alternatives), which further pressured typical ‘classic value’ stocks, because, portfolio faced some material stock- margins. In response, management after a long bull market, the face of specific setbacks with too few positive reduced its long-term mid-point value has changed. This value style compensations. margin target from 14% to 13%. This, shift did not work in 2019, but we in itself, was not dramatic. However, believe it will over the longer term. Stock selection was the main source in combination with a delay in the of weakness over the period, although margin recovery (time value), all other Robrecht Wouters sector allocation effects also weighed things being equal, the net present Senior Fund Manager (albeit to a much lesser degree) on value of Nokia’s intrinsic value declined returns. Our significant overweight in by 15-18% to €6.1-6.3 per share. We Past performance is not necessarily a communication services was the main believe the share price correction was guide to future performance. The price culprit in terms of sector tilts. Turning a huge overreaction and the shares of shares may go down as well as up to stock selection, the main laggards have since recovered somewhat. and future income is not guaranteed. were our technology, consumer staples, materials and industrials Industrial conglomerate ThyssenKrupp holdings. saw its shares fall sharply towards the end of the year. It reported results Looking at individual stock and net debt in line with expectations contributions, there were three key but the new management was laggards which provided a +600bps understandably cautious on the short- headwind. term outlook. There is no incentive

134 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Concentrated Value Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

FINLAND Nokia 1,406 EUR 5,479 3,940 2.32 Wartsila - Class B 550 EUR 7,021 4,601 2.71

12,500 8,541 5.03

FRANCE Danone 139 EUR 8,027 8,720 5.13 Imerys 168 EUR 8,670 5,362 3.15

JCDecaux 272 EUR 7,494 6,339 3.73 Sanofi 90 EUR 6,159 6,852 4.03 Vivendi 368 EUR 6,307 8,066 4.75

36,657 35,339 20.79

GERMANY Bayer 104 EUR 7,784 6,430 3.78 Deutsche Post 221 EUR 5,516 6,385 3.76 Henkel 69 EUR 5,884 4,902 2.88 Metro 642 EUR 9,892 7,829 4.61 SAP 91 EUR 7,184 9,277 5.46 Siemens 42 EUR 4,212 4,165 2.45 ThyssenKrupp 723 EUR 12,036 7,396 4.35 United Internet 266 EUR 7,944 6,609 3.89

60,452 52,993 31.18

GREAT BRITAIN Liberty Global - Class C 536 USD 12,540 8,752 5.15 Reckitt Benckiser Group 105 GBP 6,011 6,400 3.77 Rolls-Royce Holdings 959 GBP 7,674 6,574 3.87 Royal Dutch Shell - Class B 260 GBP 6,020 5,835 3.43

32,245 27,561 16.22

NETHERLANDS Heineken Holding 106 EUR 7,056 7,835 4.61 OCI 379 EUR 7,877 6,029 3.55 Wolters Kluwer 77 EUR 2,658 4,257 2.51

17,591 18,121 10.67

SPAIN Grifols 216 EUR 4,289 5,774 3.40

4,289 5,774 3.40

SWITZERLAND Schindler Holding 22 CHF 3,681 4,167 2.45

3,681 4,167 2.45

UNITED STATES Oracle 240 USD 8,365 9,578 5.64

8,365 9,578 5.64

Transferable securities admitted to an official stock exchange listing 175,780 162,074 95.38

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 135 JOHCM European Concentrated Value Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

02.01.20 RBC Investor Services Luxembourg EUR 521 GBP (445) (3) - 02.01.20 RBC Investor Services Luxembourg EUR 1,047 GBP (895) (5) - 02.01.20 RBC Investor Services Luxembourg EUR 579 GBP (495) (3) - 02.01.20 RBC Investor Services Luxembourg EUR 1,160 GBP (992) (6) (0.01) 02.01.20 RBC Investor Services Luxembourg EUR 522 GBP (447) (3) - 02.01.20 RBC Investor Services Luxembourg EUR 578 GBP (494) (3) - 03.01.20 RBC Investor Services Luxembourg SGD 80,073 EUR (53,078) (66) (0.04) 03.01.20 RBC Investor Services Luxembourg SGD 716 EUR (474) - - 03.01.20 RBC Investor Services Luxembourg EUR 375 CHF (407) - - 03.01.20 RBC Investor Services Luxembourg EUR 374 CHF (406) - - 03.01.20 RBC Investor Services Luxembourg EUR 751 CHF (815) - -

Total as at 31 December 2019 (89) (0.05)

136 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Concentrated Value Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Germany 31.18 19.17 France 20.79 22.29 Great Britain 16.22 23.32 Netherlands 10.67 13.47 United States 5.64 5.51 Finland 5.03 7.87 Spain 3.40 4.59 Switzerland 2.45 -

Total investments at fair value through profit or loss 95.38 96.22 Open foreign currency contracts (0.05) 0.14

Total investments at fair value through profit or loss 95.33 96.36 Other net assets 4.67 3.64

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 87.29% (2018: 90.71%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 137 JOHCM European Concentrated Value Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Internet software 14.99 9.55 Graphic art and publishing 10.99 18.20 Food and distilleries 9.74 11.45 News transmission 7.47 10.91 Chemicals 7.33 6.39 Consumer goods 6.65 6.23 Mechanics and machinery 5.16 2.33 Tobacco and spirits 4.61 8.71 Mines and heavy machinery 4.35 4.53 Pharmaceuticals and cosmetics 4.03 2.81 Aerospace technology 3.87 5.70 Transportation 3.76 - Petrol 3.43 2.72 Biotechnology 3.40 4.59

Construction and building material 3.15 2.10 Electronics and electrical equipment 2.45 -

Total investments at fair value through profit or loss 95.38 96.22 Open foreign currency contracts (0.05) 0.14

Total investments at fair value through profit or loss 95.33 96.36 Other net assets 4.67 3.64

Total net assets attributable to redeemable participating shareholders 100.00 100.00

138 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM European Concentrated Value Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES1 SALES1 United Internet 582 17,422 Wolters Kluwer 344 18,835 OCI 746 15,711 Danone 279 18,303 Deutsche Post 502 12,541 Metro 1,388 17,344 Schindler Holding 58 9,847 Liberty Global - Class C 908 16,966 ThyssenKrupp 494 5,514 Grifols 671 16,878 Siemens 55 5,494 SAP 169 16,484 Imerys 134 4,477 Oracle 384 16,336 SAP 54 4,451 Akzo Nobel 242 16,010 Bayer 83 4,396 Nokia 4,073 15,065 Wartsila - Class B 424 4,250 Rolls-Royce Holdings 1,995 14,920 Royal Dutch Shell - Class B 132 3,023 Vivendi 657 14,376 Nokia 593 2,348 Pernod Ricard 94 12,882 Rolls-Royce Holdings 239 2,150 ThyssenKrupp 1,113 11,824 Sanofi 29 2,083 Heineken Holding 152 11,708 British American Tobacco 43 1,358 JCDecaux 462 10,311 Danone 19 1,236 Reed Elsevier 554 10,263 Henkel 16 1,169 Reckitt Benckiser Group 141 8,752 Metro 63 794 United Internet 317 8,451 Liberty Global - Class C 42 769 Deutsche Post 281 7,881 Pearson 58 502 Bayer 132 7,830 British American Tobacco 262 7,791 1 Represents total purchases during the year. Royal Dutch Shell - Class B 335 7,696

The significant changes to the portfolio for the financial Sanofi 104 7,680 year are the aggregate purchases of a security exceeding Schindler Holding 36 6,870 1% of the total value of purchases for the financial year. Pearson 1,008 6,860 Where the number of purchases transactions exceeding 1% OCI 368 6,070 of the total value of purchases for the financial year is less than 20, then a minimum of 20 purchases will be disclosed. Imerys 189 6,052 Henkel 79 5,789 Wartsila - Class B 617 5,251

1 Represents total sales during the year.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 139 140 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Smaller Companies Fund*

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Thorsten Becker Arun Daniel Vincent Rivers Senior Fund Manager Senior Fund Manager Senior Fund Manager Thorsten joined JOHCM in June Arun joined JOHCM in June Vincent joined JOHCM in June 2014 and has 29 years industry 2014 and has 28 years industry 2014 and has 23 years industry experience experience experience

Investment Management Report 142

Schedule of investments Significant portfolio changes 143

* JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 141 JOHCM Global Smaller Companies Fund*

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Elsewhere, Leidos performed well. The JOHCM Global Smaller Companies The company provides technology, Fund returned 15.46%, net of fees and engineering and science solutions in dollar terms for the ‘A’ share class services to defence, intelligence, for the nine month period to its closure homeland security, civil and health on 30 September 2019. Over the sectors. Its shares jumped significantly same period the MSCI AC World SMID at the end of April on the back of NR Index (12pm adjusted) returned strong revenue growth, beating 15.40%. analyst expectations.

Portfolio review Turning to the laggards, benefit Global equities enjoyed a particularly management platform for employers, strong period. The year started well Benefitfocus, was the main source of with markets supported by the Federal weakness at the stock level. Its shares Reserve’s more dovish stance on trended lower for much of the year monetary policy signalling there would after it reported a quarterly loss in be no further interest rate hikes in May. the year. Further comments in June signalling further accommodative Luxury fashion company Tapestry policy also helped strengthen dipped on the back of weaker-than- this position. Investor positivity expected guidance. Its shares dropped surrounding the US-China trade talks materially in August despite revenue also boosted sentiment. growth in its Kate Spade and Stuart Weitzman brands. The portfolio performed broadly in line with the benchmark over the period Despite good performance, the with stock selection the sole driver of Investment Manager was unable returns (sector allocation effects were to attract significant inflows from neutral in aggregate). investors for the JOHCM Global Smaller Companies Fund. It was therefore Individual stocks of note include decided that the most appropriate Carbon Black, which was one of the course of action would be to close the top performers over the period. Its sub-fund. The JOHCM Global Smaller shares rose after a deal was agreed Companies Fund was terminated on for software company VMware to 17 October 2019. purchase the cybersecurity company for US$2.1bn. Thorsten Becker Senior Fund Manager

Arun Daniel Senior Fund Manager

Vincent Rivers Senior Fund Manager

Past performance is not necessarily a guide to future performance. The price of shares may go down as well as up and future income is not guaranteed.

* JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 142 JOHCM Global Smaller Companies Fund*

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost

’000 £

PURCHASES1 Huntington Ingalls Industries 1 91 Lamb Weston Holdings 2 89 FLIR Systems 2 81 EVERTEC 3 74 Canada Goose Holdings 2 68 Cellnex Telecom 3 65 Monolithic Power Systems 1 61 Tiffany 1 51 Cogent Communications Holdings 1 47 Benefitfocus 2 45 HD Supply Holdings 1 43 Martin Marietta Materials - 23 Jones Lang LaSalle - 13 Carbon Black 1 13 Rapid7 - 11 SVB Financial Group - 11 Terex - 11 Sabre 1 11 Masco - 10 ForeScout Technologies - 9

1 Represents total purchases during the year.

* JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 143 JOHCM Global Smaller Companies Fund*

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

SALES1 SALES1 Jacobs Engineer Group 3 199 Sophos Group 13 76 MasTec 4 172 SVB Financial Group - 76 Allegion 2 150 Benefitfocus 4 75 Martin Marietta Materials 1 146 SBA Communications - 75 Nitori Holdings 1 142 Service Corp International 2 74 Burlington Stores 1 129 Syneos Health 2 71 Masco 3 115 Jones Lang LaSalle 1 70 Nomad Foods 7 115 Tsuruha Holdings 1 114 EVERTEC 3 70 Woodward 1 109 Monolithic Power Systems 1 69 Lamb Weston Holdings 2 108 FMC 1 68 ServiceMaster Global Holdings 3 108 MGM Growth Properties 3 66 Rapid7 3 104 Canada Goose Holdings 2 65 Godrej Consumer Products 13 103 Aareal Bank 3 64 Carbon Black 5 102 Tapestry 4 64 HD Supply Holdings 3 98 Mosaic 4 62 Post Holdings 1 97 H Lundbeck 2 56 Tiffany 1 96 ForeScout Technologies 4 96 Sabre 3 56 Cellnex Telecom 3 92 Samsung Fire & Marine Insurance - 56 Huntington Ingalls Industries 1 89 CONMED 1 56 Leidos Holdings 1 88 Raymond James Financial 1 56 Zayo Group Holdings 3 86 First American Financial 1 54 FLIR Systems 2 85 1 Represents total purchases during the year. HubSpot 1 83 Erste Group Bank 3 80 The significant changes to the portfolio for the financial Lancashire Holdings 11 79 year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the Terex 4 78 number of sales transactions exceeding 1% of the total Tableau Software 1 77 value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

144 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Dynamic Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Alex Savvides Senior Fund Manager Alex joined JOHCM in March 2003 and has 23 years industry experience

Investment Management Report 146

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 147 Geographic division of investments 149 Economic division of investments 150 Significant portfolio changes 151

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 145 JOHCM UK Dynamic Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance Stock selection accounted for 80% of the offering made for a sluggish in-store sales The JOHCM UK Dynamic Fund (IRE) year’s return, with positive stock picking picture, although the group’s wholesale returned 20.93%, net of fees and for the occurring in all four quarters of the business continues to perform well. ‘A’ share class, for the 2019 calendar year. year. Sector allocation also contributed White-label products maker McBride The FTSE All-Share Total Return Index positively, with overweight positions in also dragged on returns. We exited (12pm adjusted) returned 19.29% over industrials and consumer services proving our position on evidence that the the same period. helpful. management’s turnaround strategy Portfolio review Longstanding portfolio holding 3i Group had stalled in its attempt to transition 2019 was a banner year for global stock was the Fund’s top individual performer the business from ‘fix’ to ‘prepare for markets including UK equities. Following and remains the largest active position growth’. McBride has become dogged a sharp sell-off in Q4 2018, financial in the portfolio. Management continued by intense margin pressures from markets rebounded strongly in Q1 2019, to successfully execute on their strategy, customers, raw material cost inflation helped by the US Federal Reserve bringing helped by the ongoing strong operational and logistics cost increases. After what a halt to its programme of interest rate performance of European discount had been a very promising first two rises (later cutting rates three times in retailer Action, 3i’s largest investment. years of the turnaround strategy, with the second half of the year). The final Industrial and electronics supplier McBride becoming the pre-eminent calendar quarter was also rewarding for Electrocomponents was another solid own-label manufacturer to European investors. Stock markets were boosted by performer for the Fund. It delivered supermarkets for household products, this a cooling of trade tensions between the strong full-year results and resilient was a disappointing outcome. It served US and China, marked by a “phase one” current trading. as a harsh reminder of the difficulties agreement between the two countries of turning around businesses with high Daily Mail & General Trust (now scheduled for January 2020, and receding customer concentrations in low margin rebranded DMGT) was also a top five fears over Brexit. industries. performer for the Fund as the share price Apropos the latter, a decisive victory responded to management’s successful Elsewhere, portfolio voids AstraZeneca by Boris Johnson’s Conservative party execution in a transformational year. The and British American Tobacco weighed in December’s general election drew distribution of the group’s shareholding on relative returns while Fund holding a line under a year of Brexit-based in Euromoney, and the sales of RCA, Hunting also dragged upon performance. political turbulence. After Theresa On Geo and Genscape were significant Recent analysis from Goldman Sachs May was forced to step down as prime steps in unlocking the hidden value shows that changes in earnings forecasts minister in June after her attempts to within this conglomerate business. These have been the most successful factor in pass her EU Withdrawal Agreement disposals demonstrated not only a clear determining share price performances through Parliament repeatedly failed, commitment to unlocking this value but since 2009. This will have important newly-installed Conservative leader also illustrated the premium valuation implications for the valuation of UK Boris Johnson successfully gambled on a that some of these high quality, data- domestic stocks if earnings profiles turn general election to end the impasse. After led, imbedded businesses can reach. positive. Towards the end of the year, three years of chronic political uncertainty This has very positive implications for the Fund further increased its capital that had rendered UK equities an unloved many of the businesses that DMGT weighting to UK revenues, with increased asset class, investors reacted favourably still owns, most notably RMS (the position sizes in ITV, Barclays, Crest to the resounding Conservative party world’s leading natural catastrophe Nicholson, McCarthy & Stone and a new win. Domestic-facing stocks and sterling modelling business), Landmark (the UK’s position in Travis Perkins. were notable immediate beneficiaries. leading provider of land and property Alongside expectations of increased information), Hobsons (a global leader Looking ahead, beyond clear asset government spending, hopes have now in education technology),Trepp (the valuation risks, we expect political risen for an upturn in business confidence largest commercially available database and economic risk associated with the and investment that may reinvigorate the of securitised mortgages) and MailOnline. forthcoming negotiation of a UK-EU trade UK economy and investor interest in UK DMGT is now a top five active position. deal, any fallout from mounting demands stocks more generally. for another Scottish independence Owning Royal Dutch Shell and not owning referendum and the US elections to name Sector winners over the year included mining group Glencore completed the line a few. It will be a tricky year but, as technology, industrials, healthcare and up of the top five stocks. always, we will remain vigilant with an consumer services while the telecoms and Turning to the laggards, Morrison (Wm) especially careful eye on valuations. oil & gas sectors were distant laggards. Supermarket’s share price drifted From a style perspective, although value Alex Savvides downwards over 2019 to leave the stock stocks benefited from an autumnal Senior Fund Manager as the worst overall portfolio performer market rotation, it was another year in for the Fund. A challenging UK retail Past performance is not necessarily a which highly-rated quality growth stocks market, ongoing competition from guide to future performance. The price characterised by predictable earnings German discounters Aldi and Lidl and a of shares may go down as well as up and outperformed overall. couple of missteps in Morrison’s retail future income is not guaranteed.

146 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Dynamic Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GREAT BRITAIN 3i 71 GBP 695 778 4.44 AG Barr 3 GBP 16 16 0.09 Aggreko 27 GBP 214 226 1.29 Anglo American 32 GBP 582 688 3.92 Aviva 143 GBP 664 601 3.43 Barclays 397 GBP 714 714 4.07 BP 166 GBP 899 789 4.50 Centrica 349 GBP 304 312 1.78 Chemring 61 GBP 119 146 0.83

Consort Medical 9 GBP 73 93 0.53 ConvaTec Group 56 GBP 96 111 0.63 Crest Nicholson Holdings 50 GBP 191 216 1.23 Daily Mail & General Trust 64 GBP 464 530 3.02 Electrocomponents 86 GBP 557 580 3.31 Elementis 123 GBP 238 221 1.26 Empiric Student Property 121 GBP 115 118 0.67 Essentra 64 GBP 274 280 1.60 Euromoney Institutional Investor 21 GBP 269 269 1.53 GlaxoSmithKline 49 GBP 773 862 4.92 Hammerson 64 GBP 167 198 1.13 HSBC Holdings 91 GBP 611 535 3.05 Hunting 43 GBP 259 180 1.03 Hyve Group 224 GBP 183 230 1.31 ITV 257 GBP 366 387 2.21 John Wood Group 65 GBP 238 259 1.48 Lloyds Banking Group 910 GBP 566 569 3.24 McCarthy & Stone 139 GBP 170 208 1.19 Melrose Industries 163 GBP 338 392 2.24 Moneysupermarket.com Group 63 GBP 204 210 1.20 National Express Group 24 GBP 96 113 0.64 Numis 31 GBP 103 93 0.53 Provident Financial 14 GBP 66 66 0.38 QinetiQ 151 GBP 418 544 3.10 Restaurant Group 289 GBP 470 472 2.69 Rio Tinto 9 GBP 377 423 2.41 Royal Dutch Shell - Class B 33 GBP 840 750 4.28 SDL 23 GBP 110 136 0.78 SIG 160 GBP 211 197 1.12 St Modwen Properties 90 GBP 373 453 2.58

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 147 JOHCM UK Dynamic Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

GREAT BRITAIN Stock Spirits Group 106 GBP 243 221 1.26 (continued) Tesco 200 GBP 471 506 2.88 Travis Perkins 11 GBP 166 177 1.01 TT Electronics 79 GBP 186 197 1.12 Urban & Civic 92 GBP 286 319 1.82 Vodafone Group 396 GBP 668 584 3.33 Wm Morrison Supermarkets 300 GBP 671 602 3.43

16,114 16,571 94.49

JERSEY Man Group 200 GBP 329 315 1.80 WPP 44 GBP 398 465 2.65

727 780 4.45

Transferable securities admitted to an official stock exchange listing 16,841 17,351 98.94

148 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Dynamic Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Geographic division of investments

Net assets Net assets 2019 2018

% %

Great Britain 94.49 96.19 Jersey 4.45 0.65

Total investments at fair value through profit or loss 98.94 96.84 Other net assets 1.06 3.16

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 94.49% (2018 : 96.19%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 149 JOHCM UK Dynamic Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Economic division of investments

Net assets Net assets 2019 2018

% %

Holding and finance companies 11.54 10.77 Banks and financial institutions 10.89 11.95 Petrol 10.26 11.62 Graphic art and publishing 8.51 4.95 Non-ferrous metals 6.33 7.05 Retail 6.31 6.81 Real estate companies 6.20 4.79 News transmission 5.54 4.73 Construction and building material 4.55 3.18 Aerospace technology 3.93 4.69 Mechanics and machinery 3.53 1.82 Insurance 3.43 3.19 Business houses 3.31 3.41

Chemicals 2.86 4.16 Leisure 2.69 4.00 Internet software 1.98 2.07 Public services 1.78 0.00 Transportation 1.67 3.09 Tobacco and spirits 1.26 1.67 Electronic semiconductor 1.12 1.23 Other services 0.63 0.00 Pharmaceuticals and cosmetics 0.53 0.00 Food and distilleries 0.09 1.08 Consumer goods - 0.58

Total investments at fair value through profit or loss 98.94 96.84 Other net assets 1.06 3.16

Total net assets attributable to redeemable participating shareholders 100.00 100.00

150 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM UK Dynamic Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES SALES GlaxoSmithKline 30 491 GlaxoSmithKline 25 421 WPP 47 432 Royal Dutch Shell - Class B 16 390 Wm Morrison Supermarkets 201 415 BP 64 327 BP 74 386 3i 30 322 Centrica 435 385 Anglo American 16 308 Royal Dutch Shell - Class B 16 385 QinetiQ 101 305 Daily Mail & General Trust 47 365 Electrocomponents 49 293 Barclays 217 361 Restaurant Group 203 292 Anglo American 17 346 Lloyds Banking Group 508 283 3i 33 345 HSBC Holdings 45 281 Vodafone Group 228 327 Essentra 65 264 ITV 246 321 Euromoney Institutional Investor 20 264 Aviva 77 320 Rio Tinto 6 261 Euromoney Institutional Investor 25 315 Moneysupermarket.com Group 61 219 HSBC Holdings 49 309 National Express Group 49 214 Electrocomponents 47 294 Vodafone Group 143 214 Aggreko 36 286 Wm Morrison Supermarkets 110 211 Tesco 119 283 Barclays 130 196 John Wood Group 74 272 Aviva 47 186 Lloyds Banking Group 435 264 Marks & Spencer Group 66 180 QinetiQ 81 247 Britvic 19 171 Crest Nicholson Holdings 60 232 Elementis 107 163 Moneysupermarket.com Group 61 207 St Modwen Properties 39 157 St Modwen Properties 47 199 Melrose Industries 80 145 Hammerson 75 193 Tesco 64 145 Rio Tinto 4 190 ITV 116 139 Melrose Industries 92 187 Hunting 31 137 Travis Perkins 12 175 Urban & Civic 43 134 Hunting 34 169 WPP 14 130 ConvaTec Group 110 169 Daily Mail & General Trust 15 114 Elementis 106 168 Speedy Hire 192 107 Restaurant Group 111 151 Man Group 67 106 McCarthy & Stone 95 128 Chemring 54 103 Essentra 31 128 ConvaTec Group 54 96 SIG 95 119 Stock Spirits Group 42 94 Man Group 72 110 McCarthy & Stone 65 90 Daily Mail & General Trust 18 109 The significant changes to the portfolio for the financial The significant changes to the portfolio for the financial year are the aggregate sales of a security exceeding 1% year are the aggregate purchases of a security exceeding of the total value of sales for the financial year. Where the 1% of the total value of purchases for the financial year. number of sales transactions exceeding 1% of the total Where the number of purchases transactions exceeding 1% value of sales for the financial year is less than 20, then a of the total value of purchases for the financial year is less minimum of 20 sales will be disclosed. than 20, then a minimum of 20 purchases will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 151 152 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Giorgio Caputo Senior Fund Manager Giorgio joined JOHCM in August 2017 and has 22 years industry experience

Investment Management Report 154

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 155 B) Other transferable securities dealt on an other regulated market 160 C) Other transferable securities 161 D) OTC financial derivative instruments: open foreign currency contracts 162 Geographic division of investments 163 Economic division of investments 164 Significant portfolio changes 165

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 153 JOHCM Global Income Builder Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance presents were thin on the ground. It is The JOHCM Global Income Builder now much harder to discern where risk Fund returned 15.17% in sterling is mispriced. But that does not mean terms, net of fees for the ‘A’ share markets, especially stocks, cannot class, for the calendar year 2019. go up further from here on strong momentum. After all, monetary policy Portfolio review remains loose, inflation is scarce and The portfolio’s strong performance certain risks (most notably the trade over the year came from a war and Brexit) have ebbed. combination of our US and European (ex UK) equities and US corporate With risk perceptions low, we will debt. continue to look for air pockets caused by unexpected developments and Microsoft was our top performer as shifts in sentiment. However, if market its consolidating number two position momentum continues, a cautiously in cloud computing continued to positioned strategy like ours could drive its share price higher. Japanese lag; these are the trickiest markets for homebuilder Sekisui House performed value investors, like us. well in both its domestic market as well as overseas. The market started One area where we have been focused to recognise the hidden value in the is event-driven investments that may company’s asset base during the year. be less connected to broader market trends. These kinds of investments Turning to the laggards, Sligro Food have their own catalysts (the presence Group was weaker as the market of activist shareholders on the continued to digest the transformative shareholder register, restructuring, and Heineken acquisition, a deal which synergies arising from M&A activity) we think will be a significant driver of and rely less on the performance of long-term value. Pfizer suffered from the overall market. the underwhelming disposal of legacy pharmaceutical assets in order to focus Giorgio Caputo on higher quality growth. Elsewhere, Senior Fund Manager hotel group Mandarin Oriental suffered from a combination of negative Past performance is not necessarily a sentiment around US/China relations guide to future performance. The price and protests in Hong Kong. of shares may go down as well as up and future income is not guaranteed. Looking at our credit positions, UBS, Central Garden & Pet Company and CSC Holdings were the top performers. While there were no material laggards, Anheuser-Busch and Imperial Brands provided a modest drag on returns.

We entered 2019 on the back of a major market sell-off in Q4 2018, a dislocation that had enabled us to put capital to work in December to exploit mispriced risk assets. A year on, on the heels of exceptionally good returns across asset classes, Christmas

154 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

AUSTRIA Mayr Melnhof Karton 1 EUR 102 99 0.26 102 99 0.26

BERMUDA Hongkong Land Holdings 80 USD 390 347 0.90 Mandarin Oriental International 192 USD 285 264 0.69 675 611 1.59

CANADA Agnico Eagle Mines 4 USD 155 201 0.52 Barrick Gold 15 CAD 176 219 0.57 Franco-Nevada 2 CAD 143 187 0.49 474 607 1.58

CURACAO Schlumberger 7 USD 223 222 0.58 223 222 0.58

DENMARK ISS 14 DKK 313 262 0.68 313 262 0.68

FRANCE Bouygues 3 EUR 84 93 0.24 Bureau Veritas 10 EUR 185 199 0.52 Cie de Saint-Gobain 7 EUR 226 216 0.56 Danone 8 EUR 454 474 1.24 Elior Group 21 EUR 232 234 0.61 Sanofi 5 EUR 326 390 1.02 Total 5 EUR 197 192 0.50 1,704 1,798 4.69

GERMANY Allianz 2 EUR 424 456 1.19 Duerr 6 EUR 133 167 0.44 HeidelbergCement 7 EUR 418 366 0.95 SAP 2 EUR 155 154 0.40 Telefonica Deutschland Holding 18 EUR 41 41 0.11 1,171 1,184 3.09

GREAT BRITAIN British American Tobacco 5 GBP 155 172 0.45 Compass Group 18 GBP 327 346 0.90 Diageo 6 GBP 182 194 0.51 G4S 111 GBP 245 244 0.64 GlaxoSmithKline 24 GBP 363 420 1.10 Lloyds Banking Group 461 GBP 260 288 0.75 Royal Dutch Shell - Class B 8 GBP 206 190 0.50 Smiths Group 12 GBP 169 195 0.51 Unilever 8 GBP 344 336 0.88 2,251 2,385 6.24

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 155 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

HONG KONG Hang Lung Properties 168 HKD 294 280 0.73 Hysan Development 67 HKD 248 199 0.52

542 479 1.25

ITALY Intesa Sanpaolo 137 EUR 300 274 0.71

300 274 0.71

JAPAN FANUC 1 JPY 173 170 0.44 KDDI 14 JPY 265 307 0.80 Mitsubishi Estate 21 JPY 308 300 0.78 Sekisui House 25 JPY 336 409 1.07

1,082 1,186 3.09

JERSEY WPP 8 GBP 86 87 0.23

86 87 0.23

NETHERLANDS ALTICE EUROPE 18 EUR 42 86 0.22 NXP Semiconductors 2 USD 152 181 0.47 Sligro Food 13 EUR 393 267 0.70

587 534 1.39

NORWAY Orkla 10 NOK 66 80 0.21

66 80 0.21

PORTUGAL NOS 45 EUR 204 183 0.48

204 183 0.48

SINGAPORE Frasers Commercial Trust 199 SGD 163 185 0.48

163 185 0.48

SWEDEN Investor 3 SEK 99 120 0.31

99 120 0.31

SWITZERLAND ABB 13 CHF 213 246 0.64 Cie Financiere Richemont 5 CHF 309 306 0.80 Coca-Cola HBC 8 GBP 212 206 0.54 Julius Baer Group 8 CHF 262 312 0.81 Kuehne + Nagel International 2 CHF 173 193 0.50 Nestle 6 CHF 372 460 1.20 Pargesa Holding 3 CHF 193 203 0.53

1,734 1,926 5.02

TAIWAN Taiwan Semiconductor Manufacturing 6 USD 191 250 0.65

191 250 0.65

156 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

UNITED STATES Air Products & Chemicals 2 USD 327 359 0.94 Chevron 3 USD 239 228 0.60 Columbia Property Trust 23 USD 370 360 0.94 ConocoPhillips 3 USD 136 149 0.39 Duke Energy 3 USD 207 221 0.58 DuPont de Nemours 4 USD 188 178 0.46 Exxon Mobil 3 USD 170 149 0.39 Facebook 1 USD 189 217 0.57 Honeywell International 1 USD 178 191 0.50 International Flavors & Fragrances 1 USD 61 53 0.14 JBG SMITH Properties 7 USD 182 203 0.53 Microsoft 4 USD 341 491 1.28 Newmont Goldcorp 6 USD 170 198 0.52 Occidental Petroleum 4 USD 134 134 0.35 Omnicom Group 3 USD 187 205 0.53 Oracle 10 USD 396 413 1.08 Pfizer 13 USD 404 397 1.04 Philip Morris International 6 USD 367 373 0.97 Phillips 66 2 USD 150 166 0.43 Rockwell Automation 1 USD 153 181 0.47 Royal Gold 2 USD 158 197 0.51 Texas Instruments 3 USD 281 315 0.82 Truist Financial 11 USD 435 484 1.26 Verizon Communications 8 USD 360 385 1.00 Vornado Realty Trust 4 USD 189 185 0.48 Weyerhaeuser 17 USD 377 378 0.99 Xilinx 2 USD 173 160 0.42

6,522 6,970 18.19

Transferable securities admitted to an official stock exchange listing - equities 18,489 19,442 50.72

JERSEY WisdomTree Physical Gold 7 USD 721 808 2.11

721 808 2.11

Transferable securities admitted to an official stock exchange listing - warrants 721 808 2.11

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 157 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

BERMUDA Bacardi 4.45% 15/05/2025 500 USD 427 407 1.06 Bacardi 4.7% 15/05/2028 100 USD 90 83 0.22

517 490 1.28

CANADA Bausch Health Cos 5.75% 15/08/2027 300 USD 253 247 0.64

253 247 0.64

FRANCE Altice France 5.5% 15/01/2028 300 USD 238 235 0.61

238 235 0.61

GREAT BRITAIN BAT International Finance 3.95% 15/06/2025 600 USD 479 481 1.25 Imperial Brands Finance 4.25% 21/07/2025 700 USD 588 558 1.46 Vodafone Group 4.125% 30/05/2025 400 USD 310 329 0.86 Vodafone Group 7% 04/04/2079 250 USD 209 222 0.58

1,586 1,590 4.15

ITALY Telecom Italia SpA 5.303% 30/05/2024 650 USD 525 531 1.38

525 531 1.38

SWITZERLAND Credit Suisse Group 7.25%/perpetual 200 USD 151 169 0.44 UBS Group Funding Switzerland 6.875%/ perpetual 200 USD 150 168 0.44

301 337 0.88

UNITED STATES Anheuser-Busch Cos LLC / Anheuser- Busch InBev Worldwide 4.7% 01/02/2036 450 USD 417 396 1.03 Aramark Services 5% 01/02/2028 400 USD 281 320 0.83 AT&T 2.8% 17/02/2021 150 USD 115 115 0.30 AT&T 4.5% 15/05/2035 500 USD 426 423 1.10 Central Garden & Pet 5.125% 01/02/2028 550 USD 398 433 1.13 Charter Communications Operating LLC / Charter Communications Operating Capital 4.908% 23/07/2025 600 USD 509 501 1.31 Constellation Brands 2.65% 07/11/2022 400 USD 314 307 0.80 CVS Health 2.625% 15/08/2024 133 USD 109 102 0.27 CVS Health 3.35% 09/03/2021 150 USD 116 115 0.30 CVS Health 4.3% 25/03/2028 250 USD 212 207 0.54 HCA 4.75% 01/05/2023 700 USD 587 567 1.48 JBS USA Finance 6.75% 15/02/2028 300 USD 207 251 0.65 JPMorgan Chase 3.207% 01/04/2023 300 USD 234 233 0.61 Pilgrim's Pride 5.75% 15/03/2025 500 USD 390 391 1.02 Pilgrim's Pride 5.875% 30/09/2027 100 USD 75 82 0.21 Plastipak Holdings 6.25% 15/10/2025 250 USD 175 162 0.42

158 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

UNITED STATES Service Corp International 4.625% (continued) 15/12/2027 500 USD 344 397 1.04 Tenet Healthcare 4.625% 15/07/2024 300 USD 228 234 0.61 Time Warner Cable LLC 5% 01/02/2020 100 USD 76 76 0.20 United States Treasury Note/Bond 1.5% 31/10/2021 650 USD 498 491 1.28 United States Treasury Note/Bond 2.25% 31/03/2020 956 USD 670 723 1.89 United States Treasury Note/Bond 2.5% 28/02/2021 500 USD 376 382 1.00 United States Treasury Note/Bond 2.875% 31/10/2020 231 USD 181 176 0.46 ViacomCBS 5.875% 28/02/2057 100 USD 81 79 0.21 ViacomCBS 6.25% 28/02/2057 350 USD 287 292 0.76 Wells Fargo 2.1% 26/07/2021 200 USD 153 152 0.40 Wells Fargo 2.625% 22/07/2022 500 USD 392 384 1.00

7,851 7,991 20.85

Transferable securities admitted to an official stock exchange listing - bonds 11,271 11,421 29.79

Transferable securities admitted to an official stock exchange listing 30,481 31,671 82.62

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 159 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

B) Other transferable securities dealt on an other regulated market

Acquisition Fair Net Description Quantity Currency cost value assets

’000 £’000 £’000 %

ITALY Intesa Sanpaolo SpA 7.7%/perpetual 350 USD 262 288 0.75

262 288 0.75

LUXEMBOURG JBS USA LUX / JBS USA Food / JBS USA 125 USD 95 106 0.28 Finance 6.5% 15/04/2029

95 106 0.28

UNITED STATES Bank of America 5.125%/perpetual 800 USD 646 640 1.67

Berry Global 4.875% 15/07/2026 550 USD 441 440 1.15 Charles River Laboratories International 4.25% 01/05/2028 138 USD 107 107 0.28 Charter Communications Operating LLC / Charter Communications Operating Capital 3.75% 15/02/2028 450 USD 359 354 0.92

CSC Holdings 5.375% 01/02/2028 300 USD 202 243 0.63

DCP Midstream LP 7.375%/perpetual 500 USD 365 357 0.93 Live Nation Entertainment 5.625% 15/03/2026 500 USD 355 404 1.05

Nexstar Broadcasting 5.625% 15/07/2027 450 USD 376 361 0.94 Performance Food Group 5.5% 15/10/2027 550 USD 453 446 1.16

Post Holdings 5.5% 15/12/2029 400 USD 330 323 0.84

3,634 3,675 9.57

Other transferable securities dealt on an other regulated market - bonds 3,991 4,069 10.60

160 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

C) Other transferable securities

Acquisition Fair Net Description Quantity Currency cost value assets

’000 £’000 £’000 %

UNITED STATES Bank of America 5.2% /perpetual 200 USD 161 159 0.41 Charles River Laboratories International 4.25% 01/05/2028 70 USD 54 54 0.14

Wells Fargo 5.9%/perpetual 250 USD 213 206 0.54

428 419 1.09

Other transferable securities - bonds 428 419 1.09

Investments in Transferable securities 34,900 36,159 94.31

J161161 O Hambro Capital Management Umbrella Fund plc | 31 December 2019 161 JOHCM Global Income Builder Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

D) OTC financial derivative instruments: open foreign currency contracts

Fair Net Maturity Counterparty Currency Purchased Currency Sold value assets

’000 ’000 £’000 %

03.01.2020RBC Investor Services Luxembourg GBP 2 USD (2) - - 31.01.2020RBC Investor Services Luxembourg EUR 2,250 USD (2,501) 23 0.06 23.03.2020Goldman Sachs USD 2,150 EUR (1,918) (11) (0.03)

Total as at 31 December 2019 12 0.03

162162 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

United States 49.70 54.28 Great Britain 10.39 7.01 Switzerland 5.90 6.19 France 5.30 6.37 Germany 3.09 3.05 Japan 3.09 3.01 Bermuda 2.87 1.33 Italy 2.84 1.97 Jersey 2.34 2.60 Canada 2.22 2.29 Netherlands 1.39 2.60 Hong Kong 1.25 2.57 Denmark 0.68 0.96 Taiwan 0.65 - Curacao 0.58 0.29 Portugal 0.48 0.45 Singapore 0.48 0.93 Sweden 0.31 1.10 Luxembourg 0.28 - Austria 0.26 0.30 Norway 0.21 - Belgium - 0.30 Indonesia - 0.17

Total investments at fair value through profit or loss 94.31 97.77 Open foreign currency contracts 0.03 -

Total investments at fair value through profit or loss 94.34 97.77 Other net assets 5.66 2.23

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 25.23% (2018: 24.11%). (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 163 JOHCM Global Income Builder Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Holding and Finance Companies 15.35 19.92 Banks and Financial Institutions 9.35 5.04 News Transmission 7.71 6.13 Real Estate Companies 5.83 6.15 Tobacco and Spirits 5.04 1.73 Food and Distilleries 4.91 5.70 States provinces and municipalities 4.63 5.07 Pharmaceuticals and Cosmetics 3.95 1.95 Healthcare Education and Social Services 3.96 4.25 Electronics and Electrical Equipment 3.78 0.69 Petrol 3.74 5.10 Internet Software 3.33 2.97 Construction and building material 2.82 3.84

Leisure 2.64 4.73 Electronic Semiconductor 2.36 1.15 Precious Metals 2.12 0.91 Other Services 1.84 2.31 Chemicals 1.40 0.20 Graphic art and publishing 1.24 1.87 Agriculture and Fishing 1.23 1.01 Insurance 1.19 1.21 Consumer Goods 1.13 5.71 Aerospace Technology 1.01 0.91 Retail 0.70 1.76 Package and Container Industry 0.68 1.26 Miscellaneous 0.52 0.69 Transportation 0.50 1.51 Mines and heavy industries 0.49 0.31 Mechanics and machinery 0.44 1.34 Biotechnology 0.42 - Public services - 1.00 Automobile industry - 0.61 Business houses - 0.50 Non-ferrous metals - 0.24

Total investments at fair value through profit or loss 94.31 97.77 Open foreign currency contracts 0.03 -

Total investments at fair value through profit or loss 94.34 97.77 Other net assets 5.66 2.23

Total net assets attributable to redeemable participating shareholders 100.00 100.00

164164 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Global Income Builder Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Cost

’000 £ ’000 £

PURCHASES PURCHASES Bank of America 5.125%/ Lamb Weston Holdings 4.625% perpetual 800 646 01/11/2024 500 418 Imperial Brands Finance 4.25% Anheuser-Busch Cos LLC / 21/07/2025 700 588 Anheuser-Busch InBev Worldwide HCA 4.75% 01/05/2023 700 587 4.7% 01/02/2036 450 417 Telecom Italia SpA 5.303% Wells Fargo 2.625% 22/07/2022 500 392 30/05/2024 650 525 Nexstar Broadcasting 5.625% Charter Communications 15/07/2027 450 376 Operating LLC / Charter United States Treasury Note/Bond Communications Operating Capital 2.5% 28/02/2021 500 376 4.908% 23/07/2025 600 509 Sotheby's 4.875% 15/12/2025 500 374 United States Treasury Note/Bond WisdomTree Physical Gold 3 359 1.5% 31/10/2021 650 498 Charter Communications Tenet Healthcare 4.5% Operating LLC / Charter 01/04/2021 600 483 Communications Operating Capital BAT International Finance 3.95% 3.75% 15/02/2028 450 359 15/06/2025 600 479 Post Holdings 5.5% 15/12/2029 400 330 Performance Food Group 5.5% Air Products & Chemicals 2 330 15/10/2027 550 453 Verizon Communications 7 324 Berry Global 4.875% 15/07/2026 550 441 Constellation Brands 2.65% Bacardi 4.45% 15/05/2025 500 427 07/11/2022 400 314 AT&T 4.5% 15/05/2035 500 426 The significant changes to the portfolio for the financial year are the aggregate purchases of a security exceeding 1% of the total value of purchases for the financial year. Where the number of purchases transactions exceeding 1% of the total value of purchases for the financial year is less than 20, then a minimum of 20 purchases will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 165 JOHCM Global Income Builder Fund

SIGNIFICANT PORTFOLIO CHANGES (continued) for the financial year ended 31 December 2019

Significant portfolio changes

Security name Quantity Proceeds Security name Quantity Proceeds

’000 £ ’000 £

SALES SALES US Foods 5.875% 15/06/2024 800 534 CVS Health 3.35% 09/03/2021 7 211 Tenet Healthcare 4.5% Post Holdings 5.5% 01/03/2025 400 207 01/04/2021 700 513 KDDI 400 206 CCO Holdings Capital 5.5% Ingles Markets 5.75% 15/06/2023 400 205 01/05/2026 700 493 SGS 21 202 Lamb Weston Holdings 4.625% 01/11/2024 650 419 Spectrum Brands 5.75% Performance Food Group 5.5% 15/07/2025 63 199 01/06/2024 600 406 Colgate-Palmolive 400 192 Sotheby's 4.875% 15/12/2025 650 402 OI European Group 4% ACCO Brands 5.25% 15/12/2024 600 390 15/03/2023 3 188 Precision Drilling 7.125% Intesa Sanpaolo 5.017% 15/01/2026 600 389 26/06/2024 9 188 DaVita 5% 01/05/2025 550 389 Energizer Gamma Acquisition Berry Global 4.5% 15/02/2026 550 307 6.375% 15/07/2026 350 187 3M 500 294 Daimler 6 186 Tiffany 500 284 Hang Lung Properties 4 171 UBS Group Funding Switzerland Frasers Commercial Trust 3 170 6.875%/perpetual 500 268 Royal Dutch Shell - Class B 350 170 Ball 4% 15/11/2023 450 260 Bouygues 463 167 Credit Suisse Group 6.25% 500 229 International Flavors & Fragrances 450 228 Post Holdings 5.75% 01/03/2027 8 167 JPMorgan Chase 4.625% 500 223 United States Treasury Note/Bond Maxim Integrated Products 500 223 1.25% 31/08/2019 300 166 Altice France 8.125% 01/02/2027 3 220 Sysco 9 159 Loomis 450 215 Aramark Services 5% 01/02/2028 9 158 Nexstar Broadcasting 5.625% CSC Holdings 5.375% 01/02/2028 4 158 01/08/2024 400 215 Altice Luxembourg 7.75% Energizer Holdings 6.375% 15/05/2022 300 157 15/07/2026 2 211 The significant changes to the portfolio for the financial year are the aggregate sales of a security exceeding 1% of the total value of sales for the financial year. Where the number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a minimum of 20 sales will be disclosed.

166 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Concentrated Global Share Fund*

A sub-fund of J O Hambro Capital Management Umbrella Fund plc

Ashley Pittard Head of Global Equities Ashley joined Pendal Group in May 2016 and has 25 years industry experience

*JOHCM Concentrated Global Share Fund is sub-advised by Pendal Group which is a parent company of J O Hambro Capital Management.

Investment Management Report 168

Schedule of investments A) Transferable securities admitted to an official stock exchange listing 169 Geographic division of investments 171 Economic division of investments 172 Significant portfolio changes 173

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 167 JOHCM Concentrated Global Share Fund

INVESTMENT MANAGEMENT REPORT for the financial year ended 31 December 2019

Performance term – both positively and negatively. of demand will be beneficial. Sustained The JOHCM Concentrated Global Share Over the long term, we would expect low prices should start to drive Fund returned 15.26% in sterling the strategy to outperform the index. industry consolidation, which would terms, net of fees for the ‘A’ share This is based on the fund manager’s also ultimately benefit our positions. class, for the calendar year 2019. experience of almost twenty years Meanwhile, Exxon is paying a dividend The MSCI World NR Index (12pm investing and building portfolios using yield of 5.4% and Total 5.9%. adjusted) returned 23.85% over the this strategy. same period. The year did see strong performance The Fund’s cash position dragged on from several of the Fund’s positions in Portfolio review relative performance, given the strong specialised semiconductor hardware, Global equity markets delivered strong gains from the index. Elsewhere, not such as Analog Devices and Texas gains in 2019. This was driven in holding Microsoft and Apple was a key Instruments. The portfolio also had part by a rebound from the sell-off in driver of underperformance over the several successful investments which Q4 2018 as the US Federal Reserve period. The portfolio has been selective we sold as they hit our valuation indicates it would shift from a path in its technology investments. We targets, including QSR and Proctor & of monetary tightening to a more are mindful of the strong returns as Gamble. accommodative policy of lower rates investors look for growth in the face of and liquidity injections. This more lower bond yields, but we also remain We believe the fund is positioned to benign backdrop drove markets in true to our process of only investing outperform over the medium term 2019, allowing it to largely shrug off in stocks trading below intrinsic value. and that owning a concentrated bouts of geopolitical volatility, notably For example, the underlying strategy portfolio of businesses, rather than around the trade negotiations between has previously owned Microsoft, but having indiscriminate broader market China and the US. sold as it reached our target. The exposure, is the best way to optimise Fund also owns Alphabet (Google), investment performance. The Fund delivered a solid gain in which has been a positive contributor. absolute terms, but lagged the index We also own Facebook, which has Equity market gains in 2019 were in 2019. Since its launch in August detracted. driven by multiple expansion, rather 2016, this is the first calendar year than earnings growth. We believe, in which the strategy which underlies Our pharmaceutical positions have also despite what looks likely to be a the JOHCM Concentrated Global dragged on what we see as near-term muted interest rate environment, that Share Fund has underperformed its concerns around demand. However the quality of a company’s earnings benchmark. longer term we see these companies trajectory will become increasingly as well positioned given leading important for investors. The Fund invests in what we see as positions within key product channels. the leading companies in a specific This should underpin a revenue and The market’s largest re-rating industry – the companies with the earnings outlook which suggests 30% has been concentrated in certain largest market share, high margins upside for Pfizer and Merck, and 50% industries, leaving many parts of the and returns on capital and strong upside for Sanofi. market behind. This has proved a balance sheets. We typically invest good hunting ground for our approach, when these companies are out of Muted loan growth has dragged which finds leading companies in favour in the short term, but where we on our regional bank holdings to industries which are out-of-favour believe that long term outlook is not various degrees. Valuations here short term, but with significant impaired. are depressed, with our holdings valuation upside and the catalyst to trading around book value, implying realise it. The outcome is a style-neutral considerable upside as and when portfolio which is low turnover with current headwinds normalise. Ashley Pittard high active share. It is also index Meanwhile the current running yield Head of Global Equities agnostic – positions are held because (dividends plus buybacks) of our bank they are expected to outperform – not positions ranges between 9 and 15%. Past performance is not necessarily a because they are a large index weight. A softer oil price has dragged on Exxon guide to future performance. The price and Total. Both are among the largest of shares may go down as well as up Performance can therefore diverge and lowest cost producers in the and future income is not guaranteed. markedly from the index in the short sector. Any uptick in price on the back

168 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Concentrated Global Share Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

BELGIUM Anheuser-Busch InBev 1 EUR 83 85 3.96 KBC Group 1 EUR 42 42 1.96 125 127 5.92

FRANCE Getlink 2 EUR 19 22 1.03 Pernod Ricard - EUR 25 27 1.26 Sanofi 1 EUR 79 85 3.96 Total 2 EUR 82 78 3.64 205 212 9.89

GERMANY Infineon Technologies 3 EUR 42 45 2.10 42 45 2.10

GREAT BRITAIN Liberty Global - Class A 2 USD 43 37 1.72 Lloyds Banking Group 155 GBP 88 97 4.52 Rio Tinto 2 GBP 56 70 3.26 187 204 9.50

HONG KONG Hong Kong Exchanges and Clearing 3 HKD 70 74 3.45 70 74 3.45

JAPAN Japan Exchange Group 3 JPY 46 44 2.05 46 44 2.05

NETHERLANDS Airbus - EUR 42 41 1.91 Heineken Holding - EUR 30 33 1.54 72 74 3.45

SPAIN CaixaBank 12 EUR 40 30 1.40 40 30 1.40

SWITZERLAND Credit Suisse Group 4 CHF 41 43 2.00 UBS Group 4 CHF 41 42 1.96 82 85 3.96

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 169 JOHCM Concentrated Global Share Fund

SCHEDULE OF INVESTMENTS as at 31 December 2019

A) Transferable securities admitted to an official stock exchange listing (continued)

Acquisition Fair Net Description Quantity Currency cost value assets ’000 £’000 £’000 %

UNITED STATES Alphabet - USD 83 97 4.52 Analog Devices 1 USD 76 97 4.52 BlackRock - USD 38 43 2.00 Boeing - USD 62 57 2.66 CME Group - USD 30 31 1.44 Coca-Cola 1 USD 38 42 1.96 Colgate-Palmolive 1 USD 54 56 2.61 Discovery 3 USD 69 72 3.36 Exxon Mobil 1 USD 52 45 2.10 Facebook - USD 71 74 3.45 Freeport-McMoRan 2 USD 16 16 0.75 Howard Hughes - USD 9 9 0.42 Las Vegas Sands 1 USD 38 45 2.10 Merck 1 USD 38 43 2.00 MGM Resorts International 3 USD 65 77 3.59 Norfolk Southern - USD 40 44 2.05 Oracle 1 USD 37 39 1.82 Pfizer 1 USD 51 42 1.96 Texas Instruments 1 USD 62 75 3.50 Union Pacific 1 USD 65 75 3.50 Wells Fargo 2 USD 97 94 4.38 1,091 1,173 54.69

Transferable securities admitted to an official stock exchange listing 1,960 2,068 96.41

170 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Concentrated Global Share Fund

GEOGRAPHIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

United States 54.69 50.40 France 9.89 8.70 Great Britain 9.50 7.29 Belgium 5.92 4.72 Switzerland 3.96 - Hong Kong 3.45 3.65 Netherlands 3.45 1.56 Germany 2.10 2.04 Japan 2.05 4.08 Spain 1.40 1.88 Canada - 1.88 Cayman Islands - 0.97

Total investments at fair value through profit or loss 96.41 87.17 Other net assets 3.59 12.83

Total net assets attributable to redeemable participating shareholders 100.00 100.00

% PEA eligible holding as at 31 December 2019 was 32.26% (2018: 26.19%.) (‘‘PEA’’ stands for Plan d’Épargne en Actions and is applicable to French investors).

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 171 JOHCM Concentrated Global Share Fund

ECONOMIC DIVISION OF INVESTMENTS as at 31 December 2019

Net assets Net assets 2019 2018

% %

Banks and Financial Institutions 17.71 14.33 Electronic Semiconductor 10.12 5.37 Internet Software 9.79 7.04 Pharmaceuticals and Cosmetics 7.92 10.84 Holding and Finance Companies 7.45 9.82 Tobacco and Spirits 6.76 5.75 Transportation 6.58 5.05 Petrol 5.74 6.28 Leisure 5.69 4.51 News Transmission 5.08 3.48 Aerospace Technology 4.57 1.99 Non-Ferrous Metals 3.26 2.25 Consumer Goods 2.61 4.61 Food and Distilleries 1.96 2.04

Precious Metals 0.75 -

Real Estate Companies 0.42 1.61

Retail - 2.20

Total investments at fair value through profit or loss 96.41 87.17 Other net assets 3.59 12.83

Total net assets attributable to redeemable participating shareholders 100.00 100.00

172 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 JOHCM Concentrated Global Share Fund

SIGNIFICANT PORTFOLIO CHANGES for the financial year ended 31 December 2019

Security name Quantity Cost Security name Quantity Proceeds

’000 £ ’000 £

PURCHASES1 SALES1 Facebook - 71 Procter & Gamble 1 52 Infineon Technologies 3 42 Deutsche Boerse - 49 Airbus - 42 Restaurant Brands International 1 47 UBS Group 4 41 Merck 1 45 Credit Suisse Group 4 41 Howard Hughes - 32 Getlink SE 3 39 Seven & i Holdings 1 31 Discovery 1 29 Getlink 2 24 Rio Tinto 1 26 Pfizer 1 15 Lloyds Banking Group 39 24 Baidu - 12 Boeing - 23 CME Group - 10 Anheuser-Busch InBev - 21 Rio Tinto - 10 Texas Instruments - 21 Oracle - 4 Sanofi - 18 BlackRock - 2 Wells Fargo - 17 Coca-Cola - 2 Freeport-McMoRan 2 16 1 Represents total purchases during the year. Analog Devices - 11 Las Vegas Sands - 8 The significant changes to the portfolio for the financial Exxon Mobil - 7 year are the aggregate sales of a security exceeding 1% Japan Exchange Group 1 6 of the total value of sales for the financial year. Where the Colgate-Palmolive - 4 number of sales transactions exceeding 1% of the total value of sales for the financial year is less than 20, then a 1 Represents total purchases during the year. minimum of 20 sales will be disclosed.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 173 174 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements

J O Hambro Capital Management Umbrella Fund plc

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 175 Notes to the Financial Statements as at 31 December 2019

1 Establishment and organisation JOHCM Global Select Fund The Company is an open-ended umbrella type investment The Fund aims to achieve its objective by investing in a company with variable capital and limited liability organised concentrated portfolio of global securities. under the laws of Ireland and authorised by the Central Bank pursuant to the provisions of Part 24 of the Companies JOHCM Global Emerging Markets Opportunities Fund Act 2014, as amended, the European Communities The Fund aims to achieve its objective by investing in, both (Undertakings for Collective Investment in Transferable direct and indirect, a diversified portfolio of emerging market Securities) Regulations, 2011 (as amended) (the “UCITS equity securities. Regulations 2011”) and to the Central Bank (Supervision and JOHCM Asia ex-Japan Fund Enforcement) Act 2013 (Section 48(1)) (Undertakings for The Fund aims to achieve long-term capital appreciation Collective Investment in Transferable Securities) Regulations through investment, both direct and indirect, in a diversified 2019 (the “Central Bank UCITS Regulations 2019”). The portfolio of Asia ex-Japan equity securities. Company’s share capital is at all times equal to its Net Asset Value. The Company was incorporated on 3 July 2001. JOHCM Asia ex-Japan Small and Mid-Cap Fund The Fund aims to achieve long-term capital appreciation The Company comprises distinct sub-funds. The assets of through investment, both direct and indirect, in a diversified a sub-fund are invested separately in accordance with the portfolio of Asia ex-Japan Small and Mid Cap equity investment objectives and policies of that sub-fund which securities. are set out in a supplement to the Prospectus. As at 31 JOHCM Global Opportunities Fund December 2019 the Company had fourteen active sub-funds, The Fund aims to achieve long-term total return by investing all denominated in GBP: in a concentrated portfolio of global equity securities. It is anticipated that the Fund’s portfolio will comprise fewer than • JOHCM Continental European Fund 50 holdings. • JOHCM UK Growth Fund • JOHCM European Select Values Fund JOHCM Japan Dividend Growth Fund • JOHCM Japan Fund The Fund aims to achieve its objective by investing entirely • JOHCM Global Select Fund in equity securities of companies which are listed on the • JOHCM Global Emerging Markets Opportunities Fund principal stock markets of Japan, the majority of which will • JOHCM UK Dynamic Fund be securities contained in the Index (Topix TR). At no time • JOHCM Asia ex-Japan Fund will less than half of the Fund’s total net assets be invested in • JOHCM Asia ex-Japan Small and Mid-Cap Fund securities contained in the Index (Topix TR). • JOHCM Global Opportunities Fund • JOHCM Japan Dividend Growth Fund JOHCM European Concentrated Value Fund • JOHCM European Concentrated Value Fund The Fund aims to achieve long-term capital appreciation, • JOHCM Global Income Builder Fund through investment in equity securities of companies • JOHCM Concentrated Global Share Fund domiciled or exercising the predominant part of their economic activities in Europe, which are listed on European The primary investment objective of the Company is to exchanges or a Recognised Exchange. seek long-term capital growth and it aims to achieve this as follows: JOHCM UK Dynamic Fund The Fund aims to achieve long-term capital appreciation JOHCM Continental European Fund and outperform the Index net of fees by investing in stocks The Fund aims to achieve its objective by investing in where ongoing corporate change creates an asymmetric risk/ equity securities of companies domiciled or exercising the reward profile. predominant part of their economic activities in Europe,

excluding the UK. JOHCM Global Income Builder Fund JOHCM UK Growth Fund The Fund aims to offer regular income generation consistent The Fund aims to achieve its objective by investing in with long term capital growth by applying an investment solid, well managed companies domiciled or exercising the process based on fundamental analysis. predominant part of their economic activities in the UK, JOHCM Concentrated Global Share Fund capable of generating growth throughout the economic cycle. The Fund aims to achieve long-term capital growth by JOHCM European Select Values Fund investing in a concentrated portfolio of global equity The Fund aims to achieve its objective by investing in securities. equity securities of companies domiciled or exercising the predominant part of their economic activities in Europe which are listed on European Exchanges or a Recognised Exchange.

JOHCM Japan Fund The Fund aims to achieve its objective by investing in Japanese equities, listed on the principal stock markets of Japan or other Recognised Markets.

176 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

2 Principal Accounting Policies The Company’s financial statements have been prepared The fair value of financial instruments traded in active in compliance with FRS 102 for the financial year ended 31 markets at reporting date is quoted at last traded price. December 2019, certain provisions of the UCITS Regulations and in accordance with Irish statute comprising the If a quoted market price is not available on a recognised Companies Act 2014, as amended. stock exchange or, in the case of non-exchange traded financial instruments, from a broker/dealer, the fair value The Company has availed itself of certain exemptions of the instrument is estimated using valuation techniques, contained in FRS 102 section 7.1A ‘Cash Flow Statements’ including use of recent arm’s length market transactions, and has presented a statement of changes in net assets in reference to the current fair value of another instrument that place of a cash flow statement. In the opinion of the Directors, is substantially the same, discounted cash flow techniques, this information also satisfies the requirement of FRS 102 option pricing models or any other valuation technique that section 10.4 Reporting Financial Performance, in relation to a provides a reliable estimate of prices obtained in actual reconciliation of movements in Shareholders’ Equity. market transactions.

The financial statements are prepared on a going concern Where discounted cash flow techniques are used, estimated basis. future cash flows are based on the Directors’ best estimates and the discount rate used is a market rate at the balance Financial Assets and Liabilities at Fair Value through sheet date applicable for an instrument with similar terms Profit or Loss and conditions. Where other pricing models are used, Classification inputs are based on market data at the balance sheet The Company classifies its investment securities as financial date. Fair values for unquoted equity investments are assets and liabilities at fair value through profit or loss: estimated, if possible, using applicable price/earnings ratios held for trading, in accordance with IAS 39 – Financial for similar listed companies adjusted to reflect the specific Instruments: Recognition and Measurement (“IAS 39”). circumstances of the issuer.

Investments are classified as held for trading if they are Equity instruments which do not have a quoted market price acquired for the purpose of selling and/or repurchasing in the in an active market and whose fair value cannot be reliably near term. This category includes equities and derivatives. measured using valuation techniques are measured at cost. These investments are acquired principally for the purpose of generating a profit from fluctuations in the price. The Gains and losses arising from a change in the fair value Company’s policy is not to apply hedge accounting. of investments are recognised in the Statement of Comprehensive Income. Measurement and Recognition The Company has elected to apply the recognition and Derecognition measurement provisions of IAS 39 – Financial Instruments: The Company derecognises a financial asset when the Recognition and Measurement and the disclosures of section contractual rights to the cash flows from the financial asset 11 and 12 of FRS 102. expire or it transfers the financial asset and the transfer qualifies for derecognition in accordance with IAS 39. The The Company recognises financial assets and liabilities held Company derecognises a financial liability when the obligation for trading on the date it becomes party to the contractual specified in the contract is discharged, cancelled or expires. provisions of the instruments, and all significant rights and access to the benefits or losses and the exposure to the The Company uses the weighted average method to risks inherent in those instruments are transferred to the determine realised gains and losses on derecognition. Company; generally the trade date. Financial instruments are initially measured at fair value which is generally the Net Asset Value (‘NAV’) transaction amount (excluding transaction costs which are The NAV of the Company and of each sub-fund and of each expensed as incurred). For financial assets, the transaction class of share, as the case may be, is calculated by the amount is the fair value of the consideration given and for Administrator at the valuation point on each valuation date. financial liabilities the transaction amount is the fair value of the consideration received. The NAV per share in each sub-fund is calculated by dividing the NAV of such sub-fund by the number of shares in issue Subsequent measurement in respect of that sub-fund. Where a sub-fund is made up of After initial measurement, the Company measures financial more than one class of share, the NAV of each class of share instruments which are classified as at fair value through is calculated by determining that part of the NAV of each profit or loss, at their fair values. Fair value is the price sub-fund attributable to each such class of share and dividing which would be received to sell an asset or paid to transfer this value by the number of shares of that class in issue. a liability in an orderly transaction between market participants. The Fair value measurement is based on the As per the Company’s Prospectus, the valuation point for NAV presumption that the transaction to sell the asset or transfer reporting purposes is 12.00 noon Irish time. Transactions liability takes place either in the principal market or, in the entered up until the valuation point on 31 December 2019 absence of a principal market, in the most advantageous were recorded in the current financial year; transactions market for the asset or liability. The principal or the most entered after the valuation point at this date will be recorded advantageous market must be accessible to the Company. in the next set of financial statements.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 177 Notes to the Financial Statements (continued)

2 Principal Accounting Policies (continued) Options Options contracts are valued at the settlement price as Share Capital determined by the market in question. If such market price The Company’s subscriber shares are classified as equity in is not available, the value will be the probable realisation accordance with the Company’s articles of association. These value estimated with care and in good faith by the Directors shares do not participate in the profits of the Company. or such other competent person approved for the purpose by Net Gain/(Loss) on Financial Assets and Liabilities at the Depositary. Fair Value through Profit or Loss Results arising from trading activities are recognised in the Forward Contracts Statement of Comprehensive Income, including all gains and A forward currency contract involves an obligation to purchase losses from changes in fair value of financial instruments. or sell a specific currency at a future date at a price set at the time the contract is made. Forward currency contracts Income from Investments are valued by reference to the forward price at which a new Dividends are recognised when the Shareholder’s right to forward contract of the same size and maturity could be receive payment is established. Dividend income is shown undertaken at the valuation date. The unrealised gain or gross of any non-recoverable withholding taxes, which are loss on open forward currency contracts is calculated as the disclosed separately in the Statement of Comprehensive difference between the contract rate and this forward price Income. and is included in the Statement of Comprehensive Income. Open positions of the foreign currency contracts as at Operating Expenses 31 December 2019 are disclosed in the Schedule of Investments. The Company pays out of the assets of each sub-fund, all normal operating expenses including Depositary fees, Foreign Exchange Translation Administration fees, Investment Manager’s fees, Directors’ The cost of investments in currencies other than the fees, NAV publication and circulation fees, audit and other functional currency of the relevant sub-fund has been professional fees and stamp duties and charges incurred on translated at the rates of exchange ruling at the time of the the acquisition and realisation of investments. Such costs are purchase. The market value of the investments and other expensed in the financial year to which they relate. assets in currencies other than the currency of the relevant Listed Equities sub-fund has been translated at the rates of exchange as at Listed equities are valued at the price at the valuation point 31 December 2019. The resulting profits or losses are dealt or, where the recognised market on which the investment with in the Statement of Comprehensive Income. is quoted is closed at the valuation point, at the last traded price at the close of the regular trading session of the market The method of translation has no effect on the NAV per share on which such investment is quoted at each valuation point. attributable to the individual classes.

Unlisted Equities Other Financial Liabilities Unlisted equities are valued at the probable realisation value This category includes all financial liabilities, other than those as determined with care and in good faith by such competent classified as at fair value through profit or loss. The Company persons as may be appointed by the Directors and approved includes in this category amounts relating to cash collateral for the purpose by the Depositary. The unlisted securities or on securities lent and other short-term payables. staled prices securities are agreed by the pricing committee at J O Hambro Capital Management Limited. Cash and Cash Equivalents Cash and cash equivalents in the Statement of Financial Contracts for Difference Position comprise cash on hand, demand deposits and short- Off-exchange derivative contracts are valued by the term deposits in banks and are valued at nominal value plus counterparty Goldman Sachs at least daily. The valuation accrued interest, where applicable, at the end of the relevant must be approved or verified weekly by a third party who is day on which the Valuation Point occurs. Short term deposits independent of the counterparty and who is approved for the are subject to an insignificant risk of changes in value and purpose by the Depositary. have original maturities of three months or less.

Fixed Income Securities Bank Overdraft Fixed income securities are valued at the close of business As at 31 December 2019 and 31 December 2018, the bank price of the preceding business day in each case on the overdrafts held by the sub-funds are caused by timing market on which these assets are traded or admitted for differences relating to the settlement cycle of investments, trading. the movement in non-functional currencies and subscriptions Subscriptions Receivable into and redemption out of the sub-funds. Amounts due from investors which have not yet been settled represent receivables from subscriptions and are disclosed on Loans and Receivables the Statement of Financial Position. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted Redemption Payable in an active market. The Company includes in this category Amounts due to investors which have not yet settled amounts relating to short-term receivables. represent payable on redemption and are disclosed on the Statement of Financial Position.

178178 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

2 Principal Accounting Policies (continued) measured and presented using the currency of the primary economic environment in which it operates (‘the functional Classification of Redeemable Participating Shares currency’). This is Pound Sterling (“GBP”), which reflects the Redeemable participating shares are redeemable at the fact that the Company’s investor base is mainly located in Shareholders option and are classified as financial liabilities the UK. The presentation currency is also GBP. as they do not have identical features and are not the most subordinate class of equity interest. The participating shares Amounts due from brokers and amounts due to brokers can be put back to the Company on any dealing day for Amounts due from/to brokers represent amounts receivable cash equal to a proportionate share of the Company’s NAV. and payable for transactions contracted but not yet delivered. All financial instruments in the class of instruments that is subordinate to all other classes of instruments have identical features. 3 Financial instruments at fair value through profit or loss Distributions to Holders of Redeemable Participating Fair value Fair value Shares 31 Dec 31 Dec Distributions to holders of redeemable participating shares 2019 2018 that do not meet the criteria for recognition as equity in line £’000 £’000 with FRS 102 section 22.4 are recorded in the Statement of Comprehensive Income and presented as finance costs Financial assets held for in line with the distribution policy as authorised by the trading Directors. The Distributions to holders of redeemable Equities 4,954,700 6,812,671 participating shares in respect of the financial year ended Investment Funds 38,676 24,285 31 December 2019 are recognised as a finance cost in 2019. Warrants 2,235 4,400 Transaction Costs Bonds 15,909 7,860 Transaction costs include fees and commissions paid to Investments in transferable agents, advisers, brokers and dealers, levies by regulatory securities 5,011,520 6,849,216 agencies and security exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums Options 354 22,157 or discounts, financing costs or internal administrative or Forward Currency Contracts 1,798 717 holding costs. These are expensed through the Statement of Investments in derivatives 2,152 22,874 Comprehensive Income as incurred. Total financial assets 5,013,672 6,872,090 Taxation Financial liabilities held for Dividend income, interest income and capital gains (if trading any) received on investments made by the Company may be subject to withholding taxes imposed by the country Forward Currency Contracts (431) (420) from which the investment income/gains are received and Swaps (158) - such taxes may not be recoverable by the Company or its Investments in derivatives (589) (420) Shareholders. Total financial liabilities (589) (420) Judgements and Estimates The preparation of financial statements in conformity 4 Taxation with FRS 102 requires management to make judgements, Under current Irish law and practice the Company qualifies estimates and assumptions that affect the application of as an investment undertaking under Section 739B of policies and the reported amounts of assets and liabilities, the Taxes Consolidation Act, 1997 and is not therefore income and expense. The estimates and associated chargeable to Irish tax on its relevant income or relevant assumptions are based on historical experience and various gains. No stamp, transfer or registration tax is payable in other factors that are believed to be reasonable under the Ireland on the issue, redemption or transfer of shares in circumstances, the results of which form the basis of making the Company. Distributions and interest on securities issued the judgements about carrying values of assets and liabilities in countries other than Ireland may be subject to taxes that are not readily apparent from other sources. Actual including withholding taxes imposed by such countries. The results may differ from these estimates. The accounting Company may not be able to benefit from a reduction in policies have been applied consistently by the Company and the rate of withholding tax by virtue of the double taxation are consistent with those used in the previous period. agreement in operation between Ireland and other countries. The Company may not, therefore, be able to reclaim However, existing circumstances and assumptions about withholding tax suffered by it in particular countries. future developments may change due to market changes or circumstances arising beyond the control of the Company. Following legislative changes in the Finance Act 2006, Such changes are reflected in the judgements, estimates and the holding of shares at the end of a relevant period will, assumptions when they occur. in respect of Irish resident investors, also constitute a chargeable event. To the extent that any tax issues arise on Functional and Presentation Currency such a chargeable event, such tax will be allowed as a credit Items included in the Company’s financial statements are against any tax payable on the subsequent encashment, redemption, cancellation or transfer of the relevant shares.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 179 Notes to the Financial Statements (continued)

4 Taxation (continued) in the Statement of Changes in Net Assets Attributable to Relevant period is defined as a period of eight financial years Holders of Redeemable Participating Shares. beginning with the acquisition of a share by a Shareholder Capital Management Policies and each subsequent period of eight financial years The Company may from time to time by ordinary resolution beginning immediately after the preceding relevant period. increase its capital, consolidate and divide its shares into shares of a larger amount or subdivide its shares into shares Dividends received from investment in Irish equities may be of a smaller amount or cancel any shares not taken or subject to Irish dividend withholding tax (currently at the agreed to be taken by any person. The Company may by rate of 20%). However, the Company can make a declaration special resolution from time to time reduce its share capital to the payer that it is a collective investment undertaking in any way permitted by law. beneficially entitled to the dividends to avoid this withholding tax. The Company is not required to deduct dividend withholding tax on dividend payments to Shareholders 6 Operating expenses provided the Shareholder has completed the relevant Management, Investment Management and declaration. It is the intention of the Directors that the Performance Fees

business of the Company will be conducted in such a manner Management Fee as to ensure that the Company will be regarded as Resident Effective 1 November 2019, JOHCM Funds (Ireland) Limited in Ireland for tax purposes. (the “Manager”) became Manager of the Company. Prior to that date the Company was a self-managed entity and the 5 Share capital Investment Manager was paid directly by the Company. From On incorporation the authorised share capital of the 1 November 2019, the Manager will pay the Investment Company was Euro 40,000 divided into 40,000 Subscriber Manager out of the Management Fee. The management shares of one Euro each and 800,000,000 Redeemable fee will accrue daily and will be payable monthly in arrears. Participating Shares of no par value. As only redeemable The Manager will also be entitled to reimbursement of participating shares can represent an interest in a sub-fund, all reasonable properly-vouched out-of-pocket expenses the subscriber shares have no entitlement or interest in such (including VAT thereon) incurred in the performance of its sub-funds. At the Company’s Annual General Meeting on duties hereunder. 23 May 2019, a special resolution was passed to increase The investment management fees paid to the Investment the authorised participating capital of the Company from Manager until 31 October 2019 have been novated to the 800,000,000 Participating Shares of no par value to Manager with effect from 1 November 2019. 500,000,000,000 Participating Shares of no par value. On 1 July 2019, a High Court application was granted to validate Any performance fees earned will continue to be paid directly all dealings in Participating Shares since the issue first arose. to the Investment Manager. There have been no changes in respect of fee waivers which Subscriber Shares will continue to be borne by the Investment Manager. There 40,000 subscriber shares were issued to J O Hambro Capital have been no changes to investment management fee rates Management Limited or its nominees to comply with the and performance fee rates since the Management Company requirements of the Companies Act. commenced trading.

J O Hambro Capital Management Limited redeemed 39,993 The following table provides detail of the investment of these subscriber shares on 22 November 2001. The management fee rate applied to each share class of each remaining seven subscriber shares are fully paid up. sub-fund: Investment Each holder of subscriber shares is entitled to attend and management vote at any General Meeting except that any holder of Sub-fund Share class fee subscriber shares is not entitled to vote at any such General % Meeting at any time that more than one Shareholder holds participating shares in issue. The subscriber shares do not JOHCM Continental GBP Class A Shares 0.75% form part of the net asset value of the Company and are European Fund EUR Class A Shares 0.75% thus disclosed in the financial statements by way of this note USD Hedged Class A Shares 0.75% only. In the opinion of the Directors, this disclosure reflects GBP Hedged Class A Shares 0.75% the nature of the Company’s business as an investment fund. GBP Class B Shares 1.25% EUR Class B Shares 1.25% The rights attached to any class of share may, whether or not the Company is being wound up, be varied or abrogated USD Hedged Class B Shares 1.25% with the consent in writing of the holders of 75% of the GBP Y Shares 0.625% issued shares of that class or with the sanction of a special EUR Y Shares 0.625% resolution passed at a separate general meeting of the GBP Hedged X Shares 0.55% holders of the shares of that class. GBP Hedged Y Shares 0.625%

Redeemable Participating Shares JOHCM UK GBP Class A Shares 0.75% The issued redeemable participating share capital is at all Growth Fund GBP Class B Shares 1.25% times equal to the net asset value of the Company. The movement in the number of participating shares is shown

180180 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

6 Operating expenses (continued) Investment Investment management and performance fees management (continued) Sub-fund Share class fee % Investment management JOHCM Japan GBP Class A Shares 0.625% Sub-fund Share class fee Dividend Growth GBP Hedged Class A Shares 0.625% % Fund USD Class A Shares 0.625% JOHCM European GBP Class A Shares 0.75% USD Hedged Class A Shares 0.625% Select Values Fund EUR Class A Shares 0.75% EUR Class B Shares 1.25% GBP Class B Shares 1.25% GBP Shares 0.25% EUR Class B Shares 1.25% JOHCM European EUR Class A Shares 0.75% EUR X Shares 1.50% Concentrated EUR Class B Shares 1.25% EUR Non - Distributing Class 1.25% Value Fund USD Class B Shares 1.25% JOHCM Japan Fund GBP Class A Shares 0.75% SGD Hedged Class B Shares 8 1.25% GBP Hedged Class A Shares 0.75% EUR Class Z Shares 7 * - EUR Class A Shares 0.75% JOHCM UK GBP Class A 9 0.75% JPY Class A Shares 0.75% Dynamic Fund GBP Y Shares 0.625% GBP Class B Shares 1.25% GBP Hedged Class B Shares 1.25% JOHCM Global GBP Class A Shares 0.65% EUR Class B Shares 1.25% Income Builder EUR Class A Shares 0.65% JPY Class B Shares 1.25% Fund USD Class A Shares 10 0.65% JOHCM Global GBP Class A Shares 0.75% EUR Shares 11 0.25% Select Fund EUR Class A Shares 0.75% EUR Class B Shares 1.75% USD Class A Shares 0.75% GBP Seed Shares 0.25% GBP ND A Shares 12 0.65% GBP Class B Shares 1.50% SGD Class A Shares 10 0.65% EUR Class B Shares 1.50% USD Class B Shares 1.50% JOHCM GBP Class A Shares 0.75% EUR Non-Distributing Class 1 1.25% Concentrated JOHCM Global GBP Class A Shares 0.90% Global Share Fund Emerging Markets EUR Class A Shares 0.90% * The Investment Management Fee will be negotiated separately with the Opportunities Fund USD Class A Shares 0.90% Investment Manager and not charged to the Fund. 1 This share class was terminated on 16 April 2019 for JOHCM Global Select Fund. GBP Class B Shares 1.50% 2 This share class was launched on 12 February 2019 for JOHCM Asia ex-Japan Fund. EUR Class B Shares 1.50% 3 This share class was launched on 20 September 2019 for JOHCM Global Opportunities Fund. USD Class B Shares 1.50% 4 This share class was launched on 10 May 2019 for JOHCM Global Opportuniities GBP Y Shares 0.75% Fund. 5 This share class was launched on 25 April 2019 for JOHCM Global Opportuniities USD Y Shares 0.75% Fund. JOHCM Asia GBP Class A Shares 0.90% 6 This share class was launched on 12 December 2019 for JOHCM Global ex-Japan Fund EUR Class A Shares 0.90% Opportuniities Fund. 7 This share class was launched on 25 April 2019 for JOHCM European Concentrated USD Class A Shares 0.90% Value Fund. GBP Class B Shares 1.50% 8 This share class was terminated on 24 December 2019 for JOHCM European EUR Class B Shares 1.50% Concentrated Value Fund. 9 This share class was launched on 24 December 2019 for JOHCM UK Dynamic Fund. USD Class B Shares 1.50% 10 This share class was launched on 04 April 2019 for JOHCM Global income Builder USD Class Z Shares 2, * - Fund. 11 This share class was launched on 26 November 2019 for JOHCM Global income JOHCM Asia GBP Class A Shares 0.90% Builder Fund. ex-Japan Small EUR Class A Shares 0.90% 12 This share class was launched on 10 December 2019 for JOHCM Global income Builder Fund. and Mid-Cap Fund USD Class A Shares 0.90% GBP Class B Shares 1.50% Investment Management fees for Z class shares are EUR Class B Shares 1.50% negotiated separately with the Investment Manager and not USD Class B Shares 1.50% charged to the respective sub-fund. JOHCM Global GBP Class A Shares 0.75% Opportunities Fund EUR Class A Shares 0.75% The Investment Manager has voluntarily agreed to waive USD Class A Shares 0.75% a portion of its fees and/or reimburse certain expenses in GBP Class B Shares 1.50% respect of individual sub-funds so that the total expenses of EUR Class B Shares 1.50% those sub-funds will not exceed voluntary expense limitations USD Class B Shares 1.50% established for each respective sub-fund. The Investment GBP X Shares 3 0.625% Manager, at its discretion, may revise or discontinue the GBP Hedged X Shares 0.625% voluntary waivers and/or expense reimbursements at any time. EUR X Shares 4 0.625% For the financial year ended 31 December 2019 and EUR Class Z Shares 5, * - 31 December 2018, the Investment Management fees waived and reimbursed were as follows: EUR Hedged A Shares 6 0.625%

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 181 Notes to the Financial Statements (continued)

6 Operating expenses (continued) Depositary fee Investment management and performance fees The Depositary shall be entitled to safekeeping fees ranging (continued) from 0.003% p.a. to 0.800% p.a. of the Net Asset Value of the Fund depending on the location of the assets held, 31 Dec 31 Dec subject to a minimum fee which will not exceed €5,000 Sub-fund 2019 2018 per annum, per Fund and to transaction charges which £’000 £’000 shall be charged at normal commercial rates. In addition, the Depositary shall be entitled to an annual Trustee fee of JOHCM Emerging Markets Fund1 236 221 0.0225% p.a. up to €500 million of the Net Asset Value and JOHCM Asia ex-Japan Small and Mid-Cap Fund 60 41 0.0125% p.a. exceeding €500 million. Such fees shall accrue JOHCM Global Opportunities Fund - 23 daily and be payable monthly in arrears. The Depositary shall JOHCM Japan Dividend Growth Fund 36 - also be entitled to be reimbursed for reasonable JOHCM US Small Mid Cap Equity Fund2 36 42 out-of-pocket expenses properly incurred by it, including telephone and fax charges, stamp duties, proxy voting and JOHCM European Concentrated Value Fund -- registration fees. JOHCM Global Smaller Companies Fund3 64 71

JOHCM UK Dynamic Fund 114 125 Directors’ remuneration JOHCM Global Income Builder Fund 113 39 The Directors are entitled to a fee in remuneration for their JOHCM Concentrated Global Share Fund 60 4 services at a rate to be determined from time to time by the Directors, but so that the aggregate amount of Directors’ 1. JOHCM Emerging Markets Fund was terminated on 07 November 2019. remuneration in any one financial year shall not exceed EUR 2. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 75,000. Directors’ fees charged for the financial year ended 3. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019. 31 December 2019 and 31 December 2018 were as follows:

Additionally, the Investment Manager receives a performance 31 Dec 31 Dec fee based on the out-performance of each sub-fund’s return 2019 2018 over an index specific to each sub-fund. The performance £’000 £’000 fee equates to 15% of the out-performance and is accrued daily and payable annually in arrears in respect of each Director fees 54 53 performance year. The performance year for all sub-funds Total 54 53 was the period commencing 1 January 2018 or the inception date if later. Auditors’ remuneration The fund performance in respect of a performance period is The accrued amount for work carried out for the Company the arithmetical difference between the NAV per share on for the financial period end is as follows: the last business day of the preceding performance period, 31 Dec 31 Dec which reflects the charging of a performance fee, if any, in 2019 2018 respect of the previous performance period, and the NAV per £’000 £’000 share on the last business day of the performance period expressed as a percentage. Audit services (inc VAT) Audit fees 107 106 There have been no changes to investment management fee rates and performance fee rates since the Management Non audit services (inc VAT) Company commenced trading. Tax advisory fee 47 149 Other non-audit services 58 48 Administration fees Total 212 303 The Administrator is entitled to an annual fee payable by the Company not exceeding EUR 35,000 per annum per sub-fund with up to 2 share classes and in addition, up to EUR 3,500 Service provider fees per annum for each additional share class plus Domiciliary For the financial year ended 31 December 2019 and and Corporate Agent Fees of up to EUR 10,000 per annum for 31 December 2018, the service provider fees were as follows: the Company. Such fees are accrued daily and are payable 31 Dec 31 Dec monthly in arrears. The Administrator is also entitled to the 2019 2018 payment of fees for acting as Registrar and Transfer Agent £’000 £’000 and transaction charges (charged at normal commercial rates), based on transactions undertaken by the Company, Administration fees 678 975 the number of subscriptions, redemptions, exchanges and transfer of shares processed by the Administrator and time Depositary fees 763 1,333 spent on Company shareholder servicing duties and to the Depositary oversight fees 325 1,270 reimbursement of operating expenses. Transfer and domiciliary agency fees 1,265 920 The Administrator is also entitled to be repaid for all of its Total 3,031 4,498 out-of-pocket expenses incurred on behalf of the Company, which shall include reasonable legal fees, courier fees, telecommunications and expenses.

182182 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

7 Related parties Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or if the party is a member of the key management personnel of the entity or its parent. The Manager and Investment Manager are related parties under this definition. For the Financial year ended 31 December 2019 the Company incurred GBP 56,477,000 (2018: GBP 75,613,000) in total for investment management fees. Effective 1 November 2019 these fees are paid to the Manager who will in turn pay the Investment Manager out of its Manager fee. Further details in respect of Manager and Investment Manager fees are disclosed in Note 6. As also discussed in Note 6, the Investment Manager is entitled to receive performance fees. For the financial year ended 31 December 2019, the Company accrued GBP Nil (2018: GBP 763,000) in total for performance fees. For the financial year ended 31 December 2019 the Company received GBP 719,000 (2018: GBP 566,000) in total as Reimbursement from the Investment Manager. Refer to note 6 for further details. Graham Warner, Máire O’Connor and Robert Burke are independent non-executive Directors of J O Hambro Capital Management Umbrella Fund plc and the Manager. Graham Warner resigned as Independent non-executive director on 30 September 2019. As at 31 December 2019, none of the independent non-executive directors held shares in J O Hambro Capital Management Umbrella Fund plc (2018: nil). Ms. Vaughan held 8,772 shares in JOHCM Global Select Fund as at 31 December 2019 (31 December 2018: 8,772 shares), Nil shares in JOHCM Emerging Markets Fund as at 31 December 2019 (31 December 2018: 5,597) and 31,500 shares in JOHCM Global Income Builder Fund (31 December 2018: Nil). On 30 September 2019, Helen Vaughan retired as Chief Operating Officer of the Investment Manager. She continues as a Non-executive director of the Company. Carne Global Financial Services Limited provided fund governance services to the Company during the year. The fees amounted to GBP 21,590 (31 December 2018: 22,470) of which Nil was payable as at 31 December 2019 (31 December 2018: Nil). As at 31 December 2019, J O Hambro Capital Management Limited held shares in the Company as follows:

Opening Subscription Redemption Closing Shares Shares Monetary Shares Monetary Shares £’000 £’000

JOHCM Continental European Fund Class Y GBP 120.871 2.510 - - 123.381

JOHCM European Select Value Fund Class A GBP 32,390.871 37,555.140 £202 (10,796.957) £(57) 59,149.054

JOHCM Global Select Fund Class Z GBP 2,490.554 564,846.018 £1,212 - 567,336.572

JOHCM Emerging Markets Fund 1 Class Y GBP 107,024.596 1,238.160 £2 (108,262.756) £(45) -

JOHCM Global Emerging Market Opportunities Fund Class A EUR 165,763.070 - - - - 165,763.070 Class B EUR 11,066.473 - - - - 11,066.473

JOHCM Asia ex-Japan Fund Class A EUR 144,228.801 - - - - 144,228.801 Class B EUR 11,525.702 - - - - 11,525.702 Class Z GBP 62,109.489 1,455.360 £2 (20,703.163) £(26) 42,861.686

JOHCM Asia ex-Japan Small and Mid-Cap Fund Class A EUR 146,363.393 - - - - 146,363.393 Class A USD 1,224,692.809 - - - - 1,224,692.809 Class B EUR 11,657.253 - - - - 11,657.253 Class B USD 15,722.129 - - - - 15,722.129 Class Z GBP 52,562.758 791.438 £1 (52,158.667) (71) 1,195.529

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 183 Notes to the Financial Statements (continued)

7 Related Parties (continued)

Opening Subscription Redemption Closing Shares Shares Monetary Shares Monetary Shares £’000 £’000

JOHCM Japan Dividend Growth Fund Class A USD 211,867.827 - - - - 211,867.827 Class A Hedged USD 207,646.250 - - - - 207,646.250

JOHCM US Small Mid Cap Equity Fund 1 Class A GBP 10,000.000 - - (10,000.000) - - Class A EUR 10,000.000 - - (10,000.000) - - Class A USD 10,000.000 - - (10,000.000) - - Class B EUR 10,000.000 - - (10,000.000) - - Class B USD 10,000.000 - - (10,000.000) - - USD Seed 18,255,226.255 - - (18,255,226.255) - -

JOHCM European Concentrated Value Fund Class A EUR 200,011.128 111,259.009 $118 (66,638.289) $(66) 244,631.848

JOHCM Global Smaller Companies Fund 2 Class A USD 4,461,600.000 - - (4,461,600.000) - -

JOHCM Global Income Builder Fund Class A EUR 1,235.719 1.782 - - - 1,237.501 Class B EUR 1,235.708 1.732 - - - 1,237.440

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

As at 31 December 2018, J O Hambro Capital Management Limited held shares in the Company as follows:

Opening Subscription Redemption Closing Shares Shares Monetary Shares Monetary Shares £’000 £’000

JOHCM Continental European Fund Class Y GBP 119.161 1.710 - - - 120.871

JOHCM European Select Value Fund Class A GBP 126,214.469 33,424.732 £194 (127,248.330) £(786) 32,390.871

JOHCM Global Select Fund Class Z GBP 2,459.007 31.547 - - - 2,490.554

JOHCM Emerging Markets Fund Class Y GBP 54,231.144 106,599.978 £143 (53,806.526) £(83) 107,024.596

JOHCM Global Emerging Markets Opportunities Fund Class A EUR 165,763.070 - - - - 165,763.070 Class B EUR 11,066.473 - - - - 11,066.473

JOHCM Asia ex-Japan Fund Class A EUR 144,228.801 - - - - 144,228.801 Class B EUR 11,525.702 - - - - 11,525.702 Class Z GBP 242,755.545 67,180.024 £101 (247,826.080) £(14) 62,109.489

JOHCM Asia ex-Japan Small and Mid-Cap Fund Class A EUR 146,363.393 - - - - 146,363.393

184184 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

7 Related Parties (continued)

Opening Subscription Redemption Closing Shares Shares Monetary Shares Monetary Shares £’000 £’000 Class A USD 1,224,692.809 - - - - 1,224,692.809 Class B EUR 11,657.253 - - - - 11,657.253 Class B USD 15,722.129 - - - - 15,722.129 Class Z GBP 207,774.246 2,870.400 £4 (158,081.888) (91) 52,562.758

JOHCM Japan Dividend Growth Fund Class A USD 211,867.827 - - - 211,867.827 Class A Hedged USD 207,646.250 - - - 207,646.250

JOHCM US Small Mid Cap Equity Fund Class A GBP 10,000.000 - - - - 10,000.000 Class A EUR 10,000.000 - - - - 10,000.000 Class A USD 10,000.000 - - - - 10,000.000 Class B EUR 10,000.000 - - - - 10,000.000 Class B USD 10,000.000 - - - - 10,000.000 USD Seed 18,255,226.255 - 18,255,226.255

JOHCM European Concentrated Value Fund Class A EUR 4,070,625.996 199,915.132 $213 (4,070,530.000) $(4,539) 200,011.128

JOHCM Global Smaller Companies Fund Class A USD 4,461,600.000 - - - - 4,461,600.000

JOHCM Global Income Builder Fund Class A EUR - 1,235.719 $1 - - 1,235.719 Class B EUR - 1,235.708 $1 - - 1,235.708

The Secretary did not hold any shares of the Company during the financial year or at the financial year end (2018: nil).

Directors’ remuneration A list of members of the Board of Directors is shown on page 1 of this report. Directors’ remuneration is discussed in note 6.

8 Risk associated with financial instruments The sub-funds utilise various methods to value investments measured at fair value on a recurring and non recurring basis.

Risk Management Structure The Board of Directors of the Manager have delegated responsibility to the Designated Person for Fund Risk Management for day- to-day monitoring and ensuring all applicable risks pertaining to the Sub-Funds can be identified, monitored and managed at all times.

The Designated Person shall be responsible for monitoring compliance of the relevant Sub-Fund in accordance with risk limits established by the Company. The Designated Person places reliance on the risk management and compliance controls operated by the Investment Manager and receives regular reporting from Service Providers to ensure that all applicable risks pertaining to the Company and its Sub-Funds are identified, monitored and managed at all times.

The Manager has established and maintains its own permanent risk management function, the day-to-day operations of which are performed by the Investment Manager, due to the nature, scale and complexity of the Manager’s business and the nature and range of services and activities undertaken in the course of that business. The permanent risk management function, through the Investment Manager, will take steps with respect to the Sub-Funds in order to assess, manage and monitor the exposures of the Sub-Funds to the relevant risks, including market risks, liquidity risks, counterparty risks and operational risks.

The Board of Directors of the Manager aim to discharge its compliance obligations through the receipt of and review of reports from the service providers and through the receipt and review of reports from the Designated Person with responsibility for Fund Risk management. The Designated Person will identify, monitor and manage all risks pertaining to the Manager and in doing so may consult with the Investment Manager and other service providers.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 185 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Risk Management Structures (continued) The Investment Manager will provide a monthly investment management report to the Designated Person which will be designed to enable the Designated Person and the Board of Directors of the Manager to monitor the level of investment risk in each Sub- Fund on an ongoing basis generally and against any guidelines issued by the Manager.

The Board of Directors of the Manager will carry out a periodic assessment (at least annually) of the risk management policy to determine its adequacy and efficiency including a review of the effectiveness of measures taken to address any deficiencies in the performance of the Manager’s risk management policy.

The Board of Directors of the Manager have appointed the Investment Manager to adopt proportionate and effective risk measurement techniques in respect of each Sub-Fund, in order to measure the risks to which each Sub-Fund is or might be exposed.

Fair Valuation Estimation

Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement (lowest being Level 3).

Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Board of Directors of the Manager’s assumptions, made in good faith, about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The determination of what constitutes “observable” requires significant judgment by the Board of Directors of the Manager. The Board of Directors of the Manager considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Board of Directors of the Manager’s perceived risk of that instrument.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Board of Directors of the Manager’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date.

The Board of Directors of the Manager uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy.

The three levels of inputs are defined as follows:

Level 1 - The unadjusted quoted price in active markets for identical assets or liabilities that the entity can access at the measurement date (Level 1);

Level 2 - Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly (Level 2); and

Level 3 - Inputs that are unobservable (i.e. for which market data is unavailable) for the asset or liability (Level 3).

Unlisted Equities Unlisted equities are valued at the probable realisation value as determined with care and in good faith by such competent persons as may be appointed by the the Board of Directors of the Manager and approved for the purpose by the Depositary. The unlisted securities or staled prices securities are agreed by the pricing committee at J O Hambro Capital Management Limited.

Transfer between Level 1 and 2 There have been no significant transfers between Level 1 and Level 2 during the financial year ended 31 December 2019 and financial year ended 31 December 2018.

Valuation Techniques The fair value of ordinary shares or preference shares that do not have a quoted market price in an active market is reliably measurable if:

(i) the variability in the range of reasonable fair value estimates is not significant for that asset; or

(ii) the probabilities of the various estimates within the range can be reasonably assessed and used in estimating fair value.

There are many situations in which the variability in the range of reasonable fair value estimates of assets that do not have a quoted market price is likely not to be significant. Normally it is possible to estimate the fair value of ordinary shares or preference shares that an entity has acquired from an outside party. However, if the range of reasonable fair value estimates is

186186 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Valuation Techniques (continued) significant and the probabilities of the various estimates cannot be reasonably assessed, an entity is precluded from measuring the ordinary shares or preference shares at fair value.

If a reliable measure of fair value is no longer available for an asset measured at fair value (e.g. ordinary shares or preference shares measured at fair value through profit or loss), its carrying amount at the last date the asset was reliably measurable becomes its new cost. The entity shall measure the ordinary shares or preference shares at this cost amount less impairment until a reliable measure of fair value becomes available.

The Company has investment guidelines that set out its overall business strategies, its tolerance for risk and its general risk management philosophy and has established processes to monitor and control economic hedging transactions in a timely and accurate manner. The Company’s accounting policies in relation to derivatives are set out

in note 2 to the financial statements and the Company has a Risk Management Process in place for the use of financial derivative investments which has been approved by the Board of Directors of the Manager and the Central Bank of Ireland.

As noted previously, the Board of Directors of the Manager has engaged Carne Global Financial Services Limited (“Carne”) to provide Designated Persons to the Company including the Designated Person that is responsible for Fund Risk Management of the Company. Carne ensures that procedures are in place so that all significant risks to the Company can be identified, monitored and managed at all times. Carne reports to the Board of Directors of the Manager quarterly based on the reports supplied by the Company’s Investment Manager and Administrator.

Set out below is a description of some of the more important types of risk and an outline of the processes the Investment Manager has implemented to assess, monitor and control these specific risks:

The Company invests in the following financial instruments which are classified under Level 2. These instruments are valued as follows;

OTC Options Options contracts are valued at the settlement price as determined by the market in question. If such market price is not available, the value shall be the probable realisation value estimated with care and in good faith by the Directors or such other competent person approved for the purpose by the Depositary.

Contracts for Difference Contracts for Difference are valued by the counterparty Goldman Sachs at least daily. The valuation must be approved or verified weekly by a third party who is independent of the counterparty and who is approved for the purpose by the Depositary.

Upon entering into contracts for differences, the sub-funds pledge cash (financial assets) collateral against the contracts for differences financial liabilities. For the financial year ended 31 December 2019 JOHCM European Select Values Fund held a collateral amount of GBP 165,000 (31 December 2018: Nil).

Forward Contracts Forward exchange contracts are valued by reference to the price at which a new forward contract of the same size and maturity could be undertaken.

The following tables summarise the inputs used to value the sub-funds’ financial instruments measured at fair value on a recurring and non-recurring basis as at 31 December 2019:

Total investments (Level 1) (Level 2) (Level 3) Assets and Liabilities 2019 2019 2019 2019 £’000 £’000 £’000 £’000

JOHCM Continental European Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,009,922 1,009,922 - - Forward foreign exchange contracts 536 - 536 -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (292) - (292) -

Total 1,010,166 1,009,922 244 -

JOHCM UK Growth Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 238,220 238,220 - -

Total 238,220 238,220 - -

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 187 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued)

Total investments (Level 1) (Level 2) (Level 3) Assets and Liabilities 2019 2019 2019 2019 £’000 £’000 £’000 £’000

JOHCM European Select Values Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,158,187 1,158,187 - - Options 354 354 - - Forward foreign exchange contracts 2 - 2 -

Financial liabilities at fair value through profit or loss Contracts for difference (158) - (158) - Forward foreign currency contracts (8) - (8) -

Total 1,158,377 1,158,541 (164) -

JOHCM Japan Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 239,039 239,039 - - Forward foreign currency contracts 1,011 - 1,011 -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (1) - (1) -

Total 240,049 239,039 1,010 -

JOHCM Global Select Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,263,996 1,263,996 - - Forward foreign exchange contracts 23 - 23 -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (3) - (3) -

Total 1,264,016 1,263,996 20 -

JOHCM Global Emerging Markets Opportunities Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 354,540 354,540 - -

Total 354,540 354,540 - -

JOHCM Asia ex-Japan Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 117,687 117,687 - - Forward foreign currency contracts 23 - 23 - Total 117,710 117,687 23 -

JOHCM Asia ex-Japan Small and Mid-Cap Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 14,196 14,196 - - Total 14,196 14,196 - -

JOHCM Global Opportunities Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 390,709 390,709 - - Forward foreign currency contracts 157 - 157 -

Financial liabilities at fair value through profit or loss Forward foreign exchange contracts (26) - (26) - Total 390,840 390,709 131 -

188188 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued)

Total investments (Level 1) (Level 2) (Level 3) Assets and Liabilities 2019 2019 2019 2019 £’000 £’000 £’000 £’000

JOHCM Japan Dividend Growth Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 7,372 7,372 - - Forward foreign currency contracts 23 - 23 -

Financial liabilities at fair value through profit or loss Forward foreign exchange contracts (1) - (1) - Total 7,394 7,372 22 -

JOHCM European Concentrated Value Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 162,074 162,074 - -

Financial liabilities at fair value through profit or loss Forward foreign exchange contracts (89) - (89) - Total 161,985 162,074 (89) -

JOHCM UK Dynamic Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 17,351 17,351 - - Total 17,351 17,351 - -

JOHCM Global Income Builder Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 36,159 20,250 15,909 - Forward foreign exchange contracts 23 - 23 -

Financial liabilities at fair value through profit or loss Forward foreign exchange contracts (11) - (11) - Total 36,171 20,250 15,921 -

JOHCM Concentrated Global Share Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 2,068 2,068 - - Total 2,068 2,068 - -

The following tables summarise the inputs used to value the sub-funds’ financial instruments measured at fair value on a recurring and non recurring basis as at 31 December 2018:

Total investments (Level 1) (Level 2) (Level 3) Assets and Liabilities 2018 2018 2018 2018 £’000 £’000 £’000 £’000

JOHCM Continental European Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,265,347 1,265,347 - - Forward foreign exchange contracts 62 - 62 -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (106) - (106) -

Total 1,265,303 1,265,347 (44) -

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 189 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued)

Total investments (Level 1) (Level 2) (Level 3) Assets and Liabilities 2018 2018 2018 2018 £’000 £’000 £’000 £’000

JOHCM UK Growth Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 349,275 349,275 - -

Total 349,275 349,275 - -

JOHCM European Select Values Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,958,535 1,958,535 - - Options 22,157 22,157 - - Forward foreign exchange contracts 1 - 1 -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (1) - (1) -

Total 1,980,692 1,980,692 - -

JOHCM Japan Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 354,469 354,469 - - Forward foreign currency contracts 9 - 9 -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (295) - (295) -

Total 354,183 354,469 (286) -

JOHCM Global Select Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,664,090 1,664,090 - -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (1) - (1) -

Total 1,664,089 1,664,090 (1) -

JOHCM Emerging Markets Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 8,452 8,452 - -

Total 8,452 8,452 - -

JOHCM Global Emerging Markets Opportunities Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 282,494 282,494 - -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (1) - (1) -

Total 282,493 282,494 (1) -

JOHCM Asia ex-Japan Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 171,180 171,180 - - Forward foreign currency contracts 1 - 1 -

Total 171,181 171,180 1 -

190190 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued)

Total investments (Level 1) (Level 2) (Level 3) Assets and Liabilities 2018 2018 2018 2018 £’000 £’000 £’000 £’000

JOHCM Asia ex-Japan Small and Mid-Cap Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 13,788 13,788 - -

Total 13,788 13,788 - -

JOHCM Global Opportunities Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 256,439 256,439 - - Forward foreign currency contracts 75 - 75 -

Financial liabilities at fair value through profit or loss Forward foreign exchange contracts (6) - (6) -

Total 256,508 256,439 69 -

JOHCM Japan Dividend Growth Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 61,368 61,368 - -

Financial liabilities at fair value through profit or loss Forward foreign currency contracts (10) - (10) -

Total 61,358 61,368 (10) -

JOHCM US Small Mid Cap Equity Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 44,937 44,937 - -

Total 44,937 44,937 - -

JOHCM European Concentrated Value Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 382,507 382,507 - - Forward foreign exchange contracts 569 - 569 -

Total 383,076 382,507 569 -

JOHCM Global Smaller Companies Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 3,802 3,802 - -

Total 3,802 3,802 - -

JOHCM UK Dynamic Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 13,027 13,027 - -

Total 13,027 13,027 - -

JOHCM Global Income Builder Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 17,882 10,022 7,860 -

Total 17,882 10,022 7,860 -

JOHCM Concentrated Global Share Fund Financial assets at fair value through profit or loss Investments in transferable securities, at fair value 1,624 1,624 - -

Total 1,624 1,624 - -

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 191 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Global Exposure to Financial Derivative Instruments On behalf of the Board of Directors of the Manager, the Investment Manager’s Risk Management department has assessed the risk profile of the Company and the related sub-funds on the basis of the investment policy, strategy and the use of Financial Derivative Instruments (“FDIs”). Based on the risk profile, Risk Management has determined that the method for the calculation of the global exposure to FDIs for all sub-funds will be the commitment approach, where the sub-fund holds FDIs.

Breaches of the exposure limits, if any, are identified using the commitment approach, addressed by the Investment Manager and reported to the Directors. An annual FDIs report is provided to the Central Bank detailing any exposure breaches in either the global exposure or counterparty risk exposure in respect of FDIs. During the financial year ended 31 December 2019 and financial year ended 31 December 2018 there were no breaches of the FDIs exposure limits.

Market Risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices and includes currency risk, interest rate risk and price risk. The Company’s market risk management strategy is driven by the investment objectives of each of the sub-funds. The sub-funds are actively managed.

The following specific processes are in place to control market risk and prohibit speculation: • Market risk for all sub-funds is assessed by the Investment Manager in the context of the total portfolio being managed, where financial derivative instruments are included on a fully paid up exposure basis. Where options or option related financial derivative instruments are utilised, exposure is determined on a delta-weighted basis. • Consideration is given to basis risk (the risk that the financial derivative instrument will not move in line with the physical position) where appropriate; • Restrictions on gearing of portfolios are in place (as defined in the Company’s Prospectus). Financial derivative instruments cannot be used to circumvent these restrictions; • Net exposures of a sub-fund to an asset class, including the delta weighted exposure of derivative instruments are restricted by the Company’s investment guidelines; • In the case of use of financial derivative instrument positions to achieve exposure, the sub-funds hold sufficient cash or appropriate equivalent to meet potential obligations arising from the net derivative position. In the case of derivative positions to remove exposure, the sub-funds hold assets, which are considered a reasonable hedge.

Price Risk The Company’s equity securities and FDIs are susceptible to market price risk arising from uncertainties about the future prices of the instruments. The Company’s market price risk is managed through diversification of the portfolios of the sub-funds. Asset allocation is determined by the Company’s Investment Manager who manages the allocation of assets to achieve each sub-fund’s investment objective.

Market risk exposures are measured through monitoring sector and country exposures against the relevant benchmark indices on a daily basis via live spreadsheets.

The Board of Directors of the Manager’s best estimate of the effect on net assets and profits due to a reasonably possible change in equity indices with all other variables held constant is as follows:

Financial Effect on net assets and Change in assets and liabilities equity price profit Fund Index 31 Dec 2019 31 Dec 2019 31 Dec 2019 £’000s % £000’s

JOHCM Continental European Fund MSCI Europe Ex UK NR 1,010,166 20 201,902 JOHCM UK Growth Fund FTSE All Share 238,220 19 45,655 JOHCM European Select Values Fund MSCI Europe NR 1,158,377 19 220,018 JOHCM Japan Fund TOPIX 240,049 16 38,414 JOHCM Global Select Fund MSCI ACWI NR 1,264,016 22 274,407 JOHCM Global Emerging Markets Opportunities Fund MSCI Emerging Markets NR 354,540 14 49,148 JOHCM Asia ex-Japan Fund MSCI AC Asia ex-Japan NR 117,710 14 16,016 JOHCM Asia ex-Japan Small and Mid-Cap Fund MSCI AC Asia ex-Japan Small Cap 14,196 3 439 JOHCM Global Opportunities Fund MSCI ACWI NR 390,840 22 84,848 JOHCM Japan Dividend Growth Fund TOPIX 100 TR 7,394 16 1,183 JOHCM European Concentrated Value Fund MSCI Europe NR 161,985 19 30,767 JOHCM UK Dynamic Fund FTSE All Share 17,351 19 3,325 JOHCM Concentrated Global Share Fund MSCI World NR 2,068 23 470

192192 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Price Risk (continued)

Financial Effect on net assets and Change in assets and liabilities equity price profit Fund Index 31 Dec 2018 31 Dec 2018 31 Dec 2018 % £000’s

JOHCM Continental European Fund MSCI Europe Ex UK NR 1,265,303 (10) (124,870) JOHCM UK Growth Fund FTSE All Share 349,275 (9) (33,086) JOHCM European Select Values Fund MSCI Europe NR 1,980,692 (10) (189,610) JOHCM Japan Fund TOPIX 354,183 (8) (23,088) JOHCM Global Select Fund MSCI ACWI NR 1,664,089 (4) (63,003) JOHCM Emerging Markets Fund MSCI Emerging Markets NR 8,452 (9) (783) JOHCM Global Emerging Markets Opportunities Fund MSCI Emerging Markets NR 282,493 (9) (26,186) JOHCM Asia ex-Japan Fund MSCI AC Asia ex-Japan NR 171,181 (9) (15,493) JOHCM Asia ex-Japan Small and Mid-Cap Fund MSCI AC Asia ex-Japan Small Cap 13,788 (14) (1,907) JOHCM Global Opportunities Fund MSCI ACWI NR 256,508 (4) (9,711) JOHCM Japan Dividend Growth Fund TOPIX 100 TR 61,358 (7) (4,000) JOHCM US Small Mid Cap Equity Fund RUSSELL TR 44,937 (4) (1,981) JOHCM European Concentrated Value Fund MSCI Europe NR 383,076 (10) (36,671) JOHCM Global Smaller Companies Fund MSCI ACWI SMID Cap 3,802 (8) (321) JOHCM UK Dynamic Fund FTSE All Share 13,027 (9) (1,234) JOHCM Concentrated Global Share Fund MSCI World NR 1,624 (3) (49)

TR stands for ‘Total Return’. All indices are sterling adjusted.

The Financial Assets and Liabilities in the table above represent the total investments as per Schedule of Investments on pages 33 to 167. The changes in equity price are based on the movement of ten financial year annualised rates. The Board of Directors of the Manager believes that this is appropriate for portraying the underlying sub-fund’s sensitivity to market movements. In practice the actual trading results may differ from the sensitivity analysis above and the difference could be material as all the sub-funds are actively managed.

Currency Risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Company’s functional currency is Sterling (GBP). The Company invests in securities and other investments that are denominated in currencies other than the functional currency. Accordingly, the value of the Company’s assets may be affected favourably or unfavourably by fluctuations in currency rates. Sub-funds may employ techniques and use instruments intended to provide protection against exchange rate risks in the context of the management of the assets and liabilities in line with the Company’s Risk Management Process. This will involve the buying or selling of a foreign currency in order to complete a forward contract entered into at the same time as the initial transaction to eliminate exchange rate risk. A sub-fund may enter into forward foreign currency exchange contracts to hedge the foreign exchange risk implicit in the value of the portfolio securities denominated in a foreign currency. The rates of exchange to GBP as at 31 December 2019 and 31 December 2018 were:

2019 2018 2019 2018

AED 4.852046 - LKR 239.606385 233.565027 AUD 1.883305 1.809153 MXN 24.991486 25.112099 BRL 5.309818 4.955775 MYR 5.403344 5.276795 CAD 1.719877 1.739267 NOK 11.606625 11.082470 CHF 1.277227 1.256214 PHP 66.893705 67.035909 CLP - 886.120749 PLN - 4.794176 CNY 9.193438 - QAR 4.809576 4.649512 CZK 29.891833 28.680847 RUB 82.163961 89.019799 DKK 8.789750 8.326052 SEK 12.286764 11.429773 EUR 1.176478 1.114953 SGD 1.777140 1.739456 HKD 10.285530 10.000940 THB 39.344433 41.307583 HUF - 357.959834 TRY 7.856344 6.753155 IDR 18,338.886575 18,362.093759 TWD 39.506819 39.001222 INR 94.292955 89.094334 USD 1.320950 1.276900 JPY 143.422198 140.388721 ZAR 18.546157 18.357606 KRW 1,523.587082 1,423.522854

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 193 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Currency Risk (continued) Currency Risk (continued) On behalf of the Board of Directors of the Manager, the Investment Manager seeks to mitigate foreign currency risk by launching share classes denominated in currencies other than the reporting currency of the Fund. For the Japan Fund, while the base currency of the Fund is GBP, JPY hedged share classes have been introduced to provide investors with the same return as the underlying JPY assets. For the Continental European Fund, while the base currency of the Fund is GBP, EUR and USD hedged share classes have been introduced to provide investors with the same return as the underlying EUR and USD assets. For the Japan Dividend Growth Fund, while the base currency of the Fund is GBP, EUR and JPY hedged share classes have been introduced to provide investors with the same return as the underlying EUR and JPY assets.

Table 1 overleaf analyses the net amount of monetary assets and liabilities held by each sub-fund at the Statement of Financial Position date denominated in currencies other than GBP, the functional currency.

Table 2 on pages 198 to 199 discloses the Board of Directors of the Manager’s best estimates of the effect of a reasonably probable movement of the currency rate against Sterling, with the other variables held constant on the Statement of Comprehensive Income and equity. A negative amount in the table reflects a potential net reduction in Statement of Comprehensive Income or equity, while a positive amount reflects a net potential increase. In practice the actual trading results may differ from the below sensitivity analysis and the difference could be material.

Table 1 Analysis of the net amount of foreign currency investments and net monetary assets and liabilities held by each sub-fund at the Statement of Financial Position date

Net foreign currency Net foreign currency Currency Total investments monetary assets derivatives Total exposure Dec 2019 Dec 2018 Dec 2019 Dec 2018 Dec 2019 Dec 2018 Dec 2019 Dec 2018 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

JOHCM Continental European Fund CHF 95,191 172,184 - (2,332) - 2,332 95,191 172,184 DKK 5,047 30,536 - 1,281 - (1,278) 5,047 30,539 EUR 837,787 998,400 13,691 52,308 (82,655) (139,164) 768,823 911,544 NOK 26,774 11,994 - - - - 26,774 11,994 SEK 45,123 52,233 (1,039) (529) - 529 44,084 52,233 USD - - 58 - 23,659 29,667 23,717 29,667

Total 1,009,922 1,265,347 12,710 50,728 (58,996) (107,914) 963,636 1,208,161

JOHCM UK Growth Fund USD 688 - - - - - 689 -

Total 688 - - - - - 689 -

JOHCM European Select Values Fund CAD - 2,319 - - - - - 2,319 CHF 126,053 114,184 - (225) - 225 126,053 114,184 DKK - - - 715 - (715) - - EUR 860,031 1,472,081 (163) (485) 821 55 860,689 1,471,651 HKD ------NOK 3,462 9,514 - 175 - (175) 3,462 9,514 USD 104,183 189,116 - - 354 22,157 104,537 211,273

Total 1,093,729 1,787,214 (163) 180 1,175 21,547 1,094,741 1,808,941

JOHCM Japan Fund EUR - - - (28) - 28 - - JPY 239,039 354,469 572 (69) (70,183) (90,502) 169,428 263,898

Total 239,039 354,469 572 (97) (70,183) (90,474) 169,428 263,898

194194 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Currency Risk (continued) Table 1 (continued)

JOHCM Global Select Fund AUD 71,168 137,556 (1,008) - 1,008 - 71,168 137,556 CAD - 26,652 - - - - - 26,652 DKK 68,916 - - - - - 68,916 - EUR 67,973 83,489 327 742 (322) (226) 67,978 84,005 HKD 32,983 42,203 - - - - 32,983 42,203 JPY 203,130 295,660 (3,017) 308 3,303 - 203,416 295,968 NOK - 39,138 - - - - - 39,138 TWD 35,373 - - - - - 35,373 - USD 749,221 950,392 27,455 206,561 (3,872) 278 772,804 1,157,231

Total 1,228,764 1,575,090 23,757 207,611 117 52 1,252,638 1,782,753

JOHCM Emerging Markets Fund 1 BRL - 289 - (13) - (3) - 273 CAD - 56 - - - - - 56 CLP ------CZK - 88 - (1) - 1 - 88 EUR - 145 - (4) - 4 - 145 HKD - 2,117 - 8 - (8) - 2,117 HUF - 42 - - - - - 42 IDR - 247 - - - - - 247 INR - 856 - (4) - - - 852 KRW - 990 - 10 - - - 1,000 MXN - 275 - - - - - 275 MYR - 46 - - - - - 46 NOK ------PLN - 217 - (3) - 3 - 217 THB - 236 - - - - - 236 TRY - 51 - (2) - 2 - 51 TWD - 628 - 1 - - - 629 USD - 1,506 - 324 - 3 - 1,833 ZAR - 602 - (2) - - - 600 Total - 8,391 - 314 - 2 - 8,707

JOHCM Global Emerging Markets Opportunities Fund AED 13,624 - - - - - 13,624 - CZK 5,007 3,120 - - - - 5,007 3,120 EUR 6,712 - 1 - (1) - 6,712 - HKD 85,106 53,264 87 (1,671) - 1,671 85,193 53,264 INR 39,357 34,337 2 (884) - - 39,359 33,453 KRW 55,192 44,716 894 826 - - 56,086 45,542 MXN 19,665 13,750 - - - - 19,665 13,750 TRY 12,022 - - - - - 12,022 - TWD 23,265 29,146 86 506 - - 23,351 29,652 USD 76,069 80,035 7,870 10,038 (51) (1,672) 83,888 88,401 ZAR 14,809 16,487 - - - - 14,809 16,487 Total 350,828 274,855 8,940 8,815 (52) (1) 359,716 283,669

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 195 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Currency Risk (continued) Table 1 (continued)

JOHCM Asia ex-Japan Fund CNY 13,050 - - - - - 13,050 - HKD 37,512 53,577 - 1 - - 37,512 53,578 IDR 6,436 11,563 - - - - 6,436 11,563 INR 25,653 46,215 (116) - - - 25,537 46,215 KRW 13,203 13,724 66 220 - - 13,269 13,944 MYR - 3,205 - - - - - 3,205 PHP 2,368 6,271 - - - - 2,368 6,271 SGD 6,952 6,176 - - - - 6,952 6,176 THB 3,356 4,330 - - - - 3,356 4,330 TWD 9,157 18,295 42 - - - 9,199 18,295 USD - 7,824 608 (178) (3,272) (15) (2,664) 7,631 Total 117,687 171,180 600 43 (3,272) (15) 115,015 171,208

JOHCM Asia ex-Japan Small and Mid-Cap Fund CNY 366 - - - - - 366 - HKD 3,731 5,684 50 (27) (49) 27 3,732 5,684 IDR 3,804 2,658 14 - - - 3,818 2,658 INR 483 155 52 - - - 535 155 KRW 479 472 2 2 - - 481 474 MYR 342 655 - - - - 342 655 PHP 1,428 534 21 - - - 1,449 534 SGD 207 1,574 - - - - 207 1,574 TWD 1,658 1,702 (52) - - - 1,606 1,702 USD 1,698 354 (51) 279 48 (27) 1,695 606 Total 14,196 13,788 36 254 (1) - 14,231 14,042

JOHCM Global Opportunities Fund CHF 9,497 7,828 - - - - 9,497 7,828 EUR 115,207 59,226 2,330 18 (2,271) (11) 115,266 59,233 HKD 6,647 6,841 - - - - 6,647 6,841 INR - - (37) - - - (37) - JPY 26,488 23,375 - (145) - 172 26,488 23,402 USD 168,680 117,130 40,905 15,523 (4,320) (20,796) 205,265 111,857 Total 326,519 214,400 43,198 15,396 (6,591) (20,635) 363,126 209,161

JOHCM Japan Dividend Growth Fund EUR - - - 5 - 10 - 15 JPY 7,372 61,368 111 202 (1,762) (2,828) 5,721 58,742 USD - - - - 185 182 185 182 Total 7,372 61,368 111 207 (1,577) (2,636) 5,906 58,939

JOHCM US Small Mid Cap Equity Fund 1 EUR - - (78) - - - (78) USD - 44,937 661 - (49) - 45,549 Total - 44,937 583 - (49) - 45,471

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

196196 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Currency Risk (continued) Table 1 (continued)

JOHCM European Concentrated Value Fund CHF 4,167 - 1,274 - (1,274) - 4,167 - EUR 120,768 267,911 48,230 14,969 (40,507) (161,927) 128,491 120,953 SGD - - (45,305) - 45,460 162,496 155 162,497 USD 18,330 43,239 - - - - 18,330 43,239

Total 143,265 311,150 4,199 14,969 3,679 569 151,143 326,689

JOHCM Global Smaller Companies Fund 2 CAD ------CLP - 72 - - - - - 72 CZK - 39 - - - - - 39 DKK - 74 - - - - - 74 EUR - 141 - 2 - - - 143 INR - 122 - - - - - 122 JPY - 318 - 1 - - - 319 USD - 2,880 - 32 - - - 2,912 Total - 3,646 - 35 - - - 3,681

JOHCM UK Dynamic Fund EUR - - 14 13 - - 14 13 Total - - 14 13 - - 14 13

JOHCM Global Income Builder Fund CAD 406 190 - (2) - - 406 188 CHF 1,720 533 - - - - 1,720 533 DKK 262 175 - (2) - 2 262 175 EUR 3,891 2,102 34 2 274 (15) 4,199 2,089 HKD 479 471 - (3) - 3 479 471 IDR - 31 - - - - - 31 JPY 1,186 550 - (2) - - 1,186 548 NOK 80 - - - - - 80 - SEK 120 202 - (2) - 2 120 202 SGD 185 170 - (2) - 2 185 170 USD 25,152 12,157 1,967 285 (264) 1 26,855 12,443 Total 33,481 16,581 2,001 274 10 (5) 35,492 16,850

JOHCM Concentrated Global Share Fund CHF 85 - - - - - 85 - EUR 488 352 - 1 - - 488 353 HKD 74 68 - - - - 74 68 JPY 44 76 - - - - 44 76 USD 1,210 1,026 58 244 - - 1,268 1,270 Total 1,901 1,522 58 245 - - 1,959 1,767

* Figures are rounded to the nearest whole number.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 197 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Currency Risk (continued) Table 2* Analysis of the effect of a reasonably possible movement of the currency exchange rate against GBP for each sub-fund.

Change to Change to currency rate in Effect on profit Effect on currency rate in Effect on profit Effect on Currency percentage before tax Net assets percentage before tax Net assets 2019 2019 2019 2018 2018 2018 % £‘000 £‘000 % £‘000 £‘000

JOHCM Continental European Fund EUR 1 (7,612) (7,612) (1) 9,208 9,208

JOHCM UK Growth Fund EUR ------USD ------

JOHCM European Select Values Fund EUR 1 (8,522) (8,522) (1) 14,865 14,865

JOHCM Japan Fund JPY 2 (3,322) (3,322) (2) 5,386 5,386

JOHCM Global Select Fund USD - - - (3) 35,790 35,790

JOHCM Emerging Markets Fund 1 HKD - - - (3) 65 65 USD - - - (3) 57 57

JOHCM Global Emerging Markets Opportunities Fund HKD - 582,056 582,056 - - - USD - - - (3) 2,734 2,734

JOHCM Asia ex-Japan Fund HKD - - - (3) 1,657 1,657 INR 3 (744) (744) 2 (906) (906)

JOHCM Asia ex-Japan Small and Mid-Cap Fund HKD - - - (3) 176 176 IDR 2 (3,167) (3,167) - - -

JOHCM Global Opportunities Fund EUR 1 (1,141) (1,141) (1) 598 598 USD - - - (3) 3,459 3,459

JOHCM Japan Dividend Growth Fund JPY 2 (112) (112) (2) 1,199 1,199

JOHCM US Small Mid Cap Equity Fund 2 USD - - - (3) 1,409 1,409

JOHCM European Concentrated Value Fund EUR 1 (1,272) (1,272) (1) 1,222 1,222 SGD - - - (4) 6,770 6,770

JOHCM Global Smaller Companies Fund 3 USD - - - (3) 90 90

JOHCM UK Dynamic Fund EUR ------

JOHCM Global Income Builder Fund USD - - - (3) 384 384

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019. 2. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 3. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019. * Figures are rounded to the nearest whole number.

198198 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Currency Risk (continued) Table 2* (continued)

JOHCM Concentrated Global Share Fund EUR 1 65 65 - - - USD - - - (3) 40 40

* Figures are rounded to the nearest whole number.

Interest rate risk The Sub-Funds may invest in interest bearing securities. Any change to the interest rates relevant for the particular securities may result in the relevant Portfolio Manager being unable to secure positive returns on the expiry of contract or the sale of securities. In addition, changes to prevailing rates or changes in expectations of future rates may result in an increase or decrease in the value of the securities held. In general, if interest rates rise, the value of the fixed interest securities will decline (along with certain expenses calculated by reference to the assets of the Sub-Fund). A decline in interest rates will in general have the opposite effect.

All the Sub-Funds are not included as they do not have significant interest rate risk except for JOHCM Global Income Builder Fund, which invests into bonds:

JOHCM GLOBAL INCOME BUILDER FUND As of 31 December 2019 about 46.50% (2018: 44.70%) of the Sub-Fund’s financial assets were held in interest-bearing assets. Interest-bearing financial assets are debt securities listed in regulated markets. As a result, the Sub-Fund is subject to exposure to fair value interest rate risk due to fluctuations in the prevailing levels of market interest rates.

Up to 1 1 to 5 Over Non-interest year years 5 years bearing Total EUR EUR EUR

JOHCM GLOBAL INCOME BUILDER FUND 31 December 2019

ASSETS Equities - - - 19,436,565 19,436,565 Warrants - - - 809,384 809,384 Bonds 976,766 3,613,917 11,321,908 - 15,912,591 Debt Instruments Derivatives Instruments - - - 22,794 22,794 Loans and receivables: a) Cash and cash equivalents 1,981,560 - - - 1,981,560 b) Dividends and interest receivable - - - 208,033 208,033 d) Receivable from investment manager - - - 100,143 100,143 e) Other receivables - - - 14,118 14,118 TOTAL ASSETS 2,958,326 3,613,917 11,321,908 20,591,037 38,485,188

LIABILITIES Derivatives Instruments - - - 10,968 10,968 Loans and payables: a) Bank overdraft 79,388 - - - 79,388 b) Payable on redemptions - - - 1,632 1,632 d) Management, directors and advisory fees payable - - - 10,417 10,417 e) Administration and transfer agency fee payable - - - 16,461 16,461 F) OTHER PAYABLES - - - 23,629 23,629 TOTAL LIABILITIES 79,388 - - 63,107 142,495

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 199 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Interest rate risk (continued)

Up to 1 1 to 5 Over Non-interest Assets year years 5 years bearing Total EUR GBP GBP

JOHCM GLOBAL INCOME BUILDER FUND 31 December 2018

ASSETS Equities - - - 9,628,246 9,628,246 Warrants - - - 391,672 391,672 Bonds - 927,037 6,934,860 - 7,861,897 Debt Instruments Derivatives Instruments - - - 73 73 Loans and receivables: a) Cash and cash equivalents 371,977 - - - 371,977 b) Dividends receivable - - - 117,451 117,451 c) Subscriptions receivable - - - 17 17 d) Receivable from investment manager - - - 32,075 32,075 e) Other receivables - - - 16,575 16,575 TOTAL ASSETS 371,977 927,037 6,934,860 10,186,109 18,419,983

LIABILITIES Derivatives Instruments - - - 98 98 Loans and payables: a) Payable on redemptions - - - 5,416 5,416 b) Amounts due to brokers - - - 107,596 107,596 c) Management, directors and advisory fees payable - - - 5,305 5,305 d) Administration and transfer agency fee payable - - - 9,219 9,219 e) Other payables - - - 3,733 3,733 TOTAL LIABILITIES - - - 131,367 131,367

As at 31 December 2019, a 1% change in interest rates would have an impact on Net Assets Attributable to Unitholders of redeemable shares and cause an increase/decrease in Net Assets Attributable to Unitholders of GBP 178,148 (31 December 2018: GBP 82,339) for JOHCM Global Income Builder Fund. The interest rate sensitivity provided above represents a hypothetical outcome and is not intended to be predictive. Market conditions, and therefore future interest rates, could vary significantly from that suggested.

Cash Account Risk Subscription monies will become the property of a sub-fund upon receipt and accordingly investors will be treated as a general creditor of a sub-fund during the period between receipt of subscription monies and the issue of shares.

Any failure to supply the sub-fund or the Administrator with any documentation requested by them for anti-money laundering purposes may result in a delay in the settlement of redemption proceeds or dividend payments. In such circumstances, the Administrator will process any redemption request received by a shareholder and by doing so that investor will no longer be considered a shareholder notwithstanding that they have not received the redemption proceeds.

In the event of the insolvency of the Company or the relevant sub-fund, the shareholder will rank as an unsecured creditor of the sub-fund until such time as the Administrator is satisfied that its anti-money-laundering procedures have been fully complied with, following which redemption proceeds will be released or the dividend paid (as applicable) to the relevant shareholder. Accordingly, shareholders are advised to promptly provide the sub-fund or Administrator (as appropriate) with all documentation requested to reduce the risk in this scenario.

The Administrator also operates the Cash Account with respect to receipt of subscription monies. In this scenario, the investor is subject to the risk of becoming an unsecured creditor in the event of the insolvency of the Company or the relevant sub-fund during the period between receipt of subscription monies and the Dealing Day on which the shares are issued.

In the case of sub-funds which operate on a cleared funds basis, in the event of an insolvency of the Company or the relevant sub-fund, the rights of the investor to money held in the Cash Account which have been received from the investor in advance of shares being issued, are those of an unsecured creditor of the sub-fund. In such a case the investor will not be a shareholder

200200 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued)

Credit Risk Credit risk is the risk that an issuer or counterparty will be unable to meet a commitment that it has entered into with the Company. It is the Company’s policy to enter into financial transactions with a range of reputable counterparties thus diversifying the risk. Therefore, the Company does not expect to incur material credit losses on its financial instruments.

The depositary agreement between the Manager, Company and the Depositary provides that the appointment of the Depositary shall continue until terminated by either party on not less than 90 days’ prior written notice or earlier upon certain breaches or the insolvency of either party. The Depositary is liable for any loss suffered by the Company or the Shareholders as a result of the Depositary’s negligent or intentional failure to properly fulfil its obligations under the UCITS Regulations. In the event of a loss of financial instrument held in custody, the Depositary must immediately return a financial instrument of identical type or the corresponding amount to the Company.

With respect to Financial Derivative Instruments (“FDIs”), credit risk arises from the potential failure of counterparties to meet their obligations under the contract or arrangement.

It is controlled in the following ways: • A process is in place to enable the creditworthiness of counterparties to be assessed and limits established regarding exposure to each counterparty. The counterparty’s financial statements are reviewed. A list of approved counterparties and exposure limits is approved by the Head of Compliance of the Investment Manager;

• Counterparty risk exposure to approved counterparties is monitored against the established limits;

• Standard legal agreements are entered into to govern the relationship with the counterparty;

• All exchange traded derivatives are executed through approved brokers and cleared through a clearing broker with the appropriate documentation in place;

• OTC derivatives (put options and equity swaps) may only be entered into with an approved counterparty using standard documentation. The FDI must be capable of being priced on a daily basis.

As at 31 December 2019, the counterparties of the Company are RBC Investor Services Bank S.A., Dublin Branch and Goldman Sachs International. Both are considered reputable counterparties. All financial assets and liabilities of the Company as at 31 December 2019 are held with RBC Investor Services Bank S.A., Dublin Branch except for GBP 361,000 (31 December 2018: GBP 22,157,000) which is held by Goldman Sachs International. As at 31 December 2019 RBC Investor Services Bank S.A. has a credit rating of AA- with S&P (as at 31 December 2018: AA- for S&P) and Goldman Sachs International has a credit rating of A1 with Moody’s (as at 31 December 2018: A1 for Moody’s).

The Company’s maximum credit exposure is as follows:

31 December 31 December 2019 2018 £’000 £’000

JOHCM Continental European Fund Investments in financial derivative instruments 536 62 Amounts due from brokers 4,712 6,669 Other receivables 957 682 Securities lending (collateralised) 82,712 72,192

JOHCM UK Growth Fund Investments in financial derivative instruments - - Amounts due from brokers 297 337 Other receivables - 9 Securities lending (collateralised) - -

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 201 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Credit Risk (continued)

31 December 31 December 2019 2018 £’000 £’000

JOHCM European Select Values Fund Investments in financial derivative instruments 356 22,158 Amounts due from brokers 117 890 Other receivables 695 712 Securities lending (collateralised) 138,108 162,938 Assets held in Goldman Sachs: Investments in financial derivative instruments 188 22,156

JOHCM Japan Fund Investments in financial derivative instruments 1,011 9 Amounts due from brokers 38 4,178 Other receivables - 1 Securities lending (collateralised) - -

JOHCM Global Select Fund Investments in financial derivative instruments 23 - Amounts due from brokers - - Other receivables - 13 Securities lending (collateralised) 124,113 335,956

JOHCM Emerging Markets Fund 1 Investments in financial derivative instruments - - Amounts due from brokers - 8 Other receivables - - Securities lending (collateralised) - 519

JOHCM Global Emerging Markets Opportunities Fund Investments in financial derivative instruments - - Amounts due from brokers - 605 Other receivables - - Securities lending (collateralised) 9,146 9,476

JOHCM Asia ex-Japan Fund Investments in financial derivative instruments 23 1 Amounts due from brokers - 1 Other receivables - 3 Securities lending (collateralised) 4,590 13,183

JOHCM Asia ex-Japan Small and Mid-Cap Fund Investments in financial derivative instruments - - Amounts due from brokers 227 - Other receivables - 53 Securities lending (collateralised) 907 1,682

JOHCM Global Opportunities Fund Investments in financial derivative instruments 157 75 Amounts due from brokers 2,268 - Other receivables - 1 Securities lending (collateralised) - -

JOHCM Japan Dividend Growth Fund Investments in financial derivative instruments 23 - Amounts due from brokers - - Other receivables - 3

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019

202202 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Credit Risk (continued)

31 December 31 December 2019 2018 £’000 £’000

JOHCM US Small Mid Cap Equity Fund 1 Investments in financial derivative instruments - - Amounts due from brokers - - Other receivables - 5 Securities lending (collateralised) - 12,171

JOHCM European Concentrated Value Fund - 569 Investments in financial derivative instruments 45,518 - Amounts due from brokers 154 86 Other receivables 32,399 21,736 Securities lending (collateralised) 21,736

JOHCM Global Smaller Companies Fund 2 Investments in financial derivative instruments - - Amounts due from brokers - - Other receivables - 8 Securities lending (collateralised) - 948

JOHCM UK Dynamic Fund Investments in financial derivative instruments - - Amounts due from brokers 10 33 Other receivables - 2 Securities lending (collateralised) - -

JOHCM Global Income Builder Fund Investments in financial derivative instruments 23 - Amounts due from brokers - - Other receivables 14 17 Securities lending (collateralised) - -

JOHCM Concentrated Global Share Fund Investments in financial derivative instruments - - Amounts due from brokers - - Other receivables - - Securities lending (collateralised) - -

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

Portfolio Management Risk Due to the nature of futures, cash to meet initial and future margin deposits may be held by a broker with whom the sub-fund has an open position. On execution of the option the sub-fund may pay a premium to a counterparty. In the event of bankruptcy of the counterparty the option premium may be lost in addition to any unrealised gains where the contract is ‘‘in the money’’. The sub-funds have not entered into any such contracts to date.

Operational Risk Operational risk comprises the risk that deficiencies in the effectiveness and accuracy of information systems or internal controls will result in a material loss. The risk arises from human error, systems failures, inadequate procedures or internal management controls. To minimise operational risk the following processes and controls have been implemented:

• The valuation standards and systems utilised by the Administrator are consistent with current industry standards, with derivatives valued at market value and exposures stated on a delta-adjusted basis;

• Valuation/pricing of all financial derivative instruments are sourced and reported independently, using appropriate methodologies as appropriate for the instrument;

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 203 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Operational Risk (continued) • There is segregation of duties between the Investment Manager and the Administrator;

• Operational control procedures are in place to enable prompt and accurate recording of physical and derivative transactions and protect the integrity of systems and portfolio information. All trades are booked on trade date and the transaction history cannot be deleted from the system;

• Independent reconciliations of portfolio holdings and frequent broker confirmations are carried out by both the Investment Manager and the Administrator on a monthly basis and signed off by senior personnel and;

• New types of derivative instruments must be approved for use by the Board of Directors of the Manager after consideration of the investment and operational risks and requirements and documented business continuity/disaster recovery plans are in place for both the Investment Manager and the Administrator.

On behalf of the Board of Directors of the Manager, the Investment Manager analyses and monitors the portfolios of the sub- funds on a daily basis. Exposure is measured by market, asset class, sector and market capitalisation. Pre and post trade compliance monitoring is carried out to ensure that there are no breaches of the sub-funds’ investment guidelines.

Cross Liability between sub-funds The Company is established as an umbrella fund with segregated liability between sub-funds. As a matter of Irish law, the assets of one sub-fund will not be available to satisfy the liabilities of another. However, the Company is a single legal entity which may operate or have assets held on its behalf or be subject to claims in other jurisdictions which may not necessarily recognise such segregation. There is no guarantee that the courts of any jurisdiction outside Ireland will respect the limitations on liability associated with segregated liability companies nor is there any guarantee that the creditors of one sub-fund will not seek to enforce such sub-fund’s obligations against another sub-fund.

Liquidity Risk Liquidity risk is the risk that the sub-funds will encounter difficulty in realising assets or otherwise raising funds to meet commitments associated with financial instruments.

Ultimate responsibility for liquidity risk management rests with the Board of Directors of the Manager which has built an appropriate liquidity risk management framework for the management of the Manager’s liquidity management requirements.

Generally the sub-funds’ assets are composed of actively traded and highly liquid securities. The liquidity risks associated with the need to satisfy Shareholders’ requests for redemptions are mitigated by maintaining a constant pool of cash to satisfy usual levels of demand and by holding liquid securities. Redemptions are settled on a T+3 basis (redemptions are paid out three days after trade date) and therefore it is possible to sell securities to meet redemptions as appropriate.

The sub-funds avoid entering into derivative contractual arrangements that produce an exposure not covered by sufficient liquid assets or a total investment exposure in excess of total Shareholders’ funds.

The risk management framework adopted requires coverage to be composed of cash reserves or physical securities.

The Company’s listed securities are considered to be readily realisable as they are listed on Recognised Exchanges. Please see the table on pages 205 to 221 illustrating the liquidity of each sub-funds’ portfolio.

The liquidity is controlled in the following ways:

• Daily monitoring of the liquidity of all instruments used, including Financial Derivative Investments (FDI), in the context of the investment objectives and liquidity requirements of each sub-fund. Cash positions are monitored and reported on a daily basis to ensure that each sub-fund has sufficient capacity to meet obligations arising from its FDI positions; and

• Procedures are in place to review each sub-fund’s cash weightings to ensure liquidity requirements will be met in the event of extreme market movements to meet obligations at expiry/maturity.

204204 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM CONTINENTAL EUROPEAN FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 1,009,922 - - - 1,009,922 Investments in financial derivative instruments - 536 - - 536 Cash and cash equivalent 9,365 - - - 9,365 Subscriptions receivable 772 - - - 772 Amounts due from brokers 4,712 - - - 4,712 Other receivables - - 957 - 957

TOTAL ASSETS 1,024,771 536 957 - 1,026,264

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 292 - - 292 Bank overdraft - - - - - Redemptions payable 1,635 - - - 1,635 Amounts due to brokers 2,067 - - - 2,067 Management, directors’ and advisory fees payable - 624 - - 624 Performance fee payable - - - - - Administration and transfer agency fee payable - 62 - - 62 Other payables - 125 - - 125 Net assets attributable to redeemable participating shareholders 2019 1,021,459 - - - 1,021,459

TOTAL LIABILITIES 1,025,161 1,103 - - 1,026,264

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 1,265,347 - - - 1,265,347 Investments in financial derivative instruments - 62 - - 62 Cash and cash equivalent 61,533 - - - 61,533 Dividends and interest receivable - 763 - - 763 Subscriptions receivable 1,126 - - - 1,126 Amounts due from brokers 6,669 - - - 6,669 Other receivables - - 682 - 682

TOTAL ASSETS 1,334,675 825 682 - 1,336,182

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 106 - - 106 Bank overdraft 76 - - - 76 Redemptions payable 2,486 - - - 2,486 Amounts due to brokers 17,721 - - - 17,721 Management, directors’ and advisory fees payable - 934 - - 934 Performance fee payable - 145 - - 145 Administration and transfer agency fee payable - 25 - - 25 Other payables - 173 - - 173 Net assets attributable to redeemable participating shareholders 2018 1,314,516 - - - 1,314,516

TOTAL LIABILITIES 1,334,799 1,383 - - 1,336,182

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 205 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM UK GROWTH FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 238,220 - - - 238,220 Cash and cash equivalent 943 - - - 943 Dividends and interest receivable - 247 192 - 439 Subscriptions receivable 1,408 - - - 1,408 Amounts due from brokers 297 - - - 297

TOTAL ASSETS 240,868 247 192 - 241,307

LIABILITIES 2019 Redemptions payable 255 - - - 255 Amounts due to brokers 1,152 - - - 1,152 Management, directors’ and advisory fees payable - 167 - - 167 Administration and transfer agency fee payable - 16 - - 16 Other payables - 28 - - 28 Net assets attributable to redeemable participating shareholders 2019 239,689 - - - 239,689

TOTAL LIABILITIES 241,096 211 - - 241,307

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 349,275 - - - 349,275 Dividends and interest receivable - 422 169 - 591 Subscriptions receivable 464 - - - 464 Amounts due from brokers 337 - - - 337 Other receivables - - 9 - 9

TOTAL ASSETS 350,076 422 178 - 350,676

LIABILITIES 2018 Bank overdraft 941 - - - 941 Redemptions payable 202 - - - 202 Amounts due to brokers 239 - - - 239 Management, directors’ and advisory fees payable - 255 - - 255 Administration and transfer agency fee payable - 10 - - 10 Other payables - 22 - - 22 Net assets attributable to redeemable participating shareholders 2018 349,007 - - - 349,007

TOTAL LIABILITIES 350,389 287 - - 350,676

206206 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM EUROPEAN SELECT VALUES FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 1,158,187 - - - 1,158,187 Investment in financial derivative instruments 11 116 229 - 356 Cash and cash equivalent 63,502 - - - 63,502 Cash collateral 165 - - - 165 Dividends and interest receivable - 371 - - 371 Subscriptions receivable 770 - - - 770 Amounts due from brokers 117 - - - 117 Other receivables - - 695 - 695

TOTAL ASSETS 1,222,752 487 924 - 1,224,163

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 8 158 - 166 Bank overdraft 5 - - - 5 Redemptions payable 329 - - - 329 Amounts due to brokers 2,497 - - - 2,497 Management, directors’ and advisory fees payable - 1,009 - - 1,009 Administration and transfer agency fee payable - 23 - - 23 Other payables - 135 - - 135 Net assets attributable to redeemable participating shareholders 2019 1,219,999 - - - 1,219,999

TOTAL LIABILITIES 1,222,830 1,175 158 - 1,224,163

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 1,958,535 - - - 1,958,535 Investment in financial derivative instruments - 15,247 6,911 - 22,158 Cash and cash equivalent 48,268 - - - 48,268 Subscriptions receivable 198 - - - 198 Amounts due from brokers 890 - - - 890 Other receivables - - 712 - 712

TOTAL ASSETS 2,007,891 15,247 7,623 - 2,030,761

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 1 - - 1 Bank overdraft 347 - - - 347 Redemptions payable 991 - - - 991 Amounts due to brokers 225 - - - 225 Management, directors’ and advisory fees payable - 1,813 - - 1,813 Administration and transfer agency fee payable - 19 - - 19 Other payables - 192 - - 192 Net assets attributable to redeemable participating shareholders 2018 2,027,173 - - - 2,027,173

TOTAL LIABILITIES 2,028,736 2,025 - - 2,030,761

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 207 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM JAPAN FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 239,039 - - - 239,039 Investment in financial derivative instruments - 1,011 - - 1,011 Cash and cash equivalent 517 - - - 517 Dividends and interest receivable - - 225 - 225 Subscriptions receivable 68 - - - 68 Amounts due from brokers 38 - - - 38 Other receivables - - - - -

TOTAL ASSETS 239,662 1,011 225 - 240,898

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 1 - - 1 Redemptions payable 198 - - - 198 Management, directors’ and advisory fees payable - 173 - - 173 Administration and transfer agency fee payable - 27 - - 27 Other payables - 47 - - 47 Net assets attributable to redeemable participating shareholders 2019 240,452 - - - 240,452

TOTAL LIABILITIES 240,650 248 - - 240,898

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 354,469 - - - 354,469 Investment in financial derivative instruments - 9 - - 9 Cash and cash equivalent 1,372 - - - 1,372 Dividends and interest receivable - - 384 - 384 Subscriptions receivable 262 - - - 262 Amounts due from brokers 4,178 - - - 4,178 Other receivables - - 1 - 1

TOTAL ASSETS 360,281 9 385 - 360,675

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 295 - - 295 Bank overdraft 4,638 - - - 4,638 Redemptions payable 2,364 - - - 2,364 Management, directors’ and advisory fees payable - 270 - - 270 Administration and transfer agency fee payable - 19 - - 19 Other payables - 47 - - 47 Net assets attributable to redeemable participating shareholders 2018 353,042 - - - 353,042

TOTAL LIABILITIES 360,044 631 - - 360,675

208208 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM GLOBAL SELECT FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 1,263,996 - - - 1,263,996 Investments in financial derivative instruments - 23 - - 23 Cash and cash equivalent 26,912 - - - 26,912 Dividends and interest receivable - 525 337 - 862 Subscriptions receivable 1,022 - - - 1,022

TOTAL ASSETS 1,291,930 548 337 - 1,292,815

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 3 - - 3 Bank overdraft 51 - - - 51 Redemptions payable 580 - - - 580 Amounts due to brokers 4,312 - - - 4,312 Management, directors’ and advisory fees payable - 1,371 - - 1,371 Administration and transfer agency fee payable - 21 - - 21 Other payables - 127 - - 127 Net assets attributable to redeemable participating shareholders 2019 1,286,350 - - - 1,286,350

TOTAL LIABILITIES 1,291,293 1,522 - - 1,292,815

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 1,664,090 - - - 1,664,090 Cash and cash equivalent 205,966 - - - 205,966 Dividends and interest receivable - 1,162 308 - 1,470 Subscriptions receivable 1,039 - - - 1,039 Other receivables - - 13 - 13

TOTAL ASSETS 1,871,095 1,162 321 - 1,872,578

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 1 - - 1 Redemptions payable 871 - - - 871 Management, directors’ and advisory fees payable - 1,544 - - 1,544 Administration and transfer agency fee payable - 18 - - 18 Other payables - 261 - - 261 Net assets attributable to redeemable participating shareholders 2018 1,869,883 - - - 1,869,883

TOTAL LIABILITIES 1,870,754 1,824 - - 1,872,578

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 209 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM EMERGING MARKETS FUND 1

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities - - - - - Cash and cash equivalent 1,555 - - - 1,555 Dividends and interest receivable - - 1 - 1 Subscriptions receivable - - - - - Amounts due from brokers - - - - - Receivable from investment manager - - - - -

TOTAL ASSETS 1,555 - 1 - 1,556

LIABILITIES 2019 Amounts due to brokers - - - - - Management, directors’ and advisory fees payable - - - - - Administration and transfer agency fee payable - 12 - - 12 Other payables - 1,544 - - 1,544 Net assets attributable to redeemable participating shareholders 2019 - - - - -

TOTAL LIABILITIES - 1,556 - - 1,556

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 8,452 - - - 8,452 Cash and cash equivalent 332 - - - 332 Dividends and interest receivable - 4 3 9 16 Subscriptions receivable 2 - - - 2 Amounts due from brokers 8 - - - 8 Receivable from investment manager - 176 - - 176

TOTAL ASSETS 8,794 180 3 9 8,986

LIABILITIES 2018 Amounts due to brokers 41 - - - 41 Management, directors’ and advisory fees payable - 10 - - 10 Administration and transfer agency fee payable - 13 - - 13 Other payables - 5 - - 5 Net assets attributable to redeemable participating shareholders 2018 8,917 - - - 8,917

TOTAL LIABILITIES 8,958 28 - - 8,986

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

210210 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM GLOBAL EMERGING MARKETS OPPORTUNITIES FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 354,540 - - - 354,540 Cash and cash equivalent 7,847 - - - 7,847 Dividends and interest receivable - 87 73 894 1,054 Subscriptions receivable 46 - - - 46 Receivable from investment manager - 25 - - 25

TOTAL ASSETS 362,433 112 73 894 363,512

LIABILITIES 2019 Payable on redemptions 61 - - - 61 Management, directors’ and advisory fees payable - 194 - - 194 Administration and transfer agency fee payable - 18 - - 18 Other payables - 67 - - 67 Net assets attributable to redeemable participating shareholders 2019 363,172 - - - 363,172

TOTAL LIABILITIES 363,233 279 - - 363,512

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 282,494 - - - 282,494 Cash and cash equivalent 9,657 - - - 9,657 Dividends and interest receivable - 326 55 728 1,109 Subscriptions receivable 1 - - - 1 Amounts due from brokers 605 - - - 605 Receivable from investment manager - 33 - - 33

TOTAL ASSETS 292,757 359 55 728 293,899

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 1 - - 1 Payable on redemptions 51 - - - 51 Amounts due to brokers 2,554 - - - 2,554 Management, directors’ and advisory fees payable - 174 - - 174 Administration and transfer agency fee payable - 18 - - 18 Other payables - 45 - - 45 Net assets attributable to redeemable participating shareholders 2018 291,056 - - - 291,056

TOTAL LIABILITIES 293,661 238 - - 293,899

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 211 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM ASIA EX-JAPAN FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 117,687 - - - 117,687 Investments in financial derivative instruments - 23 - - 23 Cash and cash equivalent 845 - - - 845 Dividends and interest receivable - 42 - 66 108 Subscriptions receivable 57 - - - 57

TOTAL ASSETS 118,589 65 - 66 118,720

LIABILITIES 2019 Redemptions payable 3,575 - - - 3,575 Management, directors’ and advisory fees payable - 132 - - 132 Administration and transfer agency fee payable - 17 - - 17 Provision on capital gain tax - 25 - - 25 Other payables - 161 - - 161 Net assets attributable to redeemable participating shareholders 2019 114,810 - - - 114,810

TOTAL LIABILITIES 118,385 335 - - 118,720

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 171,180 - - - 171,180 Investments in financial derivative instruments - 1 - - 1 Cash and cash equivalent 2,461 - - - 2,461 Dividends and interest receivable - - 66 154 220 Subscriptions receivable 86 - - - 86 Amounts due from brokers 1 - - - 1 Other receivables - - 3 - 3

TOTAL ASSETS 173,728 1 69 154 173,952

LIABILITIES 2018 Redemptions payable 2,733 - - - 2,733 Management, directors’ and advisory fees payable - 198 - - 198 Administration and transfer agency fee payable - 13 - - 13 Other payables - 41 - - 41 Net assets attributable to redeemable participating shareholders 2018 170,967 - - - 170,967

TOTAL LIABILITIES 173,700 252 - - 173,952

212212 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM ASIA EX-JAPAN SMALL AND MID-CAP FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 14,196 - - - 14,196 Cash and cash equivalent 196 - - - 196 Dividends and interest receivable - - - 2 2 Subscriptions receivable 1 - - - 1 Amounts due from brokers 227 - - - 227 Receivable from investment manager - 26 - - 26

TOTAL ASSETS 14,620 26 - 2 14,648

LIABILITIES 2019 Bank overdraft 150 - - - 150 Payable on redemptions 3 - - - 3 Amounts due to brokers 233 - - - 233 Management, directors’ and advisory fees payable - 6 - - 6 Administration and transfer agency fee payable - 10 - - 10 Other payables - 32 - - 32 Net assets attributable to redeemable participating shareholders 2019 14,214 - - - 14,214

TOTAL LIABILITIES 14,600 48 - - 14,648

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 13,788 - - - 13,788 Cash and cash equivalent 279 - - - 279 Dividends and interest receivable - - - 2 2 Receivable from investment manager - 38 - - 38 Other receivables - - 53 - 53

TOTAL ASSETS 14,067 38 53 2 14,160

LIABILITIES 2018 Amounts due to brokers 27 - - - 27 Management, directors’ and advisory fees payable - 7 - - 7 Administration and transfer agency fee payable - 13 - - 13 Other payables - 5 - - 5 Net assets attributable to redeemable participating shareholders 2018 14,108 - - - 14,108

TOTAL LIABILITIES 14,135 25 - - 14,160

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 213 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM GLOBAL OPPORTUNITIES FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 390,709 - - - 390,709 Investments in financial derivative instruments - 157 - - 157 Cash and cash equivalent 38,851 - - - 38,851 Dividends and interest receivable - 240 - - 240 Subscription receivable 3,250 - - - 3,250 Amounts due from brokers 2,268 - - - 2,268

TOTAL ASSETS 435,078 397 - - 435,475

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 26 - - 26 Bank overdraft 3 - - - 3 Redemptions payable 237 - - - 237 Amounts due to brokers 435 - - - 435 Management, directors’ and advisory fees payable - 280 - - 280 Administration and transfer agency fee payable - 26 - - 26 Provision on capital gain tax - 40 - - 40 Other payables - 48 - - 48 Net assets attributable to redeemable participating shareholders 2019 434,380 - - - 434,380

TOTAL LIABILITIES 435,055 420 - - 435,475

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 256,439 - - - 256,439 Investments in financial derivative instruments - 75 - - 75 Cash and cash equivalent 17,151 - - - 17,151 Dividends and interest receivable - 236 27 - 263 Subscription receivable 609 - - - 609 Receivable from investment manager - 15 - - 15 Other receivables - - 1 - 1

TOTAL ASSETS 274,199 326 28 - 274,553

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 6 - - 6 Redemptions payable 130 - - - 130 Amounts due to brokers 1,924 - - - 1,924 Management, directors’ and advisory fees payable - 180 - - 180 Administration and transfer agency fee payable - 17 - - 17 Other payables - 15 - - 15 Net assets attributable to redeemable participating shareholders 2018 272,281 - - - 272,281

TOTAL LIABILITIES 274,335 218 - - 274,553

214214 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM JAPAN DIVIDEND GROWTH FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 7,372 - - - 7,372 Investments in financial derivative instruments - 23 - - 23 Cash and cash equivalent 139 - - - 139 Dividends and interest receivable - 5 - 5 Receivable from investment manager - 36 - - 36

TOTAL ASSETS 7,511 59 5 - 7,575

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 1 - - 1 Payable on redemptions 21 - - - 21 Management, directors’ and advisory fees payable - 6 - - 6 Administration and transfer agency fee payable - 8 - - 8 Other payables - 22 - - 22 Net assets attributable to redeemable participating shareholders 2019 7,517 - - - 7,517

TOTAL LIABILITIES 7,538 37 - - 7,575

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 61,368 - - - 61,368 Cash and cash equivalent 143 - - - 143 Dividends and interest receivable - 59 - 59 Subscriptions receivable 26 - - - 26 Other receivables - - 3 - 3

TOTAL ASSETS 61,537 - 62 - 61,599

LIABILITIES 2018 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 10 - - 10 Bank overdraft 8 - - - 8 Payable on redemptions 4 - - - 4 Management, directors’ and advisory fees payable - 20 - - 20 Administration and transfer agency fee payable - 13 - - 13 Other payables - 6 - - 6 Net assets attributable to redeemable participating shareholders 2018 61,538 - - - 61,538

TOTAL LIABILITIES 61,550 49 - - 61,599

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 215 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM US SMALL MID CAP EQUITY FUND 1

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities - - - - - Cash and cash equivalent 38 - - - 38 Dividends and interest receivable - - - - - Subscriptions receivable - - - - - Receivable from investment manager - - - - - Other receivables - - - - -

TOTAL ASSETS 38 - - - 38

LIABILITIES 2019 Bank overdraft - - - - - Redemptions payable - - - - - Management, directors and advisory fees payable - - - - - Performance fee payable - - - - - Administration and transfer agency fee payable - 6 - - 6 Other payables - 32 - - 32 Net assets attributable to redeemable - - - - - participating shareholders 2019 - - - - -

TOTAL LIABILITIES - 38 - - 38

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 44,937 - - - 44,937 Cash and cash equivalent 641 - - - 641 Dividends and interest receivable - 20 - - 20 Subscriptions receivable 1 - - - 1 Receivable from investment manager - 41 - - 41 Other receivables - - 5 - 5

TOTAL ASSETS 45,579 61 5 - 45,645

LIABILITIES 2018 Bank overdraft 2 - - - 2 Redemptions payable 128 - - - 128 Management, directors and advisory fees payable - 14 - - 14 Performance fee payable - 323 - - 323 Administration and transfer agency fee payable - 12 - - 12 Other payables - 16 - - 16 Net assets attributable to redeemable participating shareholders 2018 45,150 - - - 45,150

TOTAL LIABILITIES 45,280 365 - - 45,645

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019

216216 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM EUROPEAN CONCENTRATED VALUE FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 162,074 - - - 162,074 Cash and cash equivalent 11,443 - - - 11,443 Dividends and interest receivable - 102 - - 102 Amounts due from brokers 45,518 - - - 45,518 Receivable from investment manager - 31 - - 31 Other receivables - - 154 - 154

TOTAL ASSETS 219,035 133 154 - 219,322

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - 89 - - 89 Bank overdraft - - - - - Payable on redemptions 49,136 - - - 49,136 Management, directors’ and advisory fees payable - 130 - - 130 Administration and transfer agency fee payable - 7 - - 7 Other payables - 37 - - 37 Net assets attributable to redeemable participating shareholders 2019 169,923 - - - 169,923

TOTAL LIABILITIES 219,059 263 - - 219,322

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 382,507 - - - 382,507 Investments in financial derivative instruments - 569 - - 569 Cash and cash equivalent 14,891 - - - 14,891 Dividends and interest receivable - - 107 - 107 Receivable from investment manager - 34 - - 34 Other receivables - - 86 - 86

TOTAL ASSETS 397,398 603 193 - 398,194

LIABILITIES 2018 Management, directors’ and advisory fees payable - 334 - - 334 Performance fee payable - 285 - - 285 Administration and transfer agency fee payable - 10 - - 10 Other payables - 19 - - 19 Net assets attributable to redeemable participating shareholders 2018 397,546 - - - 397,546

TOTAL LIABILITIES 397,546 648 - - 398,194

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 217 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM GLOBAL SMALLER COMPANIES FUND 1

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities - - - - - Cash and cash equivalent 23 - - - 23 Dividends and interest receivable - - - - - Receivable from investment manager - - - - - Other receivables - - - - -

TOTAL ASSETS 23 - - - 23

LIABILITIES 2019 Management, directors’ and advisory fees payable - - - - - Performance fee payable - - - - - Administration and transfer agency fee payable - - - - - Other payables - 23 - - 23 Net assets attributable to redeemable - - - - - participating shareholders 2019 - - - - -

TOTAL LIABILITIES - 23 - - 23

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 3,802 - - - 3,802 Cash and cash equivalent 33 - - - 33 Dividends and interest receivable - 2 1 - 3 Receivable from investment manager - 44 - - 44 Other receivables - - 8 - 8

TOTAL ASSETS 3,835 46 9 - 3,890

LIABILITIES 2018 Management, directors’ and advisory fees payable - 4 - - 4 Performance fee payable - 4 - - 4 Administration and transfer agency fee payable - 6 - - 6 Other payables - 10 - - 10 Net assets attributable to redeemable participating shareholders 2018 3,866 - - - 3,866

TOTAL LIABILITIES 3,866 24 - - 3,890

1. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019

218218 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due on Due within Due within Due between demand 1 month 3 months 3 & 12 mths Total £’000 £’000 £’000 £’000 £’000

JOHCM UK DYNAMIC FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 17,351 - - - 17,351 Dividends and interest receivable - 25 30 - 55 Subscriptions receivable 151 - - - 151 Amounts due from brokers 10 - - - 10 Receivable from investment manager - 85 - - 85

TOTAL ASSETS 17,512 110 30 - 17,652

LIABILITIES 2019 Bank overdraft 54 - - - 54 Amounts due to brokers 20 - - - 20 Management, directors’ and advisory fees payable - 10 - - 10 Administration and transfer agency fee payable - 6 - - 6 Other payables - 25 - - 25 Net assets attributable to redeemable participating shareholders 2019 17,537 - - - 17,537

TOTAL LIABILITIES 17,611 41 - - 17,652

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 13,027 - - - 13,027 Cash and cash equivalent 179 - - - 179 Dividends and interest receivable - 29 28 - 57 Subscriptions receivable 195 - - - 195 Amounts due from brokers 33 - - - 33 Receivable from investment manager - 86 - - 86 Other receivables - - 2 - 2

TOTAL ASSETS 13,434 115 30 - 13,579

LIABILITIES 2018 Amounts due to brokers 104 - - - 104 Management, directors’ and advisory fees payable - 8 - - 8 Administration and transfer agency fee payable - 6 - - 6 Other payables - 9 - - 9 Net assets attributable to redeemable participating shareholders 2018 13,452 - - - 13,452

TOTAL LIABILITIES 13,556 23 - - 13,579

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 219 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due Due on Due within Due within between 3 More than demand 1 month 3 months & 12 mths 12 months Total £’000 £’000 £’000 £’000 £’000 £’000

JOHCM GLOBAL INCOME BUILDER FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 36,159 - - - - 36,159 Investments in financial derivative instruments - 23 - - - 23 Cash and cash equivalent 1,982 - - - - 1,982 Dividends and interest receivable - 22 3 2 181 208 Receivable from investment manager - 100 - - - 100 Other receivables - - 14 - - 14

TOTAL ASSETS 38,141 145 17 2 181 38,486

LIABILITIES 2019 Financial liabilities at fair value through profit or loss: Investments in financial derivative instruments - - 11 - - 11 Bank overdraft 79 - - - - 79 Payable on redemptions 2 - - - - 2 Management, directors’ and advisory fees payable - 10 - - - 10 Administration and transfer agency fee payable - 16 - - - 16 Other payables - 25 - - - 25 Net assets attributable to redeemable participating shareholders 2019 38,343 - - - - 38,343

TOTAL LIABILITIES 38,424 51 11 - - 38,486

Financial assets at fair value through profit or loss: Investments in transferable securities 17,882 - - - - 17,882 Cash and cash equivalent 372 - - - - 372 Dividends and interest receivable - 11 - - 106 117 Receivable from investment manager - 32 - - - 32 Other receivables - - 17 - - 17

TOTAL ASSETS 18,254 43 17 - 106 18,420

LIABILITIES 2018 Payable on redemptions 5 - - - - 5 Amounts due to brokers 108 - - - - 108 Management, directors’ and advisory fees payable - 5 - - - 5 Administration and transfer agency fee payable - 9 - - - 9 Other payables - 4 - - - 4 Net assets attributable to redeemable participating shareholders 2018 18,289 - - - - 18,289

TOTAL LIABILITIES 18,402 18 - - - 18,420

220220 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

8 Risk associated with financial instruments (continued) Liquidity Risk (continued)

Due Due on Due within Due within between 3 More than demand 1 month 3 months & 12 mths 12 months Total £’000 £’000 £’000 £’000 £’000 £’000

JOHCM CONCENTRATED GLOBAL SHARE FUND

ASSETS 2019 Financial assets at fair value through profit or loss: Investments in transferable securities 2,068 - - - - 2,068 Cash and cash equivalent 58 - - - - 58 Receivable from investment manager - 36 - - - 36

TOTAL ASSETS 2,126 36 - - - 2,162

LIABILITIES 2019 Management, directors’ and advisory fees payable - 2 - - - 2 Administration and transfer agency fee payable - 5 - - - 5 Other payables - 10 - - - 10 Net assets attributable to redeemable participating shareholders 2019 2,145 - - - - 2,145

TOTAL LIABILITIES 2,145 17 - - - 2,162

ASSETS 2018 Financial assets at fair value through profit or loss: Investments in transferable securities 1,624 - - - - 1,624 Cash and cash equivalent 243 - - - - 243 Dividends and interest receivable - 2 - - - 2 Receivable from investment manager - 4 - - - 4

TOTAL ASSETS 1,867 6 - - - 1,873

LIABILITIES 2018 Management, directors’ and advisory fees payable - 2 - - - 2 Performance fee payable - 4 - - - 4 Administration and transfer agency fee payable - 2 - - - 2 Other payables - 2 - - - 2 Net assets attributable to redeemable participating shareholders 2018 1,863 - - - - 1,863

TOTAL LIABILITIES 1,863 10 - - - 1,873

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 221 Notes to the Financial Statements (continued)

9 Distributions to Shareholders

Financial year ended Financialyear ended Sub-fund 31 December 2019 31 December 2018 £’000 £’000 JOHCM Continental European Fund 31,565 29,051 JOHCM UK Growth Fund 7,590 5,308 JOHCM European Select Values Fund 31,429 21,752 JOHCM Japan Fund 5,763 4,249 JOHCM Global Select Fund 15,552 12,732 JOHCM Emerging Markets Fund1 82 115 JOHCM Global Emerging Markets Opportunities Fund 5,913 3,655 JOHCM Asia ex-Japan Fund 3,167 5,029 JOHCM Asia ex-Japan Small and Mid-Cap Fund 273 217 JOHCM Global Opportunities Fund 5,056 6,704 JOHCM Japan Dividend Growth Fund 2,106 2,171 JOHCM European Concentrated Value Fund 4,439 2,582 JOHCM (IRE) UK Dynamic Fund 336 - JOHCM Global Income Builder Fund 1,363 599 JOHCM Concentrated Global Share Fund 2 -

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

The Company may declare dividends once a year out of the net income available for distribution, except for JOHCM Global Income Builder Fund, which pays distribution on a monthly basis. The distribution paid in 2019 was based on available income as at 31 December 2018.

The Directors operate a distribution policy designed to enable the Company to obtain reporting fund status in respect of all sub- funds and share classes for the purposes of United Kingdom taxation. Such certification is granted retrospectively and there can be no guarantee that certification will be obtained. The Company has been certified as a reporting Fund in respect of all sub-funds and share classes in respect of the financial year ended 31 December 2019.

Distributions Payable to Holders of Redeemable Participating Preference Shares Proposed distributions to holders of participating shares are classified as finance costs in the Statement of Comprehensive Income when they are ratified at the Annual General Meeting.

10 Soft Commissions Under the previous UK Financial Conduct Authority Regulations to which they were subject, the Investment Manager could only use commission paid by the Company to pay for execution or research services. Such payments would normally be paid to the broker executing the trade for the Company but the Investment Manager also made limited use of commission sharing arrangements. Under these arrangements a proportion of the commission paid to specified commission sharing brokers who execute trades for the Company are put aside and subsequently paid at the Investment Manager’s direction to specialist research providers where those services would assist in the provision of investment services to the Company.

There were no Soft Commission arrangements entered into during the financial year ended 31 December 2019 (2018: GBP nil).

On 29 August, 2017 the Investment Manager announced that it would directly pay for external research used by its fund management teams following implementation of the reforms to the EU’s Markets in Financial Instruments Directive (known as MiFID II) on 3rd January 2018.

Following the implementation of the reforms to the EU’s Markets in Financial Instruments Directive (known as MiFID II) on 3rd January 2018, the Investment Manager is prohibited from receiving inducements such as soft commission arrangements or other inducements from a broker, whether utilised in executing a transaction or otherwise. In managing the assets of the Company, the Investment Manager may from time to time receive or utilise certain investment research and statistical and other investment related commentary, statistics, information and assistance or material (collectively “Research”) provided by external parties. Direct charges for Research will be borne by the Investment Manager out of their fees and will not, in any circumstances be allocated to the Company and or the Funds.

222222 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

11 Efficient Portfolio Management Techniques and instruments for the purpose of efficient portfolio management were utilised during the financial year by the JOHCM Continental European Fund, JOHCM European Select Values Fund, JOHCM Japan Fund, JOHCM Global Select Fund, JOHCM Emerging Markets Fund, JOHCM Global Emerging Markets Opportunities Fund, JOHCM Asia ex-Japan Fund, JOHCM Asia ex-Japan Small and Mid-Cap Fund, JOHCM Global Opportunities Fund, JOHCM Japan Dividend Growth Fund, JOHCM Global Income Builder Fund and JOHCM European Concentrated Value Fund.

Certain sub-funds may also enter into stock lending with one or more counterparties for the purposes of efficient portfolio management, and in particular with the aim of generating additional income for the sub-funds with an appropriate level of risk, taking into account the risk profile of the sub-funds and subject to the conditions and limits as set out in the UCITS Regulations and within any further limits laid down by the Central Bank from time to time. (See note 14).

The changes in unrealised gains and losses and realised gains and losses on financial derivative instruments used for EPM are disclosed in note 12, Gains and Losses on Financial Assets.

Techniques and instruments relating to transferable securities utilised for the purposes of efficient portfolio management may be used only in accordance with the investment objectives of a collective investment scheme. Any such technique or instrument must be one which is reasonably believed by the Investment Manager to be economically appropriate to the efficient portfolio management of the Company, i.e. the use of a technique or instrument may only be undertaken for the purposes of one or more of the following: (i) a reduction in risk; (ii) a reduction in costs; or (iii) an increase in capital or income returns to the scheme.

12 Gains and Losses on Financial Assets Net Gain/(Loss) on financial assets/liabilities at fair value through profit or loss for the financial year ended 31 December 2019

Realised Unrealised Gains/(Losses) Gains/(Losses) Total £’000 £’000 £’000

JOHCM Continental European Fund Investments 35,580 131,885 167,465 Foreign exchange (736) - (736) Forward exchange contracts 4,976 288 5,264 39,820 132,173 171,993

JOHCM UK Growth Fund Investments 5,679 29,443 35,122 Foreign exchange (1) - (1) 5,678 29,443 35,121

JOHCM European Select Values Fund Investments 124,456 (42,458) 81,998 Foreign exchange 373 - 373 Forward exchange contracts (711) (6) (717) Options (14,397) (20,531) (34,928) Swaps - (158) (158) 109,721 (63,153) 46,568

JOHCM Japan Fund Investments (1,926) 37,355 35,429 Foreign exchange 166 - 166 Forward exchange contracts 387 1,297 1,684 (1,373) 38,652 37,279

JOHCM Global Select Fund Investments 349,057 (10,248) 338,809 Foreign exchange (6,807) - (6,807) Forward exchange contracts (85) 21 (64) 342,165 (10,227) 331,938

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 223 Notes to the Financial Statements (continued)

12 Gains and Losses on Financial Assets (continued) Net Gain/(Loss) on financial assets/liabilities at fair value through profit or loss for the financial year ended 31 December 2019 (continued)

Realised Unrealised Gains/(Losses) Gains/(Losses) Total £’000 £’000 £’000

JOHCM Emerging Markets Fund 1 Investments 848 (261) 587 Foreign exchange 15 - 15 Forward exchange contracts (22) - (22) Capital gain tax on equities (27) - (27)

814 (261) 553

JOHCM Global Emerging Markets Opportunities Fund Investments 2,222 22,659 24,881 Foreign exchange 342 - 342 Forward exchange contracts (22) 1 (21)

2,542 22,660 25,202

JOHCM Asia ex-Japan Fund Investments 4,991 13,163 18,154 Foreign exchange (33) - (33) Forward exchange contracts (125) 23 (102) Capital gain tax on equities (26) - (26)

4,807 13,186 17,993

JOHCM Asia ex-Japan Small and Mid-Cap Fund Investments (1,097) 2,540 1,443 Foreign exchange 4 - 4 Forward exchange contracts 2 - 2 Capital Gain Tax on Equities (2) - (2)

(1,093) 2,540 1,447

JOHCM Global Opportunities Fund Investments 21,025 19,947 40,972 Foreign exchange (1,236) - (1,236) Forward exchange contracts (106) 62 (44) Capital gain tax on equities (41) - (41)

19,642 20,009 39,651

JOHCM Japan Dividend Growth Fund Investments 2,321 2,518 4,839 Foreign exchange (551) - (551) Forward exchange contracts 59 32 91

1,829 2,550 4,379

JOHCM US Small Mid Cap Equity Fund 2 Investments 9,870 398 10,268 Foreign exchange 490 - 490 Forward exchange contracts (1) - (1)

10,359 398 10,757

1. JOHCM Emerging Markets Fund was terminated on 07 November 2019. 2. JOHCM US Small Mid Cap Equity Fund was terminated on 17 October 2019.

224224 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

12 Gains and Losses on Financial Assets (continued) Net Gain/(Loss) on financial assets/liabilities at fair value through profit or loss for the financial year ended 31 December 2019 (continued)

Realised Unrealised Gains/(Losses) Gains/(Losses) Total £’000 £’000 £’000

JOHCM European Concentrated Value Fund Investments (5,640) 19,152 13,512 Foreign exchange (762) - (762) Forward exchange contracts (31,431) 39,698 8,267 (37,833) 58,850 21,017

JOHCM Global Smaller Companies Fund 1 Investments 745 (87) 658 Foreign exchange (105) - (105) 640 (87) 553

JOHCM UK Dynamic Fund Investments (469) 2,605 2,136 Foreign exchange (1) - (1) (470) 2,605 2,135

JOHCM Global Income Builder Fund Investments 914 1,653 2,567 Foreign exchange (68) - (68) Forward exchange contracts 53 12 65 899 1,665 2,564

JOHCM Concentrated Global Share Fund Investments 23 244 267 Foreign exchange (3) - (3) 20 244 264

1. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

Net Gain/(Loss) on financial assets/liabilities at fair value through profit or loss for the financial year ended 31 December 2018

Realised Unrealised Gains/(Losses) Gains/(Losses) Total £’000 £’000 £’000

JOHCM Continental European Fund Investments (64,625) (134,275) (198,900) Foreign exchange 3,032 - 3,032 Forward exchange contracts 2,556 310 2,866 (59,037) (133,965) (193,002)

JOHCM UK Growth Fund Investments 10,129 (78,108) (67,979) Foreign exchange 1 - 1 10,130 (78,108) (67,978)

JOHCM European Select Values Fund Investments 265,062 (667,405) (402,343) Foreign exchange (1,378) - (1,378) Forward exchange contracts 70 5 75 Options (3,968) 24,808 20,840 Swaps - (165) (165) 259,786 (642,757) (382,971)

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 225 Notes to the Financial Statements (continued)

12 Gains and Losses on Financial Assets (continued) Net Gain/(Loss) on financial assets/liabilities at fair value through profit or loss for the financial year ended 31 December 2018 (continued)

Realised Unrealised Gains/(Losses) Gains/(Losses) Total £’000 £’000 £’000

JOHCM Japan Fund Investments 38,123 (120,485) (82,362) Foreign exchange 645 - 645 Forward exchange contracts (10,018) (524) (10,542)

28,750 (121,009) (92,259)

JOHCM Global Select Fund Investments 218,643 (262,556) (43,913) Foreign exchange 17,731 - 17,731 Forward exchange contracts 41 (1) 40

236,415 (262,557) (26,142)

JOHCM Emerging Markets Fund Investments 2,188 (5,486) (3,298) Foreign exchange (35) - (35) Forward exchange contracts (4) - (4)

2,149 (5,486) (3,337)

JOHCM Global Emerging Markets Opportunities Fund Investments 10,705 (47,527) (36,822) Foreign exchange 438 - 438 Forward exchange contracts 112 (1) 111

11,255 (47,528) (36,273)

JOHCM Asia ex-Japan Fund Investments 69,853 (136,286) (66,433) Foreign exchange 606 - 606 Forward exchange contracts 59 - 59

70,518 (136,286) (65,768)

JOHCM Asia ex-Japan Small and Mid-Cap Fund Investments (1,149) (3,499) (4,648) Foreign exchange (68) - (68) Forward exchange contracts (7) - (7)

(1,224) (3,499) (4,723)

JOHCM Global Opportunities Fund Investments (2,332) 967 (1,365) Foreign exchange 965 - 965 Forward exchange contracts (1,926) 69 (1,857)

(3,293) 1,036 (2,257)

JOHCM Japan Dividend Growth Fund Investments 5,956 (20,725) (14,769) Foreign exchange 102 - 102 Forward exchange contracts (593) (31) (624)

5,465 (20,756) (15,291)

226226 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

12 Gains and Losses on Financial Assets (continued) Net Gain/(Loss) on financial assets/liabilities at fair value through profit or loss for the financial year ended 31 December 2018 (continued)

Realised Unrealised Gains/(Losses) Gains/(Losses) Total £’000 £’000 £’000

JOHCM US Small Mid Cap Equity Fund Investments 2,971 (4,399) (1,428) Foreign exchange 92 - 92 Forward exchange contracts 4 - 4

3,067 (4,399) (1,332)

JOHCM European Concentrated Value Fund Investments 4,339 (50,191) (45,852) Foreign exchange (44) - (44) Forward exchange contracts (30,817) 37,687 6,870

(26,522) (12,504) (39,026)

JOHCM Global Smaller Companies Fund Investments 353 (624) (271) Forward exchange contracts 8 - 8

361 (624) (263)

JOHCM UK Dynamic Fund Investments (73) (2,160) (2,233)

(73) (2,160) (2,233)

JOHCM Global Income Builder Fund Investments 228 (244) (16) Forward exchange contracts 82 - 82

310 (244) 66

JOHCM Concentrated Global Share Fund Investments (8) (133) (141) Forward exchange contracts 8 - 8

- (133) (133)

13 Statement of Net Assets for Current and Prior Years

31 December 31 December 31 December 2019 2018 2017

JOHCM Continental European Fund Net Assets (£’000) £1,021,459 £1,314,516 £1,941,835 Net Asset Value per Unit in GBP Class A Shares £4.612 £4.029 £4.561 Net Asset Value per Unit in EUR Class A Shares €3.785 €3.174 €3.640 Net Asset Value per Unit in USD Class A Shares $1.448 $1.179 $1.323 Net Asset Value per Unit in GBP Hedged Class A Shares £1.290 £1.126 £1.280 Net Asset Value per Unit in GBP Class B Shares £4.439 £3.884 £4.456 Net Asset Value per Unit in EUR Class B Shares €3.804 €3.153 €3.623 Net Asset Value per Unit in USD Hedged Class B Shares $1.476 $1.190 $1.332 Net Asset Value per Unit in GBP Hedged X Shares £0.973 £0.912 £1.020 Net Asset Value per Unit in GBP Y Shares £1.699 £1.486 £1.678 Net Asset Value per Unit in EUR Y Shares €1.459 €1.187 €1.361 Net Asset Value per Unit in GBP Hedged Y Shares £1.345 £1.103 £1.249

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 227 Notes to the Financial Statements (continued)

13 Statement of Net Assets for Current and Prior Years (continued)

31 December 31 December 31 December 2019 2018 2017

JOHCM UK Growth Fund Net Assets (£’000) £239,689 £349,007 £395,174 Net Asset Value per Unit in GBP Class A Shares £3.465 £3.055 £3.626 Net Asset Value per Unit in GBP Class B Shares £2.999 £2.645 £3.138

JOHCM European Select Values Fund Net Assets (£’000) £1,219,999 £2,027,173 £3,026,204 Net Asset Value per Unit in GBP Class A Shares £5.217 £5.232 £6.079 Net Asset Value per Unit in EUR Class A Shares €3.413 €3.239 €3.815 Net Asset Value per Unit in GBP Class B Shares £4.766 £4.768 £5.544 Net Asset Value per Unit in EUR Class B Shares €2.279 €2.164 €2.546 Net Asset Value per Unit in EUR X Shares €1.628 €1.545 €1.820 Net Asset Value per Unit in EUR E Shares €1.249 €1.170 €1.369

JOHCM Japan Fund Net Assets (£’000) £240,452 £353,042 £512,949 Net Asset Value per Unit in GBP Class A Shares £2.480 £2.201 £2.684 Net Asset Value per Unit in GBP Hedged Class Shares £1.719 £1.492 £1.974 Net Asset Value per Unit in EUR Class A Shares €1.846 €1.579 €1.950 Net Asset Value per Unit in JPY Class A Shares ¥342.922 ¥298.186 ¥393.852 Net Asset Value per Unit in GBP Class B Shares £2.414 £2.139 £2.615 Net Asset Value per Unit in GBP Hedged Class B Shares £1.750 £1.516 £2.001 Net Asset Value per Unit in EUR Class B Shares € 1.772 €1.486 €1.941 Net Asset Value per Unit in JPY Class B Shares ¥338.046 ¥293.132 ¥390.204

JOHCM Global Select Fund Net Assets (£’000) £1,286,350 £1,869,883 £2,290,545 Net Asset Value per Unit in GBP Class A Shares £3.337 £2.805 £2.880 Net Asset Value per Unit in EUR Class A Shares €3.161 €2.515 €2.604 Net Asset Value per Unit in USD Class A Shares $1.819 $1.477 $1.601 Net Asset Value per Unit in GBP Class B Shares £3.202 £2.689 £2.756 Net Asset Value per Unit in EUR Class B Shares €3.045 €2.423 €2.510 Net Asset Value per Unit in USD Class B Shares $2.063 $1.674 $1.816 Net Asset Value per Unit in GBP Z Shares £2.385 £2.018 £2.063 Net Asset Value per Unit in USD Z Shares $2.032 $1.650 $1.786 Net Asset Value per Unit in EUR E Shares 1 - €0.970 €1.002

JOHCM Emerging Markets Fund 2 Net Assets (£’000) - £8,917 £29,817 Net Asset Value per Unit in GBP Class A Shares - £1.154 £1.403 Net Asset Value per Unit in EUR Class A Shares - €1.284 €1.573 Net Asset Value per Unit in USD Class A Shares - $1.288 $1.651 Net Asset Value per Unit in GBP Class B Shares - £1.280 £1.554 Net Asset Value per Unit in EUR Class B Shares - €1.258 €1.545 Net Asset Value per Unit in USD Class B Shares - $1.279 $1.644 Net Asset Value per Unit in GBP Y Shares - £1.251 £1.517

1. This share class was terminated on 16 April 2019 for JOHCM Global Select Fund. 2. JOHCM Emerging Markets Fund was terminated on 07 November 2019.

228228 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

13 Statement of Net Assets for Current and Prior Years (continued)

31 December 31 December 31 December 2019 2018 2017

JOHCM Global Emerging Markets Opportunities Fund Net Assets (£’000) £363,172 £291,056 £326,423 Net Asset Value per Unit in GBP Class A Shares £1.372 £1.251 £1.402 Net Asset Value per Unit in EUR Class A Shares €1.518 €1.311 €1.471 Net Asset Value per Unit in USD Class A Shares $1.168 $1.032 $1.223 Net Asset Value per Unit in GBP Class B Shares £1.315 £1.201 £1.423 Net Asset Value per Unit in EUR Class B Shares €1.495 €1.286 €1.462 Net Asset Value per Unit in USD Class B Shares $1.522 $1.341 $1.585 Net Asset Value per Unit in GBP Z Shares £1.734 £1.585 £1.774 Net Asset Value per Unit in CAD Z Shares CA$1.605 CA$1.484 CA$1.615 Net Asset Value per Unit in AUD Z Shares AU$1.915 AU$1.683 AU$1.795 Net Asset Value per Unit in GBP Y Shares £1.655 £1.514 £1.694 Net Asset Value per Unit in USD Y Shares $1.423 $1.265 $1.493

JOHCM Asia ex-Japan Fund Net Assets (£’000) £114,810 £170,967 £568,138 Net Asset Value per Unit in GBP Class A Shares £2.017 £1.805 £2.230 Net Asset Value per Unit in EUR Class A Shares €2.000 €1.762 €2.210 Net Asset Value per Unit in USD Class A Shares $1.664 $1.491 $1.954 Net Asset Value per Unit in GBP Class B Shares £1.987 £1.777 £2.199 Net Asset Value per Unit in EUR Class B Shares €2.029 €1.725 €2.157 Net Asset Value per Unit in USD Class B Shares $1.692 $1.461 $1.912 Net Asset Value per Unit in GBP Z Shares £1.436 £1.283 £1.587 Net Asset Value per Unit in USD Z Shares 1 $1.115 - -

JOHCM Asia ex-Japan Small and Mid-Cap Fund Net Assets (£’000) £14,214 £14,108 £34,991 Net Asset Value per Unit in GBP Class A Shares £2.020 £1.836 £2.198 Net Asset Value per Unit in EUR Class A Shares €1.805 €1.778 €2.152 Net Asset Value per Unit in USD Class A Shares $1.773 $1.549 $1.962 Net Asset Value per Unit in GBP Class B Shares £1.980 £1.776 £2.128 Net Asset Value per Unit in EUR Class B Shares €2.046 €1.744 €2.111 Net Asset Value per Unit in USD Class B Shares $1.697 $1.480 $1.875 Net Asset Value per Unit in GBP Z Shares £1.523 £1.381 £1.660

JOHCM Global Opportunities Fund Net Assets (£’000) £434,380 £272,281 £275,643 Net Asset Value per Unit in GBP Class A Shares £2.132 £1.900 £1.901 Net Asset Value per Unit in EUR Class A Shares €2.375 €1.990 €2.009 Net Asset Value per Unit in USD Class A Shares $2.103 $1.816 $1.916 Net Asset Value per Unit in EUR Hedged A Shares 2 €1.011 - - Net Asset Value per Unit in GBP Class B Shares £2.371 £2.140 £2.152 Net Asset Value per Unit in EUR Class B Shares €2.209 €1.875 €1.956 Net Asset Value per Unit in USD Class B Shares $2.022 $1.756 $1.868 Net Asset Value per Unit in GBP X Shares £1.817 £1.615 £1.620 Net Asset Value per Unit in GBP Hedged X Shares £1.086 £0.954 £0.999 Net Asset Value per Unit in EUR X Shares 3 €1.069 - - Net Asset Value per Unit in GBP Z Shares £0.839 £0.742 £0.734 Net Asset Value per Unit in GBP ZGA Shares £1.523 £1.318 £1.275 Net Asset Value per Unit in EUR Z Shares 4 €1.046 - - Net Asset Value per Unit in GBP ND X Shares 5 £0.990 - -

1. This share class was launched on 12 February 2019 for JOHCM Asia ex-Japan Fund. 2. This share class was launched on 12 December 2019 for JOHCM Global Opportunities Fund. 3. This share class was launched on 10 May 2019 for JOHCM Global Opportunities Fund. 4. This share class was launched on 25 April 2019 for JOHCM Global Opportunities Fund. 5. This share class was launched on 20 September 2019 for JOHCM Global Opportunities Fund.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 229 Notes to the Financial Statements (continued)

13 Statement of Net Assets for Current and Prior Years (continued)

31 December 31 December 31 December 2019 2018 2017

JOHCM Japan Dividend Growth Fund Net Assets (£’000) £7,517 £61,538 £137,771 Net Asset Value per Unit in GBP Class A Shares £1.361 £1.237 £1.474 Net Asset Value per Unit in GBP Hedged Class A Shares £1.132 £1.080 £1.404 Net Asset Value per Unit in EUR Class A Shares - - €1.494 Net Asset Value per Unit in USD Class A Shares $1.119 $0.986 $1.229 Net Asset Value per Unit in USD Hedged Class A Shares $1.169 $1.106 $1.397 Net Asset Value per Unit in EUR Class B Shares €1.462 €1.265 €1.511 Net Asset Value per Unit in GBP Shares £1.392 £1.266 £1.484

JOHCM US Small Mid Cap Equity Fund 1 Net Assets (£’000) - £45,150 £44,490 Net Asset Value per Unit in GBP Class A Shares - £1.633 £1.695 Net Asset Value per Unit in EUR Class A Shares - €1.416 €1.485 Net Asset Value per Unit in USD Class A Shares - $1.288 $1.416 Net Asset Value per Unit in EUR Class B Shares - €1.377 €1.453 Net Asset Value per Unit in USD Class B Shares - $1.254 $1.385 Net Asset Value per Unit in USD Shares - $1.319 $1.443

JOHCM European Concentrated Value Fund Net Assets (£’000) £169,923 £397,546 £389,820 Net Asset Value per Unit in EUR Class A Shares €1.053 €0.980 €1.098 Net Asset Value per Unit in USD Class B Shares $1.155 $1.098 $1.294 Net Asset Value per Unit in EUR Class B Shares €1.045 €0.972 €1.091 Net Asset Value per Unit in SGD Hedged Class B Shares 2 - SG$0.934 SG$1.040 Net Asset Value per Unit in AUD Z Shares AU$1.220 AU$1.154 AU$1.227 Net Asset Value per Unit in EUR Z Shares 3 €0.965 - -

JOHCM Global Smaller Companies Fund 4 Net Assets (£’000) - £3,866 £4,144 Net Asset Value per Unit in USD Class A Shares - $1.106 $1.255

JOHCM UK Dynamic Fund Net Assets (£’000) £17,537 £13,452 £1,947 Net Asset Value per Unit in GBP A Shares 5 £0.993 - - Net Asset Value per Unit in GBP Y Shares £1.100 £0.933 £1.050

JOHCM Global Income Builder Fund Net Assets (£’000) £38,343 £18,289 - Net Asset Value per Unit in GBP Class A Shares £1.065 £0.968 - Net Asset Value per Unit in EUR Class A Shares €1.106 €0.951 - Net Asset Value per Unit in USD Class A Shares 6 $1.049 - - Net Asset Value per Unit in EUR Class B Shares €1.086 €0.944 - Net Asset Value per Unit in GBP Shares £1.109 £1.003 - Net Asset Value per Unit in USD Shares 7 €1.016 - - Net Asset Value per Unit in GBP ND A Shares 8 £1.016 - - Net Asset Value per Unit SGD Class A Shares 6 SG$1.043 - -

JOHCM Concentrated Global Share Fund Net Assets (£’000) £2,145 £1,863 - Net Asset Value per Unit in GBP Class A Shares £1.072 £0.931 -

1. JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019. 2. This share class was terminated on 24 December 2019 for JOHCM European Concentrated Value Fund. 3. This share class was launched on 25 April 2019 for JOHCM European Concentrated Value Fund. 4. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019. 5. This share class was launched on 25 April 2019 for JOHCM UK Dynamic Fund. 6. This share class was launched on 04 April 2019 for JOHCM Global Income Builder Fund. 7. This share class was launched on 24 December 2019 for JOHCM Global Income Builder Fund. 8. This share class was launched on 10 December 2019 for JOHCM Global Income Builder Fund.

230230 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

14 Stock Lending Certain sub-funds may lend securities to brokers, dealers and other financial organisations to earn additional income. Each security is collateralised with collateral assets in an amount greater than the current market value of the loaned securities.

The Company appointed RBC Investor Services Trust (‘the Agent’) as its Collateral Manager with the authority to service, administer and exercise any and all rights and remedies, on behalf of the Company in respect of the Collateral. Without limiting the foregoing, to the extent necessary or appropriate to perform its duties under this Agreement, the Agent, as collateral manager, has the power to negotiate, execute and deliver all necessary documents and instruments and take actions, on behalf of the Company, with respect to the Collateral and with respect to the rights and obligations that the Company may have under the relevant Loan Agreement. Under the ESMA requirements the Fund must be able to recall any security that has been lent out or terminate any securities lending agreement into which it has entered, at any time. In this regard, the Company authorises the Depositary to accept directions and instructions from the Agent in respect of the Collateral as if such directions and instructions were issued by the Company and agrees that it shall not seek to deal in or otherwise effect transactions in respect of the Collateral.

The aggregate market value provided in respect of a sub-fund shall never be less than the higher of:

(a) (i) in respect of Collateral consisting of bonds, 102% of the aggregate market value of the loaned Available Securities of such sub-fund; or (ii) in respect of Collateral consisting of equities, 105% of the aggregate market value of the loaned Available Securities of such sub-fund, whichever is applicable, and

(b) the percentage of the aggregate market value of the loaned Available Securities of such sub-fund which is required by the applicable stock lending requirements of the CBI.

The Agent monitors and calculates the market value of both the Collateral and loaned Securities, at least daily or otherwise in accordance with standard market practice, and, as appropriate, diligently request additional Collateral from a Securities Borrower under the relevant Loan Agreement. The Collateral shall be deposited with the Depositary and the Depositary will keep adequate accounting records that record the sub-fund’s proportionate interest in the Collateral. The Company acknowledges and agrees that the Depositary may use sub-custodians or intermediaries (which may include the Agent or another affiliate of the Depositary) to hold the Collateral, as provided in the Depositary Agreement. The Company acknowledges and agrees that Collateral held with intermediaries (including but not limited to, the Agent, as aforesaid) may be held as part of a pool of collateral consisting of the Collateral and collateral delivered by the sub-custodian’s or intermediary’s other clients, provided that such sub-custodians or intermediaries shall maintain the Collateral in an account or accounts separate from accounts holding their own financial assets or those of their clients other than clients with an interest in the collateral pool.

At 31 December 2019, the aggregate value of securities on loan by the Company amounted to GBP 373,307,430 (2018: GBP 600,761,968) and the value of collateral held by the Company in respect of these securities amounted to GBP 391,975,376 (2018: GBP 630,804,032).

The value of securities on loan and collateral pledged as at 31 December 2019 for each sub-fund, analysed by counterparty was as follows: Value of Value of Counterparty Securities on Loan Collateral £’000 £’000

JOHCM Continental European Fund Abn Amro Clearing Bank 521 547 BNP Paribas Arbitrage 377 396 Canadian Imperial Bank Of Commerce 461 484 Commerzbank Aktiengesellschaft 90 95 Credit Suisse AG Dublin Branch 84 88 Credit Suisse Securities EUR 91 95 Deutsche Bank 17,418 18,289 Goldman Sachs International 5,777 6,066 HSBC Bank 46,914 49,259 Natixis 2,045 2,148 The Bank Of Nova Scotia 909 955 Unicredit Bank AG 4,086 4,290

Total 78,773 82,712

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 231 Notes to the Financial Statements (continued)

14 Stock lending (continued)

Value of Value of Counterparty Securities on Loan Collateral £’000 £’000

JOHCM European Select Values Fund Barclays Capital Securities 4,002 4,202 BNP Paribas Arbitrage 160 168 BNP Paribas Securities Services Sc 2,668 2,801 Credit Suisse AG Dublin Branch 3,147 3,304 Credit Suisse Securities EUR 4,025 4,227 Deutsche Bank 36,240 38,052 Goldman Sachs International 95 100 HSBC Bank 5,364 5,632 ING Bank 5,823 6,114 JP Morgan Securities 7,065 7,419 Merrill Lynch International 3,867 4,060 Natixis 52,153 54,761 State Street Int'L Bank Gmbh 80 84 The Bank Of Nova Scotia 1,496 1,571 UBS AG 5,138 5,395 Unicredit Bank 47 49 Unicredit Bank AG 161 169

Total 131,531 138,108

JOHCM Global Select Fund Abn Amro Clearing Bank 156 163 Barclays Bank 101 107 BNP Paribas Securities Services Sc 2,414 2,534 CIBC World Markets 89 93 Citigroup Global Markets 793 833 Deutsche Bank 8,297 8,711 Goldman Sachs International 51,251 53,813 Healthcare Of Ont Pension 2,149 2,256 HSBC Bank 3,378 3,547 National Bank Financial 2,901 3,046 Natixis 3,302 3,467 RBC Dominion Securities 25,107 26,362 Scotia Capital 12,099 12,704 TD Securities 4,612 4,842 UBS AG 1,557 1,635

Total 118,206 124,113

JOHCM Global Emerging Markets Opportunities Fund BMO Nesbitt Burns 1,939 2,036 Credit Suisse AG Dublin Branch 5,088 5,342 Deutsche Bank 1,095 1,149 Merrill Lynch International 247 260 RBC Dominion Securities 342 359

Total 8,711 9,146

232232 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

14 Stock lending (continued)

Value of Value of Counterparty Securities on Loan Collateral £’000 £’000

JOHCM Asia ex-Japan Fund Goldman Sachs International 3,888 4,082 Scotia Capital 448 471 Unicredit Bank 35 37

Total 4,371 4,590

JOHCM Asia ex-Japan Small And Mid Cap Fund Abn Amro Clearing Bank 10 11 Goldman Sachs International 156 164 HSBC Bank 121 128 JP Morgan Securities 121 128 Merrill Lynch International 77 80 Scotia Capital 377 396 UBS AG - -

Total 862 907

JOHCM European Concentrated Value Fund Barclays Capital Securities 108 113 BNP Paribas Securities Services Sc 2,574 2,703 Commerzbank Aktiengesellschaft 105 111 Credit Suisse Securities EUR 1,395 1,465 Deutsche Bank 1,201 1,261 HSBC Bank 3,111 3,267 ING Bank 2,267 2,381 JP Morgan Securities 7,427 7,798 Natixis 7,162 7,520 The Bank Of Nova Scotia 5,505 5,780

Total 30,855 32,399

The following sub-funds did not enter into stocklending transactions during the year: JOHCM UK Growth Fund JOHCM Japan Fund JOHCM Global Opportunities Fund JOHCM Japan Dividend Growth Fund JOHCM UK Dynamic Fund JOHCM Global Income Builder Fund JOHCM Concentrated Global Share Fund

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 233 Notes to the Financial Statements (continued)

14 Stock lending (continued) The following table is a breakdown of the net income earned from stock lending by each sub-fund for the financial year ended 31 December 2019. These amounts are included in other income in the Statement of Comprehensive Income. The Company has engaged a securities lending agent (the “Agent”) to arrange these transactions on its behalf. All revenues from the stocklending transactions, net of direct and indirect operational costs, will be returned to the relevant Fund. The Agent is entitled to retain, as a fee for its services, 30% of all fees collected from securities borrowers, out of which the Agent will pay all of its costs and out of pocket expenses incurred in relation to the lending of the relevant Fund’s securities. These costs and fees do not include hidden revenue. The appointed Agent as of the date of this Prospectus is RBC Investor Services Trust which is a related party to the Depositary.

Aggregate Value Aggregate Value of Income of Income 31 December 31 December Name of sub-fund 2019 2018 £’000 £’000

JOHCM Continental European Fund 561 864 JOHCM European Select Values Fund 426 1,961 JOHCM Global Select Fund 692 682 JOHCM Emerging Markets Fund 1 - 4 JOHCM Global Emerging Markets Opportunities Fund 20 27 JOHCM Asia ex-Japan Fund 18 55 JOHCM Asia ex-Japan Small and Mid-Cap Fund 47 68 JOHCM US Small Mid Cap Equity Fund 2 - 14 JOHCM European Concentrated Value Fund 94 193 JOHCM Global Smaller Companies Fund 3 - 1

Total 1,858 3,869

15 Material Changes to the Prospectus There were no material changes to Prospectus apart from those noted in note 16 in relation to increase of the authorised participating capital of the Company.

234234 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Notes to the Financial Statements (continued)

16 Significant Events during the year On 2 January 2019 dividends relating to the financial year ended 31 December 2019 were approved and declared by the Directors.

Sub-Fund Share Class Name Share Class Launch Date JOHCM Global Select Fund EUR Non - Distributing Class terminated on 16 April 2019 JOHCM Asia ex-Japan Fund USD Class Z Shares launched on 12 February 2019 JOHCM Global Opportunities Fund EUR X Share launched on 10 May 2019 JOHCM Global Opportunities Fund EUR Class Z Share launched on 25 April 2019 JOHCM European Concentrated Value Fund EUR Class Z Shares launched on 25 April 2019 JOHCM Global Income Builder Fund USD Class A Shares launched on 04 April 2019 JOHCM Global Income Builder Fund SGD Class A Shares launched on 04 April 2019 JOHCM Global Opportunities Fund EUR AH Shares launched on 12 December 2019 JOHCM Global Opportunities Fund GBP ND X Shares launched on 20 September 2019 JOHCM (Ire) Uk Dynamic Fund GBP A Shares launched on 24 December 2019 JOHCM Global Income Builder Fund GBP ND A Shares launched on 12 December 2019 JOHCM Global Income Builder Fund EUR Seed Shares launched on 26 November 2019 JOHCM European Concentrated Value Fund SGD Hedged Class B Shares terminated on 24 December 2019

At the Company’s Annual General Meeting on 23 May 2019, a special resolution was passed to increase the authorised participating capital of the Company from 800,000,000 Participating Shares of no par value to 500,000,000,000 Participating Shares of no par value. On 1 July 2019, a High Court application was granted to validate all dealings in Participating Shares since the issue first arose. On 06 August 2019, an updated Prospectus for the Company and updated Supplements for each of the sub-funds were submitted to the Central Bank for noting. On 30 September 2019, Helen Vaughan retired as Chief Operating Officer of the Investment Manager. She continues as a Non- executive director of the Company. On 28 June 2019 Markus Lewandowski has been appointed as Chief Operating Officer of the Investment Manager. Graham Warner resigned as Independent non-executive director on 30 September 2019. Effective 1 November 2019, JOHCM Funds (Ireland) Limited became Manager of the Company. Prior to that date the Company was a self-managed entity. JOHCM Emerging Markets Fund and JOHCM US Small Mid Cap Equity Fund were terminated on 07 November 2019, JOHCM Global Smaller Companies Fund was terminated on 17 October 2019.

17 Subsequent Events Markus Lewandowski was appointed as a non-executive director of the Company on 25 February 2020. Alexandra Altinger was appointed as a non-executive director of the Company on 25 March 2020. On 19 March 2020 six new share classes were launched for JOHCM UK Growth Fund being USD Non - Distributing X Shares, EUR Non - Distributing X Shares, GBP X Shares, EUR Hedged Non - Distributing X Shares, USD Non - Distributing R Shares and EUR Non - Distributing R Shares.

COVID-19 While containment efforts have been and continue to be made to slow the spread of the COVID-19 epidemic the outbreak has now spread globally and has led the World Health Organisation to declare the COVID-19 outbreak a pandemic on 11 March 2020. The Board is aware that global financial markets have been monitoring and reacting to the outbreak. All markets have incurred increased volatility and uncertainty since the onset of the pandemic. The Board has also noted the operational risks that are posed to the Company and its service providers due to global and local movement restrictions that have been enacted by various governments. The COVID-19 pandemic is an unprecedented event and the eventual impact on the global economy and markets will largely depend on the scale and duration of the outbreak. The Board will continue to monitor this situation. There are no other significant events that require recognition or disclosure in the financial statements after the financial year end.

18 Approval of financial statements The financial statements were approved and authorised for issue by the Board of Directors on 27 March 2020.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 235 Appendix 1 (unaudited)

Ongoing Charge Figure The Ongoing Charge Figures (“OCF”) are set out below.

The OCF calculation includes all annual operating costs, but excludes bank interest and performance fees.

The OCFs are not required to be included in this Report by the Central Bank of Ireland. They are provided for information purposes only.

Ongoing charge figure (OCF) Performance figure Total expense figure Year ended Year ended Financial Financial Financial Financial 31 Dec 31 Dec year ended year ended year ended year ended 2019 2018 31 Dec 31 Dec 30 Dec 31 Dec Sub-fund (ex perf fee) (ex perf fee) 2019 2018 2019 2018 % % % % % %

JOHCM Continental European Fund GBP Class A 0.82 0.82 - - 0.82 0.82 EUR Class A 0.82 0.82 - - 0.82 0.82 USD Class A Hedged 0.82 0.82 - 0.33 0.82 1.14 GBP Class A Hedged 0.82 0.82 - - 0.82 0.82 GBP Class B 1.32 1.32 - - 1.32 1.32 EUR Class B 1.32 1.32 - - 1.32 1.32 USD Class B Hedged 1.32 1.32 - 0.09 1.32 1.41 GBP Y Class 0.70 0.69 - - 0.70 0.69 EUR Y Class 0.70 0.69 - - 0.70 0.69 GBP Y Hedged Class 0.69 0.69 - - 0.69 0.69 GBP X Hedged Class 0.61 0.62 - 0.08 0.61 0.70

JOHCM UK Growth Fund GBP Class A 0.83 0.81 - - 0.83 0.81 GBP Class B 1.33 1.32 - - 1.33 1.32

JOHCM European Select Values Fund GBP Class A 0.79 0.80 - - 0.79 0.80 EUR Class A 0.79 0.80 - - 0.79 0.80 EUR X Class 1.54 1.55 - - 1.54 1.55 EUR Accumulation Class 1.30 1.30 - - 1.30 1.30 GBP Class B 1.29 1.30 - - 1.29 1.30 EUR Class B 1.29 1.30 - - 1.29 1.30

JOHCM Japan Fund GBP Class A 0.86 0.84 - - 0.86 0.84 EUR Class A 0.85 0.84 - - 0.85 0.84 JPY Class A 0.86 0.84 - - 0.86 0.84 GBP Class A Hedged 0.86 0.84 - - 0.86 0.84 GBP Class B 1.36 1.35 - - 1.36 1.35 EUR Class B 1.34 1.34 - - 1.34 1.34 JPY Class B 1.36 1.35 - - 1.36 1.35 GBP Class B Hedged 1.36 1.35 - - 1.36 1.35

236236 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Appendix 1 (unaudited) (continued)

Ongoing Charge Figure (continued)

JOHCM Global Select Fund GBP Class A 0.77 0.79 - - 0.77 0.79 EUR Class A 0.77 0.79 - - 0.77 0.79 USD Class A 0.77 0.80 - - 0.77 0.80 GBP Z Class 0.04 0.05 - - 0.04 0.05 GBP Class B 1.53 1.54 - - 1.53 1.54 EUR Class B 1.52 1.54 - - 1.52 1.54 USD Class B 1.52 1.54 - - 1.52 1.54 USD Z Class 0.03 0.04 - - 0.03 0.04 EUR E Class 1 - 1.29 - - - 1.29

JOHCM Emerging Markets Fund 2 GBP Class A - 1.40 - - - 1.40 EUR Class A - 1.40 - - - 1.40 USD Class A - 1.40 - - - 1.40 GBP Y Class - 1.30 - - - 1.30 GBP Class B - 2.00 - - - 2.00 EUR Class B - 2.00 - - - 2.00 USD Class B - 2.00 - - - 2.00

JOHCM Global Emerging Markets Opportunities Fund GBP Class A 1.02 1.05 - - 1.02 1.05 EUR Class A 1.01 1.05 - - 1.01 1.05 USD Class A 1.01 1.05 - - 1.01 1.05 GBP Class B 1.61 1.65 - - 1.61 1.65 EUR Class B 1.62 1.65 - - 1.62 1.65 USD Class B 1.61 1.65 - - 1.61 1.65 CAD Z Class 0.11 0.15 - - 0.11 0.15 GBP Z Class 0.11 0.15 - - 0.11 0.15 GBP Y Class 0.86 0.90 - - 0.86 0.90 USD Y Class 0.86 0.90 - - 0.86 0.90

JOHCM Asia ex-Japan Fund GBP Class A 1.10 1.11 - - 1.10 1.11 EUR Class A 1.11 1.09 - - 1.11 1.09 USD Class A 1.11 1.08 - - 1.11 1.08 GBP Z Class 0.21 0.21 - - 0.21 0.21 GBP Class B 1.71 1.71 - - 1.71 1.71 EUR Class B 1.71 1.65 - - 1.71 1.65 USD Class B 1.71 1.71 - - 1.71 1.71 USD Z Class 3 0.22 - - - 0.22 -

1. This share class was terminated on 16 April 2019 for JOHCM Global Select Fund. 2. JOHCM Emerging Markets Fund was terminated on 07 November 2019. 3. This share class was launched on 12 February 2019 for JOHCM Asia ex-Japan Fund.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 237 Appendix 1 (unaudited) (continued)

Ongoing Charge Figure (continued)

JOHCM Asia ex-Japan Small and Small and Mid-Cap Fund GBP Class A 1.40 1.50 - - 1.40 1.50 EUR Class A 1.40 1.50 - - 1.40 1.50 USD Class A 1.40 1.50 - - 1.40 1.50 GBP Z Class 1.05 1.02 - - 1.05 1.02 GBP Class B 2.00 2.01 - - 2.00 2.01 EUR Class B 2.00 2.01 - - 2.00 2.01 USD Class B 2.00 2.00 - - 2.00 2.00

JOHCM Global Opportunities Fund GBP Class A 0.84 0.89 - - 0.84 0.89 EUR Class A 0.84 0.90 - - 0.84 0.90 USD Class A 0.84 0.90 - - 0.84 0.90 EUR Class A Hedged 1 0.72 - - - 0.72 - GBP Z Class 0.09 0.14 - - 0.09 0.14 GBP X Class 0.71 0.75 - - 0.71 0.75 GBP Class B 1.59 1.64 - - 1.59 1.64 EUR Class B 1.59 1.65 - - 1.59 1.65 USD Class B 1.58 1.64 - - 1.58 1.64 GBP ND Z Class 0.09 0.14 - - 0.09 0.14 GBP X Hedged Class 0.71 0.74 - - 0.71 0.74 EUR X Class 2 0.73 - - - 0.73 - EUR Z Class 3 0.10 - - - 0.10 - GBP ND A Class 4 0.72 - - - 0.72 -

JOHCM Japan Dividend Growth Fund GBP Class A 1.00 0.85 - - 1.00 0.85 USD Class A 1.00 0.84 - - 1.00 0.84 GBP Class A Hedged 1.00 0.79 - - 1.00 0.79 USD Class A Hedged 1.00 0.79 - - 1.00 0.79 EUR Class B 1.62 1.47 - - 1.62 1.47 GBP Seed Class 0.50 0.46 - - 0.50 0.46

JOHCM US Small Mid Cap Equity Fund 5 GBP Class A - 1.12 - 0.55 - 1.67 EUR Class A - 1.09 - 0.60 - 1.69 USD Class A - 1.08 - 0.59 - 1.66 EUR Class B - 2.00 - 0.30 - 2.30 USD Class B - 1.83 - 0.33 - 2.17 USD Seed Class - 0.50 - 0.67 - 1.17

1. This share class was launched on 12 December 2019 for JOHCM Global Opportunities Fund. 2. This share class was launched on 10 May 2019 for JOHCM Global Opportunities Fund. 3. This share class was launched on 25 April 2019 for JOHCM Global Opportunities Fund. 4. This share class was launched on 20 September 2019 for JOHCM Global Opportunities Fund. 5 JOHCM US Small Mid Cap Equity Fund was terminated on 07 November 2019.

238238 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Appendix 1 (unaudited) (continued)

Ongoing Charge Figure (continued)

JOHCM European Concentrated Value Fund EUR Class A 0.81 0.82 - 0.01 0.81 0.83 USD Class B 1.31 1.32 - - 1.31 1.32 EUR Class B 1.31 1.32 - - 1.31 1.32 SGD Hedged Class B - 1.32 - 0.16 - 1.48 EUR Z Class 1 0.07 - - - 0.07 -

JOHCM Global Smaller Companies Fund 2 USD Class A - 1.24 - 0.10 - 1.34

JOHCM UK Dynamic Fund GBP Class A 3 0.80 - 0.03 - 0.83 - GBP Class Y 0.68 0.68 - - 0.68 0.68

JOHCM Global Income Builder Fund GBP Class A 1.15 1.15 - - 1.15 1.15 EUR Class A 1.15 1.11 - - 1.15 1.11 USD Class A 4 1.15 - - - 1.15 - SGD Class A 4 1.15 - - - 1.15 - EUR Class B 2.19 2.17 - - 2.19 2.17 GBP Seed Class 0.50 0.51 - - 0.50 0.51 GBP ND A Class 5 0.50 - - - 0.50 - EUR Hedged Seed Class 6 0.60 - - - 0.60 -

JOHCM Concentrated Global Share Fund GBP Class A 1.25 1.25 - 0.19 1.25 1.45

1. This share class was launched on 25 April 2019 for JOHCM European Concentrated Value Fund. 2. JOHCM Global Smaller Companies Fund was terminated on 17 October 2019. 3. This share class was launched on 24 December 2019 for JOHCM UK Dynamic Fund. 4. This share class was launched on 04 April 2019 for JOHCM Global Income Builder Fund. 5. This share class was launched on 10 December 2019 for JOHCM Global Income Builder Fund. 6. This share class was launched on 26 November 2019 for JOHCM Global Income Builder Fund.

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 239 Appendix 2 (unaudited)

Remuneration Policies and Practices : up to 1 November 2019 An effective remuneration policy of the Company (the “Remuneration Policy”) has been put in place by the Company which complies with UCITS Regulations and the ESMA Guidelines on sound remuneration policies under the UCITS Directive (the “Guidelines”). The Remuneration Policy is in line with the strategy, objectives, values and interests of the Investment Manager, the Company, the Funds and the Shareholders and includes measures to avoid conflicts of interest.

The directors of the Company who are also employees of J O Hambro Capital Management Limited (the “Investment Manager”) do not receive any remuneration in respect of their services as directors of the Company. The other directors and the designated persons receive fixed remuneration in respect of their services which is set at a level determined by the Board as a whole and which is not performance related. The total remuneration for the three directors concerned and the two designated persons is €83,333. None of the directors or designated persons is currently in receipt of variable remuneration in respect of their services as directors or designated person of the Company. Accordingly, the detailed provisions of Article 14b of Directive 2009/65/EC and the related ESMA Guidelines on sound remuneration policies under the UCITS Directive in relation to variable remuneration are not applicable to the Company. None of the directors or designated persons are currently in receipt of a pension from the Company. The Company has determined that the fixed remuneration payable to the directors who are not employees of Investment Manager and the designated persons is (a) consistent with sound and effective risk management and does not encourage risk-taking which is inconsistent with the risk profile, rules or instrument of incorporation of the Company and (b) in line with the business strategy, objectives, values and interests of the Company and the investors in the Company. The nature of the directors’ and designated persons’ remuneration, being fixed and not including any variable component and being determined by the Board as a whole, ensures that the Company appropriately manages any conflicts of interest in respect of remuneration. There have been no material changes to the remuneration policy of the Company during the financial year.

The Investment Manager has implemented a remuneration policy which ensures that relevant members of staff are not incentivised, by way of their remuneration package, to take excessive risks when managing funds. The Investment Manager discloses aggregate quantitative information in respect of the remuneration of senior personnel and material risk takers in its Pillar III statement. This can be accessed via the Investment Managers website at www.johcm.com/uk/about-us/5/company-capital-risk-management. Details of the Investment Manager’s remuneration policy are also available at www.johcm.com. A paper copy is available free of charge from the Investment Manager upon request.

Remuneration Policies and Practices : effective 1 November 2019 An effective remuneration policy for the Company (the “Remuneration Policy”) has been put in place by its management company, JOHCM Funds (Ireland) Limited (the “Manager”), which complies with UCITS Regulations and the ESMA Guidelines on sound remuneration policies under the UCITS Directive (the “Guidelines”). The Remuneration Policy is in line with the strategy, objectives, values and interests of the Investment Manager, the Company, the Funds and the Shareholders and includes measures to avoid conflicts of interest.

The Directors of the Company or the Manager who are also employees of J O Hambro Capital Management Limited (the “Investment Manager”) do not receive any remuneration in respect of their services as Directors of the Company or the Manager. The other Directors and the designated persons receive fixed remuneration in respect of their services which is set at a level determined by the Board as a whole and which is not performance related. The total remuneration for the three Directors concerned and the six designated persons is €108,291. None of the Directors or designated persons is currently in receipt of variable remuneration in respect of their services as Directors or designated person of the Company or the Manager. Accordingly, the detailed provisions of Article 14b of Directive 2009/65/EC and the related ESMA Guidelines on sound remuneration policies under the UCITS Directive in relation to variable remuneration are not applicable to the Company or the Manager. None of the Directors or designated persons is currently in receipt of a pension from the Company or the Manager. The Company and the Manager have determined that the fixed remuneration payable to the Directors who are not employees of Investment Manager and the designated persons is (a) consistent with sound and effective risk management and does not encourage risk-taking which is inconsistent with the risk profile, rules or instrument of incorporation of the Company and (b) in line with the business strategy, objectives, values and interests of the Manager, the Company and the investors in the Company. The nature of the Directors’ and designated persons’ remuneration, being fixed and not including any variable component and being determined by the Board as a whole, ensures that the Company and the Manager appropriately manage any conflicts of interest in respect of remuneration. The Manager has provided services to the Company since 1 November 2019 and adopted the Remuneration Policy in advance of that date. There were no material changes to the remuneration policy of the Company previously in place during the financial year.

The Investment Manager has implemented a remuneration policy which ensures that relevant members of staff are not incentivised, by way of their remuneration package, to take excessive risks when managing funds. The Investment Manager discloses aggregate quantitative information in respect of the remuneration of senior personnel and material risk takers in its Pillar III statement. This can be accessed via the Investment Managers website at www.johcm.com/uk/about-us/5/company-capital-risk-management. Further details of the Investment Manager’s remuneration policy are also available at www.johcm.com. A paper copy is available free of charge from the Investment Manager upon request.

240 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 Appendix 3 (unaudited)

Securities Financing Transactions As the Company undertakes securities lending it is required to report on Securities Financing Transactions (as defined in Article 3 of Regulation (EU) 2019/2365, securities financing transactions include repurchase transactions, securities on commodities lending and securities on commodities borrowing and margin lending transactions).

Please read this Appendix in conjunction with note 14 Stock Lending.

CONCENTRATION DATA

Top 10 Issuers

Issuer Name Volume Amount of Collateral GBP

French Republic Government Bond OAT 38,432,461 36,138,929 United Kingdom Gilt 28,784,879 35,618,617 United Kingdom Gilt Inflation Linked 9,044,882 16,664,976 CRH PLC 477,411 14,570,583 United States Treasury Note/Bond 11,505,451 9,073,210 Australia Government Bond 14,274,295 8,975,764 Tiffany & Co 81,245 8,261,543 Prudential PLC 536,539 7,758,355 Province of Quebec Canada 10,771,778 7,277,174 Teck Resources Ltd 482,486 6,375,167

Top 10 Counterparties

Counterparty Name Country Name Amount of Collateral GBP

Natixis France 67,895,624 Deutsche Bank Ag Germany 67,463,230 Goldman Sachs International United Kingdom 64,225,234 Hsbc Bank Plc United Kingdom 61,833,348 Rbc Dominion Securities Inc Canada 26,720,998 Jp Morgan Securities Plc United Kingdom 15,344,964 Scotia Capital Inc. Canada 13,570,336 Credit Suisse Ag Dublin Branch Ireland 8,734,651 Ing Bank N.V. United Kingdom 8,494,431 The Bank Of Nova Scotia Canada 8,305,276

AGGREGATE TRANSACTION DATA

Type of Collateral

Collateral Volume Amount of Collateral GBP

Bonds 152,372,014 147,457,469 Equities & Equivalent 18,672,081 244,517,907

J O Hambro Capital Management Umbrella Fund plc | 31 December 2019 241 Appendix 3 (unaudited) (continued)

Securities Financing Transactions (continued) Maturity Tenure of Collateral

Maturity Amount of Collateral GBP

Less than one day - One day to one week 70,776 One week to one month 29,014 One month to three months 618,397 Three months to one year 2,510,651 Above one year 144,228,631 No maturity date 244,517,907

Currencies of Securities Collateral

Currencies Volume Amount of Collateral GBP

AUD 14,274,295 8,975,764 CAD 23,847,366 67,016,745 CHF 210,588 1,310,224 DKK 1,564 179,517 EUR 63,205,781 64,928,607 GBP 50,518,601 131,470,459 JPY 69,357 714,735 SEK 74,227 6,751 USD 18,842,316 117,372,574

Countries of Counterparties Countries Volume Amount of Collateral GBP

Canada 9,681,753 58,308,707 France 17,946,685 76,498,467 Germany 48,879,770 72,297,813 Ireland 4,753,386 8,734,651 Switzerland 7,938,789 7,030,037 United Kingdom 81,122,652 168,384,994 Netherlands 721,060 720,707

Safe Keeping of Collateral Received Amount of Collateral Depositaries Asset Safe-Kept GBP

RBC Investor Services Bank S.A., 391,975,376

242 J O Hambro Capital Management Umbrella Fund plc | 31 December 2019

J O Hambro Capital Management Limited

Level 3 1 St James’s Market London SW1Y 4AH

Tel: 020 7747 5678 Fax: 020 7747 5647 www.johcm.com