KL Allocation Fund

 

GAVIX (I-share) $15.780.44%
GAVAX (A-share) $15.580.51%

As of 1/18/2018

Investment Objective: To seek long-term capital appreciation with an emphasis on capital preservation.
Investment Strategy: The Fund employs an allocation strategy, moving between equities, fixed income and cash depending on market factors. Equity investments are selected from an index of companies the investment team identifies as Knowledge Leaders.
A Knowledge Leaders Strategy: The strategy seeks to transform the Knowledge Effect into portfolio alpha. The investment process aims to capture this market inefficiency using a proprietary methodology which capitalizes corporate knowledge investments, measures firm performance on a knowledge-adjusted basis, and selects investments in Knowledge Leader companies on the basis of knowledge intensity.
3 Ways to Use the Fund: May help investors improve
• Portfolio performance Portfolio efficiency Downside protection

Key Facts

Inception Date:
Morningstar Category:
Lipper Category:
I-share/A-share:
I-share CUSIP:
A-share CUSIP:
Total Operating Expenses:
Distribution Frequency:
Benchmark:
9/30/2010
World Allocation
Flexible Portfolio
GAVIX/GAVAX
461418659
461418667
1.20%/1.45%
Annually
MSCI ACWI

Performance
(as of 12/31/2017)

As of 12/31/2017, the 1-year, 5-year and since inception annualized total returns for the KL Allocation Fund Advisor Class were 15.88%, 9.18% and 8.72% and Institutional Class were 16.14%, 9.44% and 9.01%, respectively. The MSCI All Country World Index’s 1-year, 5-year and since inception annualized total return as of 12/31/2017 were 23.97%, 10.80% and 9.68%. The total annual operating expenses of the Fund are 1.45% and 1.20% for the Advisor and Institutional Classes, respectively. The inception date for the KL Allocation Fund is 09/30/10.

The performance data quoted here represents past performance. Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance information quoted. To obtain performance information current to the most recent month-end please call 888.998.9890 or visit our website at www.KnowledgeLeadersFunds.com.

The Fund’s advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that total annual fund operating expenses do not exceed 1.50% and 1.25% of the average daily net assets for Advisor Class and Institutional Class shares of the Fund, respectively. This agreement is in effect until December 31, 2018. The Fund’s advisor is permitted to seek reimbursement from the Fund of fees waived for a period of three years from the date of the waiver or payment.

Moneyball Investing: Winning the Loser’s Game
Oakland A’s Coach Billy Beane’s genius was transforming professional baseball from a Winner’s Game, in which the actions of a few superstars dictated the outcome, to a Loser’s Game, where the team that made the fewest errors won. Legendary investor Charles Ellis has declared that active money management also has turned from a Winner’s Game to a Loser’s Game. Today, when over 90% of active managers are underperforming*, success may be as much about selling the wrong stocks as buying the right ones. 

In the KL Allocation Fund, we apply a Moneyball approach: seeking to outperform by making fewer mistakes than the overall market. Of the 12  5%+ market drawdowns since inception of the fund, the fund has outperformed in all 12 (as of 12/31/17). By striving never to own securities that experience a major drawdown, we aim to manage a portfolio with a very low max drawdown.

Download our new white paper Moneyball Investing: Winning the Loser’s Game.

Risk Metrics
(as of 12/31/2017 - Trailing 5 Years)

Risk Metrics
GAVIX
GAVAX
MSCI All Country World Index
Beta
0.57
0.56
1.00
Alpha (%)
3.08
2.85
0.00
Standard Deviation (%)
7.10
7.07
9.93
Tracking Error (%)
6.12
6.12
0.00
Sharpe Ratio
1.27
1.24
1.06
Treynor Ratio
16.19
15.77
10.51
Correlation (%)
79.01
79.05
100.00
Upside Capture (%)
65.54
64.56
100.00
Downside Capture (%)
40.36
41.01
100.00
Max Drawdown (%)
-6.31
-6.39
-13.45
Active Share
94.13
94.13
0.00

Allocations
(as of 12/31/2017)

Asset Allocations

Asset
Percent
Equity
68.99
Fixed Income
19.90
Cash
8.16
Precious Metals
2.95

Equity Allocations by Sector

Sector
Percent
Materials
34.11
Industrials
17.15
Energy
16.00
Information Technology
10.59
Consumer Discretionary
6.34
Health Care
5.82
Consumer Staples
5.46
Financials
4.51

Equity Allocations by Country

Country
Percent
United States
30.40
Japan
24.82
United Kingdom
7.67
Australia
7.09
South Korea
6.16
Norway
5.26
Hong Kong
4.49
Chile
2.25
Sweden
2.15
Canada
1.53
Germany
1.44
Switzerland
1.42
Brazil
1.42
France
1.32
Thailand
0.83
Indonesia
0.75
Poland
0.65
South Africa
0.36

Top 20 Equity Holdings
(as of 12/31/2017)

Company
% Weight in Portfolio
Komatsu Ltd
1.89%
Inpex Corp
1.84%
Origin Energy Ltd
1.83%
BHP Billiton Plc
1.64%
Rio Tinto Ltd
1.62%
Ube Industries Ltd
1.57%
Antofagasta Plc
1.57%
Asahi Glass Co
1.47%
Sumitomo Metal Mining Co Ltd
1.39%
China Resources Beer (Holdings) Co Ltd
1.31%
Fuji Electric
1.31%
LG Chem
1.17%
FLIR Systems
1.17%
BlackRock
1.13%
Stanley Black & Decker Inc
1.12%
Microsoft Corp
1.11%
Dover Corp
1.10%
JFE Holdings
1.10%
OCI
1.09%
Intuit
1.09%

 

PDF View Entire Portfolio Holdings

Fund Materials & Commentary

A complete guide to the KL Allocation Funddownload

Everything you need to know to invest in the KL Allocation Fund
download

KL Allocation Fund quarterly performance update & analysis
download

An overview of our investment strategy and productsdownload

Archives

Investment Strategy

keimagessemi-1The KL Allocation Fund is a Knowledge Leaders investment product. The Knowledge Leaders Strategy seeks to transform the Knowledge Effect into portfolio alpha.

Read about the foundations of our strategy and download research at www.KnowledgeLeadersCapital.com.

See Terms and Conditions

Please consider the Fund’s investment objectives, risks, charges and expenses before investing. The prospectus or summary prospectus that contains this and other information about the Fund, is available by calling 888.998.9890 and should be read carefully.

The value of the securities held by the Fund will change due to general market and economic conditions and industry perceptions. Investments in non-US issuers may involve unique risks. Currency fluctuation, adverse political, economic or social developments could undermine the value of the Fund’s investments. The securities of mid-cap companies may be subject to more abrupt or erratic market movements and may have lower trading volumes. Many of the risks with respect to foreign investments are more pronounced for investments in issuers in developing or emerging market countries. An investment in a fund that is less diversified across countries or geographic regions is generally riskier than an investment in a more geographically diversified fund.

Portfolio composition will change due to ongoing management of the Fund. References to specific securities or sectors should not be construed as recommendations by the Fund, its Advisor or Distributor. The blended benchmark is comprised 60% of the MSCI All Country World Index and 40% of the Barclays US Treasury Bond Index. Percentages are allocated to equity invested.

The KL Allocation Fund is distributed by IMST Distributors, LLC.

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