KL Allocation Fund

 

GAVIX (I-share) $15.270.99%
GAVAX (A-share) $15.081.00%

As of 2/23/2018

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 1/31/2018)

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 1/31/2018 - Trailing 5 Years)

Risk Metrics

GAVIX MSCI All Country World Index
Total Return (%)
9.44
11.02
3
Alpha (%)
2.99
 0.00
1
Beta
0.56
1.00
22
Max Drawdown (%)
-6.31
-13.45
3
Up/Down Capture Ratio
1.61
1.00
1
Treynor Ratio
16.25
10.71
1
Sharpe Ratio
1.27
1.07
2
Sortino Ratio
2.41
1.89
2
Standard Deviation (%)
7.10
10.02
51

Past performance does not guarantee future results.

Diversification Analysis
(as of 1/31/2018)

The KL Allocation Fund had a low correlation to benchmark indexes compared to the Morningstar category average and a high tracking error, indicating a high level of active management and conviction. A fund with a high active share means the fund’s holdings are significantly different from the benchmark. Studies show high active share may be a significant predictor of performance.* * Martjin Cremers and Antti Petajisto, “How Active is Your Fund Manager?” March 31, 2009.
**Morningstar World Allocation Category

Allocations
(as of 1/31/2018)

Asset Allocations

Asset
Percent
Equity
71.42
Fixed Income
17.03
Precious Metals
6.01
Cash
5.54

Equity Allocations by Sector

Sector
Percent
Materials
33.89
Industrials
17.13
Energy
15.80
Information Technology
10.97
Health Care
6.12
Consumer Discretionary
5.92
Consumer Staples
5.51
Financials
4.67

Equity Allocations by Country

Country
Percent
United States
30.89
Japan
24.43
United Kingdom
7.58
Australia
7.01
South Korea
6.48
Norway
5.18
Hong Kong
4.41
Chile
2.30
Sweden
2.21
Switzerland
1.48
Germany
1.46
Brazil
1.45
Canada
1.43
France
1.36
Indonesia
0.79
Poland
0.64
Thailand
0.57
South Africa
0.34

Top 20 Equity Holdings
(as of 1/31/2018)

Company
% Weight in Portfolio
Komatsu Ltd
2.00%
Inpex Corp
1.88%
Origin Energy Ltd
1.84%
BHP Billiton Plc
1.74%
Rio Tinto Ltd
1.67%
Ube Industries Ltd
1.57%
Antofagasta Plc
1.50%
Asahi Glass Co
1.47%
Fuji Electric
1.41%
Sumitomo Metal Mining Co Ltd
1.39%
China Resources Beer (Holdings) Co Ltd
1.36%
OCI
1.33%
FLIR Systems
1.27%
JSR Corp
1.26%
LG Chem
1.23%
BlackRock
1.22%
Microsoft Corp
1.22%
Alphabet Inc
1.16%
Statoil ASA
1.15%
Becton Dickinson & Co
1.15%

 

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.

* The Morningstar percentile ranking is based on the fund’s total return relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 44 percentile for the 1 year period among 473 peers in the Morningstar World Allocation Category; 13% in the 3 year period among 428 peers, and 3% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s alpha relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 55 percentile for the 1 year period among 473 peers in the Morningstar World Allocation Category; 2% in the 3 year period among 428 peers, and 1% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s beta relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 54 percentile for the 1 year period among 473 peers in the Morningstar World Allocation Category; 23% in the 3 year period among 428 peers, and 22% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s max drawdown relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 46 percentile for the 1 year period among 235 peers in the Morningstar World Allocation Category; 5% in the 3 year period among 428 peers, and 3% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s up/down capture ratio relative to all funds that have the same category for the same time period. One-year percentile rankings are not applicable. The KL Allocation Fund (GAVIX) was in the 2 percentile for the 3 year period among 428 peers in the Morningstar World Allocation Category, and 1% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s treynor ratio relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 56 percentile for the 1 year period among 473 peers in the Morningstar World Allocation Category; 3% in the 3 year period among 428 peers, and 1% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s sharpe ratio relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 83 percentile for the 1 year period among 473 peers in the Morningstar World Allocation Category; 13% in the 3 year period among 428 peers, and 2% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s sortino ratio relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 53 percentile for the 1 year period among 282 peers in the Morningstar World Allocation Category; 9% in the 3 year period among 428 peers, and 2% in the 5 year period among 394 peers. The Morningstar percentile ranking is based on the fund’s standard deviation relative to all funds that have the same category for the same time period. The KL Allocation Fund (GAVIX) was in the 85 percentile for the 1 year period among 473 peers in the Morningstar World Allocation Category; 56% in the 3 year period among 428 peers, and 51% in the 5 year period among 394 peers. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. Rankings listed are for the period January 31, 2018. Ratings for other share classes may differ due to different performance characteristics. The Fund’s ratings reflects fee waivers in effect; in their absence, ratings may have been lower. Multiple share classes of a fund have a common portfolio but impose different expense structures.

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