GaveKal Knowledge Leaders Fund Marks Three-Year Anniversary, Surpasses $600 Million In Assets Under Management

GaveKal Capital today marked the 3-year anniversary of the GaveKal Knowledge Leaders Fund (NASDAQ: GAVIX, GAVAX), which seeks to deliver superior risk-adjusted returns by investing in the world’s most innovative companies. The firm also announced it has surpassed $600 million in assets under management in the GaveKal Knowledge Leaders Strategy as of October 29, 2013.

“The fund has delivered equity-like returns with bond-like beta,” said Shawn Paulk, head of distribution, GaveKal Capital. “Now at the 3-year milestone, we’re delighted to report positive returns since inception with half the volatility of the index.”

The GaveKal Knowledge Leaders Fund stands out relative to its benchmark MSCI World Index and peers for its extremely low risk metrics since inception, including:
  • Standard deviation of 6.48%, less than half that of the index
  • Beta of 0.34, compared to 1.00 for the index
  • Alpha of 5.72% compared to 0% for the index
  • Active share of 91.92%, compared to 0% for the index

Active Share determines the extent of active management being employed by mutual fund managers by measuring the percentage of holdings in a portfolio that differ from the index. Researchers in a 2006 Yale School of Management study determined that funds with higher active share will tend to be more consistent in generating high returns against the benchmark indexes.

Since inception, the fund returned 10.18%. For more information on results, the firm’s most recent quarter update and video recap now are available online for US investors at http://www.gavekalfunds.com/calls.php and non-US investors at http://www.gavekalcapital.com/ucitscommentary.php.

In addition, the firm announced the GaveKal Knowledge Leaders Fund is now available through LPL Financial, the nation’s largest independent broker-dealer. For more details, please email your LPL advisor or email spaulk@gavekal-usa.com.

About the GaveKal Knowledge Leaders Strategy

The strategy is based on the idea that innovation is an undervalued asset. The investment team targets knowledge leaders: the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. The team seeks to identify the best among global companies that are tapping deep reservoirs of intangible capital to generate earnings growth. By measuring corporate knowledge investments and applying a proprietary process to analyze knowledge spending, the investment team seeks to identify attractive long-term opportunities. The team has combined more than 20 years of institutional knowledge, advanced technology platforms and thousands of development hours to design the intellectual property behind its process.

About GaveKal Capital

GaveKal Capital is a US registered investment advisory firm that manages the GaveKal Knowledge Leaders Strategy, which includes the GaveKal Knowledge Leaders Fund, the GaveKal Knowledge Leaders UCITS Fund (BLOOMBERG: GAVPLAT) and separate accounts. Visit us at www.gavekalcapital.com or www.gavekalfunds.com or email info@gavekal-usa.com.

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All performance data quoted above is since inception data for the institutional share class.

As of 9/30/13, the 1-year and since inception annualized total returns for the GaveKal Knowledge Leaders Fund Advisor Class were 9.70% and 9.84% and Institutional Class were 10.00% and 10.18%, respectively. The MSCI World Index’s 1-year and since inception annualized total return as of 9/30/13 were 20.21% and 11.82%. The total annual operating expenses of the Fund are 1.99% and 1.74% and net expenses are 1.50% and 1.25% for the Advisor and Institutional Classes, respectively. The inception date for the GaveKal Knowledge Leaders 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 1.888.998.9890 or visit our website at www.GaveKalFunds.com . A redemption fee of 2.00% will be imposed on redemptions or exchanges of shares you have owned for 90 days or less. Please see the prospectus for more information.

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 including, foreign securities that trade in, and receive revenues in, foreign currencies are subject to the risk that those currencies will decline in value relative to the US dollar. 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.

The Advisor has contractually agreed to waive certain fees and/or absorb expenses of the Fund to ensure that total annual fund operating expenses (excluding taxes, leverage interest, brokerage commissions, dividend expenses on short sales, acquired fund fees and expenses as determined in accordance with Form N-1A, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) do not exceed 1.50% and 1.25% of average daily net assets for Advisor Class and Institutional Class Shares, respectively. This agreement is in effect until December 31, 2013, and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s Advisor is permitted to seek reimbursement from the Fund, subject to limitations, for fees it waived and Fund expenses it paid for three years from the date of any such waiver or payment.

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 MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. One cannot directly invest in an index.

Standard Deviation is a calculation used to measure variability of a portfolio’s performance.

Beta is a measure of the funds sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market and a portfolio with a beta less than 1 is less volatile than the market.

Alpha is a measure of the portfolio’s risk adjusted performance. When compared to the portfolio’s beta, a positive alpha indicates better-than-expected portfolio performance and a negative alpha worse-than-expected portfolio performance.

The GaveKal Knowledge Leaders Fund is distributed by IMST Distributors, LLC.

Copyright Business Wire 2010

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