Gavekal Knowledge Leaders UCITS Fund Receives 5-Star Morningstar Rating?

Gavekal Capital today announced the Gavekal Knowledge Leaders UCITS Fund (Bloomberg: GAVPLAT/ISIN: IE00B1DS1042) has received a 5-star Morningstar Rating™ overall. The fund ranks in the top 10 percent of funds in Morningstar’s USD Aggressive Allocation category, as of April 30, 2015.

“Morningstar’s rating provides valuable guidance for advisors on how to use our fund in client portfolios,” said Steven Vannelli, Portfolio Manager of the Gavekal Knowledge Leaders Strategy. “Because of its unique risk profile, the fund may help investors improve portfolio performance, improve portfolio efficiency and improve downside protection.”

Additional highlights include:

• A long record of capital preservation with a low max drawdown of 5.84% compared to 19.64% for the benchmark MSCI World Index for the trailing 4-year period ending April 30, 2015; and
• Excess returns (alpha) of 3.61% compared to benchmark MSCI World Index for the trailing 4-year period ending April 30, 2015.

Learn more about the Gavekal Knowledge Leaders UCITS Fund.

About the Gavekal Knowledge Leaders Strategy

The Gavekal Knowledge Leaders Strategy seeks to transform the Knowledge Effect into portfolio alpha. We identify Knowledge Leaders, or highly innovative companies, through a proprietary process that measures a company’s investment in its future growth. Knowledge Leaders possess deep reservoirs of intangible capital as a result of their history of investing in knowledge-intensive activities like R&D, brand development and employee education. Our proprietary model adjusts a company’s financial history to capitalize these investments – reversing the conservative accounting rule that renders a company’s innovation activities invisible in the stock market – and reveals the companies with the greatest knowledge intensity. The companies that pass our quantitative Knowledge Leaders screen comprise the Gavekal Knowledge Leaders Indexes, the first indexes designed to capture the Knowledge Effect. We look for the best opportunities among Knowledge Leaders for investment by our actively managed products. Read more about the strategy in our recent white paper, The Knowledge Effect: Excess Returns of Highly Innovative Companies.

About Gavekal Capital

Gavekal Capital identified the Knowledge Effect and created the first investment methodology designed to capture the excess returns of highly innovative companies. Gavekal Capital is creator and designer of the Gavekal Knowledge Leaders Strategy, indexes and investment products. For more information please visit www.gavekalcapital.com. Follow our investment team blog on Twitter @GaveKalCapital.

The performance data quoted here represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate. Current performance may be lower or higher. An investor cannot invest directly in an index.

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distributed percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and 10-year (if applicable) Morningstar Rating metrics. Gavekal Knowledge Leaders UCITS Fund was rated against the following numbers of Ireland-domiciled USD Aggressive Allocation funds over the following time periods: 441 funds in the category over the 5-year period, 523 funds in the category over the 3-year period and 523 funds in the category overall. With respect to these USD Aggressive Allocation funds, Gavekal Knowledge Leaders UCITS Fund received a Morningstar Rating of four stars for the 3-year period, five stars for the 5-year period and five stars overall. Past performance is no guarantee of future results.

Morningstar Rating is for the UCITS fund only; other funds or classes may have different performance characteristics.

2015 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar not its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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.

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.

Max Drawdown is the maximum single period loss incurred over the interval being measured.

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