Gavekal KL Allocation Fund Receives 5-Star Morningstar Rating

Ranks #1 in Category for 1-Year Total Return

DENVER--(BUSINESS WIRE)-- Gavekal Capital today announced the Gavekal KL Allocation Fund (GAVIX) received a 5-star Morningstar rating overall, and for the 5- and 3-year periods. The rating is based on risk-adjusted performance compared to 382, 318 and 382 funds respectively in the Morningstar Aggressive Allocation category as of December 31, 2015. In addition, the fund ranks #1 in the category out of 434 peers for 1-year total return as of December 31, 2015.

“We believe this validates our investment case that highly innovative companies generate excess returns,” said Steven Vannelli, CFA, chief investment officer and portfolio manager of the Gavekal Knowledge Leaders Strategy. “We believe it also confirms that our methodology for identifying highly innovative companies can convert this market anomaly into attractive risk-adjusted results for investors.”

The fund is up 9.28 percent annualized since inception (9/30/2010) as of 12/31/2015, outperforming the benchmark MSCI All Country World Index which was up 7.49% for the same period and turning in alpha of 6.54% for the trailing 5 years. In addition, while the MSCI All Country World Index experienced a 20.47 percent max drawdown, the fund experienced a max drawdown of only 6.14 percent, for the trailing 5 years ending 12/31/2015. These statistics validate the fund’s dual objectives of capital appreciation and capital preservation. The fund recently marked its 5-year performance milestone. The fund’s inception date is 9/30/2010. Learn more about the Gavekal KL Allocation Fund.

As of 12/31/2015, the 1-year, 5-year and since inception annualized total returns for the Gavekal KL Allocation Fund Advisor Class were 5.91%, 9.34% and 8.96% and Institutional Class were 6.23%, 9.68% and 9.28%, respectively.

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.gavekalfunds.com.

The total annual operating expenses of the Fund are 1.48% and 1.23% and net expenses are 1.54% and 1.29% for the Advisor and Institutional Classes, respectively. A redemption fee of 2.00% will be imposed on redemptions or exchanges of share you have owned for 90 days or less. The inception date is 9/30/2010.

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, 2016. 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.

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.

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 Gavekal KL Allocation Fund, Gavekal Knowledge Leaders Developed World ETF or Gavekal Knowledge Leaders Emerging Markets ETF or email [email protected].

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© 2015 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor 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.

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 distribution percentages.) As of 12/31/2015, the Gavekal KL Allocation Fund (GAVIX) was rated against the following numbers of U.S.-domiciled Aggressive Allocation funds over the following time periods: 382 funds in the last three years and 318 funds in the last five years. With respect to these Aggressive Allocation funds, Gavekal KL Allocation Fund (GAVIX) received a Morningstar Rating of 5 stars and 5 stars for the 3- and 5-year periods, respectively. Past performance is no guarantee of future results. Ratings for other share classes may differ due to different performance characteristics. The Fund’s ratings reflect 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.

Past performance is no guarantee of future results. The Morningstar percentile ranking is based on the fund’s total return percentile rank relative to all funds that have the same category for the same time period. The highest (or most favorable) percentile rank is 1%, and the lowest (or least favorable) percentile rank is 100%. The Gavekal KL Allocation Fund (GAVIX) was in the 1 percentile for the 1 year period among 434 peers in the Morningstar Aggressive Allocation Category; 11% in the 3 year period (ranked 44th) among 382 peers, and 4% in the 5 year period (ranked 12th) among 318 peers. Morningstar total return includes both income and capital gains or losses and is not adjusted for sales charges. Rankings listed are for the period December 31, 2015. 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.

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.

On March 31, 2015, the Fund’s name changed from Gavekal Knowledge Leaders Fund, to the Gavekal KL Allocation Fund. The investment objective and principal investment strategies have also changed. Please see the prospectus and SAI for additional information.

Effective March 31, 2015, the Advisor changed the Fund’s primary benchmark from the MSCI World Index to the MSCI All Country World Index in connection with a change in the Fund’s principal strategies. The Advisor believes the MSCI All Country World Index is a better measure of the Fund’s performance.

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.

Knowledge-adjusted Basis is when a company’s financial statements have been adjusted to capitalize corporate knowledge investments.

Knowledge Intensity is a measurement of a company’s corporate knowledge investments. Knowledge Investments are corporate investments in R&D and other intangible assets.

A factor is a characteristic possessed by a group of securities which helps to explain the risk and return. A portfolio that attempts to capture the Knowledge Effect would be constructed of portfolios of companies that possess certain characteristics related to their knowledge activities, and these portfolios would attempt to represent exposure to the Knowledge Factor.

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

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.

The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance in 46 developed and emerging markets.

An investor cannot invest directly in an index.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160119005133/en/

Gavekal Capital
Shawn Paulk, 704-844-6844
[email protected]

Source: Gavekal Capital

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