KLEM stopped trading on 02/10/2017
Gavekal Capital begun trading of 2 new strategic beta ETFs, the Gavekal Knowledge Leaders Developed World ETF (NYSE Arca: KLDW) and the Gavekal Knowledge Leaders Emerging Markets ETF (NYSE Arca: KLEM) on Wednesday, July 08, 2015.
1.
FUND INFORMATION:
| Symbol: KLDW | Exchange: NYSE Arca |
| Name: Gavekal Knowledge Leaders Developed World ETF | Net Expense Ratio: 0.75% |
FUND OBJECTIVE:
The Gavekal Knowledge Leaders Developed World ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Gavekal Knowledge Leaders Developed World Index.
REFERENCE INDEX:
The Gavekal Knowledge Leaders Developed World Index is designed to measure the performance of issuers in developed markets countries that are considered to be “Knowledge Leaders,” as defined and determined by Gavekal Capital, LLC (Index Provider), based on a proprietary selection model developed by the Index Provider and incorporated into the Index methodology.
The eligible universe of Index components includes companies that account for 85% of the market capitalization of developed market country companies that have a stock price greater than $1, excluding all secondary listings, preferred shares, and American Depository Receipts. Of those, companies in the lowest 10% in terms of trading liquidity (shares traded multiplied by share price) are eliminated. A proprietary selection model is then applied to create an intangible-adjusted financial history for each remaining company. The selection model does this by making adjustments to each company’s reported financial data since 1980 (or since the company’s inception, if later) that cause intangible investments to be treated as identical to tangible investments. For this purpose, intangible assets include research and development, advertising, brand development, and employee training expenses. The selection model then
applies the Index Provider’s “Knowledge Leaders” screen, a proprietary, quantitative process used to measure a company’s intangible-adjusted financial history for knowledge and innovation intensity, financial strength, and profitability. Companies are graded on a “pass/fail” basis and those companies that pass each level of the screen are identified as Knowledge Leaders and included on the Index. From time to time, the Fund may have a significant portion of its assets invested in the securities of companies in one or more countries or regions and/or sectors. The Index may include companies of any market capitalization. Components in the Index are equal-weighted at the time of each Index rebalancing. The Index is rebalanced on a semi-annual basis. As of 5th of June 2015, the Index was comprised of 682 component securities.
Bellwether Companies (03/31/15):
| A.P. Moller – Maersk | KDDI Corporation |
| Apple Inc. | LM Ericsson Telefon |
| Atlas Copco | Microsoft Corporation |
| Facebook, Inc. | Nippon Telegraph and Telephone |
| FAST RETAILING CO., LTD. | Novo Nordisk |
| Google Inc. | NTT DoCoMo, Inc. |
| Hennes & Mauritz | Takeda Pharmaceutical Co. Ltd. |
| Japan Tobacco Inc. | Telenor ASA |
| Johnson & Johnson | Wal-Mart Stores, Inc. |
Top Industry Exposure (03/31/15):
| Consumer Discretionary | 21.35% |
| Industrials | 19.01% |
| Information Technology | 17.98% |
| Health Care | 15.79% |
| Consumer Staples | 11.70% |
| Materials | 10.53% |
| Telecommunications Services | 1.75% |
| Financials | 0.73% |
| Energy | 0.58% |
| Utilities | 0.58% |
Geographic Allocation (03/31/15):
| North America | 39.18% |
| Asia | 34.50% |
| EMEA | 26.31% |
Useful Links:
KLDW Home Page
Category: Developed Equity Markets> DM Equity Strategy
2.
FUND INFORMATION:
| Symbol: KLEM | Exchange: NYSE Arca |
| Name: Gavekal Knowledge Leaders Emerging Markets ETF | Net Expense Ratio: 0.95% |
FUND OBJECTIVE:
The Gavekal Knowledge Leaders Emerging Markets ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Gavekal Knowledge Leaders Emerging Markets Index.
REFERENCE INDEX:
The Gavekal Knowledge Leaders Emerging Markets Index is designed to measure the performance of issuers in emerging markets countries that are considered to be “Knowledge Leaders,” as defined and determined by Gavekal Capital, LLC (Index Provider), based on a proprietary, rules-based selection model developed by the Index Provider and incorporated into the Index methodology.
The eligible universe of Index components includes companies that account for 85% of the market capitalization of emerging market country companies, excluding all secondary listings, preferred shares, and American Depository Receipts. Of those, companies in the lowest 50% in terms of trading liquidity (shares traded multiplied by share price) are eliminated. A proprietary selection model is then applied to create an intangible-adjusted financial history for each remaining company. The selection model does this by making adjustments to each company’s reported financial data since 1980 (or since the company’s inception, if later) that cause intangible investments to be treated as identical to tangible investments. For this purpose, intangible assets include research and development, advertising, brand development, and employee training expenses. The selection model then applies the Index Provider’s “Knowledge Leaders” screen, a proprietary, quantitative process used to measure a company’s intangible-adjusted financial history for knowledge and innovation intensity, financial strength, and profitability. Companies are graded on a “pass/fail” basis and those companies that pass each level of the screen are identified as Knowledge Leaders and included on the Index. From time to time, the Fund may have a significant portion of its assets invested in the securities of companies in one or more countries or regions and/or sectors. The Index may include companies of any market capitalization. Components in the Index are equal-weighted at the time of each Index rebalancing. The Index is rebalanced on a semi-annual basis. As of 5th of June 2015, the Index was comprised of 196 component securities.
Bellwether Companies (03/31/15):
| Ambev SA | PT Indofood CBP Sukses Makmur Tbk |
| Arca Continental SAB de CV | PT Kalbe Farma Tbk |
| Chemical Works of Gedeon Richter Plc | PT Semen Indonesia (Persero) Tbk |
| Coca-Cola FEMSA SAB de CV | PT Unilever Indonesia Tbk |
| Emirates Telecommunications Corp. | S.A.C.I. Falabella |
| Grupo Bimbo SAB de CV | Samsung Electronics Co., Ltd. |
| Mondi Limited | Severstal PAO |
| Naspers Limited | Vodacom Group Limited |
| PT Indocement Tunggal Prakarsa Tbk | Wal-Mart de Mexico SAB de CV |
Top Industry Exposure (03/31/15):
| Consumer Discretionary | 25.26% |
| Information Technology | 21.13% |
| Consumer Staples | 19.59% |
| Telecommunications Services | 10.82% |
| Health Care | 10.31% |
| Industrials | 6.70% |
| Materials | 4.12% |
| Utilities | 1.03% |
| Energy | 0.52% |
| Financials | 0.52% |
Geographic Allocation (03/31/15):
| Asia | 74.74% |
| EMEA | 13.91% |
| L.America | 10.31% |
Useful Links:
KLEM Home Page
Category: Equities> Emerging Equity Markets> EM Equity Strategy