JK Capital Management is proud to announce that our fund La Française JKC Asia Equity received a Morningstar RatingTM of 5 Stars*
La Française JKC Asia Equity is a high conviction, high concentration, benchmark agnostic fund investing in Asia ex-Japan with a ten-year track record. The fund only holds 24 names as at the end of September 2021, all selected through detailed bottom-up, fundamental research with a macro overlay and ESG considerations.
The top 10 positions in the fund have an aggregate weight of 51.6% while these ten names have only a 0.1% aggregate weight in the MSCI Asia ex-Japan index. Notably, over the past 12 months the fund was able to move away from the sectors and companies that were subject to strong headwinds while carrying heavy weights in the index. The fund is also nimble when it comes to its investments’ market capitalisation, allowing it to find opportunities in smaller markets. The median market capitalisation holdings are 2.7bn USD (ex-China) and 6.9bn USD (entire portfolio).
Altogether these factors allowed the managers to generate significant alpha and we are very pleased to see it reflected in the Morningstar RatingTM of the fund.
The Morningstar RatingTM for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. La Française JKC Asia Equity was rated against the following numbers of Asia ex-Japan Equity funds over the following time periods: 830 funds in the last three years, 651 funds in the last five years, and 373 funds in the last ten years.
Past performance is no guarantee of future results
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