Independence Fund
Independence Fund as of 9/30/16
INVESTOR SHARE CLASS
INSTITUTIONAL SHARE CLASS
Ticker:
FOOLX
FOIIX (100k minimum)
Benchmark:
FTSE Global All Cap Net Tax
FTSE Global All Cap Net Tax
Motley Fool Funds are managed by a subsidiary of The Motley Fool – a hub of superior investment wisdom for over 20 years. Motley Fool Funds is a boutique investor–centric asset management firm that believes in the transparency of actions and whose portfolio team invests their own money alongside our investors.
Morningstar Category:
World Stock
World Stock
Inception Date:
6/16/2009
6/17/2014
Gross Expense Ratio:
1.13%*
2.14%*
Net Expense Ratio:
1.15%
0.95%*
Redemption Fee:
2.00%, when redeeming within 90 days of purchase
2.00%, when redeeming within 90 days of purchase
STRATEGY: The investment seeks to achieve long-term capital appreciation. The fund invests primary in common stocks of U.S. companies and common stocks and depositary receipts of foreign companies. Under normal market circumstances, it seeks to stay fully invested and does not attempt to time the market. Because of the fund’s value focus, it is expected that investments in the securities of U.S. companies having smaller market capitalizations and the securities in foreign companies, including companies organized under the laws of emerging market companies, will be important components of the Independence fund’s investment program.
Net Assets:
$366.4 million
$7.4 million
Total # of Positions:
62
62
Turnover:
21.00%
21.00%
Active Share:
93.26%
93.26%
INVESTMENT HIGHLIGHTS: • Bottom up stock selection with frequent in person visits by portfolio team • High active share - will follow value anywhere • Invest at discount to intrinsic value • History of low turnover and trading costs • True stewards of capital to shareholders
Overall Morningstar Rating™ Applies to investor class shares only. Based on risk-adjusted returns, as of 9/30/2016, out of 953 World Stock Funds
Morningstar Style Box™ Source: Morningstar
Independence Fund
FTSE Global All Cap Net Tax
$24,000
$22,000
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
JUN 2009
JUN 2010
JUN 2011
JUN 2012
5YR
10YR
SINCE INCEPTION
Independence Fund
5.13%
8.92%
5.20%
10.84%
N/A
11.85%
FTSE Global All Cap Net Tax
6.74%
12.56%
5.70%
11.41%
N/A
10.71%
CALENDAR YEAR RETURNS
2015
2014
2013
2012
2011
2010
Independence Fund
-1.37%
7.34%
23.91%
13.15%
-3.34%
18.80%
FTSE Global All Cap Net Tax
-0.95%
4.03%
23.28%
17.69%
-7.84%
14.72%
KEY ANALYTICS
FUND
INDEX
0.27%
-
14.47%
Sharpe Ratio
0.89
0.73
R
MEDIUM
Information Ratio Standard Deviation
-
Beta
0.87%
-
Excess Return
1.15%
-
Upside Capture
90.1%
-
Downside Capture
81.90%
-
MARKET CAP
JUN 2016
3YR
2.30%
GROWTH
JUN 2015
1YR
91.9%
BLEND
JUN 2014
YTD
Alpha
VALUE
JUN 2013
PERFORMANCE
SMALL
LARGE
INVESTMENT STYLE
*The Fund’s net expense ratios reflect fee waivers and expense reimbursements by the investment advisor. The Adviser has contractually agreed to pay, waive or absorb a portion of the Independence Fund’s expenses through the end of February 2017, or such later date as may be determined by the Independence Fund and the Adviser.
2
Per the prospectus, the fund changed its benchmark from the MSCI World Index to the FTSE Global All Cap Net Tax on 2/29/16.
All fund performance and analytic data are for Investor share-class. The performance data quoted represents past performance and does not guarantee future results. Current performance may be higher or lower. The investment return and principal of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Visit foolfunds.com for returns current to the most recent month end. Please consider the charges, risks, expenses and investment objectives carefully before you invest. Please see the prospectus with this and other information. Read it carefully before you invest.
Independence Fund
A global go anywhere multi-cap equity fund
as of 9/30/16
PORTFOLIO MANAGEMENT:
• William (Bill) Mann III, Chief Investment Officer; Senior Portfolio Manager • William (Bill) Barker, CFA, Portfolio Manager • Anthony Arsta, Portfolio Manager • Nate Weisshaar, Portfolio Manager • David Meier, Portfolio Manager • Bryan Hinmon, CFA, Portfolio Manager
PORTFOLIO CONSTRUCTION:
• Typically 50 – 70 holdings • Maximum position size generally 5% • Low turnover around 20%
HOLDINGS BY SECTOR
TOP COUNTRIES HDFC Bank Ltd
4.18%
Banco Latinoamericano de Comercio Exterior SA
4.00%
Under Armour Inc
3.03%
Amazon.com Inc
2.89%
Loews Corp
2.81%
DuzonBizon Co Ltd
2.80%
Natus Medical Inc
2.64%
Berkshire Hathaway Inc
2.51%
Taiwan Semiconductor Mfr Co
2.45%
Almarai Co SJSC
2.31%
Intel Corp
2.29%
United States of America
49.90%
United Kingdom
6.10%
India
4.18%
Panama
4.00%
South Korea
3.97%
Japan
3.93%
Switzerland
3.37%
Indonesia
3.10%
United Arab Emirates
3.03%
Taiwan
2.45%
Saudi Arabia
2.31%
Consumer Discretionary
18%
Consumer Staples
9%
Energy
2%
Financials
19%
Healthcare
12%
Industrials
10%
Information Technology
18%
Materials
2%
Real Estate
4%
Telecommunications
3%
Holdings are subject to change
MARKET CAPITALIZATION OF EQUITY HOLDINGS Giant ($100B+)
19.1%
Large ($25B - $100B)
19.1%
Medium ($3B - $25B)
28.9%
Small ($500M - 3B)
25.4%
Micro ($0 - $500M)
4.3%
Standard Deviation – The Annualized Standard Deviation is the standard deviation multiplied by the square root of the number of periods in one year. The Standard deviation of return measures the average deviations of a return series from its mean, and is often used as a measure of risk. Sharpe Ratio – The Sharpe Ratio of a manager series is the quotient of the annualized excess return of the manager over the cash equivalent and the annualized standard deviation of the manager return. It is a risk-adjusted measure of return which uses standard deviation to represent risk. R-Squared – Also known as Correlation Squared. It is a measure of how well two portfolios track each other. R-squared ranges between zero and 100%. Alpha – Alpha is a risk-adjusted (beta-adjusted) measurement. Officially, alpha measures the difference between a portfolio’s actual returns and what it might be expected to deliver based on it’s level of risk. Beta – Beta represents the systematic risk of a portfolio and measures its sensitivity to a benchmark. Active Share – is defined as a percentage of a portfolio that differs from it’s benchmark index. Active share can range from 0% for an index fund that perfectly mirrors its benchmark to 100% for a portfolio with no overlap with an index. Information Ratio – is a measure of portfolio management’s performance against risk and return relative to a benchmark or alternative measure. It provides guidance regarding a managers ability to persistently produce returns above the benchmark. Excess Return – The difference between the annualized returns of two portfolios. Usually excess return is the difference between a manager’s return and the return of a benchmark. Up/Down Capture – The Up and Down Capture is a measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns. To calculate the up capture, we first form new series from the manager and benchmark series by dropping all time periods where the benchmark return is zero or negative. The up capture is then the quotient of the annualized return of the resulting benchmark series. The down capture is calculated analogously. Turnover – This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio’s holdings that have changed over the past year. Investors should consider the investment objectives, risks, charges, and expenses of a fund carefully before investing. For a prospectus or summary prospectus containing this and other information for Motley Fool Funds call your financial advisor or visit us online at www.foolfunds.com. Please read the prospectus or summary prospectus before investing. The performance data quoted represents past performances and does not guarantee future results. The Fund’s performance would have been lower if the waivers/ reimbursements had not been in effect. Current performance may be lower or higher. Visit foolfunds.com for returns current to the most recent month-end. The investment return and principle of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Mutual fund investing involves risk, including possible loss of principal. “Value” stocks can continue to be undervalued by the market for long periods of time. Smallcap company stocks tend to be more volatile and less liquid than large-company stocks. Adverse fluctuations in currency exchange rates can cause losses or reduced gains on foreign investments. Emerging market countries present risks in addition to and greater than those of developed foreign markets, such as lax regulation, less liquid markets, and political and economic instability. Motley Fool Funds are distributed by Foreside Funds Distributors LLC, Berwyn, Pa., a registered broker dealer not affiliated with The Motley Fool. As of 09/30/2016, Motley Fool Independence Fund was rated among 735 World Stock funds in the last five years and received a 3-star rating. As of 09/30/2016, Motley Fool Independence Fund was rated among 953 World Stock funds in the last three years and received a 3-star rating. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Rusk-Adjusted Return measure that accounts for variations 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. © 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 nor its content providers are responsible for any damages or losses arising from any use of this information.
INVESTOR SHARE CLASS
INSTITUTIONAL SHARE CLASS
Ticker:
FOOLX
FOIIX (100k minimum)
Benchmark:
FTSE Global All Cap Net Tax
FTSE Global All Cap Net Tax
Motley Fool Funds are managed by a subsidiary of The Motley Fool – a hub of superior investment wisdom for over 20 years. Motley Fool Funds is a boutique investor–centric asset management firm that believes in the transparency of actions and whose portfolio team invests their own money alongside our investors.
Morningstar Category:
World Stock
World Stock
Inception Date:
6/16/2009
6/17/2014
Gross Expense Ratio:
1.13%*
2.14%*
Net Expense Ratio:
1.15%
0.95%*
Redemption Fee:
2.00%, when redeeming within 90 days of purchase
2.00%, when redeeming within 90 days of purchase
STRATEGY: The investment seeks to achieve long-term capital appreciation. The fund invests primary in common stocks of U.S. companies and common stocks and depositary receipts of foreign companies. Under normal market circumstances, it seeks to stay fully invested and does not attempt to time the market. Because of the fund’s value focus, it is expected that investments in the securities of U.S. companies having smaller market capitalizations and the securities in foreign companies, including companies organized under the laws of emerging market companies, will be important components of the Independence fund’s investment program.
Net Assets:
$366.4 million
$7.4 million
Total # of Positions:
62
62
Turnover:
21.00%
21.00%
Active Share:
93.26%
93.26%
INVESTMENT HIGHLIGHTS: • Bottom up stock selection with frequent in person visits by portfolio team • High active share - will follow value anywhere • Invest at discount to intrinsic value • History of low turnover and trading costs • True stewards of capital to shareholders
Overall Morningstar Rating™ Applies to investor class shares only. Based on risk-adjusted returns, as of 9/30/2016, out of 953 World Stock Funds
Morningstar Style Box™ Source: Morningstar
Independence Fund
FTSE Global All Cap Net Tax
$24,000
$22,000
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
JUN 2009
JUN 2010
JUN 2011
JUN 2012
5YR
10YR
SINCE INCEPTION
Independence Fund
5.13%
8.92%
5.20%
10.84%
N/A
11.85%
FTSE Global All Cap Net Tax
6.74%
12.56%
5.70%
11.41%
N/A
10.71%
CALENDAR YEAR RETURNS
2015
2014
2013
2012
2011
2010
Independence Fund
-1.37%
7.34%
23.91%
13.15%
-3.34%
18.80%
FTSE Global All Cap Net Tax
-0.95%
4.03%
23.28%
17.69%
-7.84%
14.72%
KEY ANALYTICS
FUND
INDEX
0.27%
-
14.47%
Sharpe Ratio
0.89
0.73
R
MEDIUM
Information Ratio Standard Deviation
-
Beta
0.87%
-
Excess Return
1.15%
-
Upside Capture
90.1%
-
Downside Capture
81.90%
-
MARKET CAP
JUN 2016
3YR
2.30%
GROWTH
JUN 2015
1YR
91.9%
BLEND
JUN 2014
YTD
Alpha
VALUE
JUN 2013
PERFORMANCE
SMALL
LARGE
INVESTMENT STYLE
*The Fund’s net expense ratios reflect fee waivers and expense reimbursements by the investment advisor. The Adviser has contractually agreed to pay, waive or absorb a portion of the Independence Fund’s expenses through the end of February 2017, or such later date as may be determined by the Independence Fund and the Adviser.
2
Per the prospectus, the fund changed its benchmark from the MSCI World Index to the FTSE Global All Cap Net Tax on 2/29/16.
All fund performance and analytic data are for Investor share-class. The performance data quoted represents past performance and does not guarantee future results. Current performance may be higher or lower. The investment return and principal of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Visit foolfunds.com for returns current to the most recent month end. Please consider the charges, risks, expenses and investment objectives carefully before you invest. Please see the prospectus with this and other information. Read it carefully before you invest.
Independence Fund
A global go anywhere multi-cap equity fund
as of 9/30/16
PORTFOLIO MANAGEMENT:
• William (Bill) Mann III, Chief Investment Officer; Senior Portfolio Manager • William (Bill) Barker, CFA, Portfolio Manager • Anthony Arsta, Portfolio Manager • Nate Weisshaar, Portfolio Manager • David Meier, Portfolio Manager • Bryan Hinmon, CFA, Portfolio Manager
PORTFOLIO CONSTRUCTION:
• Typically 50 – 70 holdings • Maximum position size generally 5% • Low turnover around 20%
HOLDINGS BY SECTOR
TOP COUNTRIES HDFC Bank Ltd
4.18%
Banco Latinoamericano de Comercio Exterior SA
4.00%
Under Armour Inc
3.03%
Amazon.com Inc
2.89%
Loews Corp
2.81%
DuzonBizon Co Ltd
2.80%
Natus Medical Inc
2.64%
Berkshire Hathaway Inc
2.51%
Taiwan Semiconductor Mfr Co
2.45%
Almarai Co SJSC
2.31%
Intel Corp
2.29%
United States of America
49.90%
United Kingdom
6.10%
India
4.18%
Panama
4.00%
South Korea
3.97%
Japan
3.93%
Switzerland
3.37%
Indonesia
3.10%
United Arab Emirates
3.03%
Taiwan
2.45%
Saudi Arabia
2.31%
Consumer Discretionary
18%
Consumer Staples
9%
Energy
2%
Financials
19%
Healthcare
12%
Industrials
10%
Information Technology
18%
Materials
2%
Real Estate
4%
Telecommunications
3%
Holdings are subject to change
MARKET CAPITALIZATION OF EQUITY HOLDINGS Giant ($100B+)
19.1%
Large ($25B - $100B)
19.1%
Medium ($3B - $25B)
28.9%
Small ($500M - 3B)
25.4%
Micro ($0 - $500M)
4.3%
Standard Deviation – The Annualized Standard Deviation is the standard deviation multiplied by the square root of the number of periods in one year. The Standard deviation of return measures the average deviations of a return series from its mean, and is often used as a measure of risk. Sharpe Ratio – The Sharpe Ratio of a manager series is the quotient of the annualized excess return of the manager over the cash equivalent and the annualized standard deviation of the manager return. It is a risk-adjusted measure of return which uses standard deviation to represent risk. R-Squared – Also known as Correlation Squared. It is a measure of how well two portfolios track each other. R-squared ranges between zero and 100%. Alpha – Alpha is a risk-adjusted (beta-adjusted) measurement. Officially, alpha measures the difference between a portfolio’s actual returns and what it might be expected to deliver based on it’s level of risk. Beta – Beta represents the systematic risk of a portfolio and measures its sensitivity to a benchmark. Active Share – is defined as a percentage of a portfolio that differs from it’s benchmark index. Active share can range from 0% for an index fund that perfectly mirrors its benchmark to 100% for a portfolio with no overlap with an index. Information Ratio – is a measure of portfolio management’s performance against risk and return relative to a benchmark or alternative measure. It provides guidance regarding a managers ability to persistently produce returns above the benchmark. Excess Return – The difference between the annualized returns of two portfolios. Usually excess return is the difference between a manager’s return and the return of a benchmark. Up/Down Capture – The Up and Down Capture is a measure of how well a manager was able to replicate or improve on phases of positive benchmark returns, and how badly the manager was affected by phases of negative benchmark returns. To calculate the up capture, we first form new series from the manager and benchmark series by dropping all time periods where the benchmark return is zero or negative. The up capture is then the quotient of the annualized return of the resulting benchmark series. The down capture is calculated analogously. Turnover – This is a measure of the fund’s trading activity which is computed by taking the lesser of purchases or sales (excluding all securities with maturities of less than one year) and dividing by average monthly net assets. A turnover ratio of 100% or more does not necessarily suggest that all securities in the portfolio have been traded. In practical terms, the resulting percentage loosely represents the percentage of the portfolio’s holdings that have changed over the past year. Investors should consider the investment objectives, risks, charges, and expenses of a fund carefully before investing. For a prospectus or summary prospectus containing this and other information for Motley Fool Funds call your financial advisor or visit us online at www.foolfunds.com. Please read the prospectus or summary prospectus before investing. The performance data quoted represents past performances and does not guarantee future results. The Fund’s performance would have been lower if the waivers/ reimbursements had not been in effect. Current performance may be lower or higher. Visit foolfunds.com for returns current to the most recent month-end. The investment return and principle of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
Mutual fund investing involves risk, including possible loss of principal. “Value” stocks can continue to be undervalued by the market for long periods of time. Smallcap company stocks tend to be more volatile and less liquid than large-company stocks. Adverse fluctuations in currency exchange rates can cause losses or reduced gains on foreign investments. Emerging market countries present risks in addition to and greater than those of developed foreign markets, such as lax regulation, less liquid markets, and political and economic instability. Motley Fool Funds are distributed by Foreside Funds Distributors LLC, Berwyn, Pa., a registered broker dealer not affiliated with The Motley Fool. As of 09/30/2016, Motley Fool Independence Fund was rated among 735 World Stock funds in the last five years and received a 3-star rating. As of 09/30/2016, Motley Fool Independence Fund was rated among 953 World Stock funds in the last three years and received a 3-star rating. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Rusk-Adjusted Return measure that accounts for variations 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. © 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 nor its content providers are responsible for any damages or losses arising from any use of this information.
