Kb star funds

1. Monthly Fund Commentary
The Fund recorded a 2.23 % return for the month, underperforming the KOSPI by approximately 2.2%. Underweighting
Samsung Electronics was the main reason for the underperformance. It rose 74% since the beginning of 2016 and the market
cap has exceeded 300 tr. won. The reasons why the electronics giant has reached its highest ever were : (1) improved earnings
forecasts risen 52% since the beginning of 2016. (2) upgraded shareholder return policies including share buybacks and
dividends expansion, and (3) enhanced corporate governance, which can account for 20% of the price rise.
Meanwhile, Com2uS, the Top 1 holding rose 10% in March and 40% YTD due to the increased market's confidence in the long-
term success of its main steady-seller game. We believe it is still undervalued considering its net cash of KRW 600 bil., and the
current earnings can be maintained in the future.
After the financial crisis, South Korean economy has faced multiple challenges such as declining industrial competitiveness
except for IT, shrinking working age population and deepening structural low-growth trap.
Growth of the companies itself is important for investors but how to distribute the fruits of the growth is also important. Samsung
Electronics' 20% rise in corporate value was possible by creating shareholder value through distribution.
We will actively seek out companies that are highly capable of improving corporate governance and raising shareholder value
and increase their stock holdings.
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2016/06 2016/07 2016/08 2016/09 2016/09 2016/10 2016/11 2016/12 2016/12 2017/01 2017/02 2017/03
KB Value Focus KOSPI
KB Star Funds-KB Value Focus Korea Equity Fund
Share Class: X ACC USD (ISIN/BB ticker: LU1361298729/KBVKXAU LX)
Fund Summary
• The fund is managed with the identical investment strategy and the PM as Korea-domiciled KB
Value Focus Fund
• The fund replicates the Kor. KBVF for about 80%
• Investment Philosophy of the Fund
CF) Kor.-domiciled KBVF
1. The second best-selling
Korea Equity Fund
2. Has outperformed KOSPI
by 92.11% since
inception on Nov. 9th,
2009
3. Track record of 7.4 years
4. Recorded annualised
return of 12.21% since
inception (KOSPI 4.8%)
5. Identical manager since
inception
Fund Performance
1M 2M 3M 6M YTD
Since
Inception
Since
Aug. 10, 2016
Since
Feb. 2017
Fund 2.23 9.24 12.20 -2.01 12.20 0.17 -3.80 9.24
KOSPI 4.43 8.57 15.13 4.10 15.13 13.18 4.53 8.57
Diff. -2.20 0.67 -2.94 -6.12 -2.94 -13.01 -2.79 0.67
 Equity accumulation was above 80% on Nov. 11th 2016 and intended management of the fund began on Jan. 2017
 The fund had to hold the subscription monies only in cash until Aug. 2016 due to specific request from the investors.
The investment strategy aims to fully invest at all times, and equity weight is generally about 90%
 The fund’s performance has rebounded after Feb. 2017
 Focusing mainly on value stocks, emphasizing earing value as well
 While maintaining a long-term perspective, engaging in active trading upon significant
price changes
 Investing in stocks with upside potential rather than blindly following the benchmark
index
 Focusing on stock selection, not on forecasting market outlook
Source: Morningstar, Data as at Mar. 31 2017(%)
Key Information | March 2017
Key Facts
INTERNAL USE ONLY
Source: Morningstar, Data as at Mar. 2017

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Consumer
Discretionary
Cash Utilities Industrials Materials Consumer
Staples
Health Care Unclassified Energy Real Estate Financials Telecomm.
Services
IT
Fund
Benchmark
Fund Contribution by Sector
Weight (%)
KOSPI KOSDAQ Total
Large Cap 30.89 30.89
Middle Cap 36.53 10.62 47.16
Small Cap 12.31 9.64 21.95
Total 79.73 20.27 100.00
Fund Portfolio
Source: KB StarM, Data as at Feb. 28 2017
Stock Weight (%)
Com2uS Corp 7.05
Hansol Chemical Co Ltd 5.79
Fila Korea Ltd 4.38
Korea Electric Power Corp. 3.82
SK Telecom Co Ltd 3.62
Korea Zinc 3.61
Woongjin Thinkbig Co Ltd 2.73
Korea Real Estate Investment & Trust 2.49
YG-1 Co Ltd 2.27
Dongbu Hitek 2.01
GICS Sector Fund(%) Market (%) Diff. (%)
Materials 22.36 9.98 12.38
Consumer Discretionary 16.44 13.96 2.49
Industrials 16.17 13.93 2.25
Information Technology 12.22 29.42 -17.20
Cash 11.83 0.00 11.83
Financials 7.15 12.61 -5.46
Utilities 3.90 2.77 1.13
Telecommunication Services 3.69 2.47 1.22
Consumer Staples 3.69 9.03 -5.34
Real Estate 2.54 0.17 2.37
Energy 0.00 2.37 -2.37
Health Care 0.00 3.29 -3.29
Source: KB StarM, Data as at Feb. 28 2017
<Breakdown by Cap Size>
<Breakdown by Sector>
<Top 10 Holdings>
Source: Statpro, Data as at Feb. 28 2017
Fund Bottom-up Performance Attribution
<Attribution Decomposition> <Stock Picking Effect Decomposition>
Stock Exclusion Effect
Underweight Stock Effect
Overweight Stock Effect
Stock Addition Effect
(%)
(%)
Source: Statpro, Calculation Period: Aug 10, 2016 to March 31, 2017
(%)
Source: Statpro, Calculation Period: Aug 10, 2016 to March 31, 2017
INTERNAL USE ONLY
Key Information | February 2017
KB Star Funds-KB Value Focus Korea Equity Fund
Share Class: X ACC USD (ISIN/BB ticker: LU1361298729/KBVKXAU LX)
-7.95
1.29
-6.66
-10 -8 -6 -4 -2 0 2
Stock Allocation Effect
Stock Timing and Trading Effect
Stock Picking Effect
-1.14
-5.36
-2.95
2.78
-6 -4 -2 0 2 4

3. Important Information
※ Prior to investing in the Fund, an investor should read and understand the prospectus in full. The past performance of
the collective investment scheme does not guarantee a return on investment for the future. Changes in the rates of
exchange between currencies may cause the value of investment to fluctuate or result in loss of principal. There is a risk
of loss of the invested principal in the collective investment scheme depending upon the result of its management and that
such loss shall be imputed to investors. The portfolio information is shown for illustrative purposes only. The inclusion of
the securities mentioned above is not to be interpreted as solicitations or recommendations to buy or sell. It is subject to
be changed without notice.
Fund Bottom-up Performance Attribution
Source: Statpro, Calculation Period: Aug 10, 2016 to Feb 28, 2017
All contributions calculated based on holdings basis
INTERNAL USE ONLY
Key Information | February 2017
KB Star Funds-KB Value Focus Korea Equity Fund
Share Class: X ACC USD (ISIN/BB ticker: LU1361298729/KBVKXAU LX)