Uploaded bykbasset
PDF, PPTX1,458 views

Kb value focus korea equity

The KB Value Focus Korea Equity Fund is one of the highest performing Korea-domiciled funds. It has never posted a negative annual return. The fund primarily invests in undervalued stocks relative to their intrinsic values and companies expected to have stable earnings growth. It is managed according to Warren Buffett's value investment philosophy of focusing on margin of safety and has outperformed its benchmark, the KOSPI, without increased risk since inception in 2009.

Embed presentation

Download as PDF, PPTX
KB Value Focus Korea Equity Fund
One of the Highest Performing Korea-domiciled Funds The2nd LargestKorea EquityFund - Highest-performing fund among top 10 best selling Korea equity funds - KB Value Focus has never posted negative annual returns - The fund’s rate of return since inception is the 4th highest among 306 funds, meaning the fund ranks the top 1.3% * As of October 28th, 2015 * No. of Korea-domiciled active Korea equity funds: 620 Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. All figures are in USD terms , net of fees, and gross of tax. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. 2 Name Fund Size USD (Jan. 1st 2015 -Sep. 30th 2015) Return (%) Rank 2015 YTD (Sep. 30th) 2014 2013 2012 2011 2010 2015 YTD (Sep. 30th) 2014 2013 2012 2011 2010 S V 2,461,716,898 0.48 2.13 21.34 25.50 -9.38 22.95 23 6 1 2 21 74 KB Value Focus Feeder Equity A 1,423,854,640 1.37 0.37 11.45 20.71 2.21 50.51 19 9 4 10 2 1 M A 1,313,561,681 15.48 10.26 2 2 K 10 1,277,776,920 -6.05 -3.05 21.12 29.98 -0.17 18.75 55 14 1 1 4 94 K G 957,270,652 -11.88 -18.44 -4.19 21.55 -17.50 33.74 91 97 94 6 89 8 K N 942,347,146 4.94 -6.15 2.60 15.97 -10.56 27.61 8 25 49 47 29 32 K M 869,331,108 -0.22 10.38 12.72 44.44 82 18 25 1 S M 717,455,691 1.85 -6.24 15.31 23.93 -11.55 21.99 17 25 2 3 38 80 A K 706,847,197 2.51 2.99 15.92 18.00 -16.14 34.99 15 5 2 31 80 6 K S 686,545,461 -13.10 -18.82 -4.67 20.94 -17.96 33.11 95 98 96 9 92 10
Same Portfolio Manager Since Inception Thecurrent CIO of KBAM has beenmanagingthe fundsince2009  1992-1999 Applied Statistics Department of College of Business and Economics of Yonsei University  1998-1999 LNG Carrier Department of Hyundai Merchant Marine  1999-2002 Sector Manager of Equity Management Team of Dongwon Securities  2002-2004 Sector Manager of Investment Adviser Department of Dongwon Investment Management  2004-2006 Sector Manager of Korea Investment Management  2006-2009 Asset Management Department of Korea Investment Value Asset Management  2009-Present CIO/Head of Equity Management Division of KB Asset Management Currently manages KB Value Focus, KB Pension Dividend 40, and KB Small/Mid Cap Equity Fund CIO,WoongpilChoi Educational/Professional Background 3
Primary Investments Low PER Stocks with a PER Lower than the Company’s Earnings Value Low PBR Stocks with a PBR Lower than the Company’s Assets Value High Dividend New Value Stocks Companies with Stable Growth of Earnings Based on Market Dominance 4 Thisvaluefundprimarilyinvestsin equitieswith… ≥ Dividend Yields Market Interest Rates Shown for illustrative purposes only. They do not constitute investment recommendations.
5 Focus & Principle of KB Value Focus Undervaluation is not the only focus Earnings value is as much important While maintaining our principle of Buy & Hold We engage in active trading upon significant price changes Turnover Ratio: 2013: 56.06% 2014: 62.38% 2015 (YTD, Sep. 30th): 57.33% Rather than blindly following the benchmark index We primarily invest in stocks with upside potential We do not invest in large cap companies just to follow the benchmark index  Robust Business Model  Expected Structural Growth  Sustainability of Earnings Thefund’sfocus & principle
Selection of Stocks Re-Rating If stocks that generate stable profits based on their franchise value or intrinsic competitive advantage are undervalued compared to the market valuation, the value of the stocks will eventually converge to the market valuation Market Share Predictability of Earnings Sustainability of Earnings Premium If companies that clearly have growth potential, given the expected structural growth and paradigm shift, are undervalued, their structurally stable growth potential will eventually be identified and the stocks will be valued higher than the market valuation Probability of Market Diversification Life Cycle Growth Potential of Flagship Products Focusing on stock selection, not forecasting market outlook - Stocks that have significantly higher intrinsic value - Companies posting stable growth of earnings - Stocks that match these conditions are actively purchased when the prices of the stocks tumble or the stocks are neglected 6
Following Warren Buffett’s Investment Philosophy Just likeWarren Buffett’sInvestmentPhilosophy - The rate of Berkshire Hathaway outperforming the S&P 500 had been 78% from 1965 to 2014 - Berkshire Hathaway had recorded negative annual returns only twice for as long as 50 years The NAV growth of Berkshire Hathaway outperformed the S&P 500 by “740,652%” since 1964 0% 100000% 200000% 300000% 400000% 500000% 600000% 700000% 800000% 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 Berkshire Hathaway NAV per share S&P 500 Source: Berkshire Hathaway’s annual report Shown for illustrative purposes only. 7
Margin of Safety We securethe marginof safetyto minimizelosseswhilemaximizingreturns “Margin of Safety” The gap between a company’s intrinsic value and the price of stock - Margin of safety is the difference between the intrinsic value of a stock and its market price • The causes are lack of attention or dampened investor sentiment • Margin of safety is achieved when stocks are bought at prices lower than their intrinsic values, thereby securing investment returns • The key is the patience to wait until the prices of stocks reach their intrinsic value The chart is included for illustrative purposes only. Intrinsic Value Stock Price Time Margin of Safety Margin of Safety 8
This fund has consistently outperformed the KOSPI and protected the principal For the last 5 and half a years this fund outperformed benchmark without negative annual return (%) The winning rate of this fund is 100%. And the Fund has never recorded negative annual returns since inception Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. All figures are in USD terms , net of fees, and gross of tax. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. 9 1 0 11 21 2 51 (5) (9) 2 18 (12) 25 (20) (10) 0 10 20 30 40 50 60 2015 YTD 2014 2013 2012 2011 2010 KB Value Focus Feeder Equity A KRX KOSPI Korea PR KRW
KB Value Focus KOSPI EAA OE Korea Equity Korea Large-Cap .... . Subscription date Evaluation date Nov. 30, 2009 Dec. 31, 2009 Jan. 29, 2010 Sep. 30, 2015 .... . Dec. 31, 2009 Jan. 29, 2010 Sep. 30, 2015 Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. 10 The fund’s investors have benefitted from the principle The charts below show distribution of returns for each subscription date from November 9th, 2009 to September 30th, 2015 - The red parts indicate negative returns
Distribution of returns shows KB Value Focus has successfully preserved investors money From Nov. 9th 2009 to Sep. 30th 2015, while other funds recorded a loss of 30% on average while the figure stands at 8.57% for KB Value Focus fund KB Value Focus KOSPI EAA OE Korea Equity Korea Large-Cap 160% ~ 180% 0.12% 140% ~ 160% 0.44% 120% ~ 140% 1.49% 100% ~ 120% 3.94% 80% ~ 100% 5.35% 60% ~ 80% 6.64% 0.04% 40% ~ 60% 14.41% 2.54% 1.73% 2.70% 20% ~ 40% 24.91% 18.15% 13.72% 17.83% 00% ~ 20% 34.12% 48.69% 46.28% 48.49% -20% ~ 00% 8.53% 29.98% 35.94% 29.74% -40% ~ -20% 0.04% 0.64% 2.33% 1.21% + 91.43% 69.38% 61.73% 69.05% - 8.57% 30.62% 38.27% 30.95% Average 34% 8.33% 5.17% 8.00% Max 168% 52.92% 58.14% 60.34% Min -21% -26.57% -28.45% -27.89% Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. 11 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% -50% 0% 50% 100% 150% 200% KB Value Focus KOSPI EAA OE Korea Equity Korea Large-Cap The fund’s investors have benefitted from the principle (cont’d)
Track Records Performance Since Inception Exceptional Risk Rewards (5YR) Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. 12 138% 23% 26% KB Value Focus Feeder Equity A Korea OE Korea Large-Cap Equity KRX KOSPI Korea PR KRW EAA OE Korea Equity-2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 18.40% 18.50% 18.60% 18.70% 18.80% 18.90% 19.00% 19.10% 19.20% 19.30% Standard Deviation Return KB Value Focus has outperformed the KOSPI by 115%
13 USD 1.4 Billion USD 2.4 Billion 13 % -13 % -11 % Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. Performance from January 2013 to July 2015 AUM Trend Since Inception KB Value Focus outperformed the KOSPI even when there was a large redemption
Investment Process of KB Value Focus InvestmentProcess 14 Quantitative Analysis • PER & PBR : 30 % discounted compared to the market • Dividend Yield: Higher than 3% • Other factors: Free Cash Flow, EBITDA, etc. Qualitative Analysis • Business Model Analysis: Market Share, Earnings Visibility, Sustainability of Earnings • Structural Growth: Market diversification and/or expansion, Life cycle • Paradigm Shift: Leader and or pioneer • Companies that can retain earnings are preferred over capital-intensive industry Stock Evaluation • Premium: Stocks that have good reasons to be traded at a higher valuation than the market • Re-rating: Stocks that are undervalued compared to intrinsic values • Discount: Stocks that have good reasons to be cheap Actual Portfolio • Invest mainly in premium and re-rating stocks, occasionally picking discount stocks, if necessary • Decide sector weights, preferring sectors with sustainable and stable earnings • Number of stocks in the actual portfolio ranges from 80 to 100 • Monitor market and credit risk consistently
What KB Value Focus looks into In summary,KB ValueFocus Korea Equity Fund… 02 focuses on stock selection rather than indices or economic outlook •The fund invests in stocks that are undervalued relative to their intrinsic values, including values of an enterprise, assets, and earnings •It also invests in stocks that are expected to see a stable growth in earnings while being less affected by external changes such as economic fluctuations •Such is a new type of value investment strategy, which has evolved from a traditional value strategy 01 invests in stocksthat are undervalued relatively to intrinsic values and that are expected to see a stable growth •The fund does not forecast the market or make sector bets •It focuses on stock selection whereas portfolio composition and sector weights are results of stock selection. 15
Portfolio of KB Value Focus Portfolio (AsofJuly31st ,2015) Weight by KOSPI & KOSDAQ Sector Weight Weight by Market Weight Top 10 Holding Sector Market KB Value Focus Difference IT 21.75 22.69 0.94 Materials 9.69 15.67 5.98 Consumer Discretionary 15.07 15.36 0.29 Financials 12.98 11.69 -1.29 Consumer Staples 13.98 11.34 -2.64 Industrials 9.65 9.34 -0.31 Telecommunications 2.71 2.58 -0.13 Energy 1.78 2.06 0.28 Utilities 4.14 1.87 -2.27 Others 8.25 1.71 -6.54 Stock Sector Market KB Value Focus Difference Dongwon Industries Consumber Staples 0.1 3.81 3.71 SK Hynix IT 2.19 3.81 1.62 Hyundai Livart Industrials 0.09 3.71 3.62 Hansol Chemical Materials 0.08 3.53 3.45 Com2us IT - 3.48 3.48 Muhak Consumber Discretionary 0.12 3.39 3.27 Korea Zinc Materials 0.75 3.36 2.61 Golfzon IT - 3.34 3.34 Koeran Re Financials 0.14 2.83 2.69 NAVER IT 1.4 2.76 1.36 Weight(%) KOSPI KOSDAQ Large Cap 25.19 - Middle Cap 39.74 10.41 Small Cap 15.37 9.29 Total 80.30 19.70 Source: KB Asset Management Shown for illustrative purposes only. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell and is subject to change without notice. 16 KOSPI, 80.30% KOSDAQ, 19.70%
Summary of KB Value Focus Summary 17 KB Value Focus Portfolio Manager Woong-pil Choi ISIN / Bloomberg Ticker KR5223174917 / 3174917 KS Equity Inception date November 9, 2009 NAV (USD) * As of September 30th, 2015 * Source: Korea Financial Investment Association 1,423,854,640 BM KOSPI No. of Holdings * As of September 30th, 2015 * Source: KB Asset Management 89 Beta (3yr) 0.55 Sharpe 1.53 Tracking Error (%) 8.23 Average Market Cap (USD) * As of July 31st, 2015 * Source: Morning Star 1,310 Million Turnover Ratio (%) * (Buy + Sell)/(2*NAV) 2013: 56.06% 2014: 62.38% 2015 (YTD, Sep. 30th): 57.33% Portfolio PE * As of July 31st, 2015 * Source: Morning Star 12.21 Portfolio PB * As of July 31st, 2015 * Source: Morning Star 1.39
Disclaimer 18 Risks and Disclaimers General The Fund is intended for long-term Investors who can accept the significant risks associated with investing in illiquid securities. An investment in the Fund involves various risk factors, including the possibility of partial or total loss of the Fund capital, and prospective Investors should not subscribe unless they can readily bear the consequences of such loss. There can be no assurance that the Fund will achieve its Investment Objective or Portfolio Target Return, or that there will be any return on capital. In particular, potential investors should take into account the fact that the actual return achieved may be more or less in any particular year, and that different returns may be achieved by different Investments, according to their different cost bases, and that different Fund Investor Vehicles may have different returns. Projections The opinions stated in this presentation include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. Portfolio No representation is being made that any portfolio will or is likely to achieve profits or losses similar to those shown. Portfolio holdings are subject to change at any time without notice . Risks Involving Investment Strategy Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Risks Associated with Performance The performance quoted is past performance and is not a guarantee of future results. All figures are in USD terms, net of fees, and gross of tax. The impact of the initial charge can be material on the performance of your investment. Performance figures including the initial charge are available upon request. The Fund is subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end, please send an email to the following address: kbgm@kbfg.com Currency Risks Changes in the rates of exchange may affect the value of investments. The Fund can invest in overseas securities which may also generate profits overseas and pay dividends in foreign currencies, which means the fund is exposed to changes in currency rates. Impact of Compensation The Fund takes its charges from the Fund. The impact of Fund charges may be material on the value of any income you receive from your investment. There is potential for future capital erosion if insufficient income is generated by the Fund to cover these charges. Please see the prospectus for additional information on the fees and expenses. Tax Risks Tax treatment will depend on the individual circumstances of clients and may be subject to change in the future. The rate and amount of tax would vary depending on the mix and type of investments made by the Fund. Investors should consult their tax advisers regarding such tax consequences as well as any taxes to which they may be subject in their own jurisdiction. Limitations of Target Returns An investor should not expect to achieve actual returns similar to the target return shown herein. The target return is the manager’s goal based on various manager assumptions, calculations of available data, past and current market conditions, and available investment opportunities, each of which are subject to change. Because of the inherent limitations of the target return, potential investors should not rely on it when making a decision on whether or not to invest in this Fund.
Risks and Disclaimers (cont’d) ※ This presentation is written with investment risks involving the parent fund taken into account. ※ Risks are not limited to the risks listed in this presentation. There can be various types of unexpected risks. 19 Risk of Concentrated Investment in Equities The Fund primarily invests in equities and equity related securities and thus changes in stock prices may adversely affect the value of the Fund. A fall in prices of the equities held by the Fund may result in a decline in the value of the Fund. If the Fund’s investment portfolio falls in value, investors’ investment in the Fund may suffer losses. Risk of Concentrated Investment in Selective Sectors The Fund may selectively invest in stocks in a limited number of sectors while remaining in the accordance with applicable statutes. The lack of diversification may increase the impact that a small number of stocks or sectors may have on the Fund and the volatility of the Fund, compared to the market or other same type of funds in general. Risk of Lack of Liquidity Since small- to mid-cap stocks, liquidity of which is generally limited, may be included in the portfolio, a large redemption of shares may Increase the volatility in the Fund’s net asset value per share.. Market Risks The Fund primarily invests in equities and thus is exposed to risks of changes in security prices and macro-economic indicators. In addition, the value of the Fund’s assets may radically change, depending on the condition of issuers of stocks held by the fund, e.g., the status of their sales, finances, and credit. Credit Risks The value of the Fund’s assets may radically change when the condition of counterparties of transactions or issuers of stocks held by the fund, e.g., the status of their sales, finances, and credit, deteriorates and subsequently, it is increasingly likely that credit ratings of the counterparties or the issuers may be downgraded or they may default on their debt. Risks of Taxation Tax authorities divide gains/losses from investments into two categories: gains/losses generated from taxable assets and gains/losses generated from non- taxable assets. Non-taxable gains/losses imply that the tax will not be imposed on gains but, at the same time, losses will not be recognized. As such, even if the outcome of investments as a whole records a loss, the tax may be imposed, if there are gains derived from taxable assets alongside gains obtained from non-taxable assets. * Examples of Taxable Income: Dividends on stocks, profits from overseas investments, gains from foreign exchange, and yields and capital gains from bonds * Examples of Non-Taxable Income: Capital gains/losses from buying/selling stocks listed in the South Korea stock market. Risks Associated with Redemption Redemption of the Fund entails risks associated with the gap between the selected redemption date and the actual date of redemption, during which the value of the Fund’s assets is subject to change. In addition, a redemption fee may be incurred upon redemption, depending on the period the Fund has been held, and the redemption fee belongs to the Fund.

More Related Content

PDF
3. 1) presensation material
bykbasset
 
PDF
Due diligence document
bykbasset
 
PDF
KB Star Funds - Factsheet (20160630)
bykbasset
 
PDF
Marketing materials factsheet
bykbasset
 
PDF
Marketing materials presentation material kb value focus korea equity_20151211
bykbasset
 
PDF
KB Star Funds - Presentation Material (201606)
bykbasset
 
PPTX
3 2) factsheet
bykbasset
 
PDF
I acc eur english 20170405
bykbasset
 
3. 1) presensation material
bykbasset
 
Due diligence document
bykbasset
 
KB Star Funds - Factsheet (20160630)
bykbasset
 
Marketing materials factsheet
bykbasset
 
Marketing materials presentation material kb value focus korea equity_20151211
bykbasset
 
KB Star Funds - Presentation Material (201606)
bykbasset
 
3 2) factsheet
bykbasset
 
I acc eur english 20170405
bykbasset
 

What's hot

PDF
DSP Regular Savings Fund
byDSP Mutual Fund
 
PDF
ICICI Prudential Dividend Yield Equity Fund - One Pager
byiciciprumf
 
PDF
Invest in Edelweiss Balanced Advantage Fund - Sept'21 | Edelweiss MF
byJuneRobert1
 
PDF
Liquid funds importance
byNITIN SAWANT
 
PDF
Hilltop decorrelated fund august 2013 factsheet
byJohn Robertson
 
PDF
Ashburton Investments rmb
bySenate Group Financial Advisors
 
PDF
DSP Value Fund
byDSP Mutual Fund
 
PPT
Investment portfolio presentation
byneelimatadikonda
 
PDF
ETFs vs Index Funds
byQuantum Mutual Fund
 
PDF
Fixed Deposit vs Debt Oriented Hybrid Fund
byGirish Kodashettar
 
PPTX
Anchor presentation
bySenate Group Financial Advisors
 
PDF
Tax savings through ELSS
byAdviseSure.com,Easy and Smarter Wealth Management
 
PDF
DSP Equity & Bond Fund
byDSP Mutual Fund
 
PPTX
SBI Magnum Balanced Fund: An Open-ended Balanced Scheme - Sep 16
bySBI Mutual Fund
 
PPTX
SBI Magnum Balanced Fund: An Open-ended Balanced Scheme - Dec 16
bySBI Mutual Fund
 
PDF
Olympic Wealth Fund, 'Javelin' Fund fact sheet class 'B' February 2015
byOlympic Wealth Fund
 
PDF
Senate presentation june 2015
bySenate Group Financial Advisors
 
PDF
Hilltop decorrelated fund october 2013 factsheet
byJohn Robertson
 
PDF
Kb star funds kiid x usd_draft
bykbasset
 
PPTX
DSP Top 100 Equity Fund
byDSP Mutual Fund
 
DSP Regular Savings Fund
byDSP Mutual Fund
 
ICICI Prudential Dividend Yield Equity Fund - One Pager
byiciciprumf
 
Invest in Edelweiss Balanced Advantage Fund - Sept'21 | Edelweiss MF
byJuneRobert1
 
Liquid funds importance
byNITIN SAWANT
 
Hilltop decorrelated fund august 2013 factsheet
byJohn Robertson
 
Ashburton Investments rmb
bySenate Group Financial Advisors
 
DSP Value Fund
byDSP Mutual Fund
 
Investment portfolio presentation
byneelimatadikonda
 
ETFs vs Index Funds
byQuantum Mutual Fund
 
Fixed Deposit vs Debt Oriented Hybrid Fund
byGirish Kodashettar
 
Anchor presentation
bySenate Group Financial Advisors
 
Tax savings through ELSS
byAdviseSure.com,Easy and Smarter Wealth Management
 
DSP Equity & Bond Fund
byDSP Mutual Fund
 
SBI Magnum Balanced Fund: An Open-ended Balanced Scheme - Sep 16
bySBI Mutual Fund
 
SBI Magnum Balanced Fund: An Open-ended Balanced Scheme - Dec 16
bySBI Mutual Fund
 
Olympic Wealth Fund, 'Javelin' Fund fact sheet class 'B' February 2015
byOlympic Wealth Fund
 
Senate presentation june 2015
bySenate Group Financial Advisors
 
Hilltop decorrelated fund october 2013 factsheet
byJohn Robertson
 
Kb star funds kiid x usd_draft
bykbasset
 
DSP Top 100 Equity Fund
byDSP Mutual Fund
 

Similar to Kb value focus korea equity

PDF
Kb star 2019.03 factsheet
bykbasset
 
PDF
Kb star factsheet apr 2019 201905
bykbasset
 
PDF
DSP Regular Savings Fund Presentation.pdf
byDSP Mutual Fund
 
PDF
Head of Equity and SP Debelov
byAlexey Debelov, CFA
 
PDF
RWC Investment Introduction Presentation
bySprague Kolp
 
PPTX
Pavel Begun presentation 3G Capital
byValueSchool
 
PDF
Jeff Pesta, LUTCF – Proactive Advisor Magazine – Volume 5 Issue 11
byProactive Advisor Magazine
 
PDF
Daniel Namey – Proactive Advisor Magazine – Volume 2, Issue 12
byProactive Advisor Magazine
 
PPTX
IM-01 Introduction.pptx
bymahbubfahad1
 
PPT
Finance Pros: The Insights 1 | BNP Paribas IP: Structured Products
byEkonomikaBeursStappenplan
 
PDF
Kb star value focus 201902 final
bykbasset
 
PDF
Kb star 2019.03 factsheet
bykbasset
 
PDF
Kb star factsheet apr 2019 201905
bykbasset
 
PDF
Valix e lert june 2015 - as of 6-30
by123jumpad
 
PDF
2013 3 q hci_eng_f
byHyundai Finance
 
PDF
Quarterly report for our investors - First Quarter 2018
byBESTINVER
 
PDF
Quarterly report for our investors - Fourth quarter 2019
byBESTINVER
 
PDF
Chuck Bigbie – Proactive Advisor Magazine – Volume 3, Issue 2
byProactive Advisor Magazine
 
PDF
Worth Article 35 - What are the Benefits of Concentrated Portfolios - April a...
byLen Hirsh
 
PDF
Quarterly report for our investors - First Quarter 2019
byBESTINVER
 
Kb star 2019.03 factsheet
bykbasset
 
Kb star factsheet apr 2019 201905
bykbasset
 
DSP Regular Savings Fund Presentation.pdf
byDSP Mutual Fund
 
Head of Equity and SP Debelov
byAlexey Debelov, CFA
 
RWC Investment Introduction Presentation
bySprague Kolp
 
Pavel Begun presentation 3G Capital
byValueSchool
 
Jeff Pesta, LUTCF – Proactive Advisor Magazine – Volume 5 Issue 11
byProactive Advisor Magazine
 
Daniel Namey – Proactive Advisor Magazine – Volume 2, Issue 12
byProactive Advisor Magazine
 
IM-01 Introduction.pptx
bymahbubfahad1
 
Finance Pros: The Insights 1 | BNP Paribas IP: Structured Products
byEkonomikaBeursStappenplan
 
Kb star value focus 201902 final
bykbasset
 
Kb star 2019.03 factsheet
bykbasset
 
Kb star factsheet apr 2019 201905
bykbasset
 
Valix e lert june 2015 - as of 6-30
by123jumpad
 
2013 3 q hci_eng_f
byHyundai Finance
 
Quarterly report for our investors - First Quarter 2018
byBESTINVER
 
Quarterly report for our investors - Fourth quarter 2019
byBESTINVER
 
Chuck Bigbie – Proactive Advisor Magazine – Volume 3, Issue 2
byProactive Advisor Magazine
 
Worth Article 35 - What are the Benefits of Concentrated Portfolios - April a...
byLen Hirsh
 
Quarterly report for our investors - First Quarter 2019
byBESTINVER
 

Recently uploaded

PDF
Pass GitHub Copilot Exam Dumps & Questions 2026
byMinniePfeiffer
 
PDF
Idea To Domain Instantly with UnstoppableBot
byResQ Records | PiKture Time Films and Photography | Horizon Alliance Technologies
 
PDF
From AfroWarriors.NFT to Global Media Empire
byResQ Records | PiKture Time Films and Photography | Horizon Alliance Technologies
 
PPTX
2026-01-04 Hebrews 01 (shared slides).pptx
byDale Wells
 
PPTX
Rethinking Direct Preference Optimization in Diffusion Models
byJyKang6
 
PPTX
2025-12-28 Moses 13 (shared slides).pptx
byDale Wells
 
PPTX
Week-11--Cybersecurity-and-Safe-Internet-Practices--Part-II-07092025-064457pm...
byomamanouman4
 
PPTX
Communication Skills through Pride & Prejudice
byTanveerGulab2
 
PDF
Having coffe with germeny girl by group 2
bykomangdesiani113
 
PPTX
14-Resins-I-Benzoin-Guggul-Ginger o.pptx
byIshikaRajput19
 
PPTX
DSA PRESENTATION .pptx about graph topic
bysattiayila4
 
PPTX
Cognosy 2 roll 29 hryh6rjryj5j7bubd.pptx
byIshikaRajput19
 
PPTX
Bob Stewart Growth 12 28 2025.pptx
byFamilyWorshipCenterD
 
PPTX
Leadership skills through The Road Not Taken
byTanveerGulab2
 
PPTX
Communication Skills as a Soft Skills through Pride and Prejudice
byshabanagulabshaik
 
Pass GitHub Copilot Exam Dumps & Questions 2026
byMinniePfeiffer
 
Idea To Domain Instantly with UnstoppableBot
byResQ Records | PiKture Time Films and Photography | Horizon Alliance Technologies
 
From AfroWarriors.NFT to Global Media Empire
byResQ Records | PiKture Time Films and Photography | Horizon Alliance Technologies
 
2026-01-04 Hebrews 01 (shared slides).pptx
byDale Wells
 
Rethinking Direct Preference Optimization in Diffusion Models
byJyKang6
 
2025-12-28 Moses 13 (shared slides).pptx
byDale Wells
 
Week-11--Cybersecurity-and-Safe-Internet-Practices--Part-II-07092025-064457pm...
byomamanouman4
 
Communication Skills through Pride & Prejudice
byTanveerGulab2
 
Having coffe with germeny girl by group 2
bykomangdesiani113
 
14-Resins-I-Benzoin-Guggul-Ginger o.pptx
byIshikaRajput19
 
DSA PRESENTATION .pptx about graph topic
bysattiayila4
 
Cognosy 2 roll 29 hryh6rjryj5j7bubd.pptx
byIshikaRajput19
 
Bob Stewart Growth 12 28 2025.pptx
byFamilyWorshipCenterD
 
Leadership skills through The Road Not Taken
byTanveerGulab2
 
Communication Skills as a Soft Skills through Pride and Prejudice
byshabanagulabshaik
 

Kb value focus korea equity

  • 1.
  • 2.
    One of theHighest Performing Korea-domiciled Funds The2nd LargestKorea EquityFund - Highest-performing fund among top 10 best selling Korea equity funds - KB Value Focus has never posted negative annual returns - The fund’s rate of return since inception is the 4th highest among 306 funds, meaning the fund ranks the top 1.3% * As of October 28th, 2015 * No. of Korea-domiciled active Korea equity funds: 620 Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. All figures are in USD terms , net of fees, and gross of tax. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. 2 Name Fund Size USD (Jan. 1st 2015 -Sep. 30th 2015) Return (%) Rank 2015 YTD (Sep. 30th) 2014 2013 2012 2011 2010 2015 YTD (Sep. 30th) 2014 2013 2012 2011 2010 S V 2,461,716,898 0.48 2.13 21.34 25.50 -9.38 22.95 23 6 1 2 21 74 KB Value Focus Feeder Equity A 1,423,854,640 1.37 0.37 11.45 20.71 2.21 50.51 19 9 4 10 2 1 M A 1,313,561,681 15.48 10.26 2 2 K 10 1,277,776,920 -6.05 -3.05 21.12 29.98 -0.17 18.75 55 14 1 1 4 94 K G 957,270,652 -11.88 -18.44 -4.19 21.55 -17.50 33.74 91 97 94 6 89 8 K N 942,347,146 4.94 -6.15 2.60 15.97 -10.56 27.61 8 25 49 47 29 32 K M 869,331,108 -0.22 10.38 12.72 44.44 82 18 25 1 S M 717,455,691 1.85 -6.24 15.31 23.93 -11.55 21.99 17 25 2 3 38 80 A K 706,847,197 2.51 2.99 15.92 18.00 -16.14 34.99 15 5 2 31 80 6 K S 686,545,461 -13.10 -18.82 -4.67 20.94 -17.96 33.11 95 98 96 9 92 10
  • 3.
    Same Portfolio ManagerSince Inception Thecurrent CIO of KBAM has beenmanagingthe fundsince2009  1992-1999 Applied Statistics Department of College of Business and Economics of Yonsei University  1998-1999 LNG Carrier Department of Hyundai Merchant Marine  1999-2002 Sector Manager of Equity Management Team of Dongwon Securities  2002-2004 Sector Manager of Investment Adviser Department of Dongwon Investment Management  2004-2006 Sector Manager of Korea Investment Management  2006-2009 Asset Management Department of Korea Investment Value Asset Management  2009-Present CIO/Head of Equity Management Division of KB Asset Management Currently manages KB Value Focus, KB Pension Dividend 40, and KB Small/Mid Cap Equity Fund CIO,WoongpilChoi Educational/Professional Background 3
  • 4.
    Primary Investments Low PER Stockswith a PER Lower than the Company’s Earnings Value Low PBR Stocks with a PBR Lower than the Company’s Assets Value High Dividend New Value Stocks Companies with Stable Growth of Earnings Based on Market Dominance 4 Thisvaluefundprimarilyinvestsin equitieswith… ≥ Dividend Yields Market Interest Rates Shown for illustrative purposes only. They do not constitute investment recommendations.
  • 5.
    5 Focus & Principleof KB Value Focus Undervaluation is not the only focus Earnings value is as much important While maintaining our principle of Buy & Hold We engage in active trading upon significant price changes Turnover Ratio: 2013: 56.06% 2014: 62.38% 2015 (YTD, Sep. 30th): 57.33% Rather than blindly following the benchmark index We primarily invest in stocks with upside potential We do not invest in large cap companies just to follow the benchmark index  Robust Business Model  Expected Structural Growth  Sustainability of Earnings Thefund’sfocus & principle
  • 6.
    Selection of Stocks Re-Rating Ifstocks that generate stable profits based on their franchise value or intrinsic competitive advantage are undervalued compared to the market valuation, the value of the stocks will eventually converge to the market valuation Market Share Predictability of Earnings Sustainability of Earnings Premium If companies that clearly have growth potential, given the expected structural growth and paradigm shift, are undervalued, their structurally stable growth potential will eventually be identified and the stocks will be valued higher than the market valuation Probability of Market Diversification Life Cycle Growth Potential of Flagship Products Focusing on stock selection, not forecasting market outlook - Stocks that have significantly higher intrinsic value - Companies posting stable growth of earnings - Stocks that match these conditions are actively purchased when the prices of the stocks tumble or the stocks are neglected 6
  • 7.
    Following Warren Buffett’sInvestment Philosophy Just likeWarren Buffett’sInvestmentPhilosophy - The rate of Berkshire Hathaway outperforming the S&P 500 had been 78% from 1965 to 2014 - Berkshire Hathaway had recorded negative annual returns only twice for as long as 50 years The NAV growth of Berkshire Hathaway outperformed the S&P 500 by “740,652%” since 1964 0% 100000% 200000% 300000% 400000% 500000% 600000% 700000% 800000% 1964 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014 Berkshire Hathaway NAV per share S&P 500 Source: Berkshire Hathaway’s annual report Shown for illustrative purposes only. 7
  • 8.
    Margin of Safety Wesecurethe marginof safetyto minimizelosseswhilemaximizingreturns “Margin of Safety” The gap between a company’s intrinsic value and the price of stock - Margin of safety is the difference between the intrinsic value of a stock and its market price • The causes are lack of attention or dampened investor sentiment • Margin of safety is achieved when stocks are bought at prices lower than their intrinsic values, thereby securing investment returns • The key is the patience to wait until the prices of stocks reach their intrinsic value The chart is included for illustrative purposes only. Intrinsic Value Stock Price Time Margin of Safety Margin of Safety 8
  • 9.
    This fund hasconsistently outperformed the KOSPI and protected the principal For the last 5 and half a years this fund outperformed benchmark without negative annual return (%) The winning rate of this fund is 100%. And the Fund has never recorded negative annual returns since inception Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. All figures are in USD terms , net of fees, and gross of tax. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. 9 1 0 11 21 2 51 (5) (9) 2 18 (12) 25 (20) (10) 0 10 20 30 40 50 60 2015 YTD 2014 2013 2012 2011 2010 KB Value Focus Feeder Equity A KRX KOSPI Korea PR KRW
  • 10.
    KB Value FocusKOSPI EAA OE Korea Equity Korea Large-Cap .... . Subscription date Evaluation date Nov. 30, 2009 Dec. 31, 2009 Jan. 29, 2010 Sep. 30, 2015 .... . Dec. 31, 2009 Jan. 29, 2010 Sep. 30, 2015 Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. 10 The fund’s investors have benefitted from the principle The charts below show distribution of returns for each subscription date from November 9th, 2009 to September 30th, 2015 - The red parts indicate negative returns
  • 11.
    Distribution of returnsshows KB Value Focus has successfully preserved investors money From Nov. 9th 2009 to Sep. 30th 2015, while other funds recorded a loss of 30% on average while the figure stands at 8.57% for KB Value Focus fund KB Value Focus KOSPI EAA OE Korea Equity Korea Large-Cap 160% ~ 180% 0.12% 140% ~ 160% 0.44% 120% ~ 140% 1.49% 100% ~ 120% 3.94% 80% ~ 100% 5.35% 60% ~ 80% 6.64% 0.04% 40% ~ 60% 14.41% 2.54% 1.73% 2.70% 20% ~ 40% 24.91% 18.15% 13.72% 17.83% 00% ~ 20% 34.12% 48.69% 46.28% 48.49% -20% ~ 00% 8.53% 29.98% 35.94% 29.74% -40% ~ -20% 0.04% 0.64% 2.33% 1.21% + 91.43% 69.38% 61.73% 69.05% - 8.57% 30.62% 38.27% 30.95% Average 34% 8.33% 5.17% 8.00% Max 168% 52.92% 58.14% 60.34% Min -21% -26.57% -28.45% -27.89% Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. 11 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% -50% 0% 50% 100% 150% 200% KB Value Focus KOSPI EAA OE Korea Equity Korea Large-Cap The fund’s investors have benefitted from the principle (cont’d)
  • 12.
    Track Records Performance SinceInception Exceptional Risk Rewards (5YR) Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. 12 138% 23% 26% KB Value Focus Feeder Equity A Korea OE Korea Large-Cap Equity KRX KOSPI Korea PR KRW EAA OE Korea Equity-2.00% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 18.40% 18.50% 18.60% 18.70% 18.80% 18.90% 19.00% 19.10% 19.20% 19.30% Standard Deviation Return KB Value Focus has outperformed the KOSPI by 115%
  • 13.
    13 USD 1.4 Billion USD2.4 Billion 13 % -13 % -11 % Source: Morning Star The performance quoted is past performance and is not a guarantee of future results. No representation is made that any portfolio will or is likely to achieve profits or losses similar to those shown. All performance figures are in USD terms. Figures related to KB Value Focus are net of fees, and gross of tax. Performance from January 2013 to July 2015 AUM Trend Since Inception KB Value Focus outperformed the KOSPI even when there was a large redemption
  • 14.
    Investment Process ofKB Value Focus InvestmentProcess 14 Quantitative Analysis • PER & PBR : 30 % discounted compared to the market • Dividend Yield: Higher than 3% • Other factors: Free Cash Flow, EBITDA, etc. Qualitative Analysis • Business Model Analysis: Market Share, Earnings Visibility, Sustainability of Earnings • Structural Growth: Market diversification and/or expansion, Life cycle • Paradigm Shift: Leader and or pioneer • Companies that can retain earnings are preferred over capital-intensive industry Stock Evaluation • Premium: Stocks that have good reasons to be traded at a higher valuation than the market • Re-rating: Stocks that are undervalued compared to intrinsic values • Discount: Stocks that have good reasons to be cheap Actual Portfolio • Invest mainly in premium and re-rating stocks, occasionally picking discount stocks, if necessary • Decide sector weights, preferring sectors with sustainable and stable earnings • Number of stocks in the actual portfolio ranges from 80 to 100 • Monitor market and credit risk consistently
  • 15.
    What KB ValueFocus looks into In summary,KB ValueFocus Korea Equity Fund… 02 focuses on stock selection rather than indices or economic outlook •The fund invests in stocks that are undervalued relative to their intrinsic values, including values of an enterprise, assets, and earnings •It also invests in stocks that are expected to see a stable growth in earnings while being less affected by external changes such as economic fluctuations •Such is a new type of value investment strategy, which has evolved from a traditional value strategy 01 invests in stocksthat are undervalued relatively to intrinsic values and that are expected to see a stable growth •The fund does not forecast the market or make sector bets •It focuses on stock selection whereas portfolio composition and sector weights are results of stock selection. 15
  • 16.
    Portfolio of KBValue Focus Portfolio (AsofJuly31st ,2015) Weight by KOSPI & KOSDAQ Sector Weight Weight by Market Weight Top 10 Holding Sector Market KB Value Focus Difference IT 21.75 22.69 0.94 Materials 9.69 15.67 5.98 Consumer Discretionary 15.07 15.36 0.29 Financials 12.98 11.69 -1.29 Consumer Staples 13.98 11.34 -2.64 Industrials 9.65 9.34 -0.31 Telecommunications 2.71 2.58 -0.13 Energy 1.78 2.06 0.28 Utilities 4.14 1.87 -2.27 Others 8.25 1.71 -6.54 Stock Sector Market KB Value Focus Difference Dongwon Industries Consumber Staples 0.1 3.81 3.71 SK Hynix IT 2.19 3.81 1.62 Hyundai Livart Industrials 0.09 3.71 3.62 Hansol Chemical Materials 0.08 3.53 3.45 Com2us IT - 3.48 3.48 Muhak Consumber Discretionary 0.12 3.39 3.27 Korea Zinc Materials 0.75 3.36 2.61 Golfzon IT - 3.34 3.34 Koeran Re Financials 0.14 2.83 2.69 NAVER IT 1.4 2.76 1.36 Weight(%) KOSPI KOSDAQ Large Cap 25.19 - Middle Cap 39.74 10.41 Small Cap 15.37 9.29 Total 80.30 19.70 Source: KB Asset Management Shown for illustrative purposes only. The inclusion of the securities mentioned above is not to be interpreted as recommendations to buy or sell and is subject to change without notice. 16 KOSPI, 80.30% KOSDAQ, 19.70%
  • 17.
    Summary of KBValue Focus Summary 17 KB Value Focus Portfolio Manager Woong-pil Choi ISIN / Bloomberg Ticker KR5223174917 / 3174917 KS Equity Inception date November 9, 2009 NAV (USD) * As of September 30th, 2015 * Source: Korea Financial Investment Association 1,423,854,640 BM KOSPI No. of Holdings * As of September 30th, 2015 * Source: KB Asset Management 89 Beta (3yr) 0.55 Sharpe 1.53 Tracking Error (%) 8.23 Average Market Cap (USD) * As of July 31st, 2015 * Source: Morning Star 1,310 Million Turnover Ratio (%) * (Buy + Sell)/(2*NAV) 2013: 56.06% 2014: 62.38% 2015 (YTD, Sep. 30th): 57.33% Portfolio PE * As of July 31st, 2015 * Source: Morning Star 12.21 Portfolio PB * As of July 31st, 2015 * Source: Morning Star 1.39
  • 18.
    Disclaimer 18 Risks and Disclaimers General TheFund is intended for long-term Investors who can accept the significant risks associated with investing in illiquid securities. An investment in the Fund involves various risk factors, including the possibility of partial or total loss of the Fund capital, and prospective Investors should not subscribe unless they can readily bear the consequences of such loss. There can be no assurance that the Fund will achieve its Investment Objective or Portfolio Target Return, or that there will be any return on capital. In particular, potential investors should take into account the fact that the actual return achieved may be more or less in any particular year, and that different returns may be achieved by different Investments, according to their different cost bases, and that different Fund Investor Vehicles may have different returns. Projections The opinions stated in this presentation include some forecasted views. We believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee that any forecasts or opinions will be realized. Portfolio No representation is being made that any portfolio will or is likely to achieve profits or losses similar to those shown. Portfolio holdings are subject to change at any time without notice . Risks Involving Investment Strategy Opinions, estimates, forecasts, projections and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. There can be no guarantee they will be met. Risks Associated with Performance The performance quoted is past performance and is not a guarantee of future results. All figures are in USD terms, net of fees, and gross of tax. The impact of the initial charge can be material on the performance of your investment. Performance figures including the initial charge are available upon request. The Fund is subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Current performance may be higher or lower than the performance data shown. For performance current to the most recent month-end, please send an email to the following address: kbgm@kbfg.com Currency Risks Changes in the rates of exchange may affect the value of investments. The Fund can invest in overseas securities which may also generate profits overseas and pay dividends in foreign currencies, which means the fund is exposed to changes in currency rates. Impact of Compensation The Fund takes its charges from the Fund. The impact of Fund charges may be material on the value of any income you receive from your investment. There is potential for future capital erosion if insufficient income is generated by the Fund to cover these charges. Please see the prospectus for additional information on the fees and expenses. Tax Risks Tax treatment will depend on the individual circumstances of clients and may be subject to change in the future. The rate and amount of tax would vary depending on the mix and type of investments made by the Fund. Investors should consult their tax advisers regarding such tax consequences as well as any taxes to which they may be subject in their own jurisdiction. Limitations of Target Returns An investor should not expect to achieve actual returns similar to the target return shown herein. The target return is the manager’s goal based on various manager assumptions, calculations of available data, past and current market conditions, and available investment opportunities, each of which are subject to change. Because of the inherent limitations of the target return, potential investors should not rely on it when making a decision on whether or not to invest in this Fund.
  • 19.
    Risks and Disclaimers(cont’d) ※ This presentation is written with investment risks involving the parent fund taken into account. ※ Risks are not limited to the risks listed in this presentation. There can be various types of unexpected risks. 19 Risk of Concentrated Investment in Equities The Fund primarily invests in equities and equity related securities and thus changes in stock prices may adversely affect the value of the Fund. A fall in prices of the equities held by the Fund may result in a decline in the value of the Fund. If the Fund’s investment portfolio falls in value, investors’ investment in the Fund may suffer losses. Risk of Concentrated Investment in Selective Sectors The Fund may selectively invest in stocks in a limited number of sectors while remaining in the accordance with applicable statutes. The lack of diversification may increase the impact that a small number of stocks or sectors may have on the Fund and the volatility of the Fund, compared to the market or other same type of funds in general. Risk of Lack of Liquidity Since small- to mid-cap stocks, liquidity of which is generally limited, may be included in the portfolio, a large redemption of shares may Increase the volatility in the Fund’s net asset value per share.. Market Risks The Fund primarily invests in equities and thus is exposed to risks of changes in security prices and macro-economic indicators. In addition, the value of the Fund’s assets may radically change, depending on the condition of issuers of stocks held by the fund, e.g., the status of their sales, finances, and credit. Credit Risks The value of the Fund’s assets may radically change when the condition of counterparties of transactions or issuers of stocks held by the fund, e.g., the status of their sales, finances, and credit, deteriorates and subsequently, it is increasingly likely that credit ratings of the counterparties or the issuers may be downgraded or they may default on their debt. Risks of Taxation Tax authorities divide gains/losses from investments into two categories: gains/losses generated from taxable assets and gains/losses generated from non- taxable assets. Non-taxable gains/losses imply that the tax will not be imposed on gains but, at the same time, losses will not be recognized. As such, even if the outcome of investments as a whole records a loss, the tax may be imposed, if there are gains derived from taxable assets alongside gains obtained from non-taxable assets. * Examples of Taxable Income: Dividends on stocks, profits from overseas investments, gains from foreign exchange, and yields and capital gains from bonds * Examples of Non-Taxable Income: Capital gains/losses from buying/selling stocks listed in the South Korea stock market. Risks Associated with Redemption Redemption of the Fund entails risks associated with the gap between the selected redemption date and the actual date of redemption, during which the value of the Fund’s assets is subject to change. In addition, a redemption fee may be incurred upon redemption, depending on the period the Fund has been held, and the redemption fee belongs to the Fund.