Terms and Conditions

To Customers of Gavekal Capital, LLC

An investor cannot invest directly in an index.  The Index performance does not represent the performance of any investment product offered by Gavekal Capital, LLC. The performance of client accounts may vary from the Index performance. Index returns shown are not reflective of actual investor performance nor do they reflect fees and expenses applicable to investing. The Index data is the property of Gavekal Capital, LLC, which has contracted with SolactiveAG to calculate and maintain the indexes.

The launch date of the Gavekal Knowledge Leaders Developed World Index (Bloomberg ticker KNLGX is 7/1/14 and the base date of the index calculation is 3/31/2000. The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Such historical results are not based on an Index that was maintained in real time. To obtain additional index methodology and constituent components, please click here: KNLGX index.

The launch date of the Gavekal Knowledge Leaders Emerging Markets Index (Bloomberg ticker KNLGEX) is 9/2/14 and the base date of the index calculation is 4/1/2005. The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Such historical results are not based on an Index that was maintained in real time. To obtain additional index methodology and constituent components, please click here: KNLGEX index.

The launch date of the Gavekal Knowledge Leaders International Index (Bloomberg ticker KNLGINX) is 8/15/16 and the base date of the index calculation is 3/31/2000. The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Such historical results are not based on an Index that was maintained in real time. To obtain additional index methodology and constituent components, please click here: KNLGINX index.

The launch date of the Gavekal Knowledge Leaders United States Index (Bloomberg ticker KNLGUSX) is 8/15/16 and the base date of the index calculation is 3/31/2000. The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Such historical results are not based on an Index that was maintained in real time. To obtain additional index methodology and constituent components, please click here: KNLGUSX index.

The launch date of the Gavekal Knowledge Leaders Developed World ADR Index (Bloomberg ticker KNLGAX) is 9/13/16 and the base date of the index calculation is 3/31/2000. The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Such historical results are not based on an Index that was maintained in real time. To obtain additional index methodology and constituent components, please click here: KNLGAX index.

The launch date of the Gavekal Knowledge Leaders International ADR Index (Bloomberg ticker KNLGINAX) is 8/30/16 and the base date of the index calculation is 3/31/2000. The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Such historical results are not based on an Index that was maintained in real time. To obtain additional index methodology and constituent components, please click here: KNLGINAX index.

Definitions

Active Share is the percentage of stock holdings in a portfolio that differ from the benchmark index. Active Share determines the extent of active management being employed by mutual fund managers: the higher the Active Share, the more likely a fund is to outperform the benchmark index. Researchers in a 2006 Yale School of Management study determined that funds with a higher Active Share will tend to be more consistent in generating high returns against the benchmark indexes.

Alpha is a measure of the portfolio’s risk adjusted performance. When compared to the portfolio’s beta, a positive alpha indicates better-than-expected portfolio performance and a negative alpha worse-than-expected portfolio performance.

The Barclays US Treasury Bond Index is a market capitalization weighted index that is often used to represent investment grade bonds being traded in the United States.

Beta is a measure of the funds sensitivity to market movements. A portfolio with a beta greater than 1 is more volatile than the market and a portfolio with a beta less than 1 is less volatile than the market.

Capital expenditures (or CapEx) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life that extends beyond the taxable year. CapEx/Sales Ratio Formula: {Net property, plant and equipment (Ending) – Net property, plant and equipment (Beginning) + Net intangible assets (Ending) – Net intangible assets (Beginning) + Depreciation and amortization for the Year} ÷ Total sales revenue for the year.

Correlation is the extent to which the returns of different types of investments move in tandem with one another in response to changing economic and market conditions. Correlation is measured on a scale of -1 (negatively correlated) to +1 (completely correlated). Low correlation or negative correlation to traditional stocks and bonds may help reduce risk in a portfolio and provide downside protection.

Downside Capture is used to evaluate how well or poorly an investment manager performed relative to an index during periods when the index has dropped.

Gross profit margin is gross income as a percent of sales.

Max Drawdown is the maximum single period loss incurred over the interval being measured.

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.

The MSCI All Country World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance in 46 developed and emerging markets.

Net profit margin is net income as a percent of sales.

Sharpe Ratio uses a fund’s standard deviation and its excess return (the difference between the fund’s return and the risk‐free return of 90‐day Treasury Bills) to determine reward per unit of risk.

Standard deviation is a calculation used to measure variability of a portfolio’s performance.

Tracking Error is a measure of how closely a portfolio follows the index to which it is benchmarked.

Treynor Ratio is a risk-adjusted measure of return based on systematic risk. It is similar to the Sharpe ratio, with the difference being that the Treynor ratio uses beta as the measurement of volatility.

Upside Capture is used to evaluate how well an investment manager performed relative to an index during periods when that index has risen.

An investor cannot invest directly in an index.

Disclaimer

Investment Information
The information on this section of the website (hereinafter referred to as the “Website”) does not constitute an offer or solicitation.

Gavekal Funds and Gavekal Capital (herein referred to as “Gavekal”) reserves the right to deny you access to the Website, or immediately suspend or terminate your access to the Website. Gavekal reserves the right to change, modify, add or remove portions of these terms at any time for any reason. We suggest that you review these terms periodically for changes. Such changes shall be effective immediately upon posting.

Limitation of Liability and Indemnity
Gavekal does not warrant the accuracy, adequacy or completeness of the information and data contained herein and expressly disclaims liability for errors or omissions in this information and data. No warranty of any kind, implied, expressed or statutory, is given in conjunction with the information and data. Gavekal accepts no liability for any loss or damage arising out of the use or misuse of or reliance on the information provided including, without limitation, any loss of profits or any other damage, direct or consequential.

You agree to indemnify and hold harmless Gavekal and our affiliates, partners and employees of Gavekal and their affiliates from and against any and all liabilities, claims, damages, losses or expenses, including legal fees and expenses, (together, “Losses”) arising out of your access to or use of this website, save to the extent that such Losses may not be excluded pursuant to relevant law or regulation.

Opinions contained in this website may be changed after issue at any time without notice. The information contained herein is provided for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the securities or products mentioned. The investments and strategies discussed in the Website may not be suitable for all investors and are not obligations of Gavekal or its affiliates or guaranteed by Gavekal or its affiliates. Gavekal makes no representations that the contents are appropriate for use in all locations, or that the transactions, securities, products, instruments, or services discussed on this site are available or appropriate for sale or use in all jurisdictions or countries, or by all investors or counterparties. By making available information on the Website, Gavekal does not represent that any investment vehicle is available or suitable for any particular user. All persons and entities accessing the Website do so on their own initiative and are responsible for compliance with applicable local laws and regulations.

Gavekal Capital is an investment adviser registered with the Securities and Exchange Commission, and only transacts business in those states where it has filed proper notice if required.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Privacy Policy

Please review our Privacy Policy, which is a part of this Agreement and hereby incorporated by reference, to learn about our information collection practices and the measures we take to preserve the privacy and security of your information. 

 Website Use

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Gavekal may establish links between this Website and one or more websites operated by third parties. Gavekal has no control over any such other websites, the contents therein or the products/services offered. The existence of any such links shall not constitute an endorsement of, or representation or warranty by Gavekal regarding such websites, the contents of the websites, the produces or services of the websites or the operators of the websites.