AXS Multi-Strategy Alternatives Fund
Class I: KCMIX Class R1: KCMTX
LIPPER FUND AWARD
Best Alternative Global Macro Fund
Fund awarded for Best Alternative Global Macro Fund over five years in 2018 and 2019 (out of 208 eligible share classes as of 11/30/17 and 198 eligible share classes as of 11/30/18)
Offers a core alternative investment in an actively managed mutual fund with the ability to invest globally in a wide variety of asset classes and strategies.
In the Morningstar long-short equity category, KCMIX and KCMTX received an overall rating of 4 stars and 3 stars, respectively, based on risk-adjusted returns as of 12/31/2020. Both received a 3-year rating of 3 stars out of 188 funds, 5-year rating of 4 stars out of 148 funds and 10-year rating of 4 stars out of 49 funds.
As of Sep 30, 2020.
Opportunity set includes equity, fixed income, commodities, REITs, currencies, alternatives, bonds, ETFs, options, futures and swaps.
Dynamic allocation allows for rotation into more attractive sectors and strategies as market conditions change.
Seeks to generate returns that are less correlated to the overall direction of markets in an effort to mitigate downside.
Inception Date: 3/20/2017
Distribution Frequency: Annual
Management Fees: 1.00%
Total Operating Expense: 1.39%
Net Expense*: 1.39%
Inception Date: 8/4/2008
Distribution Frequency: Annual
Management Fees: 1.00%
Total Operating Expense: 1.64%
Net Expense*: 1.64%
*The Institutional share class does not contain a 12b-1 fee, whereas R1 (for retail investors) does. The expense ratio will drop accordingly as AUM increases. Please see the prospectus for more information. The Fund’s investment advisor has contractually agreed to waive its fees and/or pay for operating expenses of the Fund to ensure that the Fund’s total annual operating expenses do not exceed on an annual basis: 1.51% Class I, and 1.68% Class R1 of the Fund’s average daily net assets through at least October 19, 2021.
There is no assurance that the Fund will achieve its investment objective.
The Fund may invest in small, less well-known companies, which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuations and political uncertainty; and derivative securities, which may carry market, credit and liquidity risks. The Fund may also engage in short selling activities, which are more risky than long positions because the potential loss on a short sale is unlimited. The Fund may use leveraging and/or hedging techniques that could fail if changes in the value of the derivative do not correlate with the securities being hedged. These risks may result in greater share price volatility.
Risks of futures contracts may arise from an imperfect correlation between movements in the price of the instruments and the price of the underlying securities. The Fund’s use of futures contracts exposes the Fund to leverage risk because of small margin requirements relative to futures contract value. Swap transactions may alter the Fund’s exposure to long-term or short-term interest rates, foreign currency values, corporate borrowing rates, or other factors such as security prices or inflation rates and also may alter the Fund’s volatility. Selling covered calls limits the upside potential of the underlying security. Selling put options may require the Fund to purchase the underlying securities during periods of declining prices. Premiums paid to purchase options lose value over time and may be lost entirely, if the option expires before it is feasible to be exercised. The protection from selling puts is limited to the strike price minus the premium paid. Investing in REITs involves risks similar to those associated with investing in small capitalization companies. Generally, fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall. Exposure to the commodities markets (including financial futures markets) may subject the Fund to greater volatility.
The Morningstar Rating™ 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. Morningstar Rating is for the I share classes; other classes may have different performance characteristics.
Carbon Metrics as of Sep 30, 2020. Based on 80% of AUM. Data is based on long positions only.
Morningstar carbon metrics are asset-weighted portfolio calculations based on Sustainalytics company carbon-risk research. Based on two of these metrics — Carbon Risk Score and Fossil Fuel Involvement % — funds may receive the Low Carbon designation, which allows investors to easily identify low-carbon funds within the global universe.
To receive the Low Carbon designation, a fund must have a 12-month average Portfolio Carbon Risk Score below 10 and a 12-month average Fossil Fuel Involvement % of less than 7% of assets. For these metrics to be calculated, at least 67% of a portfolio’s assets must be covered by Sustainalytics company carbon-risk research. All Morningstar carbon metrics are calculated quarterly.
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Lipper, Inc: The Best Alternative Global Macro Fund award is granted to the fund in the Alternative Global Macro category with the highest Lipper Leader score for Consistent Return over the 5-year period as of 11/30 of the prior year. Lipper awards are granted annually to the funds in each Lipper classification that achieve the highest score for Consistent Return, a measure of funds’ historical risk-adjusted returns, relative to peers. Lipper Awards from Refinitiv, © 2020 Refinitiv. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited. Lipper, a wholly owned subsidiary of Refinitiv, is a leading global provider of mutual fund information and analysis to fund companies, financial intermediaries and media organizations.