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JDCAX

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Forty Fund

High-Conviction Large-Cap Growth Equities
NAV As of 12/14/18 $32.70

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Fund Facts

Details Performance (As of 12/14/18) Morningstar (As of 11/30/18)
05/01/97 Inception Date
$12.02B Total Net Assets (As of 11/30/18)
GROSS 1.06%
NET 1.05%
Annual Expense Ratio
(As of fiscal year end 09/30/17)
-1.98% 1 Day Return
3.61% YTD Return @NAV
-2.36% YTD Return @MOP
Category
Large Growth
bronze Analyst Rating
LARGE VALUE
LARGE BLEND
LARGE GROWTH
MID VALUE
MID BLEND
MID GROWTH
SMALL VALUE
SMALL BLEND
SMALL GROWTH
Equity Style Box *
Important Morningstar Information

Overview

Client Commitment

Concentrated large-cap growth fund, leveraging our three decades of experience in high-conviction investing. By investing in our best wide-moat ideas, the Fund seeks to add excess returns over the long term. Given its concentrated nature, the Fund may exhibit moderately higher volatility than its benchmark.

Why Invest in the Portfolio

    High-Conviction Approach

  1. Fundamental research-driven approach, investing with conviction in 30 to 40 of our best large-cap growth ideas where we believe we have a differentiated view from the market.
  2. Innovative Wide-Moat Companies

  3. Seeks companies with sustainable competitive advantages that capitalize on their competitive moat to grow market share globally over a multi-year period. Emphasizes dominant companies driving innovation and change through disruptive technologies, products or business models.
  4. Stock Selection Drives Return

  5. Stock picker’s fund designed to deliver long-term growth of capital with a high-conviction approach. Seeks to use risk wisely, leveraging our best ideas in a concentrated portfolio to drive potential outperformance of the index over time.

High-Conviction Active Approach Delivered Solid Returns Over the Long Term

Forty Fund (Class I Shares) vs. Morningstar Large Growth Peers as of 9/30/18

Past performance is no guarantee of future results.

Featured Insights

Performance

RETURNS

(As of 09/30/2018)
(As of 11/30/2018)
Inception: May 01, 1997 3M YTD 1YR 3YR 5YR 10YR Since Inception
Class A Shares @NAV 7.16% 18.57% 23.77% 18.92% 16.00% 12.61% 11.62%
Class A Shares @MOP 1.00% 11.73% 16.63% 16.59% 14.64% 11.94% 11.43%
Russell 1000® Growth Index 9.17% 17.09% 26.30% 20.55% 16.58% 14.31% 8.18%
S&P 500® Index 7.71% 10.56% 17.91% 17.31% 13.95% 11.97% 8.25%
Inception: May 01, 1997 3M YTD 1YR 3YR 5YR 10YR Since Inception
Class A Shares @NAV -7.78% 8.87% 8.61% 12.20% 12.48% 15.30% 11.08%
Class A Shares @MOP -13.08% 2.60% 2.36% 10.00% 11.16% 14.62% 10.89%
Russell 1000® Growth Index -7.46% 7.75% 8.59% 13.97% 13.04% 16.54% 7.70%
S&P 500® Index -4.40% 5.11% 6.27% 12.16% 11.12% 14.32% 7.93%
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold.
Maximum Offering Price (MOP) returns include the maximum sales charge of 5.75%. Net Asset Value (NAV) returns exclude this charge, which would have reduced returns.
View Fees and Expenses
Performance for Class A Shares that includes periods prior to 7/6/09 reflects the performance of one or more share classes of the Fund or a predecessor fund, adjusted, where applicable and permitted, for differing fees and expenses. See the Fund’s prospectus for further details concerning historical performance.

MORNINGSTAR PERCENTILE

(As of 09/30/2018)
(As of 11/30/2018)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 47 39 25 49 4
Large Growth Category
Rank/Count
690/1475 528/1404 316/1354 606/1166 19/632
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 37 43 26 45 5
Large Growth Category
Rank/Count
546/1451 581/1387 310/1336 527/1144 21/622

CALENDAR YEAR PERFORMANCE

GROWTH OF A $10,000 HYPOTHETICAL INVESTMENT

Source: Morningstar, Inc.
This graph compares fund performance to that of the fund’s Morningstar category average and benchmark(s).

RETURNS-BASED STATISTICS

(As of 11/30/18 CLASS I SHARES)

RISK / REWARD
VS. RUSSELL 1000® GROWTH INDEX

3 YEAR 5 YEAR
Information Ratio -0.38 -0.05
Alpha -1.78 -0.85
Tracking Error 3.67 3.82
Beta 1.05 1.06
R-Squared (%) 91.05 90.97

UP AND DOWN MARKET CAPTURE (%)
VS. RUSSELL 1000® GROWTH INDEX

3 YEAR 5 YEAR
Up Capture Ratio 98.19 102.51
Down Capture Ratio 109.51 106.61

STANDARD DEVIATION

3 YEAR 5 YEAR
Forty Fund 12.12 12.47
Russell 1000® Growth Index 11.02 11.18

SHARPE RATIO

3 YEAR 5 YEAR
Forty Fund 0.96 0.98
Russell 1000® Growth Index 1.18 1.12

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 09/30/17)

CLASS A SHARES
Management Fees 0.53%
12b-1 Fees 0.25%
Other Expenses 0.28%
Total Gross Expenses 1.06%
Waivers -0.01%
Total Net Expenses 1.05%
Information Regarding Sales Charge Reductions and Waivers
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 2/1/19.

Characteristics

Index represents the Russell 1000® Growth Index.

TOP HOLDINGS

(As of 11/30/2018)

% of Fund
Alphabet Inc 6.84
Microsoft Corp 6.36
Mastercard Inc 6.06
Amazon.com Inc 5.04
salesforce.com Inc 4.70
TOTAL 29.00

PORTFOLIO CHARACTERISTICS

(As of 11/30/18)

FUND INDEX
Number of Holdings
Equity Issues
40
544
Market Capitalization
Weighted Average
$258.23B
$272.42B
Portfolio Turnover Rate
(1-year trailing)
42.68%
-
Price/Earnings Ratio
(1-year forward)
27.29
22.47
Price/Book Ratio
(1-year forward)
8.61
8.25
Earnings Growth Rate
(1-year forward)
27.10%
23.50%

DEVELOPED VS. EMERGING MARKET

(As of 11/30/18)

% OF FUND % OF INDEX
U.S. 93.00 99.46
Non-U.S. Developed 2.54 0.50
Non-U.S. Emerging 1.78 0.04
Cash & Equivalents 2.68 -

SECTOR ALLOCATION

(As of 11/30/18)

% OF FUND % OF INDEX
Information Technology 33.20 31.56
Health Care 18.24 14.35
Consumer Discretionary 11.19 15.08
Communication Services 10.33 11.59
Financials 8.15 4.45
Industrials 8.00 12.09
Materials 5.07 1.82
Real Estate 3.14 2.25
Cash & Equivalents 2.68 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 11/30/2018)

% OF FUND % OF INDEX
Over $100B 53.00 52.01
$50B to $100B 24.96 14.88
$10B to $50B 18.71 26.13
$5B to $10B 0.65 5.45

REGIONAL ALLOCATION

(As of 11/30/18)

% OF FUND % OF INDEX
North America 93.00 99.46
Europe 2.54 0.44
Asia/Pacific Ex Japan 1.13 0.08
Latin America 0.65 0.02
Cash & Equivalents 2.68 -

Commentary & Literature

3Q18 Portfolio Commentary Highlights

  • U.S. stocks delivered strong gains during the period.
  • The portfolio underperformed its benchmark.
  • We like how our portfolio is positioned, and believe many of our holdings underpin the most powerful secular growth themes in today’s economy.

Read The Full Commentary