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JDCRX

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Forty Fund

High-Conviction Large-Cap Growth Equities
NAV As of 02/20/19 $29.53

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Fund Facts

Details Performance (As of 02/20/19) Morningstar (As of 01/31/19)
05/01/97 Inception Date
$11.95B Total Net Assets (As of 01/31/19)
GROSS 1.40%
NET 1.40%
Annual Expense Ratio
(As of fiscal year end 09/30/18)
0.07% 1 Day Return
12.80% YTD Return
Category
Large Growth
ic_star ic_star ic_star ic_star
1252 Funds Rated
Overall Rating
(Based on risk-adjusted returns)
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 12/31/18

Past performance is no guarantee of future results.

Featured Insights

Performance

RETURNS

(As of 12/31/2018)
(As of 01/31/2019)
Inception: May 01, 1997 3M YTD 1YR 3YR 5YR 10YR Since Inception
Forty Fund – R Shares -14.75% 0.80% 0.80% 9.68% 9.73% 13.64% 10.40%
Russell 1000® Growth Index -15.89% -1.51% -1.51% 11.15% 10.40% 15.29% 7.22%
S&P 500® Index -13.52% -4.38% -4.38% 9.26% 8.49% 13.12% 7.42%
Inception: May 01, 1997 3M YTD 1YR 3YR 5YR 10YR Since Inception
Forty Fund – R Shares 2.91% 9.09% 1.34% 16.14% 12.52% 14.84% 10.80%
Russell 1000® Growth Index 0.68% 8.99% 0.24% 16.60% 12.97% 16.86% 7.62%
S&P 500® Index 0.26% 8.01% -2.31% 14.02% 10.96% 15.00% 7.77%
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.
View Fees and Expenses
Performance for Class R 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 12/31/2018)
(As of 01/31/2019)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 21 40 28 53 7
Large Growth Category
Rank/Count
321/1440 534/1371 337/1322 636/1131 33/621
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 26 31 23 61 7
Large Growth Category
Rank/Count
407/1439 430/1376 271/1325 738/1132 34/622

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 01/31/19 CLASS I SHARES)

RISK / REWARD
VS. RUSSELL 1000® GROWTH INDEX

3 YEAR 5 YEAR
Information Ratio 0.10 0.08
Alpha 0.82 0.03
Tracking Error 3.50 3.85
Beta 0.97 1.03
R-Squared (%) 92.43 91.65

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

3 YEAR 5 YEAR
Up Capture Ratio 98.62 102.06
Down Capture Ratio 93.75 101.27

STANDARD DEVIATION

3 YEAR 5 YEAR
Forty Fund 12.63 13.28
Russell 1000® Growth Index 12.52 12.37

SHARPE RATIO

3 YEAR 5 YEAR
Forty Fund 1.26 0.95
Russell 1000® Growth Index 1.24 1.00

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 09/30/18)

CLASS R SHARES
Management Fees 0.64%
12b-1 Fees 0.50%
Other Expenses 0.26%
Total Gross Expenses 1.40%
Waivers 0.00%
Total Net Expenses 1.40%
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 2/1/20.

Characteristics

Index represents the Russell 1000® Growth Index.

TOP HOLDINGS

(As of 01/31/2019)

% of Fund
Alphabet Inc 7.16
Microsoft Corp 6.51
Mastercard Inc 5.91
salesforce.com Inc 5.03
Amazon.com Inc 4.97
TOTAL 29.58

PORTFOLIO CHARACTERISTICS

(As of 01/31/19)

FUND INDEX
Number of Holdings
Equity Issues
39
545
Market Capitalization
Weighted Average
$269.79B
$265.52B
Portfolio Turnover Rate
(1-year trailing)
43.08%
-
Price/Earnings Ratio
(1-year forward)
26.98
24.47
Price/Book Ratio
(1-year forward)
13.09
8.26
Earnings Growth Rate
(1-year forward)
16.66%
15.30%

DEVELOPED VS. EMERGING MARKET

(As of 01/31/19)

% OF FUND % OF INDEX
U.S. 95.06 99.45
Non-U.S. Developed 1.88 0.51
Non-U.S. Emerging 0.59 0.04
Cash & Equivalents 2.47 -

SECTOR ALLOCATION

(As of 01/31/19)

% OF FUND % OF INDEX
Information Technology 31.52 31.16
Health Care 18.00 14.07
Communication Services 11.80 12.45
Consumer Discretionary 10.72 15.27
Financials 8.51 4.40
Industrials 8.43 12.03
Materials 5.23 1.81
Real Estate 3.32 2.33
Cash & Equivalents 2.47 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 01/31/2019)

% OF FUND % OF INDEX
Over $100B 55.23 50.02
$50B to $100B 21.66 16.12
$10B to $50B 19.96 26.67
$5B to $10B 0.68 5.80

REGIONAL ALLOCATION

(As of 01/31/19)

% OF FUND % OF INDEX
North America 95.06 99.45
Europe 1.88 0.43
Latin America 0.59 0.02
Cash & Equivalents 2.47 -

Commentary & Literature

4Q18 Portfolio Commentary Highlights

  • Fears of slowing global economic growth, rising trade tensions between the U.S. and China, and continued increases in the fed funds rate drove stocks lower in the fourth quarter.
  • The Fund outperformed its primary benchmark.
  • We’ve used recent volatility as a buying opportunity, and selectively added to position sizes of several secular growth companies.

Read The Full Commentary