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JCAPX

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Forty Fund

High-Conviction Large-Cap Growth Equities

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.

Active Approach has Delivered Solid Returns

Forty Fund (Class I Shares) vs. Morningstar Large Growth Peers as of 6/30/19
chart: Forty Fund (Class I Shares) vs. Morningstar Large Growth Peers as of 6/30/19

Past performance is no guarantee of future results.

Performance

RETURNS

(As of 09/30/2019)
(As of 09/30/2019)
Inception: May 01, 1997 3M YTD 1YR 3YR 5YR 10YR Since Inception
Forty Fund – I Shares 2.68% 26.56% 8.06% 18.00% 15.32% 13.44% 11.44%
Russell 1000® Growth Index 1.49% 23.30% 3.71% 16.89% 13.39% 14.94% 7.98%
S&P 500® Index 1.70% 20.55% 4.25% 13.39% 10.84% 13.24% 8.06%
Inception: May 01, 1997 3M YTD 1YR 3YR 5YR 10YR Since Inception
Forty Fund – I Shares 2.68% 26.56% 8.06% 18.00% 15.32% 13.44% 11.44%
Russell 1000® Growth Index 1.49% 23.30% 3.71% 16.89% 13.39% 14.94% 7.98%
S&P 500® Index 1.70% 20.55% 4.25% 13.39% 10.84% 13.24% 8.06%
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 I 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.

CALENDAR YEAR PERFORMANCE

RETURNS-BASED STATISTICS

(As of 08/31/19 CLASS I SHARES)

RISK / REWARD
VS. RUSSELL 1000® GROWTH INDEX

3 YEAR 5 YEAR
Information Ratio 0.43 0.62
Alpha 2.11 2.02
Tracking Error 3.11 3.40
Beta 0.94 0.99
R-Squared (%) 94.54 93.44

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

3 YEAR 5 YEAR
Up Capture Ratio 96.38 103.87
Down Capture Ratio 83.10 91.69

STANDARD DEVIATION

3 YEAR 5 YEAR
Forty Fund 12.84 13.28
Russell 1000® Growth Index 13.28 12.92

SHARPE RATIO

3 YEAR 5 YEAR
Forty Fund 1.32 1.07
Russell 1000® Growth Index 1.17 0.94

ANNUAL FEES & EXPENSES

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

CLASS I SHARES
Management Fees 0.64%
12b-1 Fees -
Other Expenses 0.08%
Total Gross Expenses 0.72%
Waivers 0.00%
Total Net Expenses 0.72%
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 08/31/2019)

% of Fund
Microsoft Corp 7.63
Mastercard Inc 5.96
Alphabet Inc 5.32
salesforce.com Inc 4.41
Amazon.com Inc 3.97
TOTAL 27.29

PORTFOLIO CHARACTERISTICS

(As of 08/31/19)

FUND INDEX
Number of Holdings
Equity Issues
39
526
Market Capitalization
Weighted Average
$298.38B
$321.77B
Portfolio Turnover Rate
(1-year trailing)
41.79%
-
Price/Earnings Ratio
(1-year forward)
36.56
28.79
Price/Book Ratio
(1-year forward)
9.51
9.33
Earnings Growth Rate
(1-year forward)
10.82%
9.35%

DEVELOPED VS. EMERGING MARKET

(As of 08/31/19)

% OF FUND % OF INDEX
U.S. 92.63 99.63
Non-U.S. Emerging 3.18 0.16
Non-U.S. Developed 2.11 0.21
Cash & Equivalents 2.08 -

SECTOR ALLOCATION

(As of 08/31/19)

% OF FUND % OF INDEX
Information Technology 35.05 37.36
Communication Services 13.46 11.49
Health Care 12.78 14.41
Consumer Discretionary 10.31 14.48
Industrials 9.00 9.77
Financials 8.00 3.21
Materials 5.92 1.45
Real Estate 3.40 2.62
Cash & Equivalents 2.08 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 08/31/2019)

% OF FUND % OF INDEX
Over $100B 59.40 58.22
$50B to $100B 22.88 13.53
$10B to $50B 14.22 22.44
$5B to $10B 1.42 5.14

REGIONAL ALLOCATION

(As of 08/31/19)

% OF FUND % OF INDEX
North America 92.64 99.63
Europe 2.11 0.11
Latin America 1.66 0.01
Asia/Pacific Ex Japan 1.51 0.25
Cash & Equivalents 2.08 -

Commentary & Literature

2Q19 Portfolio Commentary Highlights

  • Stocks gained ground in the second quarter, but were volatile.
  • The Fund outperformed its benchmark.
  • Going forward, we like how our portfolio is positioned for the current market backdrop. We believe there is less economic sensitivity in our portfolio than the broader index.

Read The Full Commentary