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(KOR) KIM Korea Equity ETF

Overview

How KOR Works

The AdvisorShares KIM Korea Equity ETF (NYSE Arca: KOR) seeks to provide long-term capital appreciation above the capital appreciation of its primary benchmark, the MSCI Korea Index, and other Korea-focused indexes. KOR is managed by Korea Investment Management (KIM) Co., Ltd. (“Portfolio Manager.”) The Portfolio Manager seeks to achieve its investment objective by investing primarily in growth-oriented stocks of mid- to large capitalization range listed on the Korea Exchange. The Portfolio Manager manages the KOR portfolio by buying and holding stocks of companies with attractive valuations that it believes have growth potential especially in those industries with a differentiated and sustainable growth engine, utilizing a “bottom up” analysis by focusing on corporate fundamental research such as a company’s annual sales growth with sustained profit margins, and annual earnings per share growth.

In addition to individual stock selection that mainly determines sector allocation of the portfolio, the Portfolio Manager seeks investment ideas from a “top down” analysis of the macro economy and its effect on corporate competitiveness and industry cycles. The Portfolio Manager strives to invest with large economic cycles as compared to short-term market trends and short-term supply and demand dynamics.

Fund Documents

Portfolio Manager Commentaries

KOR in the News

09/30/2016 -

Chen, Max. "AdvisorShares Rolls Out an Active South Korea Growth ETF" http://www.etftrends.com/2016/09/advisorshares-rolls-out-an-active-south...

Performance -Month-End

KOR Performance History (%) as of 3/31/2017
 NAVMarket Price ReturnMSCI Korea Index
1 Month4.505.735.25
3 Months13.7814.1016.85
YTD13.7814.1016.85
Since Inception
(09/28/2016)
5.015.409.74

Performance -Quarter-End

KOR Performance History (%) as of 3/31/2017
 NAVMarket Price ReturnMSCI Korea Index
1 Month4.505.735.25
3 Months13.7814.1016.85
YTD13.7814.1016.85
Since Inception
(09/28/2016)
5.015.409.74

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized.

The MSCI Korea Index is designed to measure the performance of the large and mid cap segments of the South Korean market. With 107 constituents, the index covers about 85% of the Korean equity universe.

Fund Distributions

Ex-DateRecord DatePay DateCash DivST Cap GainLT Cap GainReturn of CapitalTotal Distribution
12-22-17
12-27-17
12-29-17
-----
12-23-16
12-28-16
12-30-16
$0.1147$0.00$0.00$0.00$0.1147/per share
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Why Invest in KOR?

  • Outperformance of Korean Growth Stocks - The growth in consumer goods manufacturing and service sectors is outpacing that of industrial manufacturing, which the Portfolio Manager feels is the key reason that growth style stocks in Korea have outperformed among emerging markets.
  • Evolution of Korea’s Industrial Structure - Korea’s market cap breakdown is similar to that of DMs, having relatively high service weightings as in G7 countries. Given the likelihood of economic stimulus efforts driven by policy makers in major countries, Korea is certainly positioned to benefit from the effects as they will be more apparent in consumer goods and services with milder oversupply problems compared to industrial-related manufacturing.
  • Consumer Staples: A New Driving Engine - The Korean consumer sector, including household goods and food & beverage, continue to generate stable earnings regardless of macro conditions backed by aggressive expansion on networks across Asia aimed at regional diversification. With continuous product development to enter new categories while enhancing the quality and brand value of existing products, Korean consumer staples should be able to generate better sale and profits than traditional exporters.
  • Consumer Spending in China: “New China Play” - Since 2012, the weighting of tertiary industry to GDP in China exceeded secondary industries, and the gap has widened rapidly. Also, China’s cosmetic & household goods market overtook Japan as the second-largest market in the world in 2011. Given that, Korean cosmetics are well positioned to benefit from the potential growth of the Chinese cosmetic market backed by product differentiation and positioning including Korean wave.

Where can KOR Fit in a Traditional Portfolio?

KOR offers access to a fast growing economy that is the gateway to the trend of growing consumerism and opportunities in EM including China. Korea’s unique status as both a developed market and emerging market make it an ideal exposure to compliment an allocation to foreign equities.

5 Key Attributes

  1. Benchmark Differentiation - KOR’s portfolio management team has the flexibility to deviate from its MSCI Korea benchmark to invest in companies and industries with favorable prospects while avoiding those with negative outlooks.
  2. Actively Managed Access To Attractive GDP Growth -Korea maintains an attractive growth rate and KOR offers the only actively managed access in the ETF market.
  3. Korea’s Global Growth Leadership - The Korean Market has been driven by leading growth industries of each business cycle.
  4. Extensive Analyst Team & Research Capabilities - The Portfolio Manager has more than 30 investment professionals purely dedicated to manage Korea equities, doing more than 4,000 company visits and publishing over 1,600 research reports in a year.
  5. Long term Investment Approach -The Portfolio Manager’s investment objective is to select a focused portfolio comprised of those companies with structural growth based on both earnings growth and attractive valuations.

About the Portfolio Managers

Mr. Young-seok Lee, Division Head and Portfolio Manager
Mr. Lee’s primary responsibilities are portfolio management and equity research. He has over eighteen years of experience in portfolio management and equity research. He has served as a portfolio manager at the Sub-Advisor since 1996. He earned a B.A. in Law from Seoul National University, where he graduated with honors.

Mr. Sang-min Lee, Team Head and Portfolio Manager
Mr. Lee has over fifteen years of experience in portfolio management and equity research. His fifteen-year career in the investment industry includes a position as portfolio manager and analyst for the Korea Investment Group. Mr. Lee has been working with the Sub-Advisor since 2007, initially as equity analyst at Korea Investment Securities Co., Ltd., a parent company of the Sub-Advisor, specializing in asset management, sales and investment research. He earned a B.A. in Economics from Seoul National University, where he graduated with honors.

Mr. Jun-il Han, Member and Portfolio Manager
Mr. Han joined the Sub-Advisor in 2012. He is primarily responsible for the implementation and development of investment strategies for the Sub-Advisor. Mr. Han’s primary responsibilities are portfolio management and equity research. Prior to joining the Sub-Advisor, he worked as a buy-side equity analyst at Consus Asset Management for 6 years. He earned a M.A. in Finance from City University of London and a B.A. in International business from Kyunghee University.

Mr. Hyo-Chan Kim, Member and Portfolio Manager
Mr. Kim has been a member and portfolio manager of the Sub-Advisor since 2013. He is primarily responsible for quant screening, including searching for companies with competitive advantages, structural turnaround in supply and demand, stable revenue growth due to strength of their business model, the ability to continuously generate free cash flow, and long-term growth potential. He earned a B.A. in Business from Korea University, where he graduated with honors.

Ms. Hyun-mi Kim, Member and Portfolio Manager
Ms. Kim has been a member and portfolio manager of the Sub-Advisor since 2007. She is primarily responsible for portfolio model screening, especially small-mid caps for the Sub-Advisor. Prior to joining the Sub-Advisor, she worked as a sell-side equity analyst at Daewoo Securities and Hyundai Securities for 4 years. She earned a B.A. in International Business from Ewha Womans University, where she graduated with honors.

Mr. Tae-hoon Kim, Member and Portfolio Manager
Mr. Kim joined the Sub-Advisor in 2011. Mr. Kim’s primary responsibilities are portfolio management and market research, including overseas markets. He earned a B.A. in Economics from University of Michigan, where he graduated with honors.

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Manager Minutes, December 2016

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Price History

As of: 04/25/2017
NAV$26.60Closing Price$26.89
Change$0.42Change$0.89
Shares Outstanding350,000Volume300
4PM Bid/Offer Midpoint$27.02Premium/Discount$0.42
Assets Under Management$9,311,682.86
Premium/Discount Historical Data

 

Holdings

As of: 04/25/2017
Ticker Name Weight
5930 SAMSUNG ELECTRONICS CO LTD 19.13%
35420 NAVER CORP 4.08%
105560 KB FINANCIAL GROUP INC 3.32%
97950 CJ CHEILJEDANG CORP 3.26%
5490 POSCO 2.67%
214320 INNOCEAN WORLDWIDE INC 2.56%
10950 S-OIL CORP 2.49%
9540 HYUNDAI HEAVY INDUSTRIES 2.36%
11170 LOTTE CHEMICAL CORP 2.04%
34730 SK HOLDINGS CO LTD 2.03%
20000 HANDSOME CO LTD 2.01%
17670 SK TELECOM CO LTD 1.84%
180640 HANJIN KAL CORP 1.83%
100 YUHAN CORP 1.78%
5380 HYUNDAI MOTOR CO 1.78%

Shares are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined), and do not represent the return you would receive if you traded at other times. Holdings and allocations are subject to risks and to change.

Fund Basics

  • Symbol

    KOR

  • Exchange

    NYSE Arca

  • Inception Date

    09.28.2016

  • CUSIP

    00768Y578

  • Indicative Value

    KOR.IV

  • Options

    No

Fees & Expenses

  • Management Fee

    0.84%

  • Other Expenses

    0.55%

  • Gross Expense Ratio

    1.39%

  • Fee Waiver and/or Expense Reimbursement

    0.40%

  • Net Expense Ratio

    0.99%*

  • *The Advisor has contractually agreed to keep net expenses from exceeding 0.99% of the Fund’s average daily net assets until at least a year from the date of the Prospectus and for an indefinite period thereafter subject to annual reapproval of the agreement by the Board of Trustees.