Disclaimer
Confidential and Proprietary
Any use of this material without specific permission from Topor & Co. Korea is strictly prohibited
Disclaimers – This document has been prepared by Topor & Co. Korea (TCK). TCK is registered and regulated with the Financial Supervisory Commission in Korea. All perspectives and investment themes are confidential and proprietary to TCK. This material is for your information only and is not intended to be used by anyone other than you. TCK clients must be “professional investors” as defined by Korean regulation. Performance might exclude costs arising from fees, currency hedging, transaction costs, taxes or others which may vary depending on individual client circumstances, fee schedules or other reasons. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested and additionally, it shall not be guaranteed by depositor protection act. Unless specified differently, all performance numbers, graphs and visuals are based on models, back-tests, or simulations. Actual performance will be specified as such. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of higher volatility investment and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time. Investing entails risk and you should consult to make sure you understand these risks. This material is intended to provide general information and to facilitate a general discussion with TCK. This is not an offer or solicitation with respect to the purchase or sale of any specific security or investment. Investment mandates are subject to the specific investment agreement with the client. Information contained herein is believed to be reliable, but no warranty is given as to its completeness or accuracy and views and opinions, while given in good faith, are subject to change without notice. Opinions expressed are current as of the date appearing in this material only. Any specific mentioning of proposed fee schedule or specific terms are valid for 30 days. No part of this material may be i) copied, photocopied, or duplicated in any form, by any means, or ii) redistributed without the prior written consent of TCK. TCK may record telephone conversations and monitor emails between TCK and you (and any of your authorized, connected, or affiliated persons) for the purpose of evidencing your instructions, monitoring quality of service, compliance, security, TCK's internal records or other. The executives and staff members of TCK may invest in the collective investment vehicles to which TCK provides investment advisory, and the conflicts of interests may occur. The executives and staff members who invest in such collective investment vehicles may decide his or her investment and redemption amounts based on his or her own judgment and will be exposed to performances of the investment vehicles. However, in the process of such investments, those executives and staff members would be subject to and restricted by applicable domestic laws and regulations as well as TCK’s internal regulations in relation to trading of financial investment products for executives and staff members of financial institutions and conflicts of interests.
Performance Back-Test is designed to illustrate the long-term performance of TCK’s portfolios. For the period between 1990 and 2012, each portfolio allocates to asset class indexes (total return based) according to TCK’s strategic allocation weights and assumes yearly rebalancing at the beginning of each year (fixed weights intra-year). For this period, the indicated returns gross of TCK’s fees, fund or ETF ongoing charges and performance fees (where applicable) as well as other costs that an investor would normally incur in practice. For the period after 2012, TCK’s live Model Portfolios were applied.
Model Portfolios are theoretical portfolios used for performance measurement, that serve as allocation and performance targets for actual client accounts. Model Portfolios weights and changes are wholly maintained by TCK and based on TCK’s proprietary investment decision process. Model Portfolios assume fixed weights and immediate reinvestment of all income gross of withholding tax. For the period since inception up to August 2019, changes are assumed to take place only at the close on the last trading day of a month and assume no changes intra-month. For the period thereafter from September 2019, changes are assumed to take place on the day of approval by TCK’s internal Investment Committee for such changes, including intra-month.
Each client account is managed with a view to replicate the performance of its corresponding Model Portfolio. Model Portfolios allocated to ETFs, other funds, and securities, and indicated returns are already net of fund or ETF ongoing charges and performance fees (where applicable) but excluding other costs that an investor would normally incur in practice such as trading costs of ETFs (bid/ask spreads, trading commissions, etc.), withholding tax or other fund costs (upfront fees, dilution levies, etc.). Model Portfolio returns are gross of our fees or custody fees.
The performance of a client account may differ from that of the relevant Model Portfolio, due to a variety of elements such as: natural drifting of allocations from target weights, our fees, custody costs, trading costs, different timing of trades compared to the Model Portfolio methodology, withholding tax on distributions, different pricing methodology from custodian banks, etc. Each client account is traded with a view to replicate the performance of its relevant Model Portfolio, but any rebalancing trade takes into account a variety of elements besides the composition of the Model Portfolio, such as cost of trading, market conditions, ETFs’ corporate actions, and other factors.