1. Key Information | March 2017
INTERNAL USE ONLY
Key Information | March 2017
KB Star Funds-KB Value Focus Korea Equity Fund
Share Class: X ACC USD (ISIN/BB ticker: LU /KBVKXAU LX)
Fund Summary
The fund is managed with the identical investment strategy and the PM as Korea-domiciled KB Value Focus Fund
The fund replicates the Kor. KBVF for about 80%
Investment Philosophy of the Fund
CF) Kor.-domiciled KBVF
The second best-selling Korea Equity Fund
Has outperformed KOSPI by 92.11% since inception on Nov. 9th, 2009
Track record of 7.4 years
Recorded annualised return of 12.21% since inception (KOSPI 4.8%)
Identical manager since inception
Focusing mainly on value stocks, emphasizing earing value as well
While maintaining a long-term perspective, engaging in active trading upon significant price changes
Investing in stocks with upside potential rather than blindly following the benchmark index
Focusing on stock selection, not on forecasting market outlook
Source: Morningstar, Data as at Mar. 2017
Monthly Fund Commentary
The Fund recorded a 2.23 % return for the month, underperforming the KOSPI by approximately 2.2%. Underweighting Samsung Electronics was the main reason for the underperformance. It rose 74% since the beginning of 2016 and the market cap has exceeded 300 tr. won. The reasons why the electronics giant has reached its highest ever were : (1) improved earnings forecasts risen 52% since the beginning of (2) upgraded shareholder return policies including share buybacks and dividends expansion, and (3) enhanced corporate governance, which can account for 20% of the price rise.
Meanwhile, Com2uS, the Top 1 holding rose 10% in March and 40% YTD due to the increased market's confidence in the long-term success of its main steady-seller game. We believe it is still undervalued considering its net cash of KRW 600 bil., and the current earnings can be maintained in the future.
After the financial crisis, South Korean economy has faced multiple challenges such as declining industrial competitiveness except for IT, shrinking working age population and deepening structural low-growth trap.
Growth of the companies itself is important for investors but how to distribute the fruits of the growth is also important. Samsung Electronics' 20% rise in corporate value was possible by creating shareholder value through distribution.
We will actively seek out companies that are highly capable of improving corporate governance and raising shareholder value and increase their stock holdings.
Fund Performance
(%)
Source: Morningstar, Data as at Mar 1M 2M 3M 6M
YTD
Since
Inception
Aug. 10, 2016
Feb. 2017
Fund
2.23
9.24
12.20
-2.01
0.17
-3.80
KOSPI
4.43
8.57
15.13
4.10
13.18
4.53
Diff.
-2.20
0.67
-2.94
-6.12
-13.01
-2.79
Key Facts
Equity accumulation was above 80% on Nov. 11th 2016 and intended management of the fund began on Jan. 2017
The fund had to hold the subscription monies only in cash until Aug due to specific request from the investors. The investment strategy aims to fully invest at all times, and equity weight is generally about 90%
The fund’s performance has rebounded after Feb. 2017

2. Key Information | February 2017
INTERNAL USE ONLY
Key Information | February 2017
KB Star Funds-KB Value Focus Korea Equity Fund
Share Class: X ACC USD (ISIN/BB ticker: LU /KBVKXAU LX)
Fund Portfolio
<Breakdown by Cap Size>
<Top 10 Holdings>
Weight (%)
KOSPI
KOSDAQ
Total
Large Cap
30.89
Middle Cap
36.53
10.62
47.16
Small Cap
12.31
9.64
21.95
79.73
20.27
100.00
Stock
Weight (%)
Com2uS Corp
7.05
Hansol Chemical Co Ltd
5.79
Fila Korea Ltd
4.38
Korea Electric Power Corp.
3.82
SK Telecom Co Ltd
3.62
Korea Zinc
3.61
Woongjin Thinkbig Co Ltd
2.73
Korea Real Estate Investment & Trust
2.49
YG-1 Co Ltd
2.27
Dongbu Hitek
2.01
Source: KB StarM, Data as at Feb
<Breakdown by Sector>
GICS Sector
Fund(%)
Market (%)
Diff. (%)
Materials
22.36
9.98
12.38
Consumer Discretionary
16.44
13.96
2.49
Industrials
16.17
13.93
2.25
Information Technology
12.22
29.42
-17.20
Cash
11.83
0.00
Financials
7.15
12.61
-5.46
Utilities
3.90
2.77
1.13
Telecommunication Services
3.69
2.47
1.22
Consumer Staples
9.03
-5.34
Real Estate
2.54
0.17
2.37
Energy
-2.37
Health Care
3.29
-3.29
Source: Statpro, Data as at Feb
Source: KB StarM, Data as at Feb
Fund Bottom-up Performance Attribution
<Attribution Decomposition>
<Stock Picking Effect Decomposition>
(%)
(%)
Stock Exclusion Effect
Underweight Stock Effect
Overweight Stock Effect
Stock Addition Effect
Source: Statpro, Calculation Period: Aug 10, 2016 to March 31, 2017
Fund Contribution by Sector
(%)
Source: Statpro, Calculation Period: Aug 10, 2016 to March 31, 2017

3. Key Information | February 2017
INTERNAL USE ONLY
Key Information | February 2017
KB Star Funds-KB Value Focus Korea Equity Fund
Share Class: X ACC USD (ISIN/BB ticker: LU /KBVKXAU LX)
Fund Bottom-up Performance Attribution
Source: Statpro, Calculation Period: Aug 10, 2016 to Feb 28, 2017 All contributions calculated based on holdings basis
Important Information
※ Prior to investing in the Fund, an investor should read and understand the prospectus in full. The past performance of the collective investment scheme does not guarantee a return on investment for the future. Changes in the rates of exchange between currencies may cause the value of investment to fluctuate or result in loss of principal. There is a risk of loss of the invested principal in the collective investment scheme depending upon the result of its management and that such loss shall be imputed to investors. The portfolio information is shown for illustrative purposes only. The inclusion of the securities mentioned above is not to be interpreted as solicitations or recommendations to buy or sell. It is subject to be changed without notice.