7
Morningstar FundInvestor
April 2
014
Morningstar Analyst Rating
03-28-14
„
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
§
Positive
Positive
Positive
Neutral
Negative
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
25.31
25.15
20.52
18.78
17.68
16.13
9.97
14.00
16.00
14.96
15.83
16.28
Total Return %
0.64
27.01
10.57
7.41
11.84
62.76
-23.48
3.46
16.13
-1.83
9.96
31.79
+/-S&P 500
-1.17
-5.38
-5.43
5.30
-3.22
36.30
13.52
-2.03
0.34
-6.74
-0.92
3.11
+/-Russ 1000
-1.41
-6.10
-5.85
5.91
-4.26
34.33
14.12
-2.31
0.67
-8.10
-1.44
1.90
Income Return %
0.00
0.68
0.87
0.67
0.65
0.51
1.11
1.45
1.43
1.39
0.18
0.53
Capital Return %
0.64
26.33
9.70
6.74
11.19
62.25
-24.59
2.01
14.70
-3.22
9.78
31.26
Total Rtn % Rank Cat
88
85
90
6
73
1
2
35
75
98
97
57
Income $
0.00
0.14
0.16
0.12
0.10
0.05
0.16
0.23
0.21
0.22
0.03
0.07
Capital Gains $
0.00
0.77
0.08
0.09
0.26
0.05
0.57
2.34
1.16
0.36
2.04
0.10
Expense Ratio %
.
1.25
1.26
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.25
1.26
Income Ratio %
.
0.62
0.90
0.89
0.93
0.79
1.31
1.23
1.40
1.30
0.16
0.51
Turnover Rate %
.
17
3
2
6
8
67
30
31
6
. .
Net Assets $mil
8,414
8,627
6,599
4,424
1,984
666
65
67
91
85
98
127
Performance
03-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-5.72 36.91 16.94 7.82 62.76
4.96 -9.27 10.29 6.50 11.84
5.60 2.41
-8.68 8.76
7.41
6.76 -0.27
4.12 -0.27 10.57
12.09 4.04
1.84 6.95 27.01
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
1000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
0.64 -1.17
-1.41
88 10,064
7.63 -4.88
-4.85
97 10,763
14.04 -7.82
-8.37
95 11,404
12.86 -1.80
-1.89
60 14,375
23.99 2.83
2.26
6 29,304
10.68 3.26
2.88
1 27,586
10.49 6.03
5.55
1 44,652
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.25
48
0.54
45
23.43
5
0.45
44
9.42
1
1.14
84
Potential Capital Gain Exposure: 23% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
14.04
3 Yr
12.86
Avg
Low
5 Yr
23.99
High
Avg
10 Yr
10.68
High
Avg
Incept
9.83
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Large Core TR
Alpha
3.0
0.7
Beta
0.66
0.71
R-Squared
82
88
Standard Deviation
9.03
Mean
12.86
Sharpe Ratio
1.38
Morningstar’s Take
by Kevin McDevitt, CFA 03-28-14
Yacktman Focused is poised to do what it does best.
This recently closed fund has had its first sizable
outflows in more than 10 years, but those who left may
eventually look back with regret. The nearly $190
million in combined January and February outflows
didn’t have much impact on the fund given its 21%
cash stake and $11.6 billion in assets. If anything, the
outflows eased pressure on an asset base that has
exploded over the past five years. Rapid growth led
management to close the fund to new investors at
year-end 2013. The move was made in part to preserve
the flexibility to buy mid-cap stocks, but such flexibility
is already limited. This fund and similar sibling
Yacktman YACKX together have $25 billion in assets,
which would make the combined fund the third largest
actively managed large-blend offering.
Those who have bolted may be reacting to the
fund’s post-2011 underperformance, but this is partly
to be expected. The fund lagged the S&P 500 index by
more than 5 percentage points in both 2012 and 2013
and is off to a slow start in 2014. But early profit-taking
is an occupational hazard for this value-oriented team.
They did much the same during the late 1990s bubble
and again during the mid-2000s bull market, which led
to similarly poor relative results. Then as now, cash
was often greater than 20%, which can be a major
drag during rallies.
But that cushion, along with a conservative
portfolio, leaves the fund well prepared for the next
bear market. Believing that record-high corporate
margins will eventually revert to the historical mean,
the team has gradually trimmed cyclical stocks since
the bull market began five years ago. In March 2009,
cheap cyclicals were 58% of the equity portfolio, and
they powered the fund’s fantastic showing that year
as the market rebounded. But cyclicals were cut to
just 19% of the equity portfolio by year-end 2013. The
team has recently added to slow-growth technology
and consumer staples names such as Pepsi PEP.
The fund’s caution can hold it back late in rallies,
but has also led to superb results over full market
cycles. It’s prepared to excel once again.
Address:
800 Connecticut Avenue
Norwalk, CT 06854
800-835-3879
Web Address:
Inception:
05-01-97
Advisor:
Yacktman Asset Management, L.P.
Subadvisor:
Yacktman Asset Management, L.P.
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$2500
Add: $100 IRA: $500
Min Auto Inv Plan:
$500
Add: $100
Sales Fees:
No-load, 2.00%R
Management Fee:
1.00%, 0.03%A
Actual Fees:
Mgt:1.00% Dist:
.
Expense Projections:
3Yr:$397
5Yr:$686 10Yr:$1511
Income Distribution:
Annually
Data through March 31, 2014
Yacktman Focused Svc
Ticker
Status Yield Total Assets
Mstar Category
YAFFX Limited 0.5% $11,676 mil
Large Blend
77% 88% 90% 86% 88% 86% 85% 79%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 03-14
Historical Profile
Return
Risk
Rating
High
Average
Highest
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
15.0
20.0
25.0
32.0
Portfolio Analysis
12-31-13
Share change since 09-13 Total Stocks:37 Sector
PE Tot Ret% % Assets
PepsiCo Inc
Cnsmr Def 18.5 -3.46 9.62
Procter & Gamble Co
Cnsmr Def 21.1 -2.64 7.26
Twenty-First Century Fox
Cnsmr Cyc 14.0 -8.74 6.95
Coca-Cola Co
Cnsmr Def 20.1 -7.53 6.72
Cisco Systems Inc
Technology 14.4 -2.05 4.69
Microsoft Corporation
Technology 14.2 3.15 4.14
Sysco Corporation
Cnsmr Def 21.7 -0.22 3.90
Oracle Corporation
Technology 16.7 2.54 3.60
C.R. Bard, Inc.
Hlth care 17.3 10.64 3.37
Stryker Corporation
Hlth care 31.0 8.83 3.21
Johnson & Johnson
Hlth care 20.4 7.97 2.92
Exxon Mobil Corporation
Energy
13.1 -4.25 2.46
Viacom, Inc. Class B
Cnsmr Cyc 17.0 0.45 2.20
Clorox Company
Cnsmr Def 20.5 -4.36 2.07
eBay Inc
Cnsmr Cyc 27.0 7.12 1.47
U.S. Bancorp
Finan Svs 13.7 1.83 1.36
CH Robinson Worldwide, I
Industrl
14.3 -11.12 1.27
WellPoint Inc
Hlth care 11.5 8.22 1.24
ConocoPhillips
Energy
10.3 -4.90 1.18
Avon Products Inc
Cnsmr Def
.
-9.81 1.04
Current Investment Style
Market Cap %
Giant
69.4
Large
17.8
Mid
12.0
Small
0.8
Micro
0.0
Avg $mil:
80,243
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
16.73
3.13
1.74
12.19
2.39
1.16
1.53
1.38
1.72
1.10
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.72
8.52
4.46
4.29
9.94
1.03
1.60
1.53
0.63
0.55
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
23.11
9.08
14.91
1.20
1.18
1.17
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 19.31 0.67
BasicMat 0.94 0.31 1 1
CnsmrCyc13.38 1.56 23 13
FinanSvs 4.99 0.32 6 3
Real Est 0.00 0.00
. .
Sensitive 25.33 0.58
CommSrvs 1.21 0.30 2 1
Energy 4.59 0.43 5 3
Industrl
2.11 0.19 2 1
Technlgy 17.42 0.99 18 14
Defensive55.36 2.01
CnsmrDef40.18 3.30 43 36
Hlthcare 15.18 1.28 19 14
Utilities 0.00 0.00
. .
h
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p
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Composition - Net
(% of Stock)
Cash 20.5
Stocks 79.4
Bonds 0.0
Other
0.1
Foreign 0.7
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2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted to be accurate, correct, complete or
timely. Pastperformance is no guarantee of future results.Accessupdated reportsat
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