23
Morningstar FundInvestor
April 2
014
Morningstar Analyst Rating
03-11-14
´
Morningstar Pillars
Process
Performance
People
Parent
Price
Positive
Positive
Positive
Positive
Positive
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
35.00
33.77
26.38
22.54
23.34
20.48
15.15
25.87
27.05
23.38
22.90
20.01
Total Return %
3.64
37.31
19.46
-2.00
15.96
37.15
-39.76
0.75
19.75
6.30
15.36
30.00
+/-S&P 500
1.83
4.92
3.46
-4.11
0.90
10.69
-2.76
-4.74
3.96
1.39
4.48
1.32
+/-Russ 1000 Vl
0.62
4.78
1.95
-2.39
0.45
17.46
-2.91
0.92
-2.50
-0.75
-1.13
-0.03
Income Return %
0.00
1.55
1.95
1.37
1.95
1.98
1.01
1.66
1.15
1.09
0.90
1.29
Capital Return %
3.64
35.76
17.51
-3.37
14.01
35.17
-40.77
-0.91
18.60
5.21
14.46
28.71
Total Rtn % Rank Cat
8
8
6
58
20
7
72
58
29
41
21
33
Income $
0.00
0.41
0.44
0.32
0.40
0.30
0.26
0.45
0.27
0.25
0.18
0.20
Capital Gains $
0.00
1.95
0.10
0.00
0.00
0.00
0.16
0.92
0.68
0.72
0.00
0.01
Expense Ratio %
.
0.84
0.85
0.85
0.85
0.89
0.89
0.84
0.87
0.90
0.93
0.97
Income Ratio %
.
1.31
1.67
1.49
2.06
1.72
1.60
1.69
1.27
1.14
1.10
1.06
Turnover Rate %
.
44
56
53
30
20
20
19
10
19
. .
Net Assets $mil
18,523
17,815
13,319
11,297
11,471
8,458
5,094
6,611
5,293
3,279
2,463
1,480
Performance
03-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-11.55 24.18 19.29 4.68 37.15
6.20 -11.49 10.49 11.66 15.96
6.98 -1.28 -17.48 12.45 -2.00
12.33 -4.27
8.13 2.73 19.46
12.96 4.16
5.54 10.57 37.31
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500 1000 Vl
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
3.64 1.83
0.62
8 10,364
14.59 2.08
1.26
5 11,459
25.98 4.12
4.41
6 12,598
15.91 1.25
1.11
4 15,573
24.54 3.38
2.79
3 29,960
8.80 1.38
1.22
7 23,243
7.97 3.51
1.63
11 31,590
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
14.67
7
1.07
73
23.46
4
0.87
72
7.90
5
0.82
48
Potential Capital Gain Exposure: 32% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
25.98
3 Yr
15.91
High
+Avg
5 Yr
24.54
High
+Avg
10 Yr
8.80
High
+Avg
Incept
11.54
Other Measures
Standard Index
Best Fit Index
S&P 500
Russ 1000 Vl
Alpha
-0.3
0.2
Beta
1.12
1.06
R-Squared
96
98
Standard Deviation
14.15
Mean
15.91
Sharpe Ratio
1.11
Morningstar’s Take
by Katie Rushkewicz Reichart, CFA 03-11-14
T. Rowe Price Value has demonstrated its edge.
When Mark Finn took over this fund in early 2010,
caution was in order given it was his first time
managing money. True, he had been at T. Rowe in
various roles for 20 years, most recently as an analyst.
He also had access to T. Rowe’s broader analyst team
and benefited from a lengthy transition period with the
outgoing manager. However, it was hard to give the
fund a strong endorsement out of the gate given his
lack of management experience.
Finn has settled in nicely during the past four years,
skillfully executing his relative-value process and
producing peer- and benchmark-beating results. His
willingness to add to out-of-favor stocks facing
controversy, as he did with JPMorgan JPM during the
London Whale trading scandal, has paid off (he
trimmed the position in 2013). Out-of-benchmark picks,
including Moody’s MCO (since sold), have worked out
well. He’s also done a good job picking out the winners
in industries undergoing structural changes, working
closely with T. Rowe’s analysts on such picks as
Micron Technology MU.
Finn made a good call in underweighting the energy
sector, based on his concerns that an oversupply of oil
would drive down prices. However, the fund’s success
is not predicated on top-down calls. Indeed,
Morningstar attribution indicates stock-picking has
been particularly strong within the sector as Finn has
bet on refiners such as Phillips 66 PSX and Valero
VLO.
The fund has landed in the category’s top decile on
Finn’s watch. Granted, he hasn’t yet been tested in a
prolonged market downturn (the fund did slightly
worse than average in 2011’s downdraft resulting
from a few struggling stock picks). Even so, in typical
T. Rowe fashion, the fund is broadly diversified across
sectors and names, with an above-average health-care
stake providing ballast. The fund’s reasonable
expenses also give it an enduring edge. On these
merits, the fund now earns a Morningstar Analyst
Rating of Bronze.
Address:
100 East Pratt Street
Baltimore, MD 21202
800-638-5660
Web Address:
Inception:
09-30-94
Advisor:
T. Rowe Price Associates, Inc.
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$2500
Add: $100 IRA: $1000
Min Auto Inv Plan:
$2500
Add: $100
Sales Fees:
No-load
Management Fee:
0.35%, 0.15%A
Actual Fees:
Mgt:0.65% Dist:
.
Expense Projections:
3Yr:$271
5Yr:$471 10Yr:$1049
Income Distribution:
Annually
Data through March 31, 2014
T. Rowe Price Value
Ticker
Status Yield Total Assets
Mstar Category
TRVLX Open
1.1% $18,930 mil
Large Value
95% 92% 94% 94% 97% 96% 98% 98%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 03-14
Historical Profile
Return
Risk
Rating
High
Above Avg
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
14.0
18.0
22.0
26.8
Portfolio Analysis
12-31-13
Share change since 09-13 Total Stocks:119 Sector
PE Tot Ret% % Assets
Pfizer Inc
Hlth care 21.4 5.68 3.53
JPMorgan Chase & Co
Finan Svs 13.1 -2.19 3.05
Merck & Co Inc
Hlth care 38.6 13.87 2.68
Phillips 66
Energy
13.0 0.41 2.28
Procter & Gamble Co
Cnsmr Def 21.1 -2.64 2.22
Thermo Fisher Scientific
Hlth care 35.6 11.85 2.22
Johnson & Johnson
Hlth care 20.4 7.97 2.12
General Electric Co
Industrl
17.3 -8.35 2.03
MetLife Inc
Finan Svs 17.4 -5.52 1.94
U.S. Bancorp
Finan Svs 13.7 1.83 1.81
Boeing Co
Industrl
21.1 -5.01 1.77
Weyerhaeuser Co
Basic Mat 30.9 -6.34 1.72
Valero Energy Corporatio
Energy
9.7 -4.31 1.72
Honeywell International,
Industrl
19.2 3.85 1.71
Citigroup Inc
Finan Svs 11.8 -6.66 1.58
International Paper Co.
Cnsmr Cyc 19.1 0.43 1.58
American Airlines Group
Industrl
.
46.26 1.55
NRG Energy Inc
Utilities
.
11.14 1.53
United Technologies Corp
Industrl
18.8 3.35 1.49
AES Corp
Utilities
36.0 -5.58 1.46
Current Investment Style
Market Cap %
Giant
37.2
Large
43.6
Mid
19.0
Small
0.2
Micro
0.0
Avg $mil:
42,130
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
14.23
1.88
1.17
7.26
2.19
1.08
1.11
1.01
1.20
0.80
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.42
3.31
4.15
2.16
-5.24
1.07
0.64
2.79
0.39
NMF
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
14.38
5.11
11.53
0.88
0.85
0.97
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 35.75 1.24
BasicMat 5.35 1.75 7 3
CnsmrCyc 8.10 0.94 10 6
FinanSvs 22.30 1.42 24 20
Real Est 0.00 0.00 1 0
Sensitive 30.29 0.69
CommSrvs 2.24 0.56 7 2
Energy 9.73 0.91 16 9
Industrl 10.94 0.96 11 8
Technlgy 7.38 0.42 11 6
Defensive33.95 1.23
CnsmrDef 7.51 0.62 8 4
Hlthcare 19.04 1.61 20 11
Utilities 7.40 2.05 8 5
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
1.9
Stocks 98.0
Bonds 0.1
Other
0.0
Foreign 6.1
©
2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
To order reprints, call 312-696-6100.
mfb.morningstar.com.
Mutual Funds
ß
®
EQ
∞
∞
∞
∞
∞
∞
