4
Morningstar Analyst Rating
04-23-14
Œ
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
23.65
23.61
17.34
14.94
15.40
13.36
9.50
14.50
13.90
12.24
10.96
.
Total Return %
0.17
39.30
16.76
-2.22
15.37
40.95
-34.25
4.88
14.85
11.75
. .
+/-S&P 500
-2.39
6.91
0.76
-4.33
0.31
14.49
2.75
-0.61
-0.94
6.84
. .
+/-Russ 1000Gr
-0.95
5.82
1.50
-4.86
-1.34
3.74
4.19
-6.93
5.78
6.49
. .
Income Return %
0.00
0.46
0.70
0.37
0.10
0.31
0.23
0.28
0.16
0.00
. .
Capital Return %
0.17
38.84
16.06
-2.59
15.27
40.64
-34.48
4.60
14.69
11.75
. .
Total Rtn % Rank Cat
36
11
32
52
49
24
8
87
5
15
. .
Income $
0.00
0.08
0.10
0.06
0.01
0.03
0.03
0.04
0.02
0.00
0.00
.
Capital Gains $
0.00
0.45
0.00
0.06
0.00
0.00
0.00
0.04
0.14
0.01
0.00
.
Expense Ratio %
.
0.65
0.67
0.66
0.68
0.71
0.71
0.75
0.89
1.25
. .
Income Ratio %
.
0.51
0.55
0.26
0.15
0.35
0.26
0.30
0.19
-0.27
. .
Turnover Rate %
.
10
12
13
5
12
13
5
7
9
. .
Net Assets $mil
4,118
3,884
2,221
1,798
1,623
854
390
500
254
63
10
.
Performance
04-30-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
6.66 -10.81 10.15 10.10 15.37
6.30 1.22 -16.90 9.35 -2.22
12.05 -1.61
4.43 1.42 16.76
15.69 4.39
7.98 6.83 39.30
4.28
. . . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500 1000Gr
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
-0.46 -6.69
-4.55
78 9,954
4.79 -3.57
-2.16
60 10,479
17.40 -3.04
-3.26
81 11,740
12.48 -1.35
-0.89
30 14,231
19.62 0.48
0.15
14 24,492
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.10
22
0.34
35
19.35
11
0.22
31
. . . .
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
17.40
3 Yr
12.48
High
Avg
5 Yr
19.62
+Avg
+Avg
10 Yr
. . . .
Incept
10.19
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Mid Cap TR
Alpha
0.2
2.3
Beta
1.09
0.93
R-Squared
85
89
Standard Deviation
14.70
Mean
12.48
Sharpe Ratio
1.08
Morningstar’s Take
by David Kathman, CFA 04-23-14
Primecap Odyssey Growth is looking good.
After putting up middling results in 2010 and 2011,
this fund has bounced back strongly in the past couple
of years. It beat the large-growth Morningstar Category
in 2012 and did even better in 2013, when it gained
39% and fell just short of the category’s top decile. It
continued to sparkle in the early months of 2014,
landing in the category’s top 2% through the year’s
first quarter.
This pattern, in which great results alternate with
occasional stretches of underperformance, has always
been characteristic of the funds run by the Primecap
management team, the largest and oldest of which is
Vanguard Primecap VPMCX. That team, now consisting
of four named managers after the retirement of Mitch
Milias at the end of 2013, looks for companies with
good long-term growth potential but temporarily
depressed valuations. They take a long-term view and
pay little attention to benchmarks, resulting in low
turnover and portfolios that are frequently
concentrated in a few sectors. That means that this
fund will inevitably be out of sync with the market at
times, but such dry spells tend not to last long.
The fund’s most recent slow stretch was largely
due to its heavy weighting in health-care stocks,
especially Big Pharma and biotech stocks such as
Amgen AMGN and Roche. Many of those stocks
suffered a few years ago because of concerns about
their drug pipelines, but the Primecap managers
thought the market was underestimating them. This
patience paid off in 2013, when biotech rallied
strongly and other holdings such as Seattle Genetics
SGEN, this fund’s top holding as of Dec. 31, 2013, also
posted nice gains.
Of the six funds managed by the Primecap team,
this is one of only two that remains open to new
investors. The other, Primecap Odyssey Stock POSKX,
is more corelike and similar to Vanguard Primecap,
while this fund is more aggressive and similar to the
recently closed Vanguard Capital Opportunity VHCOX.
Both are excellent funds, with low expenses to go
with outstanding long-term track records.
Address:
225 South Lake Avenue, Suite 400
Pasadena, CA 91101
800-729-2307
Web Address:
Inception:
11-01-04
Advisor:
PRIMECAP Management Company
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$2000
Add: $100 IRA: $1000
Min Auto Inv Plan:
$2000
Add: $100
Sales Fees:
No-load
Management Fee:
0.60% mx./0.55% mn.
Actual Fees:
Mgt:0.55% Dist:
.
Expense Projections:
3Yr:$211
5Yr:$368 10Yr:$822
Income Distribution:
Annually
Data through April 30, 2014
PRIMECAP Odyssey Growth
Ticker
Status Yield Total Assets
Mstar Category
POGRX Open
0.3% $4,118 mil
Large Growth
92% 96% 95% 92% 94% 97% 96% 90%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 04-14
Historical Profile
Return
Risk
Rating
Above Avg
Above Avg
Above Avg
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
6.0
14.0
18.0
22.0
Portfolio Analysis
03-31-14
Share change since 12-13 Total Stocks:119 Sector
PE Tot Ret% % Assets
Dreyfus Treasury Pr Cash
. . .
7.27
Seattle Genetics Inc
Hlth care
.
-3.53 4.92
Roche Holding AG
Hlth care 20.0 7.33 4.07
Amgen Inc
Hlth care 18.1 -1.51 3.76
Biogen Idec Inc
Hlth care 35.7 2.70 3.12
Eli Lilly and Co
Hlth care 16.5 16.84 2.94
Charles Schwab Corp
Finan Svs 34.0 2.35 2.57
Adobe Systems Inc
Technology 116.3 3.02 2.33
Microsoft Corp
Technology 15.2 8.74 2.20
Google Inc Class A
Technology 29.2 -4.64 2.17
Immunogen Inc
Hlth care
.
-11.79 2.03
L Brands Inc
Cnsmr Cyc 17.8 -10.20 1.94
Qualcomm Inc
Technology 21.1 6.48 1.90
Transocean Ltd
Energy
11.1 -11.72 1.75
Texas Instruments Inc
Technology 23.4 4.87 1.70
Visa Inc Class A
Finan Svs 24.0 -8.83 1.65
Carnival Corp
Cnsmr Cyc 29.8 -1.52 1.62
Qiagen NV
Hlth care 76.9 -8.02 1.61
Illumina Inc
Hlth care
.
22.84 1.60
Southwest Airlines Co
Industrl
20.4 28.50 1.54
Current Investment Style
Market Cap %
Giant
31.1
Large
33.7
Mid
23.3
Small
9.2
Micro
2.6
Avg $mil:
23,611
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
19.94
2.88
1.99
10.94
1.21
1.11
1.00
1.10
1.10
0.92
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.38
4.30
2.45
-1.33
11.77
0.85
0.42
0.31
NMF
0.53
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
11.99
4.35
9.30
0.57
0.45
0.66
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 16.62 0.58
BasicMat 1.45 0.47
. .
CnsmrCyc 8.19 0.95
. .
FinanSvs 6.98 0.45
. .
Real Est 0.00 0.00
. .
Sensitive 44.25 1.01
CommSrvs 0.47 0.12
. .
Energy 3.63 0.34
. .
Industrl
8.86 0.78
. .
Technlgy 31.29 1.78
. .
Defensive39.13 1.42
CnsmrDef 0.28 0.02
. .
Hlthcare 38.85 3.29
. .
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
7.3
Stocks 92.7
Bonds 0.0
Other
0.0
Foreign 15.5
©
2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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