23
Morningstar FundInvestor
May 2
014
Morningstar Analyst Rating
05-02-14
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Positive
Positive
Neutral
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
18.63
18.28
14.46
12.67
12.92
11.65
9.28
13.54
14.24
12.80
12.25
10.75
Total Return %
1.91
36.40
15.66
-0.65
12.17
26.92
-30.53
2.65
15.78
9.24
14.67
.
+/-S&P 500
-0.65
4.01
-0.34
-2.76
-2.89
0.46
6.47
-2.84
-0.01
4.33
3.79
.
+/-Russ 1000 Vl
6.63
3.87
-1.85
-1.04
-3.34
7.23
6.32
2.82
-6.47
2.19
-1.82
.
Income Return %
0.00
1.42
1.54
1.30
1.27
1.39
0.90
1.14
1.07
0.68
0.39
.
Capital Return %
1.91
34.98
14.12
-1.95
10.90
25.53
-31.43
1.51
14.71
8.56
14.28
.
Total Rtn % Rank Cat
78
10
39
48
69
28
10
44
80
19
27
.
Income $
0.00
0.21
0.20
0.17
0.15
0.13
0.12
0.16
0.14
0.08
0.04
0.00
Capital Gains $
0.00
1.21
0.00
0.00
0.00
0.00
0.00
0.91
0.45
0.50
0.03
0.00
Expense Ratio %
.
0.93
0.93
0.95
0.95
0.95
0.99
1.00
1.00
1.00
1.20
.
Income Ratio %
.
1.40
1.49
1.33
1.19
1.62
1.10
1.14
1.15
0.75
0.14
.
Turnover Rate %
.
38
27
34
18
45
46
39
30
35
26
.
Net Assets $mil
114
97
84
80
114
90
61
61
57
38
26
3
Performance
04-30-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
4.38 -11.18 10.19 9.82 12.17
5.73 -0.44 -15.66 11.91 -0.65
11.13 -4.05
5.40 2.91 15.66
11.00 3.61
7.28 10.56 36.40
2.30
. . . .
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
5.73 -0.50
8.77
84 10,573
7.49 -0.87
6.31
71 10,749
22.87 2.43
1.63
12 12,287
13.60 -0.23
3.50
25 14,660
18.32 -0.82
-1.95
36 23,189
8.80 1.13
0.14
11 23,243
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.60
22
0.87
62
17.57
29
0.64
54
8.02
7
0.71
32
Potential Capital Gain Exposure: 25% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
22.87
3 Yr
13.60
+Avg
Avg
5 Yr
18.32
Avg
-Avg
10 Yr
8.80
+Avg
-Avg
Incept
9.25
Other Measures
Standard Index
Best Fit Index
S&P 500
R3000
Alpha
-0.5
0.3
Beta
1.03
0.98
R-Squared
97
98
Standard Deviation
12.97
Mean
13.60
Sharpe Ratio
1.05
Morningstar’s Take
by Jeff Holt, CFA 05-02-14
Becker Value Equity’s team approach helps to mitigate
concerns about an upcoming retirement.
Longtime portfolio manager Robert Schaeffer, a
nearly 30-year veteran of Becker Capital, is planning to
retire from the industry in June 2014. Professional
turnover is rare at Becker: Aside from Schaeffer and
founder Patrick Becker Sr., who retired in 2012, the
team has seen no departures. Following Schaeffer’s
retirement, the team will consist of four portfolio
managers and four analysts (managers also have
general analyst responsibilities), and five of those
members have been with Becker for at least 15 years.
The team’s stability and high level of experience
inspire confidence in its ability to continue carrying out
the firm’s established investment process.
That process relies on bottom-up, fundamental
research to identify higher-quality companies that are
trading at a discount and are expected to rebound over
the coming year. For example, the team added Plum
Creek Timber PCL, the largest timberland owner in the
United States, in the fourth quarter of 2013 based on
the company’s attractive price-per-acre valuation and
the team’s belief that the firm would be
well-positioned to benefit from a continued housing
recovery. The team also finds the company’s free cash
flow attractive. Since the stock’s purchase, an
acquisition and earnings disappointment have caused
its price to decline; the team remained confident in the
fundamentals and subsequently added to the position,
reflective of its common practice of trading around
positions based on price movements.
The fund has posted solid results over the long
term, outpacing the Russell 1000 Value Index by 1.1
percentage points annualized and earning a top-decile
ranking in the large-value category over the 10-year
period through March 2014. The downside protection
afforded by the team’s emphasis on higher-quality
companies and nearer-term catalysts helped the fund
during the market crisis from late 2007 through early
2009. While the fund may underperform at times,
particularly when markets climb, the team has the
wherewithal to build upon its strong record.
Address:
2960 N. Meridian Street, Suite 300
Indianapolis, IN 46208
800-551-3998
Web Address:
Inception:
11-03-03
Advisor:
Becker Capital Management, Inc.
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$2500
Add: $100 IRA: $2500
Min Auto Inv Plan:
$2500
Add: $100
Sales Fees:
No-load, 1.00%R
Management Fee:
0.55%
Actual Fees:
Mgt:0.55% Dist:
.
Expense Projections:
3Yr:$311
5Yr:$546 10Yr:$1218
Income Distribution:
Annually
Data through April 30, 2014
Becker Value Equity Retail
Ticker
Status Yield Total Assets
Mstar Category
BVEFX Open
1.0% $299 mil
Large Value
92% 100% 94% 96% 98% 99% 94% 96%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 04-14
Historical Profile
Return
Risk
Rating
Above Avg
Below 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
13.0
16.0
19.0
22.6
Portfolio Analysis
03-31-14
Share change since 12-13 Total Stocks:65 Sector
PE Tot Ret% % Assets
AT&T Inc
Comm Svs 10.5 4.15 2.27
Microsoft Corporation
Technology 15.2 8.74 2.18
Aetna Inc
Hlth care 12.6 4.83 2.16
Directv
Comm Svs 15.0 12.37 2.13
JPMorgan Chase & Co
Finan Svs 12.9 -2.98 2.11
Amdocs Ltd.
Technology 18.0 13.20 2.10
Chevron Corp
Energy
11.3 1.29 2.05
Murphy Oil Corporation
Energy
13.5 -1.75 2.04
NCR Corporation
Technology 11.4 -10.42 2.02
Bunge Ltd
Cnsmr Def 88.5 -2.63 2.01
Wal-Mart Stores Inc
Cnsmr Def 16.4 1.91 2.01
PNC Financial Services G
Finan Svs 11.3 9.51 2.01
National Oilwell Varco,
Energy
14.4 -0.93 2.01
Johnson Controls Inc
Cnsmr Cyc 19.7 -11.58 2.00
Plum Creek Timber Co Inc
Basic Mat 33.7 -5.31 1.99
Marsh & McLennan Compani
Finan Svs 20.4 3.00 1.97
Allstate Corp
Finan Svs 11.8 4.93 1.96
IAC/InterActiveCorp
Technology 20.3 -3.10 1.96
Intel Corp
Technology 14.4 3.70 1.95
Chubb Corp
Finan Svs 10.2 -4.19 1.93
Current Investment Style
Market Cap %
Giant
26.9
Large
44.8
Mid
26.8
Small
1.4
Micro
0.0
Avg $mil:
35,742
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
14.52
1.91
1.03
6.22
2.49
1.10
1.12
0.89
1.03
0.91
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.84
6.07
3.20
9.16
4.98
1.12
1.18
2.15
1.67
1.43
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
15.43
6.77
11.42
0.95
1.13
0.96
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 31.20 1.08
BasicMat 2.01 0.66
. .
CnsmrCyc12.56 1.46
. .
FinanSvs 15.26 0.97
. .
Real Est 1.37 0.94
. .
Sensitive 46.76 1.07
CommSrvs 4.98 1.24
. .
Energy 13.59 1.27
. .
Industrl 10.53 0.93
. .
Technlgy 17.66 1.01
. .
Defensive22.04 0.80
CnsmrDef 9.28 0.76
. .
Hlthcare 10.07 0.85
. .
Utilities 2.69 0.75
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
1.0
Stocks 99.0
Bonds 0.0
Other
0.0
Foreign 5.3
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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.
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