23
Morningstar FundInvestor
July 2
014
Morningstar Analyst Rating
06-30-14
ˇ
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
¶
¶
¶
¶
Neutral
Neutral
Neutral
Neutral
Neutral
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
61.97
57.27
49.84
40.14
51.76
46.32
32.86
60.76
59.46
54.78
51.70
41.45
Total Return %
8.21
18.84
27.48
-20.68
13.87
44.51
-45.61
5.76
14.69
16.49
26.62
37.08
+/-MSCI WexUS
2.65
3.55
10.65
-6.97
2.72
3.06
-0.08
-10.89
-11.96
-0.13
5.71
-3.75
+/-MSCI Ac Wrld ND
2.03
-3.96
11.35
-13.33
1.20
9.88
-3.42
-5.90
-6.26
5.65
11.39
3.09
Income Return %
0.00
3.87
3.27
1.74
2.09
3.47
0.30
2.75
5.92
3.11
1.87
1.03
Capital Return %
8.21
14.97
24.21
-22.42
11.78
41.04
-45.91
3.01
8.77
13.38
24.75
36.05
Total Rtn % Rank Cat
16
83
2
96
41
18
74
45
37
8
6
76
Income $
0.00
1.93
1.31
0.90
0.97
1.14
0.18
1.63
3.24
1.61
0.78
0.32
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.46
0.10
3.87
0.00
0.00
Expense Ratio %
.
1.10
1.15
1.15
1.15
1.17
1.11
1.08
1.08
1.10
1.12
1.11
Income Ratio %
.
1.45
0.83
0.86
1.55
2.23
1.89
1.32
2.83
0.77
0.34
1.23
Turnover Rate %
.
21
16
6
2
5
17
5
7
16
. .
Net Assets $mil
2,422
2,553
2,569
3,002
5,055
5,853
4,597
11,150
9,725
6,891
4,321
3,098
Performance
06-30-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
1.84 -11.17 17.09 7.51 13.87
3.98 -3.62 -23.62 3.63 -20.68
13.40 -1.54
8.61 5.11 27.48
5.70 1.25
6.84 3.93 18.84
0.86
. . . .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS Ac Wrld ND
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
7.29 2.26
2.25
6 10,729
8.21 2.65
2.03
16 10,821
20.16 -1.59
-2.79
75 12,016
9.07 3.34
-1.18
77 12,975
12.78 1.67
-1.50
81 18,246
6.46 -1.29
-1.00
76 18,701
8.11 2.81
3.74
20 32,210
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
7.93
73
1.04
70
11.74
81
0.93
81
5.38
77
1.01
67
Potential Capital Gain Exposure: 22% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
20.16
3 Yr
9.07
-Avg
High
5 Yr
12.78
-Avg
High
10 Yr
6.46
-Avg
+Avg
Incept
12.17
Other Measures
Standard Index
Best Fit Index
MSCI WexUS
MSCI WexUS
Alpha
3.2
3.2
Beta
1.03
1.03
R-Squared
89
89
Standard Deviation
18.08
Mean
9.07
Sharpe Ratio
0.57
Morningstar’s Take
by Leo Acheson 06-30-14
Third Avenue Value’s Morningstar Analyst Rating falls
to Neutral from Bronze on a lead manager change.
Robert "Chip" Rewey took the reins as this fund’s
lead portfolio manager on June 10, 2014, creating
substantial uncertainty. Rewey is new to Third Avenue,
a transplant from Cramer Rosenthal McGlynn, where
he was a named portfolio manager for several of its
offerings. Rewey replaces former lead manager Ian
Lapey, who had worked on the fund since 2001,
comanaging it since 2009 with legendary investor and
firm founder Marty Whitman before formally taking
over in 2012.
The fund’s record under Lapey’s short watch was
subpar: From March 1, 2012, through June 10, 2014, its
14.2% annualized return trailed nearly two thirds of its
world-stock category rivals. Replacing Lapey with
Rewey doesn’t instill great confidence, however.
Rewey worked alongside several comanagers on four
domestic, value-oriented funds at CRM with mixed
results. His ability to manage an eclectic, go-anywhere
strategy, like the one used at this fund, is untested.
Rewey said he doesn’t plan to make immediate,
substantial changes to this fund’s portfolio, though
moderate adjustments are likely as he makes his
footprint on the fund’s positioning. Over time, he
intends to align the portfolio with the firm’s best ideas
across all of its strategies. He says he is intimately
familiar with all but roughly 10 names in this fund’s 35
stock collection; Morningstar’s data shows limited
holdings overlap between this fund and the CRM
funds he formerly comanaged.
Meanwhile, over the past year, Third Avenue has
contended with a spate of personnel turnover at some
of its other investment teams; those changes led
Morningstar to downgrade Third Avenue’s Parent
rating to Neutral from Positive in March 2014. While
those personnel changes create concern, it’s
comforting that this fund’s other team members,
including three portfolio managers and one dedicated
analyst, remain on board. Still, until Rewey
demonstrates strong leadership here, the fund’s
Morningstar Analyst Rating will hold at Neutral.
Address:
622 Third Avenue
New York, NY 10017
800-443-1021
Web Address:
Inception:
11-01-90
Advisor:
Third Avenue Management LLC
Subadvisor:
None
NTF Plans:
Federated Tr NTF
Minimum Purchase:
$100000
Add: $1000 IRA: $100000
Min Auto Inv Plan:
$100000
Add: $200
Sales Fees:
No-load, 1.00%R
Management Fee:
0.90%
Actual Fees:
Mgt:0.90% Dist:
.
Expense Projections:
3Yr:$350
5Yr:$607 10Yr:$1341
Income Distribution:
Annually
Data through June 30, 2014
Third Avenue Value Instl
Ticker
Status Yield Total Assets
Mstar Category
TAVFX Open
3.1% $2,461 mil
World Stock
74% 85% 90% 91% 91% 94% 87% 87%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 06-14
Historical Profile
Return
Risk
Rating
Below Avg
High
Below Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
14.0
18.0
22.0
27.6
Portfolio Analysis
04-30-14
Share change since 01-14 Total Stocks:35 Sector
Country
% Assets
Cavco Industries, Inc.
Cnsmr Cyc United States
5.60
POSCO ADR
Basic Mat
Korea
4.97
Wheelock and Co., Ltd.
Real Est
Hong Kong
4.83
Henderson Land Developme
Real Est
Hong Kong
4.80
Covanta Holding Corporat
Industrl
United States
4.37
Daiwa Securities Co., Lt
Finan Svs Japan
4.33
Bank of New York Mellon
Finan Svs United States
4.27
Devon Energy Corp
Energy
United States
3.98
Vodafone Group PLC
Comm Svs U.K.
3.37
Toyota Industries Corpor
Cnsmr Cyc Japan
3.34
Hang Lung Group Ltd.
Real Est
Hong Kong
3.30
Apache Corporation
Energy
United States
3.14
Comerica Inc
Finan Svs United States
3.03
Total SA
Energy
France
3.02
KeyCorp
Finan Svs United States
2.93
Intel Corp
Technology United States
2.70
Cheung Kong Holdings, Lt
Real Est
Hong Kong
2.63
Encana Corp
Energy
Canada
2.15
Brookfield Asset Managem Real Est
Canada
2.15
Tejon Ranch Co
Real Est
United States
1.70
Current Investment Style
Market Cap %
Giant
25.4
Large
41.6
Mid
16.9
Small
7.4
Micro
8.7
Avg $mil:
11,439
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
United States 47
Hong Kong 21
Japan
8
South Korea 6
France
6
Regional Exposure
% Stock
UK/W. Europe 12
Japan
8
Asia X Japan 28
N. America 52
Latn America 0
Other
0
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 66.58
.
BasicMat 5.88
. . .
CnsmrCyc11.85
. . .
FinanSvs 24.34
. . .
Real Est 24.51
. . .
Sensitive 33.43
.
CommSrvs 3.98
. . .
Energy 14.53
. . .
Industrl
8.29
. . .
Technlgy 6.63
. . .
Defensive 0.00
.
CnsmrDef 0.00
. . .
Hlthcare 0.00
. . .
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
14.1
Stocks
84.6
Bonds
0.2
Other
1.2
Foreign
53.2
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
6.61
6.11
5.33
4.63
5.93
0.59
2.95
20.50
5.94
0.12
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
9.42
0.75
1.40
5.92
2.52
0.64
0.39
1.08
0.83
1.03
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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
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