5
Morningstar FundInvestor
September 2
014
Morningstar Analyst Rating
08-13-14
„
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Positive
Positive
Positive
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
53.26
49.05
34.91
29.53
31.82
28.58
22.76
35.68
39.19
36.63
36.70
33.51
Total Return %
10.69
41.53
19.32
-6.18
12.13
26.64
-35.60
2.58
16.56
6.80
15.34
31.74
+/-S&P 500
0.80
9.14
3.32
-8.29
-2.93
0.18
1.40
-2.91
0.77
1.89
4.46
3.06
+/-Russ 1000 Vl
0.34
9.00
1.81
-6.57
-3.38
6.95
1.25
2.75
-5.69
-0.25
-1.15
1.71
Income Return %
2.06
0.92
1.03
1.05
0.71
0.96
0.72
0.54
0.57
0.18
0.30
0.20
Capital Return %
8.63
40.61
18.29
-7.23
11.42
25.68
-36.32
2.04
15.99
6.62
15.04
31.54
Total Rtn % Rank Cat
14
2
6
86
69
30
37
44
71
35
21
21
Income $
1.01
0.32
0.30
0.33
0.20
0.22
0.26
0.21
0.21
0.07
0.10
0.05
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
4.33
3.30
2.51
1.85
0.44
Expense Ratio %
.
0.93
0.94
0.94
0.94
0.94
0.92
0.92
0.92
0.98
0.98
0.98
Income Ratio %
.
0.77
0.89
0.69
0.66
0.89
0.80
0.50
0.54
0.20
0.33
0.18
Turnover Rate %
.
44
56
61
64
97
111
84
66
62
. .
Net Assets $mil
2,057
2,067
1,498
1,592
1,930
2,117
1,623
2,738
2,880
2,265
1,698
1,016
Performance
08-31-14
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2010
2011
2012
2013
2014
4.23 -12.63 10.58 11.35 12.13
5.09 -1.40 -19.19 12.05 -6.18
14.93 -4.86
4.70 4.22 19.32
11.60 6.40
7.46 10.91 41.53
3.57 5.01
. . .
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
4.23 -0.46
-0.34
44 10,423
8.69 -0.15
-0.98
39 10,869
27.60 2.35
3.17
4 12,760
24.02 3.41
2.45
2 19,075
16.19 -0.69
-0.43
22 21,176
8.79 0.41
0.56
20 23,221
8.19 3.41
1.64
9 32,569
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
23.32
1
0.56
34
15.69
13
0.43
29
7.91
14
0.81
46
Potential Capital Gain Exposure: 40% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
27.60
3 Yr
24.02
High
+Avg
5 Yr
16.19
+Avg
+Avg
10 Yr
8.79
+Avg
Avg
Incept
11.55
Other Measures
Standard Index
Best Fit Index
S&P 500
Alpha
0.2
3.9
Beta
1.15
0.90
R-Squared
92
96
Standard Deviation
13.92
Mean
24.02
Sharpe Ratio
1.62
Morningstar’s Take
by Gregg Wolper 08-13-14
Sound Shore doesn’t try to get fancy.
This fund’s structure is as basic as it comes. Its
three fund managers have decades of experience on
the fund; no other managers have come or gone since
its 1985 inception. They work with four analysts with
tenures of at least six years on the fund. They do no
advertising and offer no other mutual fund or strategy
besides the moderate-value approach pursued by this
fund and similar separate accounts.
The investment process isn’t as simple, but it’s
straightforward. The managers look for companies that
meet basic price/earnings screens, then apply other
value measures to see if they support the initial
indication. The managers and analysts then conduct
conventional fundamental research on the companies
that survive these tests. They assemble a portfolio of
just 40 stocks or so but distribute assets so that no
single company gets much more than 3% of assets.
The management team likes companies selling
for far less than the team’s estimate of their value,
owing to some problem that the team thinks can be
addressed even if the solution may take time. Often it
buys companies that have installed new management
or have had issues with a manufacturing facility or
another regulatory problem. It says Weatherford WFT
is an example of a holding invigorated by new
management, while Hospira HSP is one that had a
problem at a plant that it considered temporary. The
former is up 40% so far this year, while the latter has
gained 32%, with takeover talk providing a boost. It is
in the top decile of the large-value Morningstar
Category for the year to date through Aug. 8; if it
keeps that position at year-end, that would mark three
straight years with such a lofty ranking.
The fund had a couple of subpar years when
recovery plays such as Bank of America BAC and
Citigroup C were struggling, but its long-term results
show the benefits of its approach. It has beaten the
S&P 500 Index and the large-value and large-blend
category averages since inception and over the 10-
and 15-year periods through Aug. 11. Its style is not
flashy, but it works.
Address:
3435 Stelzer Road
Columbus, OH 43219
800-551-1980
Web Address:
Inception:
05-17-85
Advisor:
Sound Shore Management Inc
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$10000
Add: $0 IRA: $2000
Min Auto Inv Plan:
$10000
Add: $50
Sales Fees:
No-load
Management Fee:
0.75%, 0.03%A
Actual Fees:
Mgt:0.75% Dist:
.
Expense Projections:
3Yr:$296
5Yr:$515 10Yr:$1143
Income Distribution:
Semi-Annually
Data through August 31, 2014
Sound Shore Investor
Ticker
Status Yield Total Assets
Mstar Category
SSHFX Open
2.2% $2,548 mil
Large Value
96% 96% 95% 96% 97% 98% 97% 99% 98%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 08-14
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
14.0
18.0
22.0
27.6
Portfolio Analysis
03-31-14
Share change since 12-13 Total Stocks:43 Sector
PE Tot Ret% % Assets
Qualcomm Inc
Technology 18.4 0.32 2.98
BP PLC ADR
Energy
13.1 3.12 2.81
General Electric Co
Industrl
18.8 -3.64 2.79
Bank of America Corporat
Finan Svs 25.6 -1.93 2.79
Sanofi ADR
Hlth care 26.7 1.02 2.73
Hess Corp
Energy
12.9 19.86 2.55
The AES Corporation
Utilities
96.2 1.72 2.55
Procter & Gamble Co
Cnsmr Def 20.9 4.41 2.52
CVS Caremark Corp
Cnsmr Def 19.5 12.16 2.51
Teradata Corp
Technology 20.4
.
2.49
Weatherford Internationa
Energy
.
44.42 2.49
American International G
Finan Svs
9.3 2.31 2.48
Capital One Financial Co
Finan Svs 11.2 4.61 2.44
E I du Pont de Nemours &
Basic Mat 20.8 0.37 2.44
Citigroup Inc
Finan Svs 16.8 -6.08 2.41
Comcast Corp Class A
Comm Svs 19.3 4.26 2.41
CIT Group Inc
Finan Svs 14.4
.
2.36
Microsoft Corp
Technology 17.3 16.87 2.34
Schlumberger NV
Energy
21.4 21.17 2.33
Novartis AG ADR
Hlth care 24.1 11.54 2.30
Current Investment Style
Market Cap %
Giant
40.6
Large
43.5
Mid
15.8
Small
0.0
Micro
0.0
Avg $mil:
46,875
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.86
1.67
1.09
6.46
1.91
1.21
0.98
0.94
1.07
0.69
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.61
5.09
-0.75
3.41
7.64
1.21
0.99
NMF
0.62
2.19
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
12.53
5.70
11.47
0.77
0.95
0.96
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 33.77 1.17
BasicMat 4.83 1.58 5 1
CnsmrCyc 8.08 0.94 11 6
FinanSvs 20.86 1.33 27 21
Real Est 0.00 0.00
. .
Sensitive 40.98 0.94
CommSrvs 6.90 1.72 7 3
Energy 12.39 1.16 12 6
Industrl
4.86 0.43 8 4
Technlgy 16.83 0.96 19 13
Defensive25.26 0.92
CnsmrDef 5.14 0.42 13 4
Hlthcare 17.51 1.48 26 16
Utilities 2.61 0.72 3 2
h
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u
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p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
2.2
Stocks 97.8
Bonds 0.0
Other
0.0
Foreign 17.1
©
2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor
timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at
To order reprints, call 312-696-6100.
mfb.morningstar.com.
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