6
Morningstar Analyst Rating
11-29-12
„
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
22.90
21.21
18.29
18.99
15.41
10.57
17.18
16.18
15.58
13.93
12.02
8.50
Total Return %
8.17
15.97
-3.69
23.63
45.79
-38.07
6.83
4.76
12.20
15.89
41.41
-12.37
+/-MSCI EAFE
3.89
-1.35
8.45
15.88
14.01
5.31
-4.34
-21.58
-1.34
-4.36
2.82
3.57
+/-MSCI World
2.90
0.14
1.85
11.87
15.80
2.64
-2.21
-15.31
2.71
1.17
8.30
7.52
Income Return %
0.19
0.00
0.00
0.40
0.00
0.38
0.68
0.90
0.36
0.00
0.00
0.00
Capital Return %
7.98
15.97
-3.69
23.23
45.79
-38.45
6.15
3.86
11.84
15.89
41.41
-12.37
Total Rtn % Rank Cat
2
51
24
60
27
14
86
98
21
71
53
26
Income $
0.04
0.00
0.00
0.06
0.00
0.07
0.11
0.14
0.05
0.00
0.00
0.00
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Expense Ratio %
.
0.94
0.93
0.95
0.99
0.89
0.90
0.85
0.89
0.99
1.15
1.17
Income Ratio %
.
0.01
0.08
0.20
0.09
0.29
0.74
0.89
0.30
-0.16
-0.47
-0.34
Turnover Rate %
.
6
10
3
46
12
17
15
13
16
17
14
Net Assets $mil
279
260
245
269
241
184
393
617
399
257
123
80
Performance
02-28-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2008
2009
2010
2011
2012
-8.85 0.00
-4.15 -29.12 -38.07
-2.37 22.19 15.38 5.91 45.79
6.75 -8.63 10.11 15.11 23.63
6.53 -0.64 -21.99 16.65 -3.69
11.59 -7.89
6.38 6.05 15.97
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% EAFE
World
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
9.93 2.32
2.68
10 10,993
15.64 1.23
4.79
12 11,564
15.00 5.16
4.31
11 11,500
14.83 7.98
5.02
4 15,141
8.38 9.64
6.82
2 14,954
11.62 2.23
3.03
17 30,021
4.36 0.43
0.45
67 18,968
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.71
7
0.06
14
7.13
3
0.08
9
10.91
14
0.10
3
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
8.96
3 Yr
12.79
+Avg
+Avg
5 Yr
7.22
High
+Avg
10 Yr
11.02
+Avg
+Avg
Incept
9.70
Other Measures
Standard Index
Best Fit Index
MSCI EAFE
S&P 400 TR
Alpha
8.8
-1.1
Beta
0.80
1.02
R-Squared
68
93
Standard Deviation
19.16
Mean
14.83
Sharpe Ratio
0.81
Morningstar’s Take
by Christopher Davis 11-29-12
FPA Paramount travels more widely, but it wears the
same guise.
In May 2011, this then-U.S.-focused fund adopted a
global mandate. Manager Eric Ende said at least 50%
of the portfolio eventually would be held in stocks
headquartered outside of the U.S. and that he and
comanager Steve Geist would increasingly favor global
businesses regardless of their domicile. Other
economies’ stronger growth prospects were one
reason why. Moreover, the duo views global
diversification as protection against risks posed by the
U.S. government’s precarious fiscal health.
Given the fund’s historically low turnover, the
transition to a more-global portfolio has been gradual
but steady. Indeed, holdings that the fund has shed
over the past year, such as Brady BRC, are U.S.-based
companies, while new holdings like Halma HLMA,
BioMerieux BIM, and L’Occitane are domiciled in
Europe. In all, non-U.S. stocks make up 20% of the
portfolio, and according to Ende, the fund’s holdings
earn 40% of their sales overseas.
While Ende and Geist have broadened their hunting
ground, they haven’t abandoned their focus on
high-returning, low-debt businesses. Recent addition
L’Occitane, an Luxembourg-based skin-care
manufacturer, sports a lofty 36% return on equity and
a moderate 25% debt-to-equity ratio. Moreover, Ende
points out that the company is highly diversified
geographically, with a strong foothold in Europe and
Asia, and is growing rapidly in developing markets.
Ende and Geist have executed their approach with
aplomb here and at their longer-tenured charge, FPA
Perennial FPPFX. Since their March 2000 start here,
the fund has gained 7.6% annually, beating its Russell
2500 benchmark by 2 percentage points annually. It
also beat the mid-blend and mid-growth averages
(having landed in both camps over the managers’
tenure) by 4 and 8 percentage points, respectively.
The fund’s relatively slim $261 million asset base
should enable the managers to employ their strategy
with ease. This remains a fine choice.
Address:
FPA Paramount Fund Inc
Los Angeles, CA 90064
800-982-4372
Web Address:
Inception:
09-08-58
Advisor:
First Pacific Advisors, LLC
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$1500
Add: $100 IRA: $100
Min Auto Inv Plan:
$100
Add: $100
Sales Fees:
5.25%L, 2.00%R
Management Fee:
0.75% mx./0.65% mn.
Actual Fees:
Mgt:0.65% Dist:
.
Expense Projections:
3Yr:$809
5Yr:$1018 10Yr:$1619
Income Distribution:
Annually
Data through February 28, 2013
FPA Paramount
Ticker
Status Yield Total Assets
Mstar Category
FPRAX Open
0.2% $279 mil
World Stock
77% 81% 97% 93% 96% 89% 94% 95%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 02-13
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
MSCI EAFE
Performance Quartile
(within Category)
History
10.0
7.0
13.0
16.0
19.6
22.6
Portfolio Analysis
12-31-12
Share change since 09-12 Total Stocks:34 Sector
Country
% Assets
CarMax, Inc.
Cnsmr Cyc United States
6.39
O’Reilly Automotive, Inc
Cnsmr Cyc United States
6.31
Signet Jewelers Ltd.
Cnsmr Cyc U.K.
5.86
Wabco Holdings Incorpora
Cnsmr Cyc United States
5.73
ScanSource
Technology United States
4.65
Copart, Inc.
Cnsmr Cyc United States
4.65
Life Technologies Corp
Hlth care United States
4.26
Graco Incorporated
Industrl
United States
3.40
FMC Technologies, Inc.
Energy
United States
3.38
Zebra Technologies Corpo
Industrl
United States
3.37
Noble
.
Switzerland
3.34
HNI Corporation
Industrl
United States
3.18
Franklin Electric Co.
Industrl
United States
3.10
Bio-Rad Laboratories Inc
Technology United States
3.05
Idex Corporation
Industrl
United States
2.79
Microchip Technology, In
Technology United States
2.70
Clarcor Inc.
Industrl
United States
2.62
Heartland Express, Inc.
Industrl
United States
2.35
Spirax-Sarco Engineering
Industrl
U.K.
2.31
Knight Transportation, I
Industrl
United States
2.30
Current Investment Style
Market Cap %
Giant
0.0
Large
1.4
Mid
67.4
Small
31.1
Micro
0.1
Avg $mil:
3,520
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
United States 76
U.K.
14
Switzerland 5
Belgium 2
France
2
Regional Exposure
% Stock
UK/W. Europe 22
Japan
0
Asia X Japan 1
N. America 76
Latn America 0
Other
1
Sector
Weightings
% of
Stocks
Rel MSCI
EAFE High
3 Year
Low
Cyclical 31.70
.
BasicMat 0.00
. . .
CnsmrCyc31.70
.
32 24
FinanSvs 0.00
.
0 0
Real Est 0.00
. . .
Sensitive 56.31
.
CommSrvs 0.00
. . .
Energy 3.70
.
10 4
Industrl 36.95
.
37 30
Technlgy 15.66
.
19 15
Defensive11.99
.
CnsmrDef 1.41
.
1 1
Hlthcare 10.58
.
17 11
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
5.4
Stocks
94.6
Bonds
0.0
Other
0.0
Foreign
23.7
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.96
8.07
9.22
5.47
16.64
1.06
5.31
5.91
6.22
1.00
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
16.56
2.75
1.19
13.61
0.88
1.21
1.50
0.99
2.07
0.35
©
2013Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, completeor
timely.Past performance isnoguaranteeof future results.Accessupdated reports at
To order reprints, call 312-696-6100.
mfb.morningstar.com.
Mutual Funds
ß
®
EQ
