7
Morningstar FundInvestor
March 2
013
Morningstar Analyst Rating
11-27-12
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
42.42
41.09
36.36
37.79
30.64
20.93
34.14
34.64
34.39
31.14
27.05
20.41
Total Return %
8.02
14.96
-3.78
23.69
46.40
-37.84
7.10
4.06
12.81
16.25
37.89
-10.59
+/-S&P 500
1.41
-1.04
-5.89
8.63
19.94
-0.84
1.61
-11.73
7.90
5.37
9.21
11.51
+/-Russ MG
0.79
-0.85
-2.13
-2.69
0.11
6.48
-4.33
-6.60
0.71
0.77
-4.82
16.82
Income Return %
0.04
0.00
0.00
0.35
0.01
0.19
0.46
0.73
0.65
0.00
0.00
0.00
Capital Return %
7.98
14.96
-3.78
23.34
46.39
-38.03
6.64
3.33
12.16
16.25
37.89
-10.59
Total Rtn % Rank Cat
16
42
47
59
25
14
85
99
17
69
71
20
Income $
0.02
0.00
0.00
0.11
0.00
0.07
0.16
0.25
0.20
0.00
0.00
0.00
Capital Gains $
1.84
0.64
0.00
0.00
0.00
0.32
2.75
0.89
0.54
0.30
1.07
0.31
Expense Ratio %
.
1.02
1.00
1.02
1.07
1.02
0.96
0.91
0.90
0.97
1.05
1.15
Income Ratio %
.
0.04
-0.11
0.31
-0.12
0.22
0.37
0.75
0.37
-0.07
-0.36
-0.25
Turnover Rate %
.
2
5
3
3
11
10
16
10
16
23
6
Net Assets $mil
271
255
234
269
239
187
391
554
490
266
169
92
Performance
02-28-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2008
2009
2010
2011
2012
-8.79 0.10
-4.18 -28.95 -37.84
-2.10 22.16 15.35 6.13 46.40
6.33 -8.53 10.20 15.40 23.69
7.07 -0.72 -22.60 16.95 -3.78
11.72 -8.37
6.21 5.74 14.96
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
MG
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
9.51 1.93
0.35
31 10,951
14.78 5.83
3.55
5 11,478
13.87 0.41
3.03
12 11,387
14.52 1.02
-0.75
38 15,019
8.33 3.39
1.57
16 14,919
11.20 2.96
-0.10
32 28,910
9.64 5.28
3.54
11 39,768
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
11.94
61
0.48
61
6.79
27
0.35
59
10.05
40
0.50
50
Potential Capital Gain Exposure: 49% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
7.90
3 Yr
12.48
Avg
Avg
5 Yr
7.16
+Avg
+Avg
10 Yr
10.60
Avg
Avg
Incept
11.62
Other Measures
Standard Index
Best Fit Index
S&P 500
S&P 400 TR
Alpha
-0.8
-1.5
Beta
1.17
1.02
R-Squared
85
93
Standard Deviation
19.32
Mean
14.52
Sharpe Ratio
0.79
Morningstar’s Take
by Christopher Davis 11-27-12
The big picture matters more at FPA Perennial.
While their counterparts at FPA Capital FPPTX and
FPA Crescent FPACX have never shied from
incorporating their larger, macroeconomic views into
their process, managers Eric Ende and Steve Geist
have historically paid closer attention to stock-by-stock
fundamentals and industry economics. Ende and Geist,
though, have become increasingly concerned over the
U.S. government’s mounting debt and budding
entitlement crisis. The solution will involve spending
cuts of some kind, and Ende says he and Geist are
warier than ever of companies dependent on the
government for revenue. Longtime holding Lincare, an
oxygen provider, fit this description. The managers had
considered selling the stock but thought its valuation
too low. A Lincare rival agreed and scooped up the
stock at an attractive premium.
Ende also expects companies with high returns on
equity and strong balance sheets can better survive the
challenging environment. Seeking those characteristics
is nothing new for the managers, who have long
favored high-return firms with low debt. Their
valuation-conscious approach means they only buy
stocks when they’re trading at depressed levels, which
helps limit downside risk. On that count the fund has
historically fared well, outpacing its mid-cap growth
rivals in the early 2000-02 and 2007-09 bear markets.
Ende and Geist have also turned to geographic
diversification for protection. New additions like skin
care provider L’Occitane and power provider Aggreko
AGK meet the managers’ return and balance sheet
hurdles but are domiciled outside the U.S. and have
businesses with global footprints. The fund’s
international exposure isn’t as heavy as sibling FPA
Paramount’s FPRAX, which has an explicitly global
mandate, but its 13% non-U.S. stake stands at an
all-time high.
Ende and Geist have implemented their approach
well, with a top-rate 15-year record, which trumps the
mid-growth, mid-blend, and small-blend averages. The
fund’s slim $261 million asset base should enable the
managers to employ their strategy with ease.
Address:
FPA Perennial Fund Inc
Los Angeles, CA 90064
800-982-4372
Web Address:
Inception:
04-02-84
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
Management Fee:
0.75% mx./0.65% mn.
Actual Fees:
Mgt:0.65% Dist:
.
Expense Projections:
3Yr:$827
5Yr:$1048 10Yr:$1685
Income Distribution:
Semi-Annually
Data through February 28, 2013
FPA Perennial
Ticker
Status Yield Total Assets
Mstar Category
FPPFX Open
0.0% $271 mil
Mid-Cap Growth
76% 88% 97% 93% 95% 97% 98% 90%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 02-13
Historical Profile
Return
Risk
Rating
Average
Average
Neutral
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
7.0
13.0
16.0
19.6
22.6
Portfolio Analysis
12-31-12
Share change since 09-12 Total Stocks:34 Sector
PE Tot Ret% % Assets
CarMax, Inc.
Cnsmr Cyc 21.1 2.32 6.43
O’Reilly Automotive, Inc
Cnsmr Cyc 22.4 13.83 6.40
Signet Jewelers Ltd.
Cnsmr Cyc 15.0 14.87 5.73
Wabco Holdings Incorpora
Cnsmr Cyc 14.9 5.41 5.70
ScanSource
Technology 12.2 -5.54 4.69
Copart, Inc.
Cnsmr Cyc 23.8 15.73 4.64
Life Technologies Corp
Hlth care 25.5 18.62 4.32
Graco Incorporated
Industrl
24.0 13.32 3.45
Zebra Technologies Corpo
Industrl
19.1 13.76 3.44
Noble Corporation
Energy
17.5 2.87 3.39
FMC Technologies, Inc.
Energy
29.1 21.20 3.35
HNI Corporation
Industrl
29.5 5.79 3.33
Bio-Rad Laboratories Inc
Technology 19.5 17.28 3.14
Franklin Electric Co.
Industrl
18.8 5.13 3.10
Idex Corporation
Industrl
113.6 9.89 2.91
Microchip Technology, In
Technology 50.5 12.99 2.79
Clarcor Inc.
Industrl
21.1 7.00 2.57
Heartland Express, Inc.
Industrl
18.3 3.83 2.38
Knight Transportation, I
Industrl
19.6 7.45 2.36
Actuant Corp Class A
Industrl
26.3 8.96 2.17
Current Investment Style
Market Cap %
Giant
0.0
Large
4.5
Mid
64.8
Small
30.5
Micro
0.2
Avg $mil:
3,689
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.88
2.54
1.17
13.47
0.86
0.87
0.91
0.71
1.25
1.06
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
12.27
8.16
8.93
-0.23
10.69
0.88
0.90
1.13
NMF
0.46
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
19.28
9.58
10.34
1.14
1.23
0.97
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 32.30 1.12
BasicMat 0.00 0.00 0 0
CnsmrCyc32.30 3.76 32 24
FinanSvs 0.00 0.00 0 0
Real Est 0.00 0.00 0 0
Sensitive 57.80 1.32
CommSrvs 0.00 0.00 0 0
Energy 7.53 0.70 10 7
Industrl 34.99 3.08 36 29
Technlgy 15.28 0.87 20 15
Defensive 9.90 0.36
CnsmrDef 0.68 0.06 1 0
Hlthcare 9.22 0.78 17 9
Utilities 0.00 0.00 0 0
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 10.5
Stocks 89.5
Bonds 0.0
Other
0.0
Foreign 14.4
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2013Morningstar, Inc.All rights reserved. The informationherein isnot representedorwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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