6
Morningstar Analyst Rating
03-22-13
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
§
Positive
Neutral
Positive
Positive
Negative
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
15.05
14.04
11.90
15.34
13.66
11.09
19.78
18.91
17.36
15.55
14.11
9.97
Total Return %
7.19
21.23
-20.29
13.69
23.17
-39.60
15.29
17.07
12.88
10.21
41.52
-16.52
+/-MSCI EAFE
2.06
3.91
-8.15
5.94
-8.61
3.78
4.12
-9.27
-0.66
-10.04
2.93
-0.58
+/-MSCI WexUS
4.02
4.40
-6.58
2.54
-18.28
5.93
-1.36
-9.58
-3.74
-10.70
0.69
-1.57
Income Return %
0.00
2.04
1.41
1.39
0.00
0.33
0.00
0.09
0.00
0.00
0.00
0.00
Capital Return %
7.19
19.19
-21.70
12.30
23.17
-39.93
15.29
16.98
12.88
10.21
41.52
-16.52
Total Rtn % Rank Cat
3
14
93
19
86
27
14
96
53
100
33
77
Income $
0.00
0.24
0.22
0.19
0.00
0.06
0.00
0.01
0.00
0.00
0.00
0.00
Capital Gains $
0.00
0.13
0.12
0.00
0.00
0.74
2.07
1.35
0.19
0.00
0.00
0.32
Expense Ratio %
.
1.29
1.37
1.38
1.59
1.60
1.57
1.61
1.64
1.66
1.68
1.80
Income Ratio %
.
1.82
1.07
0.76
0.55
0.27
-0.04
0.09
-0.05
-0.57
-0.68
-0.68
Turnover Rate %
.
23
49
28
20
44
30
24
17
19
10
16
Net Assets $mil
1,619
1,507
1,571
2,211
2,165
2,041
3,903
3,255
2,881
2,580
1,913
1,067
Performance
03-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-15.24 24.04 15.44 1.49 23.17
2.05 -10.90 16.43 7.40 13.69
2.87 0.82 -23.57 0.55 -20.29
11.51 -9.34 10.72 8.31 21.23
7.19
. . . .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% EAFE WexUS
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
7.19 2.06
4.02
3 10,719
16.10 4.06
6.90
2 11,610
16.53 5.28
8.17
4 11,653
4.89 -0.11
0.48
48 11,540
-0.21 0.68
0.18
34 9,895
8.97 -0.72
-1.96
55 23,609
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
4.21
39
0.64
68
-0.97
32
0.77
66
8.26
43
0.65
29
Potential Capital Gain Exposure: 5% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
16.53
3 Yr
4.89
Avg
High
5 Yr
-0.21
Avg
+Avg
10 Yr
8.97
Avg
Avg
Incept
8.58
Other Measures
Standard Index
Best Fit Index
MSCI EAFE
MSCI Wd xUS
Alpha
0.0
0.1
Beta
1.05
1.08
R-Squared
89
90
Standard Deviation
21.59
Mean
4.89
Sharpe Ratio
0.32
Morningstar’s Take
by Gregg Wolper 03-22-13
Longleaf International’s strong recent performance
provides welcome relief to shareholders but should be
kept in perspective.
Just one year ago, this fund’s performance was not
impressive on either a short-term or 10-year basis. It
suffered through a dismal 2011, losing 20.3% and
landing in the bottom decile of the foreign large-blend
category. Culprits included materials stocks, hit hard by
fears of global economic weakness and European debt
woes, and disappointments with Japanese firms,
including scandal-wracked Olympus. The fund’s five-
and 10-year returns were well into the category’s
bottom half as a result.
In 2012, though, two of the materials firms, Cemex
CX and Lafarge LG, soared about 80% each. Other
stocks also delivered, including Philips, which rose
about 30% after tumbling in 2011. The fund gained
21.2% for the year, topping the category average by 3
percentage points. Its revival has continued into 2013;
for the year to date through March 19, its 6.6% return
is one of the group’s best. Its five-year ranking is now
in the 38th percentile, and its 10-year record sits
around the group’s midpoint.
The rebound is the result of the managers’ faith in
these companies and provides evidence that their
patient, contrarian strategy--in place here since 1998
and at Longleaf Partners’ other funds for more than
two decades--works more often than not over time.
This fund’s since-inception return easily beats the
category norm. Even so, investors should be careful
before jumping in. Given its willingness to buy--and
stick with--deeply unpopular stocks, this fund can lag
its peers by wide margins. Besides 2011, in 2004 it
finished the year 7 percentage points behind the
category average, and it did so again two years later.
Even in 2012, difficulties with Dell DELL and HRT (a
Brazilian oil and gas firm whose exploration efforts are
coming up short), each of which plunged in value last
year, show that the potential for problems hasn’t gone
away. This fund should succeed over time, but it’s only
suitable for shareholders confident that they’ll stay on
board.
Address:
6410 Poplar Ave, Suite 900
Memphis, TN 38119
800-445-9469
Web Address:
Inception:
10-26-98
Advisor:
Southeastern Asset Management Inc.
Subadvisor:
SAMI (Singapore) Pte. Ltd
NTF Plans:
N/A
Minimum Purchase:
$10000
Add: $0 IRA: $10000
Min Auto Inv Plan:
$100
Add:
.
Sales Fees:
No-load
Management Fee:
1.20% mx./1.00% mn., 0.10%A
Actual Fees:
Mgt:1.18% Dist:
.
Expense Projections:
3Yr:$434
5Yr:$750 10Yr:$1646
Income Distribution:
None
Data through March 31, 2013
Longleaf Partners International
Ticker
Status Yield Total Assets
Mstar Category
LLINX Open
1.6% $1,619 mil
Foreign Large Blend
88% 92% 99% 99% 98% 96% 96% 84%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 03-13
Historical Profile
Return
Risk
Rating
Average
Above Avg
Below 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
Portfolio Analysis
12-31-12
Share change since 09-12 Total Stocks:21 Sector
Country
% Assets
Cheung Kong Holdings, Lt
Real Est
Hong Kong
7.56
Manabi Holding
. .
7.53
Lafarge SA
Basic Mat
France
6.99
ACS Actividades de Const
Industrl
Spain
6.35
Koninklijke Philips Elec
Industrl
Netherlands
5.94
Melco International Deve
Cnsmr Cyc China
5.66
C&C Group PLC
Cnsmr Def
Ireland
5.18
Hochtief AG
Industrl
Germany
5.05
Ferrovial SA
Industrl
Spain
5.01
Fairfax Financial Holdin
Finan Svs Canada
4.53
Willis Group Holdings PL
Finan Svs United States
4.18
Genting Bhd
Cnsmr Cyc Malaysia
4.05
Cemex Sab De Cv Cv 3.25%
.
Mexico
3.56
Nitori Holdings Co., Ltd
Cnsmr Cyc Japan
3.26
Fiat Industrial SpA
Industrl
Italy
2.57
Accor SA
Cnsmr Cyc France
2.47
EXOR Spa
Industrl
Italy
2.37
Vodafone Group PLC ADR
Comm Svs U.K.
2.04
Cemex Sab De Cv Cv 3.75%
.
Mexico
2.03
Swap Contracts
. .
1.58
Current Investment Style
Market Cap %
Giant
12.5
Large
45.2
Mid
40.8
Small
1.5
Micro
0.0
Avg $mil:
8,550
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
Spain
15
France
12
Hong Kong 10
Netherlands 9
China
7
Regional Exposure
% Stock
UK/W. Europe 59
Japan
6
Asia X Japan 23
N. America 11
Latn America 2
Other
0
Sector
Weightings
% of
Stocks
Rel MSCI
EAFE High
3 Year
Low
Cyclical 50.45
.
BasicMat 9.11
.
14 4
CnsmrCyc20.13
.
22 10
FinanSvs 11.36
.
30 11
Real Est 9.85
.
10 5
Sensitive 42.78
.
CommSrvs 2.65
.
4 2
Energy 1.53
.
8 2
Industrl 38.60
.
39 11
Technlgy 0.00
.
10 4
Defensive 6.75
.
CnsmrDef 6.75
.
12 6
Hlthcare 0.00
.
6 1
Utilities 0.00
. . .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
6.5
Stocks
86.5
Bonds
0.0
Other
7.0
Foreign
95.2
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
12.10
6.77
12.92
-11.71
-5.49
1.21
2.20
1.21
NMF
NMF
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
12.38
0.82
0.37
3.45
2.78
0.99
0.55
0.39
0.70
0.98
©
2013Morningstar, Inc.All rights reserved. The information herein is not representedorwarranted to be accurate, correct, complete or
timely. Past performance isnoguaranteeof future results.Accessupdated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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