6
Morningstar Analyst Rating
04-03-13
Œ
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
19.48
17.10
15.25
15.61
14.14
11.04
15.26
15.19
13.39
12.66
11.02
8.50
Total Return %
13.92
14.86
1.49
11.41
29.68
-26.91
4.11
16.68
9.12
17.52
31.55
-15.00
+/-S&P 500
1.18
-1.14
-0.62
-3.65
3.22
10.09
-1.38
0.89
4.21
6.64
2.87
7.10
+/-Russ 1000
0.95
-1.56
-0.01
-4.69
1.25
10.69
-1.66
1.22
2.85
6.12
1.66
6.65
Income Return %
0.00
1.29
1.14
0.97
1.55
0.75
0.89
0.74
0.27
0.66
0.32
0.00
Capital Return %
13.92
13.57
0.35
10.44
28.13
-27.66
3.22
15.94
8.85
16.86
31.23
-15.00
Total Rtn % Rank Cat
14
58
26
81
34
3
71
13
14
3
11
5
Income $
0.00
0.20
0.18
0.14
0.17
0.11
0.13
0.10
0.03
0.07
0.03
0.00
Capital Gains $
0.00
0.21
0.42
0.00
0.00
0.00
0.43
0.33
0.37
0.20
0.13
0.00
Expense Ratio %
.
0.96
0.97
0.97
0.97
1.00
1.00
1.00
1.00
1.13
1.34
1.75
Income Ratio %
.
1.25
1.03
1.18
1.80
1.13
1.06
0.88
0.64
0.85
0.36
-0.30
Turnover Rate %
.
21
28
20
32
30
19
29
40
38
54
32
Net Assets $mil
7,461
6,233
4,477
3,676
2,404
1,543
639
301
96
21
6
4
Performance
04-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-8.51 14.85 14.40 7.89 29.68
5.66 -10.31
7.91 8.95 11.41
4.74 1.83 -14.05 10.71
1.49
11.08 -2.07
4.76 0.79 14.86
11.40
. . . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
1000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
7.62 0.44
0.46
17 10,762
16.46 2.04
1.41
15 11,646
18.15 1.26
0.98
16 11,815
11.33 -1.47
-1.58
47 13,799
7.45 2.24
1.96
4 14,323
10.72 2.84
2.40
2 27,686
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
10.74
41
0.53
69
6.94
3
0.48
57
10.05
1
0.61
53
Potential Capital Gain Exposure: 24% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
18.15
3 Yr
11.33
Avg
-Avg
5 Yr
7.45
High
-Avg
10 Yr
10.72
High
-Avg
Incept
8.20
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Large Core TR
Alpha
-0.6
-2.4
Beta
0.93
0.98
R-Squared
97
97
Standard Deviation
14.23
Mean
11.33
Sharpe Ratio
0.82
Morningstar’s Take
by Michelle Canavan 04-03-13
It’s tough not to have confidence in FMI Large Cap.
Lead manager Pat English and his team look for
strong and durable businesses trading at reasonable
valuations. With that comes a contrarian mindset. They
look to buy stocks whose prices are suffering and sell
into strength. The managers run a concentrated
portfolio of 29 stocks, keeping a watchlist of attractive
companies they can buy when their prices dip. They’re
also patient investors, targeting a holding period of one
to five years. A few of the fund’s holdings have been in
the portfolio for close to a decade.
The fund’s concentrated nature means it courts
more issuer-specific risk than does its average
large-blend peer. One of the fund’s bigger single-name
bets in recent years, though, has been one of omission.
Not owning Apple AAPL (4% of the S&P 500 and nearly
5% of the average large-blend fund) weighed on 2012’s
relative performance given its 33% gain last year. The
managers tend to shy away from technology
companies because of cut-throat competition and short
product cycles, so Apple has never appealed to them.
So far this year, as Apple’s stock price has slid more
than 16%, its absence from the portfolio has been a
contributor to the fund’s top-quartile 11.4%
year-to-date gain through March 31.
Still, some of the fund’s longtime holdings,
including top-10 holding Kimberly Clark KMB (3.8% of
assets as of Dec. 31, 2012), don’t appear as
attractively valued to the team today. However, in the
absence of more-attractive opportunities, the
managers argue it’s a well-run, financially strong
company that should continue to hold up well in a
low-growth environment.
Over time, the team’s patient and disciplined
process has been rewarded. Its 8.0% annualized gain
since its December 2001 inception through March 31
outpaces the S&P 500 Index and large-blend category
average by an annualized 3.2 and 3.9 percentage
points, respectively, with less volatility. It’s been
consistent, too, landing in the top quartile in more
than three fourths of all rolling three-year periods
since inception. All told, investors are in good hands.
Address:
FMI Funds Inc
Milwaukee, WI 53202
800-811-5311
Web Address:
Inception:
12-31-01
Advisor:
Fiduciary Management, Inc. of Milwaukee
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$1000
Add: $100 IRA: $1000
Min Auto Inv Plan:
$1000
Add: $50
Sales Fees:
No-load
Management Fee:
0.75%, 0.20%A
Actual Fees:
Mgt:0.75% Dist:
.
Expense Projections:
3Yr:$306
5Yr:$531 10Yr:$1178
Income Distribution:
None
Data through April 30, 2013
FMI Large Cap
Ticker
Status Yield Total Assets
Mstar Category
FMIHX Open
1.0% $7,461 mil
Large Blend
90% 91% 90% 93% 92% 91% 100% 93% 94%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 04-13
Historical Profile
Return
Risk
Rating
High
Below Avg
Highest
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
03-31-13
Share change since 12-12 Total Stocks:28 Sector
PE Tot Ret% % Assets
3M Co
Industrl
16.6 13.46 5.43
Berkshire Hathaway Inc C
Finan Svs 16.9 18.53 5.29
Bank of New York Mellon
Finan Svs 13.9 10.89 5.27
Accenture PLC
Technology 19.1 23.68 4.92
TE Connectivity Ltd
Technology 15.3 17.32 4.29
Sysco Corporation
Cnsmr Def 19.1 11.88 4.05
Omnicom Group, Inc.
Cnsmr Cyc 15.9 20.44 3.93
Covidien PLC
Hlth care 16.6 11.01 3.86
Illinois Tool Works Inc
Industrl
12.3 6.79 3.63
Wal-Mart Stores Inc
Cnsmr Cyc 15.5 14.60 3.47
Devon Energy Corp
Energy
.
6.19 3.40
Comerica Inc
Finan Svs 13.3 20.04 3.32
Time Warner Inc
Cnsmr Cyc 19.3 25.59 3.29
American Express Co
Finan Svs 17.1 19.71 3.11
Schlumberger NV
Energy
18.4 7.86 3.02
AmerisourceBergen Corp
Hlth care 19.1 25.82 3.01
Nestle SA ADR
Cnsmr Def 21.6 9.30 2.95
GlaxoSmithKline PLC ADR
Hlth care 19.5 20.38 2.92
Automatic Data Processin
Industrl
24.1 19.05 2.82
Danone ADR
Cnsmr Def 20.5 12.17 2.78
Current Investment Style
Market Cap %
Giant
33.3
Large
52.5
Mid
14.2
Small
0.0
Micro
0.0
Avg $mil:
38,886
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
15.77
2.31
1.12
12.01
2.10
1.14
1.17
0.91
0.21
0.96
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.79
6.76
7.16
3.45
8.47
0.94
1.27
2.25
0.50
1.14
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
20.99
7.25
10.00
1.08
0.92
0.79
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 34.07 1.18
BasicMat 2.48 0.81 3 2
CnsmrCyc11.39 1.33 18 7
FinanSvs 20.20 1.29 20 14
Real Est 0.00 0.00
. .
Sensitive 42.39 0.97
CommSrvs 0.00 0.00
. .
Energy 6.84 0.64 7 4
Industrl 23.28 2.05 26 18
Technlgy 12.27 0.70 12 2
Defensive23.54 0.85
CnsmrDef13.12 1.08 23 13
Hlthcare 10.42 0.88 13 10
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
5.6
Stocks 93.9
Bonds 0.0
Other
0.5
Foreign 16.7
©
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.
Mutual Funds
ß
®
EQ
