7
Morningstar FundInvestor
August 2
013
Morningstar Analyst Rating
08-01-13
„
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
101.76
83.95
70.78
72.16
63.12
52.51
76.30
77.10
71.69
70.33
60.90
49.26
Total Return %
21.95
21.91
0.74
17.40
22.52
-28.51
4.91
10.24
4.37
17.99
26.33
-8.12
+/-S&P 500
2.33
5.91
-1.37
2.34
-3.94
8.49
-0.58
-5.55
-0.54
7.11
-2.35
13.98
+/-Russ 1000
1.95
5.49
-0.76
1.30
-5.91
9.09
-0.86
-5.22
-1.90
6.59
-3.56
13.53
Income Return %
0.69
1.90
1.40
1.43
1.70
1.61
1.35
1.30
1.11
1.12
1.08
0.83
Capital Return %
21.26
20.01
-0.66
15.97
20.82
-30.12
3.56
8.94
3.26
16.87
25.25
-8.95
Total Rtn % Rank Cat
16
3
35
11
81
4
61
91
68
2
59
1
Income $
0.58
1.34
1.00
0.90
0.89
1.22
1.04
0.93
0.78
0.68
0.53
0.45
Capital Gains $
0.00
0.90
0.94
0.97
0.24
0.86
3.59
0.99
0.93
0.82
0.77
0.24
Expense Ratio %
.
0.70
0.72
0.71
0.71
0.70
0.68
0.69
0.70
0.73
0.75
0.78
Income Ratio %
.
1.69
1.40
1.26
1.61
1.75
1.26
1.21
1.15
1.12
1.05
0.93
Turnover Rate %
.
2
3
2
3
2
4
4
3
3
2
1
Net Assets $mil
3,437
2,494
1,976
2,040
1,937
1,683
2,614
2,694
2,523
2,056
1,307
772
Performance
07-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-14.32 17.71 15.03 5.62 22.52
7.94 -9.04
8.53 10.18 17.40
5.22 0.52 -16.11 13.53
0.74
14.99 -2.94
6.05 3.00 21.91
11.95 1.77
. . .
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
8.54 2.44
2.31
10 10,854
14.26 0.53
0.43
33 11,426
32.24 7.24
6.01
10 13,224
19.08 1.34
1.04
7 16,886
10.92 2.66
2.43
4 16,790
9.37 1.73
1.35
6 24,490
9.44 4.78
4.38
3 38,694
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
18.24
6
0.70
80
10.09
3
0.74
81
8.60
5
0.71
66
Potential Capital Gain Exposure: 45% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
32.24
3 Yr
19.08
High
Avg
5 Yr
10.92
High
Avg
10 Yr
9.37
High
Avg
Incept
11.45
Other Measures
Standard Index
Best Fit Index
S&P 500
Alpha
1.4
4.5
Beta
0.99
0.78
R-Squared
88
92
Standard Deviation
14.13
Mean
19.08
Sharpe Ratio
1.31
Morningstar’s Take
by Laura Lallos 08-01-13
Mairs & Power Growth’s manager change is as
deliberate as its investment strategy.
On July 1, this fund’s managers switched places.
Mark Henneman, who had been comanager since the
beginning of 2006, became lead manager, and Bill Frels
stepped down to comanager. Frels will remain in place
until he retires at the end of 2014. This long transition
should ensure a smooth changeover, as does the fact
that these managers work with seven other portfolio
managers and analysts on the firm’s investment
committee. When Frels took over as lead manager in
2004, after starting as comanager in 1999, the fund
didn’t break its stride. (Its underperformance in
2005-07 was the result of its characteristic lack of
exposure to utilities and energy.)
Shareholders should not expect any dramatic
changes to the fund’s slow-and-steady strategy and
low-turnover portfolio. Henneman notes that his
favorite picks are already in the fund. He likes to adjust
positions tactically as valuations change, so the fund’s
turnover may increase, but he expects it to remain
under 10%--well below the large-blend category
average of nearly 65%.
The fund stands out in other ways, too. Most
notable is its focus on companies headquartered in the
upper Midwest, near Mairs & Power’s Twin Cities
office. Henneman and Frels look for businesses with
sustainable competitive advantages that promise
strong earnings growth over the long term, and they
believe their home bias gives them an information
advantage and an understanding of management that
enables them to buy and hold. They also invest across
the market-cap spectrum: While the portfolio overall
lands in large-cap territory, the fund has far more
exposure to mid- and small caps than most of its
peers.
The fund’s performance has also been exceptional.
Over the past decade, its three-year rolling returns
have landed in the top quartile 70% of the time. Frels
and Henneman won Morningstar’s 2012
Domestic-Stock Manager of the Year award in
recognition of a great year backed by a great record.
Address:
Mairs & Power Funds Trust
St. Paul, MN 55101-1363
800-304-7404
Web Address:
Inception:
11-07-58
Advisor:
Mairs & Power Inc
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$2500
Add: $100 IRA: $1000
Min Auto Inv Plan:
$2500
Add: $100
Sales Fees:
No-load
Management Fee:
0.60% mx./0.50% mn., 0.00%A
Actual Fees:
Mgt:0.60% Dist:
.
Expense Projections:
3Yr:$224
5Yr:$390 10Yr:$871
Income Distribution:
Semi-Annually
Data through July 31, 2013
Mairs & Power Growth Inv
Ticker
Status Yield Total Assets
Mstar Category
MPGFX Open
1.2% $3,437 mil
Large Blend
98% 98% 98% 98% 98% 99% 98% 96% 98%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 07-13
Historical Profile
Return
Risk
Rating
High
Average
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
14.0
18.0
22.0
Portfolio Analysis
06-30-13
Share change since 05-13 Total Stocks:46 Sector
PE Tot Ret% % Assets
Valspar Corporation
Basic Mat 21.6 9.90 4.59
3M Co
Industrl
18.6 27.84 4.46
Medtronic, Inc.
Hlth care 16.4 35.98 4.27
Target Corp
Cnsmr Def 16.7 21.63 4.15
Pentair Ltd
Industrl
.
25.72 4.09
Honeywell International,
Industrl
20.7 32.03 3.98
Ecolab, Inc.
Basic Mat 33.9 28.79 3.90
Graco Incorporated
Industrl
22.9 36.98 3.83
Emerson Electric Co.
Technology 21.6 17.43 3.78
U.S. Bancorp
Finan Svs 12.9 18.17 3.54
Toro Company
Industrl
19.6 15.31 3.53
H.B. Fuller Company
Basic Mat 21.3 16.13 3.49
Johnson & Johnson
Hlth care 25.4 35.19 3.14
Donaldson Company, Inc.
Industrl
22.3 11.08 3.04
Hormel Foods Corporation
Cnsmr Def 22.8 37.33 2.79
Bemis Co Inc
Cnsmr Cyc 23.9 24.66 2.77
Wells Fargo & Co
Finan Svs 12.3 28.88 2.57
Baxter International Inc
Hlth care 17.6 10.98 2.31
General Electric Co
Industrl
18.1 17.01 2.28
General Mills, Inc.
Cnsmr Def 18.6 31.22 2.28
Current Investment Style
Market Cap %
Giant
27.7
Large
23.1
Mid
32.6
Small
10.4
Micro
6.1
Avg $mil:
17,169
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
16.31
2.66
1.56
9.48
2.13
1.14
1.31
1.24
1.34
0.98
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
10.61
9.01
7.44
6.12
9.55
1.03
1.70
2.53
0.90
1.10
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
20.34
8.54
11.88
1.06
1.11
0.93
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 28.02 0.97
BasicMat 12.26 4.01 14 12
CnsmrCyc 3.59 0.42 4 3
FinanSvs 12.17 0.78 13 11
Real Est 0.00 0.00
. .
Sensitive 45.19 1.04
CommSrvs 0.00 0.00
. .
Energy 1.61 0.15 2 1
Industrl 31.76 2.79 38 31
Technlgy 11.82 0.67 12 5
Defensive26.79 0.97
CnsmrDef 9.43 0.78 11 9
Hlthcare 17.36 1.47 20 17
Utilities 0.00 0.00
. .
h
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t
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u
j
i
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p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
2.3
Stocks 97.7
Bonds 0.0
Other
0.0
Foreign 0.0
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2013Morningstar, Inc.All rights reserved. The information herein isnot represented orwarranted to be accurate, correct, complete or
timely. Pastperformance isnoguarantee of future results.Access updated reports at
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