23
Morningstar FundInvestor
August 2
013
Morningstar Analyst Rating
07-12-13
„
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
15.53
13.93
12.85
12.63
11.55
8.88
11.57
11.62
10.85
10.79
10.63
.
Total Return %
11.49
8.67
1.77
9.41
30.07
-20.93
4.98
14.72
3.82
4.47
. .
+/-S&P 500
-8.13
-7.33
-0.34
-5.65
3.61
16.07
-0.51
-1.07
-1.09
-6.41
. .
+/-Russ 1000
-8.51
-7.75
0.27
-6.69
1.64
16.67
-0.79
-0.74
-2.45
-6.93
. .
Income Return %
0.00
0.00
0.03
0.06
0.00
1.15
2.65
2.85
1.37
0.64
. .
Capital Return %
11.49
8.67
1.74
9.35
30.07
-22.08
2.33
11.87
2.45
3.83
. .
Total Rtn % Rank Cat
33
27
27
13
8
67
48
11
69
94
. .
Income $
0.00
0.00
0.00
0.01
0.00
0.13
0.30
0.30
0.15
0.07
0.02
.
Capital Gains $
0.00
0.03
0.00
0.00
0.00
0.15
0.32
0.50
0.20
0.24
0.00
.
Expense Ratio %
.
1.27
1.30
1.34
1.47
1.75
1.64
1.72
1.71
. . .
Income Ratio %
.
-0.20
-0.44
0.03
0.24
2.25
2.40
1.98
0.76
. . .
Turnover Rate %
.
71
82
60
167
71
172
123
206
120
. .
Net Assets $mil
1,374
1,584
973
403
188
95
79
46
28
24
16
.
Performance
07-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-1.46 16.00
9.66 3.77 30.07
3.03 -8.57
7.94 7.60
9.41
7.36 -2.33 -10.50 8.44
1.77
6.61 -4.96
4.92 2.22
8.67
9.19 -0.13
. . .
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
2.58 -3.52
-3.65
53 10,258
4.37 -9.36
-9.46
60 10,437
18.57 -6.43
-7.66
21 11,857
11.43 -6.31
-6.61
25 13,836
6.89 -1.37
-1.60
18 13,954
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
11.41
19
0.02
22
6.70
17
0.18
49
. . . .
Potential Capital Gain Exposure: 21% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
18.57
3 Yr
11.43
+Avg
+Avg
5 Yr
6.89
+Avg
+Avg
10 Yr
. . . .
Incept
6.80
Other Measures
Standard Index
Best Fit Index
S&P 500
S&P 400 TR
Alpha
-2.8
-1.5
Beta
0.83
0.69
R-Squared
84
90
Standard Deviation
12.03
Mean
11.43
Sharpe Ratio
0.96
Morningstar’s Take
by Mallory Horejs, CFA 07-12-13
Wasatch Long-Short is still a cut above the rest.
This long-short equity fund has delivered a 6.8%
annualized return since its August 2003 inception
(through June), keeping pace with the S&P 500 Index
and outperforming its category by a large margin. Even
better, the fund’s risk-adjusted returns surpass both
benchmarks. Portfolio managers Michael Shinnick and
Ralph Shive’s historical energy and information
technology bent (21% and 17%, respectively, as of
March 31) have played a key role in driving these good
returns; however, exposure to these more-volatile
industries has also hurt the portfolio at times. In the
second quarter of 2012, for example, falling oil prices
left this energy-heavy fund in the category’s bottom
quartile. So far, though, Shinnick has avoided major
losses on individual positions through strict position
limits (6% for long stocks, 3% for shorts), technical
analysis, and covered-call writing.
Though management’s macro views are important,
its stock-picking skills are equally influential
throughout the portfolio construction process. In this
regard, Shinnick and Shive have proven themselves
both on the long and the short side. Investors, for
example, have recently benefited from big gains in
long technology holding Applied Materials AMAT and
a solid leveraged buyout offer for Dell DELL, both of
which were added to the long book in the fourth
quarter of 2012 based on attractive valuations and
strong business prospects. On the short side,
management targets high valuations but also requires
positions to have a clear thesis as to why market
value will contract. The duo then relies on technical
analysis to determine the best entry and exit
points--luxury brand Tiffany & Co. TIF was re-added to
the short book in the first quarter of 2013, for example,
after management successfully shorted the company
back in late 2011.
On top of strong returns and a topnotch investment
process, the fund’s 1.27% expense ratio makes it a
very attractively priced long-short option.
Address:
Wasatch Funds Trust
Salt Lake City, UT 84111
800-551-1700
Web Address:
Inception:
08-01-03
Advisor:
Wasatch Advisors Inc.
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$2000
Add: $100 IRA: $2000
Min Auto Inv Plan:
$1000
Add: $50
Sales Fees:
No-load, 2.00%R
Management Fee:
1.10%
Actual Fees:
Mgt:1.10% Dist:
.
Expense Projections:
3Yr:$478
5Yr:$824 10Yr:$1801
Income Distribution:
Quarterly
Data through July 31, 2013
Wasatch Long/Short Investor
Ticker
Status Yield Total Assets
Mstar Category
FMLSX Open
0.0% $2,165 mil
Long/Short Equity
72% 67% 68% 76% 62% 75% 70% 73% 81%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 07-13
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
S&P 500
Performance Quartile
(within Category)
History
10.0
12.5
15.0
17.5
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:52 Sector
PE Tot Ret% % Assets
Denbury Resources Inc
Energy
13.5 8.02 3.98
Apple Inc
Technology 11.3 -13.89 3.79
Mosaic Co
Basic Mat
9.3 -26.12 3.72
Loews Corporation
Finan Svs 27.3 12.24 3.64
Microsoft Corporation
Technology 12.4 20.93 2.66
Interpublic Group of Cos
Cnsmr Cyc 19.0 50.64 1.90
General Motors Co
Cnsmr Cyc 10.2 24.42 1.85
Halliburton Company
Energy
23.0 30.99 1.77
Target Corp
Cnsmr Def 16.7 21.63 1.76
Talisman Energy Inc
Energy
.
1.02 1.66
Silicon Graphics Interna
Technology
.
83.97 1.64
CNA Financial Corp
Finan Svs 14.6 28.20 1.64
Express Scripts
Hlth care 29.3 21.39 1.61
Bill Barrett Corporation
Energy
.
26.03 1.60
Unum Group
Finan Svs
9.8 53.91 1.58
Noble Corporation
Energy
17.5 10.45 1.38
Patterson-UTI Energy, In
Energy
14.1 6.66 1.37
Outerwall Inc
Cnsmr Cyc 12.9 6.23 1.36
MetLife Inc
Finan Svs 22.9 48.39 1.31
National Oilwell Varco,
Energy
12.6 3.23 1.28
Current Investment Style
Market Cap %
Giant
20.8
Large
36.7
Mid
23.2
Small
13.8
Micro
5.5
Avg $mil:
15,790
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.39
1.37
1.08
5.57
1.35
0.86
0.72
0.91
0.85
0.67
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.48
8.84
7.61
9.31
-7.45
1.03
2.86
6.68
1.81
NMF
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
13.28
7.03
11.13
0.87
1.24
1.09
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 34.12 1.19
BasicMat 8.82 2.88 13 6
CnsmrCyc10.74 1.25 11 8
FinanSvs 14.56 0.93 20 15
Real Est 0.00 0.00 0 0
Sensitive 54.77 1.26
CommSrvs 1.40 0.35 3 0
Energy 26.32 2.46 28 13
Industrl
8.97 0.79 12 8
Technlgy 18.08 1.03 23 17
Defensive11.10 0.40
CnsmrDef 3.66 0.30 8 3
Hlthcare 7.44 0.63 8 3
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 41.7
Stocks 58.5
Bonds 0.0
Other
-0.2
Foreign 13.8
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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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mfb.morningstar.com.
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