6
Morningstar Analyst Rating
08-21-13
„
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
38.35
30.98
28.13
30.34
23.42
16.73
31.07
32.29
32.50
34.75
34.02
22.97
Total Return %
23.79
13.33
-3.37
29.55
40.16
-30.47
3.38
12.78
4.93
7.05
48.11
-22.24
+/-S&P 500
7.64
-2.67
-5.48
14.49
13.70
6.53
-2.11
-3.01
0.02
-3.83
19.43
-0.14
+/-Russ 2000
3.76
-3.02
0.81
2.70
12.99
3.32
4.95
-5.59
0.38
-11.28
0.86
-1.76
Income Return %
0.00
0.00
0.00
0.00
0.17
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Return %
23.79
13.33
-3.37
29.55
39.99
-30.47
3.38
12.78
4.93
7.05
48.11
-22.24
Total Rtn % Rank Cat
8
74
51
13
18
12
19
71
67
98
23
27
Income $
0.00
0.00
0.00
0.00
0.03
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Capital Gains $
0.00
0.85
1.20
0.00
0.00
4.99
2.40
4.30
3.72
1.55
0.00
0.00
Expense Ratio %
.
1.26
1.26
1.30
1.40
1.53
1.52
1.50
1.48
1.43
1.47
1.46
Income Ratio %
.
-0.34
-0.48
-0.47
0.12
-0.37
-0.17
-0.38
-0.61
-0.87
-0.71
-0.60
Turnover Rate %
.
55
78
59
58
72
41
49
63
64
53
93
Net Assets $mil
808
600
501
508
371
352
850
922
1,025
1,156
1,229
599
Performance
08-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-7.71 17.49 25.25 3.21 40.16
10.50 -9.51 12.60 15.06 29.55
8.37 -0.12 -22.23 14.79 -3.37
13.69 -7.82
2.65 5.35 13.33
14.82 2.02
. . .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
2000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
4.27 3.60
1.20
11 10,427
12.40 3.45
0.67
25 11,240
32.47 13.77
6.20
8 13,247
20.68 2.28
0.18
32 17,575
12.07 4.75
4.09
4 17,679
9.64 2.52
0.88
26 25,101
14.02 8.47
5.01
1 71,567
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
20.27
28
0.34
55
11.02
5
0.94
92
8.38
29
1.14
77
Potential Capital Gain Exposure: 30% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
32.47
3 Yr
20.68
Avg
+Avg
5 Yr
12.07
High
Avg
10 Yr
9.64
+Avg
Avg
Incept
15.95
Other Measures
Standard Index
Best Fit Index
S&P 500 Mstar Small Cap TR
Alpha
-3.8
-1.4
Beta
1.37
1.08
R-Squared
88
97
Standard Deviation
19.19
Mean
20.68
Sharpe Ratio
1.08
Morningstar’s Take
by Michelle Canavan 08-21-13
Strong security selection has propelled FMI Focus to
big gains.
Despite a cash drag of nearly 11% while the equity
market has surged thus far in 2013, strong stock
selection has propelled this fund to a category-topping
year-to-date gain of 24.9% through Aug. 19. A
combination of relatively rich valuations and strong
inflows to the fund has kept the cash balance well
above the small-blend category average of 2%, not
uncommon given the fund’s strict valuation threshold.
Exhibiting the same discipline and patience that has
served this fund well for nearly 17 years, lead manager
Rick Lane and team have continued to focus on finding
good businesses at bargain prices. They look to buy
when a stock is downtrodden but a catalyst exists to
reignite the firm’s growth. After a disappointing 2012,
many of those catalysts have been playing out this
year. After purchasing marketing communications firm
MDC Partners MDCA in 2011, they waited out a tough
transition period because they were confident that an
internally defined private market value for the firm was
well above its trading value. MDC Partners’ significant
investment in personnel talent has since paid
dividends, and the stock (2.5% of fund assets) has
gained 115% for the year to date through Aug. 19.
As usual, the team isn’t afraid to place big bets on
certain sectors. For example, it believes valuations in
the technology sector have been generally compelling.
The fund’s 24% allocation to the sector is well above
that of the fund’s Russell 2000 benchmark (17%) and
its typical small-blend peer (16%). New purchases in
that sector include ON Semiconductor ONNN (1.3%
of fund assets), an analog chip vendor with good
exposure to the recovering automotive sector. The firm
is in the process of a cost-cutting initiative that should
improve profitability.
The consistent execution of a patient approach and
a long-tenured investment team make this fund a
standout in the small-blend category. Over Lane’s
nearly 17-year tenure, this fund’s 13.3% annualized
gain tops every peer that has been around as long. It
remains a strong choice.
Address:
FMI Funds Inc
Milwaukee, WI 53202
800-811-5311
Web Address:
Inception:
12-16-96
Advisor:
Fiduciary Management, Inc. of Milwaukee
Subadvisor:
Broadview Advisors, LLC
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:
1.00%
Actual Fees:
Mgt:1.00% Dist:
.
Expense Projections:
3Yr:$400
5Yr:$692 10Yr:$1523
Income Distribution:
Annually
Data through August 31, 2013
FMI Focus
Ticker
Status Yield Total Assets
Mstar Category
FMIOX Open
0.0% $808 mil
Small Blend
93% 90% 89% 97% 86% 91% 82% 92% 85%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 08-13
Historical Profile
Return
Risk
Rating
Above Avg
Average
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
7.0
14.0
18.0
22.8
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:83 Sector
PE Tot Ret% % Assets
Hexcel Corporation
Industrl
21.5 31.94 3.44
MedAssets, Inc.
Technology
.
33.69 2.71
MDC Partners, Inc. Class
Cnsmr Cyc
.
102.04 2.47
Fifth & Pacific Companie
Cnsmr Cyc
.
91.49 2.32
PTC Inc
Technology
.
15.82 2.05
Omnicare Inc
Hlth care 26.3 51.39 1.96
Zions Bancorporation
Finan Svs 21.3 31.12 1.92
Mobile Mini Inc
Cnsmr Cyc 71.4 45.71 1.90
Arrow Electronics Inc
Technology 11.2 21.90 1.77
Masco Corporation
Basic Mat 93.5 14.92 1.69
Healthsouth Corp
Hlth care 11.6 49.03 1.69
Winnebago Industries
Cnsmr Cyc 10.2 30.01 1.62
NxStage Medical, Inc.
Hlth care
.
9.78 1.60
Chicago Bridge & Iron Co
Industrl
19.7 29.30 1.59
Crane Company
Industrl
15.6 25.91 1.52
Celanese Corporation
Basic Mat 16.8 11.35 1.48
Polypore International,
Industrl
36.0 -8.06 1.48
Meridian Bioscience, Inc
Hlth care 25.1 12.94 1.46
Rockwood Holdings Inc
Basic Mat 34.6 30.73 1.44
Gentex Corporation
Cnsmr Cyc 18.1 21.70 1.38
Current Investment Style
Market Cap %
Giant
0.0
Large
0.0
Mid
51.1
Small
32.7
Micro 16.2
Avg $mil:
2,347
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
18.55
2.02
1.05
6.01
0.90
1.14
1.20
1.14
0.93
0.64
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
12.18
2.64
3.90
16.33
7.58
0.98
1.58
2.19
1.80
1.17
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
8.82
3.17
3.77
0.76
0.68
0.44
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 37.77 1.31
BasicMat 8.02 2.62 8 3
CnsmrCyc20.99 2.45 23 17
FinanSvs 8.76 0.56 10 6
Real Est 0.00 0.00
. .
Sensitive 49.65 1.14
CommSrvs 0.00 0.00
. .
Energy 3.01 0.28 6 3
Industrl 22.81 2.01 31 23
Technlgy 23.83 1.36 24 19
Defensive12.58 0.46
CnsmrDef 0.00 0.00 0 0
Hlthcare 12.58 1.06 14 11
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash 10.8
Stocks 85.1
Bonds 0.0
Other
4.1
Foreign 3.3
©
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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