23
Morningstar FundInvestor
September
2013
Morningstar Analyst Rating
08-27-13
„
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
25.71
22.70
24.19
22.69
20.36
23.59
23.43
21.57
20.91
19.96
15.70
17.74
Total Return %
12.30
9.07
-0.26
10.63
15.83
-11.72
5.32
12.29
6.57
8.69
31.34
-5.99
+/-M* MdTgRk
6.21
-2.97
-0.85
-1.70
-5.94
10.47
-3.31
-0.66
-0.47
-2.79
8.86
0.70
+/-Mstr Md Ag Rk
3.27
-5.26
1.67
-4.29
-11.72
18.93
-3.62
-3.70
-2.28
-5.38
2.20
6.31
Income Return %
1.46
3.90
3.42
3.19
4.20
1.47
2.41
2.71
2.14
3.29
3.92
5.38
Capital Return %
10.84
5.17
-3.68
7.44
11.63
-13.19
2.91
9.58
4.43
5.40
27.42
-11.37
Total Rtn % Rank Cat
6
88
51
75
93
2
59
27
23
53
2
7
Income $
0.34
0.82
0.72
0.85
0.35
0.56
0.58
0.44
0.65
0.61
0.94
0.96
Capital Gains $
0.03
0.59
0.16
0.00
0.16
0.53
0.19
0.25
0.10
0.00
0.00
0.00
Expense Ratio %
.
0.93
0.91
0.95
1.03
1.06
1.03
1.07
1.16
1.06
1.14
1.19
Income Ratio %
.
2.89
2.40
2.51
3.67
2.15
2.24
2.56
2.30
2.60
3.44
5.33
Turnover Rate %
.
28
58
60
47
47
54
39
36
35
102
79
Net Assets $mil
774
653
741
830
528
307
258
244
157
132
109
51
Performance
08-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-2.76 2.79
-3.11 -8.85 15.83
-5.84 12.21
6.60 2.85 10.63
3.48 -2.73
4.77 4.90 -0.26
1.90 -0.28
-8.27 7.01
9.07
5.86 -3.54
4.05 2.66
.
Trailing
Total
+/- M* +/- Mstr
%Rank Growth of
Return% MdTgRk Md Ag Rk
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
3.20 3.48
3.09
1 10,320
7.80 5.08
3.43
3 10,780
16.98 7.39
3.16
4 11,698
9.81 -0.54
-2.93
70 13,241
5.96 -0.17
-0.29
43 13,357
7.98 0.57
-0.13
5 21,549
8.20
. .
5 32,614
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
8.12
75
1.54
96
4.55
53
1.34
91
6.68
7
1.20
78
Potential Capital Gain Exposure: 18% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
16.98
3 Yr
9.81
Avg
Low
5 Yr
5.96
Avg
Low
10 Yr
7.98
High
-Avg
Incept
9.82
Other Measures
Standard Index
Best Fit Index
M* MdTgRk Mstar Mid Cap TR
Alpha
1.4
0.2
Beta
0.81
0.48
R-Squared
80
89
Standard Deviation
8.01
Mean
9.81
Sharpe Ratio
1.20
Morningstar’s Take
by Kevin McDevitt, CFA 08-27-13
Greenspring’s capital-preservation emphasis comes
with trade-offs, but these are more than acceptable.
The past 12 months showed this fund’s ability to
earn robust returns with modest risk. Its 18% gain
through Aug. 16 crushes the typical
moderate-allocation fund’s 11.8% return. It trails the
S&P 500 Index’s gain by just 1.6 percentage points,
which is striking given that often less than 50% of the
portfolio is in equities. It punches above its weight by
focusing on small/mid-cap stocks and high-yield bonds,
which have beaten larger-cap equities and
higher-quality credits. Yet, somewhat surprisingly, the
fund has been even better during bear markets,
especially in 2008. It came through again during this
year’s second-quarter interest-rate spike. The bond
portfolio’s short 2.7-year duration--versus the category
average’s 4.6 years--damped rate sensitivity, helping
the fund hold up better than most peers.
Indeed, the fund has become a bit more
conservative over the years, which can curtail returns
during rallies. Since March 2009, the fund’s 13.2%
annualized return through Aug. 16 trails the 16.3%
gain of its average rival. The reverse was true
following the 2002 bear market when the fund gained
14.7% for the five years through September 2007
versus the category’s 11.3%. But the fund was more
aggressively positioned post 2002 than in 2009. In
2003, manager Chip Carlson parked nearly two thirds
of assets in high-yielding convertible bonds. With their
embedded equity options, those securities offered
more upside and ultimately higher returns than the
conventional high-yield bonds he bought in 2009 when
so-called busted convertibles were scarcer.
Yet, the fund still offers one of the best risk/reward
profiles around. Despite the inherent risks of its
small-cap and high-yield holdings, the fund’s five-year
10.7% standard deviation ranks in the category’s
least-volatile decile. This isn’t by accident, as capital
preservation is one of Carlson’s top priorities. So,
although the fund’s returns since March 2009 are
relatively modest, investors may want to focus instead
on its top-quintile, five-year risk-adjusted results.
Address:
2330 West Joppa Road Suite 110
Lutherville, MD 21093
800-366-3863
Web Address:
Inception:
07-01-83
Advisor:
Corbyn Inv Mgmt Inc (MD )
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, Schwab OneSource
Minimum Purchase:
$5000
Add: $100 IRA: $2500
Min Auto Inv Plan:
$2500
Add: $100
Sales Fees:
No-load, 2.00%R
Management Fee:
0.75% mx./0.65% mn.
Actual Fees:
Mgt:0.70% Dist:
.
Expense Projections:
3Yr:$300
5Yr:$520 10Yr:$1155
Income Distribution:
Semi-Annually
Data through August 31, 2013
Greenspring
Ticker
Status Yield Total Assets
Mstar Category
GRSPX Open
2.9% $774 mil
Moderate Allocation
46% 48% 60% 39% 39% 39% 49% 51% 50%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 08-13
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
M* MdTgRk
Performance Quartile
(within Category)
History
10.0
13.0
16.0
19.0
22.0
Portfolio Analysis
07-31-13
Total Stocks:41
P/E
YTD % Net
Share change since 06-30-13
Sectors
Ratio Return % Assets
FTI Consulting, Inc.
Industrl
.
1.18 3.60
Michael Baker Corporation Industrl
113.6 63.78 3.46
Harmonic, Inc.
Technology
.
45.56 3.38
Republic Services Inc Cla
Industrl
18.9 12.27 3.33
j2 Global Inc
Technology 11.7 64.28 3.32
Energen Corp
Energy
12.9 51.22 2.54
PartnerRe Ltd.
Finan Svs
4.8 9.90 2.48
MasTec, Inc.
Industrl
17.5 30.49 2.33
Rosetta Resources, Inc.
Energy
15.1 3.88 2.28
Date of
Amount
Value % Net
Total Fixed-Income:45
Maturity
$000
$000 Assets
Bioscrip 10.25%
10-01-15 21,368 22,568 3.00
Rosetta Resources 9.5%
04-15-18 18,820 20,514 2.73
Petroquest Engy 10%
09-01-17 15,667 16,215 2.16
Live Nation Entrtnmt 144A
05-15-18 12,773 13,763 1.83
Bankrate Inc Del 11.75%
07-15-15 10,909 11,625 1.55
Engy Partners 8.25%
02-15-18
8,882 9,415 1.25
Igate 9%
05-01-16
8,502 9,214 1.23
Scotts Miracle Gro 7.25% 01-15-18
8,684 9,162 1.22
Treehouse Foods 7.75%
03-01-18
7,738 8,260 1.10
Equity Style
Fixed-Income Style
Style: Blend
Size: Small-Cap
Duration: Limited
Quality:
Low
Avg Eff Duration
2.7 Yrs
Avg Eff Maturity
3.1 Yrs
Avg Credit Quality
B
Avg Wtd Coupon
8.76%
figure provided by fund as of 07-31-13
1
1
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
17.11
1.58
0.99
5.48
2.01
1.19
0.83
0.81
0.80
0.84
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
13.83
6.55
9.27
6.15
3.87
1.30
5.65
2.72
4.59
0.09
Market Cap %
Giant
7.0
Large 7.1
Mid 28.5
Small
30.1
Micro
27.3
Avg $mil:
2,825
Composition - Net
(% of Stock)
Cash 15.9
Stocks 50.2
Bonds 30.6
Other
3.3
Foreign 4.5
Sector
Weightings
% of
Stocks
Rel M*
MdTgRk High
3 Year
Low
Cyclical 14.61 0.37
BasicMat 0.00 0.00 1 1
CnsmrCyc 3.14 0.27 4 2
FinanSvs 11.47 0.65 25 11
Real Est 0.00 0.00 0 0
Sensitive 81.04 2.16
CommSrvs 3.19 0.81 3 2
Energy 16.40 1.81 17 8
Industrl 33.63 2.81 34 20
Technlgy 27.82 2.22 33 18
Defensive 4.35 0.19
CnsmrDef 0.00 0.00 10 1
Hlthcare 0.00 0.00 3 0
Utilities 4.35 1.01 6 4
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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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