7
Morningstar FundInvestor
October
2013
Morningstar Analyst Rating
09-20-13
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Neutral
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
47.47
41.68
39.44
41.41
37.25
28.50
47.79
46.07
40.23
36.86
. .
Total Return %
21.12
13.19
-4.02
12.90
32.06
-39.24
5.11
15.59
10.19
. . .
+/-S&P 500
1.33
-2.81
-6.13
-2.16
5.60
-2.24
-0.38
-0.20
5.28
. . .
+/-Russ 1000
0.36
-3.23
-5.52
-3.20
3.63
-1.64
-0.66
0.13
3.92
. . .
Income Return %
0.64
1.89
0.73
1.65
1.34
1.01
1.38
1.04
1.05
. . .
Capital Return %
20.48
11.30
-4.75
11.25
30.72
-40.25
3.73
14.55
9.14
. . .
Total Rtn % Rank Cat
32
74
76
66
21
68
57
25
8
. . .
Income $
0.27
0.75
0.30
0.62
0.38
0.49
0.64
0.42
0.39
0.35
. .
Capital Gains $
2.60
2.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
. .
Expense Ratio %
.
0.61
0.61
0.60
0.61
0.59
0.57
0.58
0.60
0.65
. .
Income Ratio %
.
1.62
1.14
1.13
1.19
1.19
1.32
1.04
1.11
1.10
. .
Turnover Rate %
.
7
11
9
11
18
8
9
4
3
. .
Net Assets $mil
3,713
3,375
3,519
3,942
3,644
2,880
5,018
4,406
1,673
680
. .
Performance
09-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-12.67 21.13 17.31 6.41 32.06
4.35 -11.09
9.95 10.67 12.90
4.66 -1.89 -15.85 11.08 -4.02
11.28 -3.96
4.32 1.53 13.19
10.48 3.52
5.90
. .
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
5.90 0.66
-0.12
47 10,590
9.62 1.31
0.79
29 10,962
22.97 3.63
2.06
22 12,297
13.35 -2.92
-3.29
75 14,563
8.24 -1.78
-2.29
74 14,857
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
12.25
75
0.97
87
7.52
73
0.67
76
. . . .
Potential Capital Gain Exposure: 49% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
22.97
3 Yr
13.35
-Avg
Avg
5 Yr
8.24
-Avg
+Avg
10 Yr
. . . .
Incept
6.07
Other Measures
Standard Index
Best Fit Index
S&P 500
R3000
Alpha
-2.8
-2.6
Beta
1.02
0.98
R-Squared
96
97
Standard Deviation
12.94
Mean
13.35
Sharpe Ratio
1.03
Morningstar’s Take
by Dan Culloton 09-20-13
Selected American can still work for the long term.
The fund has struggled to extricate itself from a
recent performance quagmire. It bounced back from the
financial crisis in 2009 with top quartile results only to
slip to below average the next three years as it took a
pass on Apple AAPL and stuck with laggards like
Hewlett-Packard HPQ, Bank of New York Mellon BK,
and Canadian Natural Resources CNQ. Investors have
voted with their feet; the fund has seen more than $6
billion in outflows in the five years ended August 2013,
which is more net redemptions than most equity funds
had in that period.
Don’t capitulate. The mutual fund industry is replete
with once-popular offerings that slid into chronic
mediocrity, but there are differences here. This fund
hasn’t changed its management or strategy as others
have; it still charges a reasonable fee; and its
shareholder-friendly culture remains intact. Chris Davis
and Ken Feinberg, who have run this fund for more
than 15 years, have enough money invested here to
have keenly felt all of the fund’s mistakes and have
ample incentive to learn from them. Indeed, whereas
they have seemed almost patient to a fault with some
holdings in the past--AIG AIG in 2008 being the most
extreme example--the crisis and five years of
unrelenting outflows have forced the managers to be
more assiduous about trimming lower conviction or
richly valued stocks, such as Hewlett Packard or
Netflix NFLX. As a result the fund is more
concentrated, with fewer holdings and more assets in
its top 10, than it has been in years.
That could help the fund differentiate itself from its
benchmark and peers, and it has improved recently.
The fund’s year-to-date and trailing year results
through Sept. 18, 2013, rank in the category’s top
third, due not only to triple-digit gains from Netflix, but
also strong contributions from long-term holdings,
such as American Express AXP, Wells Fargo WFC,
Berkshire Hathaway BRK.A, and Bed Bath &
Beyond BBBY. Former detractors, such as Bank of New
York Mellon, also have pitched in, which bodes well
for the fund’s patient approach.
Address:
2949 E. Elvira Road
Tucson, AZ 85706
800-243-1575
Web Address:
Inception:
05-03-04
Advisor:
Davis Selected Advisers LP
Subadvisor:
Davis Selected Advisers (New York) Inc.
NTF Plans:
N/A
Minimum Purchase:
$10000
Add: $25 IRA: $10000
Min Auto Inv Plan:
$10000
Add: $25
Sales Fees:
No-load
Management Fee:
0.55% mx./0.49% mn.
Actual Fees:
Mgt:0.54% Dist:
.
Expense Projections:
3Yr:$195
5Yr:$340 10Yr:$762
Income Distribution:
Annually
Data through September 30, 2013
Selected American Shares D
Ticker
Status Yield Total Assets
Mstar Category
SLADX Open
1.9% $5,681 mil
Large Blend
97% 98% 99% 97% 97% 96% 96% 98% 97%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 09-13
Historical Profile
Return
Risk
Rating
Below Avg
Above Avg
Below 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
12.0
14.4
17.2
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:73 Sector
PE Tot Ret% % Assets
American Express Co
Finan Svs 18.4 32.48 6.20
Wells Fargo & Co
Finan Svs 11.2 23.38 5.68
CVS Caremark Corp
Cnsmr Def 16.8 18.77 5.64
Google, Inc. Class A
Technology 26.1 23.82 5.13
Bank of New York Mellon
Finan Svs 18.4 19.14 4.78
Berkshire Hathaway Inc C
Finan Svs 15.7 27.11 4.38
Costco Wholesale Corpora
Cnsmr Def 24.9 17.56 4.02
Bed Bath & Beyond, Inc.
Cnsmr Cyc 16.8 38.37 3.17
EOG Resources
Energy
45.9 40.60 2.62
UnitedHealth Group Inc
Hlth care 13.6 33.45 2.31
Progressive Corporation
Finan Svs 14.2 30.40 2.23
Julius Baer Gruppe AG
Finan Svs
. .
2.21
Loews Corporation
Finan Svs 28.0 15.31 2.18
Canadian Natural Resourc
Energy
25.3 10.17 2.16
Walt Disney Co
Cnsmr Cyc 19.6 29.52 2.02
Air Products & Chemicals
Basic Mat 22.2 29.37 1.87
Express Scripts
Hlth care 27.7 14.44 1.81
Diageo PLC
Cnsmr Def
. .
1.77
Alleghany Corp DEL
Finan Svs 20.2 22.13 1.77
Texas Instruments, Inc.
Technology 21.9 32.92 1.69
Current Investment Style
Market Cap %
Giant
47.0
Large
42.7
Mid
10.1
Small
0.3
Micro
0.0
Avg $mil:
45,726
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
16.39
1.73
1.28
6.04
1.50
1.14
0.85
1.02
0.85
0.69
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.28
9.45
11.28
8.73
7.31
1.09
1.78
3.88
1.28
0.41
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
14.37
5.75
12.50
0.75
0.75
0.98
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 52.95 1.84
BasicMat 5.93 1.94 7 5
CnsmrCyc 8.12 0.95 9 8
FinanSvs 36.64 2.34 37 27
Real Est 2.26 1.55 2 2
Sensitive 25.62 0.59
CommSrvs 1.28 0.32 1 0
Energy 7.70 0.72 17 8
Industrl
4.70 0.41 7 5
Technlgy 11.94 0.68 12 6
Defensive21.42 0.78
CnsmrDef15.28 1.26 18 15
Hlthcare 6.14 0.52 13 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
3.3
Stocks 96.6
Bonds 0.0
Other
0.0
Foreign 17.0
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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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