7
Morningstar FundInvestor
November
2013
Morningstar Analyst Rating
10-30-13
„
Morningstar Pillars
Process
Performance
People
Parent
Price
§
Positive
Positive
Positive
Positive
Negative
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
11.68
10.16
9.20
9.01
8.56
6.85
10.00
. . . . .
Total Return %
16.26
12.34
4.04
7.73
28.18
-29.35
. . . . . .
+/-MSCI WexUS
2.18
-4.49
17.75
-3.42
-13.27
16.18
. . . . . .
+/-MSCI Ac Wrld ND
-2.77
-3.79
11.39
-4.94
-6.45
12.84
. . . . . .
Income Return %
1.17
1.74
1.98
2.26
2.87
2.57
. . . . . .
Capital Return %
15.09
10.60
2.06
5.47
25.31
-31.92
. . . . . .
Total Rtn % Rank Cat
78
80
7
87
75
6
. . . . . .
Income $
0.12
0.16
0.18
0.19
0.20
0.26
0.03
. . . . .
Capital Gains $
0.00
0.00
0.00
0.00
0.00
0.00
0.00
. . . . .
Expense Ratio %
1.37
1.37
1.37
1.37
1.37
1.37
. . . . . .
Income Ratio %
1.88
2.11
2.00
2.36
2.99
2.38
. . . . . .
Turnover Rate %
12
6
16
18
38
2
. . . . . .
Net Assets $mil
761
675
404
239
133
88
62
. . . . .
Performance
10-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-11.09 17.49 13.78 7.85 28.18
0.70 -9.31 12.84 4.53
7.73
5.66 3.16 -10.10 6.17
4.04
5.98 -2.63
5.66 3.03 12.34
5.02 -0.39
7.61
. .
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS Ac Wrld ND
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
5.61 -3.73
-1.50
72 10,561
7.28 0.62
-1.38
76 10,728
19.79 -0.50
-3.50
77 11,979
11.19 5.15
0.83
45 13,747
12.94 0.46
-0.53
67 18,375
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
10.43
42
0.68
66
12.10
65
0.74
70
. . . .
Potential Capital Gain Exposure: 23% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
19.79
3 Yr
11.19
Avg
Low
5 Yr
12.94
Avg
Low
10 Yr
. . . .
Incept
4.74
Other Measures
Standard Index
Best Fit Index
MSCI WexUS
MSCI Eur
Alpha
6.7
5.5
Beta
0.62
0.56
R-Squared
87
93
Standard Deviation
11.54
Mean
11.19
Sharpe Ratio
0.97
Morningstar’s Take
by Kevin McDevitt, CFA 10-30-13
Tweedy, Browne Worldwide High Dividend Yield
Value’s future remains bright.
Things are not nearly as bleak for this fund as they
may appear. Granted, it’s on pace for its fourth
bottom-half calendar-year finish out of the past five,
but lagging during rallies is somewhat expected for
this high-quality, bear-market specialist. Still, its
14.4% annualized five-year return through Oct. 28 trails
the 15.5% gain of its best-fit namesake benchmark, the
MSCI World High Dividend Yield Index. Keep in mind,
however, that it has beaten that bogy by nearly 3
percentage points annualized since its 2007 inception.
Most of that spread was accrued during the
2007-09 credit crisis, which highlighted the fund’s
advantages. The fund’s value consciousness separates
it from most dividend-focused, high-quality-oriented
rivals. The portfolio’s average multiples are for the
most part lower than those of the index, which should
reduce price risk somewhat. The proportion of
high-quality holdings is also far higher than for most
peers. Of its holdings covered by Morningstar analysts,
less than 7% do not have a competitive moat versus
13.5% for the world-stock average. Finally, rising
equity valuations have led the team to accumulate
cash. The fund now has an 11% cushion, which,
although it has hampered returns in recent years,
would come in handy during a sell-off.
Looking to the longer term, recent promotions
address this fund’s succession issues. This past July,
analysts David Browne, Roger de Bree, and Jay Hill
were promoted to the firm’s investment committee,
which also includes the fund’s four comanagers. These
three will likely replace the current managers as they
retire. While none of the current managers have plans
to step down, Will Browne is approaching 70 years old
and creating a succession plan reduces uncertainty.
Working on the investment committee should give the
three analysts further seasoning, all of whom have
been with the firm for at least eight years.
Overall, this fund looks well-prepared for whatever
the future might bring. It remains an excellent choice
for those seeking a conservative equity option.
Address:
350 Park Ave 9th Fl
New York, NY 10022
800-432-4789
Web Address:
Inception:
09-04-07
Advisor:
Tweedy Browne Co LLC
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$2500
Add: $200 IRA: $500
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load, 2.00%R
Management Fee:
1.25%
Actual Fees:
Mgt:1.25% Dist:
.
Expense Projections:
3Yr:$440
5Yr:$761 10Yr:$1669
Income Distribution:
Semi-Annually
Data through October 31, 2013
Tweedy, Browne Worldwide Hi Div Yld Val
Ticker
Status Yield Total Assets
Mstar Category
TBHDX Open
1.3% $761 mil
World Stock
99% 76% 90% 86% 84% 79% 87%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 10-13
Historical Profile
Return
Risk
Rating
Average
Low
Neutral
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
4.0
6.0
12.0
Portfolio Analysis
09-30-13
Share change since 06-13 Total Stocks:43 Sector
Country
% Assets
Dreyfus Government Pr Ca
.
United States 10.13
Total SA
Energy
France
4.79
Novartis AG
Hlth care Switzerland
4.08
Roche Holding AG
Hlth care Switzerland
3.94
Cisco Systems Inc
Technology United States
3.75
Johnson & Johnson
Hlth care United States
3.71
Royal Dutch Shell PLC Cl
Energy
U.K.
3.44
Axel Springer AG
Cnsmr Cyc Germany
3.42
HSBC Holdings PLC
Finan Svs U.K.
3.36
Muenchener Rueckversiche
Finan Svs Germany
2.85
Unilever NV DR
Cnsmr Def
Netherlands
2.81
Zurich Insurance Group A
Finan Svs Switzerland
2.68
Siemens AG
Industrl
Germany
2.64
G4S PLC
Industrl
U.K.
2.62
SCOR SE
Finan Svs France
2.54
ABB, Ltd.
Industrl
Switzerland
2.44
GlaxoSmithKline PLC
Hlth care U.K.
2.42
Nestle SA
Cnsmr Def
Switzerland
2.35
United Overseas Bank Ltd
Finan Svs Singapore
2.33
Diageo PLC
Cnsmr Def
U.K.
2.22
Current Investment Style
Market Cap %
Giant
63.6
Large
23.0
Mid
13.4
Small
0.0
Micro
0.0
Avg $mil:
55,823
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
U.K.
27
United States 20
Switzerland 17
Germany
10
France
10
Regional Exposure
% Stock
UK/W. Europe 36
Japan
0
Asia X Japan 3
N. America 11
Latn America 1
Other
49
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 32.50
.
BasicMat 2.24
.
3 1
CnsmrCyc 6.62
.
6 4
FinanSvs 23.64
.
24 17
Real Est 0.00
. . .
Sensitive 33.50
.
CommSrvs 0.00
.
8 1
Energy 14.07
.
14 12
Industrl 15.22
.
16 9
Technlgy 4.21
.
10 3
Defensive34.01
.
CnsmrDef17.74
.
29 19
Hlthcare 16.27
.
17 11
Utilities 0.00
.
4 2
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
11.0
Stocks
89.1
Bonds
0.0
Other
0.0
Foreign
80.0
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
7.34
2.51
0.15
7.33
-2.65
0.65
1.21
0.58
9.40
NMF
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
12.96
1.83
0.88
7.00
3.57
0.88
0.95
0.68
0.98
1.46
©
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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