5
Morningstar FundInvestor
December
2013
Morningstar Analyst Rating
11-25-13
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
¶
¶
Positive
Neutral
Positive
Neutral
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
36.11
39.78
41.63
44.59
34.00
25.07
37.72
39.24
36.57
37.24
33.03
22.98
Total Return %
24.63
12.27
1.07
31.36
36.17
-30.35
5.40
15.81
0.33
14.47
47.90
-17.82
+/-S&P 500
-4.49
-3.73
-1.04
16.30
9.71
6.65
-0.09
0.02
-4.58
3.59
19.22
4.28
+/-Russ MG
-6.92
-3.54
2.72
4.98
-10.12
13.97
-6.03
5.15
-11.77
-1.01
5.19
9.59
Income Return %
0.00
0.37
0.16
0.19
0.55
0.24
0.14
0.03
0.00
0.00
1.00
0.20
Capital Return %
24.63
11.90
0.91
31.17
35.62
-30.59
5.26
15.78
0.33
14.47
46.90
-18.02
Total Rtn % Rank Cat
94
67
19
10
64
2
89
10
98
41
7
12
Income $
0.00
0.15
0.07
0.07
0.14
0.09
0.05
0.01
0.00
0.00
0.23
0.06
Capital Gains $
13.23
6.88
3.27
0.01
0.00
1.09
3.58
3.12
0.80
0.56
0.69
0.61
Expense Ratio %
0.87
0.85
0.81
0.84
0.86
0.84
0.84
0.85
0.86
0.88
0.95
1.06
Income Ratio %
0.11
0.22
0.18
0.24
0.52
0.13
0.11
-0.03
-0.21
-0.21
-0.47
1.18
Turnover Rate %
37
25
26
37
35
39
40
29
32
.
27
26
Net Assets $mil
2,157
2,027
2,450
2,103
1,437
1,057
1,871
1,867
1,636
1,632
746
317
Performance
11-30-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-3.19 14.92 14.59 6.81 36.17
6.21 -6.01 14.82 14.61 31.36
6.21 0.53 -17.75 15.08
1.07
12.83 -4.07
2.20 1.50 12.27
10.13 1.14
6.95
. .
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
MG
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
9.88 -1.28
-0.18
66 10,988
11.74 -0.17
-1.54
86 11,174
25.21 -5.09
-8.70
96 12,521
14.81 -2.92
-1.95
53 15,133
21.36 3.76
-2.13
39 26,326
9.57 1.88
0.02
38 24,941
11.83 6.94
4.23
12 53,503
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
10.80
90
3.49
100
18.58
75
2.30
99
7.89
56
1.53
99
Potential Capital Gain Exposure: 4% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
25.21
3 Yr
14.81
Avg
-Avg
5 Yr
21.36
Avg
-Avg
10 Yr
9.57
Avg
Low
Incept
12.87
Other Measures
Standard Index
Best Fit Index
S&P 500
Russ MG
Alpha
-3.3
-0.5
Beta
1.06
0.92
R-Squared
83
92
Standard Deviation
14.46
Mean
14.81
Sharpe Ratio
1.02
Morningstar’s Take
by Greg Carlson 11-25-13
Meridian Growth has seen a lot of changes lately, but
it’s in good hands.
Chad Meade and Brian Schaub took over this fund
in September 2013, capping a turbulent period for this
fund. In early 2012, Rick Aster, lead skipper since the
fund’s 1984 inception, suddenly passed away. Jamie
England, lead manager of the firm’s other two
funds--Meridian Contrarian MVALX and Meridian
Equity Income MEIFX--stepped in to assist comanager
William Tao. Plus, Larry Cordisco and Kevin O’Boyle
(both former managers at Contrarian) rejoined the firm.
In September 2013, Denver-based Arrowpoint Partners,
which Meade and Schaub had joined in May from
Janus, purchased the fund’s advisor, Aster Investment
Management. O’Boyle, who had rejoined on a
temporary basis, left again, and Tao departed as well.
England and Cordisco now focus fully on their charges.
While Meade and Schaub are new to both the fund
and Arrowpoint, their transition has been fairly smooth.
Arrowpoint founders David Corkins, Karen Reidy, and
Minyoung Sohn are also former Janus employees, as
are four of the six analysts who support Meade and
Schaub. The duo’s investment style isn’t too different
from the one historically used here, either. They
typically seek out small- and mid-cap firms with
competitive advantages and relatively solid balance
sheets. They employed this strategy with great
success in seven years at Janus Triton JATTX. That
fund, like this one, typically kept up in rising markets
and lost less than most peers when stocks fell.
Meade and Schaub have wasted no time reshaping
the portfolio to their liking. Of the top 10 holdings at
the end of September, only two were held by the fund
three months earlier, and all 10 were held by Triton at
the end of March (Meade and Schaub’s last disclosed
portfolio there). They’ve also boosted the number of
holdings from 56 at the end of June to a more-typical
81.
Overall, Meade and Schaub appear to be
well-positioned to repeat their previous success. The
only knock against the fund is high expenses for the
new Institutional and Advisor share classes.
Address:
60 E Sir Francis Drake Blvd
Larkspur, CA 94939
800-446-6662
Web Address:
Inception:
08-01-84
Advisor:
Arrowpoint Asset Management, LLC
Subadvisor:
None
NTF Plans:
N/A
Minimum Purchase:
$1000
Add: $50 IRA: $0
Min Auto Inv Plan:
$0
Add:
.
Sales Fees:
No-load, 2.00%R
Management Fee:
1.00% mx./0.75% mn.
Actual Fees:
Mgt:0.76% Dist:
.
Expense Projections:
3Yr:$278
5Yr:$482 10Yr:$1073
Income Distribution:
Annually
Data through November 30, 2013
Meridian Growth Legacy
Ticker
Status Yield Total Assets
Mstar Category
MERDX Open
0.3% $2,157 mil
Mid-Cap Growth
99% 98% 96% 98% 96% 97% 96% 95% 94%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 11-13
Historical Profile
Return
Risk
Rating
Average
Below 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
14.0
18.0
22.8
29.2
Portfolio Analysis
06-30-13
Share change since 03-13 Total Stocks:56 Sector
PE Tot Ret% % Assets
Dresser-Rand Group, Inc.
Energy
20.1 0.53 2.52
Sensata Technologies Hol
Technology 36.5 20.01 2.24
Wolverine World Wide
Cnsmr Cyc 33.3 61.35 2.11
Polypore International,
Industrl
37.2 -18.32 1.87
Hibbett Sports Inc
Cnsmr Cyc 22.7 22.52 1.87
VistaPrint, Ltd.
Cnsmr Cyc 62.9 74.48 1.86
Clean Harbors, Inc.
Industrl
24.0 -4.07 1.83
Heico Corporation Class
Industrl
28.7 62.23 1.82
SBA Communications Corp
Comm Svs
.
19.99 1.82
SS&C Technologies Holdin
Technology 34.1 86.70 1.78
Expeditors International
Industrl
25.8 11.35 1.77
Sally Beauty Holdings In
Cnsmr Cyc 19.0 19.39 1.76
LKQ Corporation
Cnsmr Cyc 34.0 57.11 1.75
PetSmart Inc.
Cnsmr Cyc 18.5 9.21 1.69
Trimble Navigation Ltd.
Technology 43.3 6.72 1.64
Gartner, Inc. Class A
Technology 34.3 40.48 1.63
Brown & Brown, Inc.
Finan Svs 21.2 25.65 1.55
Stericycle, Inc.
Industrl
33.7 25.94 1.54
Cadence Design Systems,
Technology 8.8 -1.92 1.53
Cooper Companies
Hlth care 21.0 42.52 1.49
Current Investment Style
Market Cap %
Giant
0.0
Large
0.0
Mid
69.0
Small
28.8
Micro
2.2
Avg $mil:
3,933
Value Blnd Growth
Large Mid Small
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
26.04
3.70
1.70
16.56
0.66
1.34
1.35
1.01
1.65
0.74
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
14.86
13.09
11.12
7.86
13.66
1.05
1.34
1.44
0.58
0.53
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
16.04
6.92
8.08
0.94
0.94
0.80
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
Cyclical 34.08 1.18
BasicMat 2.30 0.75 5 4
CnsmrCyc23.72 2.76 24 16
FinanSvs 6.45 0.41 15 12
Real Est 1.61 1.10 3 2
Sensitive 54.84 1.26
CommSrvs 2.02 0.50 4 1
Energy 4.89 0.46 9 5
Industrl 28.44 2.50 21 17
Technlgy 19.49 1.11 27 17
Defensive11.09 0.40
CnsmrDef 0.82 0.07 3 1
Hlthcare 10.27 0.87 10 4
Utilities 0.00 0.00
. .
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
5.7
Stocks 94.3
Bonds 0.0
Other
0.0
Foreign 3.9
©
2013Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor
timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at
To order reprints, call 312-696-6100.
mfb.morningstar.com.
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