(PUB) Investing 2015

Morningstar FundInvestor

January 2

015

Morningstar Analyst Rating

12-23-14

Morningstar Pillars

Process

Performance

People

Parent

Price

Positive

Neutral

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

33.47

28.05

25.63

27.10

24.34

18.63

26.86

26.48

25.93

24.98

22.32

16.94

Total Return %

5.60

33.84

13.66

-4.29

12.43

31.13

-29.23

4.68

11.36

9.08

17.68

33.13

+/-S&P 500

-8.09

1.45

-2.34

-6.40

-2.63

4.67

7.77

-0.81

-4.43

4.17

6.80

4.45

+/-Rus Mid

-7.62

-0.92

-3.62

-2.74

-13.05

-9.35

12.23

-0.92

-3.90

-3.57

-2.54

-6.93

Income Return %

1.45

0.93

2.43

0.00

1.07

0.48

0.16

1.23

0.77

0.58

1.51

1.34

Capital Return %

4.15

32.91

11.23

-4.29

11.36

30.65

-29.39

3.45

10.59

8.50

16.17

31.79

Total Rtn % Rank Cat

Income $

0.50

0.62

0.00

0.26

0.09

0.04

0.32

0.20

0.15

0.34

0.23

0.05

Capital Gains $

2.50

0.45

0.30

0.00

0.32

0.53

2.22

1.18

0.94

0.00

Expense Ratio %

1.01

1.03

0.98

0.99

1.08

1.20

1.18

1.21

1.26

1.32

1.36

1.41

Income Ratio %

1.14

0.50

0.94

0.69

0.96

1.27

1.05

1.10

0.79

0.89

1.08

1.23

Turnover Rate %

Net Assets $mil

1,129

1,107

843

1,124

1,289

898

334

356

301

230

155

111

Performance

12-31-14

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2010

2011

2012

2013

2014

3.86 -7.32

8.45 7.69 -4.29

5.09 -0.53 -17.05 10.38 13.66

8.47 -2.48

6.86 0.55 33.84

14.37 1.75

7.44 7.05

5.60

1.30 5.98

-3.47

. .

Trailing

Total

+/-

+/- Rus %Rank Growth of

Return% S&P 500

Mid

Cat

$10,000

3 Mo

6 Mo

1 Yr

3 Yr Avg

5 Yr Avg

10 Yr Avg

15 Yr Avg

1.90 -3.03

-4.04

86 10,190

-1.64 -7.76

-5.82

81 9,836

5.60 -8.09

-7.62

76 10,560

17.12 -3.29

-4.28

79 16,065

11.57 -3.88

-5.62

87 17,288

7.39 -0.28

-2.17

67 20,400

6.93 2.69

-1.97

76 27,321

Tax Analysis

Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

3 Yr (estimated)

5 Yr (estimated)

10 Yr (estimated)

15.03

1.78

10.26

1.17

6.36

0.96

Potential Capital Gain Exposure: 33% of assets

Rating and Risk

Time Load-Adj

Morningstar

Period Return % Rtn vs Cat

Risk vs Cat

Risk-Adj Rating

1 Yr

5.60

3 Yr

17.12

Avg

-Avg

5 Yr

11.57

-Avg

Low

10 Yr

7.39

Avg

Low

Incept

11.22

Other Measures

Standard Index

Best Fit Index

S&P 500

Mstar Mid Value

Alpha

-2.5

-1.0

Beta

0.99

0.84

R-Squared

Standard Deviation

9.86

Mean

17.12

Sharpe Ratio

1.66

Morningstar’s Take

by Kevin McDevitt, CFA 12-23-14

Osterweis’ results no longer justify a Morningstar

Analyst Rating of Silver. This fund has outperformed

going back to its 1993 inception under John Osterweis,

but that hasn’t been the case since multiple

comanagers joined the fund over the years. Since the

move to comanagers in June 2006, the fund’s 7.3%

annualized return through Dec. 17, 2014, lags the

Russell Midcap Index’s 8.9% gain by 1.6 percentage

points. This stretch encapsulates a full market cycle,

including a deep bear market followed by a long rally.

During that time, the fund’s calendar-year return has

landed in the mid-blend Morningstar Category’s top

half only once, in 2008.

As the fund’s strong 2008 showing suggests, it’s

generally been less volatile than most peers. But this

has owed more to Osterweis’ building cash at the right

times rather than holding defensive stocks. That is,

counting on the team to increase its cash stake at the

right time is potentially less reliable than maintaining a

conservative portfolio. True, the team tends to invest in

companies with competitive advantages, which shows

in the latest portfolio. Roughly half the current

holdings are rated by Morningstar analysts and all

have either a Wide or Narrow Economic Moat Rating.

However, this is offset to some extent by the

portfolio’s 48.3% average debt/capital ratio, which is

among the category’s 10 highest.

Overhanging the fund’s results is John Osterweis’

plan to step down as CIO in 2017, when he will be 75.

The remaining team is unproven on its own, as all of

the fund’s outperformance since inception came when

Osterweis was the sole manager. Added to this, three

comanagers have left the firm over the past three

years. The team has high hopes for Nael Fakhry, who

took departing comanager Zach Perry’s place in May,

but he’s an unknown quantity at this point.

The team has time to turn things around before

Osterweis steps down. Its process is largely the same

one Osterweis used to generate outperformance in the

first half of the fund’s history. Disappointing results

since 2006 and uncertainty surrounding the team lead

to a Bronze Morningstar Analyst Rating.

Address:

c/o U.S. Bancorp Fund Services, LLC

Milwaukee, WI 53202

866-236-0050

Web Address:

www.osterweis.com

Inception:

10-01-93

Advisor:

Osterweis Capital Management Llc

Subadvisor:

None

NTF Plans:

N/A

Minimum Purchase:

$5000

Add: $100 IRA: $1500

Min Auto Inv Plan:

$5000

Add: $100

Sales Fees:

No-load

Management Fee:

1.00% mx./0.75% mn.

Actual Fees:

Mgt:0.87% Dist:

Expense Projections:

3Yr:$322

5Yr:$558 10Yr:$1236

Income Distribution:

Annually

Data through December 31, 2014

Osterweis

Ticker

Status Yield Total Assets

Mstar Category

OSTFX Open

1.4% $1,129 mil

Mid-Cap Blend

93% 88% 60% 71% 89% 86% 91% 96% 95%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 12-14

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

S&P 500

Performance Quartile

(within Category)

History

10.0

14.0

18.0

22.8

28.4

Portfolio Analysis

09-30-14

Share change since 06-14 Total Stocks:41 Sector

PE Tot Ret% % Assets

Federated US Treasury Ca

. . .

4.70

Valeant Pharmaceuticals

Hlth care 97.1 21.90 3.55

Magellan Midstream Partn

Energy

24.2 34.61 3.48

Enterprise Products Part

Energy

24.0 13.27 3.30

Cinemark Holdings Inc

Cnsmr Cyc 25.3 9.75 3.28

Air Lease Corp Class A

Industrl

15.4 10.81 3.09

Johnson & Johnson

Hlth care 17.3 17.19 3.09

Digital Realty Trust Inc

Real Est

38.3 41.73 3.03

Directv

Comm Svs 16.0 25.54 3.03

Occidental Petroleum Cor

Energy

11.2 -8.61 2.97

Charter Communications I

Comm Svs

21.83 2.95

Crown Holdings Inc

Cnsmr Cyc 16.6 14.20 2.94

Bayer AG ADR

Hlth care 25.4 -2.15 2.91

Viacom Inc Class B

Cnsmr Cyc 13.9 -12.37 2.88

American Water Works Co

Utilities

24.2 28.99 2.85

Oracle Corporation

Technology 18.8 18.79 2.84

Atlas Pipeline Partners

Energy

-15.06 2.75

Teleflex Inc

Hlth care 30.4 23.78 2.62

Liberty Interactive Corp

Cnsmr Cyc 30.9 18.44 2.61

Unilever NV ADR

Cnsmr Def 17.9 0.79 2.59

Current Investment Style

Market Cap %

Giant

36.2

Large

11.3

Mid

31.5

Small

20.4

Micro

0.7

Avg $mil:

17,366

Value Blnd Growth

Large Mid Small

Value Measures

Rel Category

Price/Earnings

Price/Book

Price/Sales

Price/Cash Flow

Dividend Yield %

18.16

2.46

1.74

7.14

2.12

1.16

1.29

1.66

0.98

1.35

Growth Measures

% Rel Category

Long-Term Erngs

Book Value

Sales

Cash Flow

Historical Erngs

11.00

6.02

3.53

11.52

-8.04

0.99

1.20

1.15

1.50

NMF

Profitability

% Rel Category

Return on Equity

Return on Assets

Net Margin

18.07

5.85

11.53

1.22

1.02

1.21

Sector

Weightings

% of

Stocks

Rel

S&P 500 High

3 Year

Low

Cyclical 31.03

BasicMat 0.00

. . .

CnsmrCyc18.81

19 12

FinanSvs 5.22

12 5

Real Est 7.00

7 2

Sensitive 38.80

CommSrvs 6.27

6 2

Energy 15.72

18 11

Industrl

9.43

10 6

Technlgy 7.38

16 7

Defensive30.17

CnsmrDef 5.35

13 5

Hlthcare 18.26

23 18

Utilities 6.56

8 3

Composition - Net

(% of Stock)

Cash

4.7

Stocks 95.3

Bonds 0.0

Other

0.0

Foreign 20.1

timely. Pastperformance isnoguarantee of future results.Access updated reports at

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