(PUB) Investing 2015

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7 Morningstar FundInvestor October 2015
Data through September 30, 2015 FINRA members: For internal or institutional use only.
Tweedy, Browne Worldwide Hi Div Yld Val Ticker
TBHDX
Yield
2.2%
Total Assets
$427 mil
Mstar Category
World Stock
Benchmark 1: MSCI ACWI NR USD
Benchmark 2: MSCI ACWI Ex USA NR USD
Morningstar Analyst Rating 09-18-15
„
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price § 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.0
14.0
8.0
6.0
Historical Profile
Return
Risk
Rating
Below Avg
Below Avg
QQ
Below Avg
1 1 1 4 1 1 1 1 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& ( ) & ) ) ) ) Performance Quartile
(within Category)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 09-15 History
. . 10.00 6.85 8.56 9.01 9.20 10.16 11.83 10.82 9.69 NAV
. . . -29.35 28.18 7.73 4.04 12.34 18.77 -0.92 -9.60 Total Return %
. . . 12.84 -6.45 -4.94 11.39 -3.79 -4.03 -5.08 -2.56 +/- Bmark 1
. . . 16.17 -13.27 -3.43 17.75 -4.49 3.48 2.95 -0.97 +/- Bmark 2
. . . 2.57 2.87 2.26 1.98 1.74 1.97 2.12 0.94 Income Return %
. . . -31.93 25.31 5.47 2.06 10.59 16.80 -3.04 -10.54 Capital Return %
. . . 6 75 87 7 80 83 83 88 Total Rtn % Rank Cat
. . 0.03 0.26 0.20 0.19 0.18 0.16 0.20 0.25 0.10 Income $
. . . 0.00 0.00 0.00 0.00 0.00 0.02 0.67 0.00 Capital Gains $
. . . 1.86 1.54 1.46 1.39 1.37 1.37 1.36 1.35 Expense Ratio %
. . . 2.38 2.99 2.36 2.00 2.11 1.88 2.07 1.96 Income Ratio %
. . . 2 38 18 16 6 12 10 7 Turnover Rate %
. . 62 88 133 239 404 675 767 612 427 Net Assets $mil
Performance 09-30-15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 5.66 3.16 -10.10 6.17 4.04
2012 5.98 -2.63 5.66 3.03 12.34
2013 5.02 -0.39 7.61 5.50 18.77
2014 1.52 4.55 -4.34 -2.41 -0.92
2015 0.18 -0.54 -9.27 — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -9.27 0.18 2.90 59 9,073
6 Mo -9.76 -0.62 1.94 75 9,024
1 Yr -11.78 -5.12 0.38 89 8,822
3 Yr Avg 3.11 -3.84 0.76 95 10,961
5 Yr Avg 5.38 -1.44 3.56 81 12,997
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 1.88 91 1.19 57
5 Yr (estimated) 4.32 78 1.01 64
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: 16% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -11.78
3 Yr 3.11 Low Avg Q
5 Yr 5.38 -Avg -Avg QQ
10 Yr — — — —
Incept 2.46
Other Measures Standard Index Best Fit Index
Alpha 1.1 -0.6
Beta 0.84 0.76
R-Squared 88 92
Standard Deviation 10.31
Mean 3.11
Sharpe Ratio 0.34
Portfolio Analysis 06-30-15
Total Stocks: 31
Share change since 03-31-15 Sector Country % Assets
YDreyfus Government Pr Cas — United States 8.62
Novartis AG Hlth Care Switzerland 4.97
Roche Holding AG Dividend Hlth Care Switzerland 4.95
YJohnson & Johnson Hlth Care United States 4.90
YCisco Systems Inc Technology United States 4.77
TStandard Chartered PLC Finan Svcs United Kingdom 4.26
Unilever NV DR Cnsmr Def Netherlands 3.86
SCOR SE Finan Svcs France 3.81
THSBC Holdings PLC Finan Svcs United Kingdom 3.73
Total SA Energy France 3.67
TVerizon Communications In Comm Svcs United States 3.64
G4S PLC Industrl United Kingdom 3.47
Nestle SA Cnsmr Def Switzerland 3.41
United Overseas Bank Ltd Finan Svcs Singapore 3.41
TRoyal Dutch Shell PLC Cla Energy United Kingdom 3.11
ABB Ltd Industrl Switzerland 3.04
Axel Springer SE Cnsmr Cyc Germany 3.02
TGlaxoSmithKline PLC Hlth Care United Kingdom 2.99
Zurich Insurance Group AG Finan Svcs Switzerland 2.98
Diageo PLC Cnsmr Def United Kingdom 2.87
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 79.5
Large 9.2
Mid 11.3
Small 0.0
Micro 0.0
Avg $mil:
72,735
Value Measures Rel Category
Price/Earnings 14.63 0.81
Price/Book 1.81 0.77
Price/Sales 1.21 0.77
Price/Cash Flow 6.64 0.76
Dividend Yield % 4.16 1.63
Growth Measures % Rel Category
Long-Term Erngs 6.70 0.61
Book Value 4.60 1.42
Sales -0.51 -0.31
Cash Flow -1.17 -0.53
Historical Erngs -4.54 -1.09
Composition - Net
Cash 8.6 Bonds 0.0
Stocks 91.3 Other 0.1
Foreign (% of Stock) 77.2
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 35.58 0.92
r BasicMat 1.56 0.32
t CnsmrCyc 4.93 0.43
y FinanSvcs 29.09 1.53
u Real Est 0.00 0.00
j Sensitive 30.16 0.85
i CommSrvs 3.98 0.80
o Energy 9.57 1.46
p Industrl 11.39 1.12
a Technlgy 5.22 0.38
k Defensive 34.26 1.32
s CnsmrDef 14.75 1.44
d Hlthcare 19.51 1.55
f Utilities 0.00 0.00
Regional Exposure % Stock
UK/W. Europe 70 N. America 23
Japan 0 Latn America 0
Asia X Japan 7 Other 0
Country Exposure % Stock
UK 24
United States 23
Switzerland 21
France 11
Germany 7
Morningstar's Take by Kevin McDevitt, CFA 09-18-15
Tweedy, Browne Worldwide High Dividend Yield Value
didn't quite rise to its usual standard during the recent
midyear correction. While this fund's mixed results during
the bull market in 2012 and 2013 are to be expected, its
middling performance during the mid-2015 correction
was more surprising. It typically lags during rallies but
outperforms during downturns. However, the fund's
11.9% peak-to-trough, May-to-August dip beat its MSCI
World High Dividend Yield Index benchmark by less than
50 basis points.
Such a small margin of outperformance during
corrections isn't good enough for this fund since that's
when it really needs to shine. Despite its struggles during
rallies, the fund's 3.1% annualized return since its 2007
inception still beats its benchmark by 1.6 percentage
points.However, thisowes largely to itsexcellent relative
results during the 2007-09 credit crisis and the mid-2011
correction.
Onemighthaveexpectedthisroundtobenodifferent
given that the fund had a cash buffer of 11.2% of assets
heading into the second quarter and no direct emerging-
markets exposure. Yet the fund has been pummeled by
holdings that depend heavily on emerging-markets
growth. Banks Standard Chartered SCBFF, HSBC HSBC,
United Overseas Bank UOVEF, and DBS derive the bulk of
their revenue from Asia and have been hurt mightily by
China's slowdown. The fund's energy and industrials
holdings have been affected, too.
Management definitely was early in building some of
these positions, but shareholders should maintain
perspective.Thesestakescouldstillworkout. Inaddition,
the fund'smiddlingshowingduringthemidyearcorrection
doesn't mean it's more likely to struggle the next time
around. Management has come through in a big way far
more often than it hasn't during such pullbacks. This
extends back to excellent results during the early 2000s
bear market with this fund's older siblings. For this reason
the fund still earns a Morningstar Analyst Rating of Silver
and remainsasolid low-volatilityoption intheworld-stock
Morningstar Category.
Address: Tweedy Browne Fund Inc Minimum Purchase: $2500 Add: $200 IRA: $500
New York, NY 10022 Min Auto Inv Plan: — Add: —
800-432-4789 Sales Fees: No-load, 2.00%R
Web Address: Management Fee: 1.25%, 0.03%A
Inception: 09-05-07 Actual Fees: Mgt:1.25% Dist:—
Advisor: Tweedy Browne Co LLC Expense Projections: 3Yr:$431 5Yr:$745 10Yr:$1635
Subadvisor: None Income Distribution: Semi-Annually
©2015Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, call 312-696-6100. ß® Mutual Funds A