(PUB) Investing 2015

Morningstar Analyst Rating

12-19-14

Morningstar Pillars

Process

Performance

People

Parent

Price

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

23.66

15.98

14.28

14.17

12.77

9.33

14.08

13.70

12.12

10.92

. .

Total Return %

15.04

34.39

13.62

2.07

11.82

37.86

-33.27

4.18

14.01

11.05

. .

+/-S&P 500

1.35

2.00

-2.38

-0.04

-3.24

11.40

3.73

-1.31

-1.78

6.14

. .

+/-Russ 1000

1.80

1.28

-2.80

0.57

-4.28

9.43

4.33

-1.59

-1.45

4.78

. .

Income Return %

1.47

1.51

1.73

1.26

0.84

0.97

0.46

0.51

0.33

0.04

. .

Capital Return %

13.57

32.88

11.89

0.81

10.98

36.89

-33.73

3.67

13.68

11.01

. .

Total Rtn % Rank Cat

. .

Income $

0.31

0.25

0.18

0.11

0.09

0.06

0.07

0.04

0.00

. .

Capital Gains $

0.35

0.00

0.12

0.08

0.00

. .

Expense Ratio %

0.62

0.63

0.66

0.71

0.80

0.79

0.81

0.99

1.25

. .

Income Ratio %

1.34

1.65

1.57

1.25

1.37

0.96

0.51

0.59

0.41

-0.11

. .

Turnover Rate %

. .

Net Assets $mil

3,802

2,272

1,612

1,057

679

266

200

206

Performance

12-31-14

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

Total

2010

2011

2012

2013

2014

4.70 -11.07

9.34 9.84

2.07

5.15 1.28 -13.85 11.25 13.62

8.68 -2.77

4.37 3.02 34.39

12.20 4.02

6.11 8.52 15.04

3.83 3.55

1.98

. .

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

4.93 0.00

0.05

32 10,493

7.00 0.88

1.43

10 10,700

15.04 1.35

1.80

8 11,504

20.66 0.25

0.04

25 17,567

14.93 -0.52

-0.71

29 20,052

9.30 1.63

1.34

3 24,333

. . . . .

Tax Analysis

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

3 Yr (estimated)

5 Yr (estimated)

10 Yr (estimated)

19.83

0.69

14.35

0.50

8.90

0.36

Potential Capital Gain Exposure: 26% of assets

Rating and Risk

Time Load-Adj

Morningstar

Period Return % Rtn vs Cat

Risk vs Cat

Risk-Adj Rating

1 Yr

15.04

3 Yr

20.66

+Avg

Low

5 Yr

14.93

+Avg

-Avg

10 Yr

9.30

High

-Avg

Incept

10.09

Other Measures

Standard Index

Best Fit Index

S&P 500

M* U.S. Core TR

Alpha

3.0

2.2

Beta

0.85

0.83

R-Squared

Standard Deviation

8.18

Mean

20.66

Sharpe Ratio

2.35

Morningstar’s Take

by David Kathman, CFA 12-19-14

A new comanager won’t mean significant changes for

Primecap Odyssey Growth.

On Dec. 10, 2014, James Marchetti was officially

named comanager of this fund and Primecap Odyssey

Aggressive Growth POAGX and Odyssey Growth

POGRX, effective Nov. 1, and he’s expected to be

named comanager of the same team’s Vanguard funds,

including Vanguard Primecap VPMCX, in the near

future. This move doesn’t represent any change in how

the funds are managed, as Marchetti has had portfolio

responsibilities since the beginning of 2014 and has

been a key analyst for several years, managing a

sleeve of health-care stocks.

This promotion comes at the end of a strong year in

which this fund ranked in the large-blend category’s

top 1% for the year to date as of mid-December. This is

the third year of top-quartile returns out of the past

four for this fund, which has also ranked in the

category’s top 5% in the decade since its inception.

These great results are hardly a surprise, given that the

Primecap team has compiled one of the fund industry’s

most impressive track records over the past 30 years

with Vanguard Primecap.

They use the same patient contrarian growth

strategy here, looking for stocks with good long-term

growth potential but temporarily depressed valuations.

Of the three Primecap Odyssey funds, this is the least

aggressive, with a portfolio dominated by mega-caps,

and the most similar to Vanguard Primecap. Like its

siblings, this fund is especially heavy in health-care

and technology stocks, which make up more than half

of the portfolio. Many of the fund’s pharmaceutical

and biotech stocks, in particular, struggled a few years

ago, but the managers were patient, and most of

those stocks have posted nice gains recently,

contributing to the fund’s better performance.

Since Primecap Odyssey Aggressive Growth closed

to new investors in early 2014, this fund and Primecap

Odyssey Growth are the only two of the team’s six

funds that remain open. Both are excellent core funds

with great track records and very low expenses; this

fund is better suited for more-conservative investors.

Address:

PRIMECAP Odyssey Funds

Pasadena, CA 91101

800-729-2307

Web Address:

www.odysseyfunds.com

Inception:

11-01-04

Advisor:

PRIMECAP Management Company

Subadvisor:

None

NTF Plans:

N/A

Minimum Purchase:

$2000

Add: $100 IRA: $1000

Min Auto Inv Plan:

$2000

Add: $100

Sales Fees:

No-load

Management Fee:

0.60% mx./0.55% mn.

Actual Fees:

Mgt:0.55% Dist:

Expense Projections:

3Yr:$205

5Yr:$357 10Yr:$798

Income Distribution:

Annually

Data through December 31, 2014

PRIMECAP Odyssey Stock

Ticker

Status Yield Total Assets

Mstar Category

POSKX Open

1.3% $3,802 mil

Large Blend

93% 95% 88% 87% 92% 90% 89% 90% 90%

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

Historical Profile

Return

Risk

Rating

Above Avg

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

6.0

14.0

18.0

22.0

Portfolio Analysis

09-30-14

Share change since 06-14 Total Stocks:115 Sector

PE Tot Ret% % Assets

Dreyfus Treasury Pr Cash

. . .

10.10

Eli Lilly and Co

Hlth care 27.6 39.12 3.97

Roche Holding AG Dividen

Hlth care 21.5 -0.66 3.60

Amgen Inc

Hlth care 25.1 41.77 3.57

Charles Schwab Corp

Finan Svs 32.3 17.04 3.15

Johnson & Johnson

Hlth care 17.3 17.19 3.09

Microsoft Corp

Technology 18.2 27.24 2.66

Texas Instruments Inc

Technology 23.2 24.58 2.48

Southwest Airlines Co

Industrl

25.6 125.80 2.36

Carnival Corp

Cnsmr Cyc 25.1 15.33 2.23

L Brands Inc

Cnsmr Cyc 26.6 43.75 2.13

Cisco Systems Inc

Technology 18.9 27.31 2.02

CME Group Inc Class A

Finan Svs 29.3 17.93 2.00

Transocean Ltd

Energy

-57.22 1.87

Wells Fargo & Co

Finan Svs 13.4 23.72 1.80

Medtronic Inc

Hlth care 24.9 27.89 1.78

Ross Stores Inc

Cnsmr Cyc 22.2 26.87 1.62

Hewlett-Packard Co

Technology 15.3 45.66 1.59

Novartis AG ADR

Hlth care 22.5 18.66 1.58

Biogen Idec Inc

Hlth care 32.1 21.42 1.55

Current Investment Style

Market Cap %

Giant

43.6

Large

36.3

Mid

14.6

Small

4.1

Micro

1.3

Avg $mil:

44,084

Value Blnd Growth

Large Mid Small

Value Measures

Rel Category

Price/Earnings

Price/Book

Price/Sales

Price/Cash Flow

Dividend Yield %

18.49

2.57

1.95

10.93

2.17

1.29

1.26

1.55

1.54

1.00

Growth Measures

% Rel Category

Long-Term Erngs

Book Value

Sales

Cash Flow

Historical Erngs

10.98

5.68

2.49

1.71

6.41

1.06

1.07

0.86

0.25

0.36

Profitability

% Rel Category

Return on Equity

Return on Assets

Net Margin

20.42

8.41

15.46

1.06

1.09

1.22

Sector

Weightings

% of

Stocks

Rel

S&P 500 High

3 Year

Low

Cyclical 27.43

BasicMat 3.40

5 3

CnsmrCyc11.10

11 9

FinanSvs 12.93

15 10

Real Est 0.00

. . .

Sensitive 42.94

CommSrvs 0.24

1 0

Energy 4.51

7 5

Industrl 12.16

14 11

Technlgy 26.03

26 19

Defensive29.63

CnsmrDef 1.07

4 1

Hlthcare 28.03

32 28

Utilities 0.53

2 1

Composition - Net

(% of Stock)

Cash 10.1

Stocks 89.9

Bonds 0.0

Other

0.0

Foreign 14.4

timely. Pastperformance is no guarantee of future results.Access updated reportsat

Toorder reprints, call312-696-6100.

mfb.morningstar.com.

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