(PUB) Investing 2016

152 / 708

6
Data through March 31, 2016 FINRA members: For internal or institutional use only.
Litman Gregory Masters Alt Strats Inv Ticker
MASNX
Yield
2.9%
Total Assets
$1,361 mil
Mstar Category
Multialternative
Benchmark 1: Morningstar Mod Tgt Risk TR USD
Benchmark 2: Morningstar Mod Tgt Risk TR USD
Morningstar Analyst Rating 03-31-15
´
Morningstar Pillars
Process ∞ Positive
Performance ¶ Neutral
People ∞ Positive
Parent ∞ Positive
Price ¶ 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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
11.0
12.0
13.0
14.0
15.0
Historical Profile
Return
Risk
Rating
Above Avg
Below Avg
QQQQ
Above Avg
8 5 4 7 7 7 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& * * * * Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 03-16 History
. . . . . 10.32 11.02 11.43 11.45 11.01 10.96 NAV
. . . . . . 9.16 6.07 3.33 -0.95 0.45 Total Return %
. . . . . . -2.89 -8.24 -1.56 0.84 -1.70 +/- Bmark 1
. . . . . . -2.89 -8.24 -1.56 0.84 -1.70 +/- Bmark 2
. . . . . . 2.28 2.33 2.46 2.67 0.90 Income Return %
. . . . . . 6.88 3.74 0.86 -3.62 -0.45 Capital Return %
. . . . . . 19 33 35 27 31 Total Rtn % Rank Cat
. . . . . 0.02 0.23 0.25 0.28 0.30 0.10 Income $
. . . . . 0.00 0.01 0.00 0.08 0.03 0.00 Capital Gains $
. . . . . 2.66 2.16 2.07 2.12 2.18 . Expense Ratio %
. . . . . 1.41 2.98 2.27 2.07 2.44 . Income Ratio %
. . . . . 34 161 179 157 146 . Turnover Rate %
. . . . . 17 59 108 166 191 174 Net Assets $mil
Performance 03-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 4.02 -0.34 3.62 1.62 9.16
2013 2.94 -0.23 0.92 2.34 6.07
2014 1.34 2.11 -0.43 0.28 3.33
2015 1.96 -0.38 -2.73 0.26 -0.95
2016 0.45 — — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 0.45 -1.70 -1.70 31 10,045
6 Mo 0.71 -3.83 -3.83 35 10,071
1 Yr -2.42 -1.38 -1.37 24 9,758
3 Yr Avg 1.94 -2.65 -2.65 25 10,593
5 Yr Avg — — — — —
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 0.70 24 1.22 72
5 Yr (estimated) — — — —
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: -3% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -2.42
3 Yr 1.94 +Avg -Avg QQQQ
5 Yr — — — —
10 Yr — — — —
Incept 4.72
Other Measures Standard Index Best Fit Index
Alpha 0.0 1.0
Beta 0.41 0.50
R-Squared 81 82
Standard Deviation 3.27
Mean 1.94
Sharpe Ratio 0.58
Portfolio Analysis 12-31-15
Total Stocks: 125
Share change since 09-30-15 Sector YTD Ret % % Assets
TPartnerRe Ltd Finan Svcs — 2.43
TPrecision Castparts Corp Industrl — 2.21
TMicrosoft Corp Technology 0.20 1.38
TChubb Corp Finan Svcs — 1.14
THealth Net Inc Hlth Care — 1.04
Oracle Corp Technology 12.40 0.86
RS+p500 Emini Fut Mar16 Xc — — 0.84
RBioMed Realty Trust Inc Real Est — 0.82
TGeneral Electric Co Industrl 2.79 0.75
TAlphabet Inc Class A Technology -1.94 0.70
Aon PLC Finan Svcs 13.60 0.70
TTNT Express NV Industrl — 0.68
TTime Warner Cable Inc Comm Svcs 10.66 0.66
TSolera Holdings Inc Technology — 0.65
TBroadcom Corp Technology — 0.64
TCameron International Cor Energy 6.09 0.64
RiShares iBoxx $ High Yiel — 2.41 0.64
TCentene Corp Hlth Care -9.83 0.62
TChubb Corp Finan Svcs — 0.60
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 29.3
Large 33.8
Mid 26.3
Small 7.9
Micro 2.6
Avg $mil:
26,075
Value Measures Rel Category
Price/Earnings 19.29 1.14
Price/Book 1.80 0.94
Price/Sales 1.39 1.03
Price/Cash Flow 9.57 1.21
Dividend Yield % 1.76 0.64
Growth Measures % Rel Category
Long-Term Erngs 10.57 1.06
Book Value 6.94 2.40
Sales 3.68 -1.44
Cash Flow 2.81 10.17
Historical Erngs 8.04 6.13
Profitability %
Return on Equity 11.28
Return on Assets 4.87
Net Margin 9.92
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 35.77 0.92
r BasicMat 2.97 0.60
t CnsmrCyc 9.61 0.80
y FinanSvcs 20.00 1.22
u Real Est 3.19 0.60
j Sensitive 48.87 1.34
i CommSrvs 3.87 0.97
o Energy 4.33 0.69
p Industrl 16.97 1.38
a Technlgy 23.70 1.71
k Defensive 15.35 0.62
s CnsmrDef 7.17 0.74
d Hlthcare 5.87 0.55
f Utilities 2.31 0.52
Composition - Net
Cash 26.0
Stocks 27.4
Bonds 43.4
Other 3.3
Foreign 11.4
(% of Stock)
Morningstar's Take by Jason Kephart 03-31-15
Litman Gregory Masters Alternative Strategies' strong
cast of subadvisors has helped it stand out in the
multialternative Morningstar Category and earn a
Morningstar Analyst Rating of Bronze.
This fund of alternative strategies is built to be a
replacement for a roughly equal mix of stocks and bonds
in a traditional portfolio but with a low correlation to long-
only asset classes. As such, it aims to deliver
performance similar to a 40/60 benchmark of stocks and
bonds over a full market cycle by allocating about half the
portfolio to alternative strategies with bondlike exposure
and half to more equity-sensitive strategies.
Portfolio manager Jeremy DeGroot and the manager
research teamatLitmanGregory look forsubadvisors that
are comfortable running high-conviction strategies and
can pass their due-diligence process, which includes
multiple on-site visits, interviews, and a test portfolio.
Finally, each subadvisor's strategy must have a low
correlation to the existing strategies in the fund. On the
bond side, that's led to equal 25% allocations to a global
unconstrained-bond strategy run by Loomis Sayles and
an opportunistic mortgage-backed security strategy run
by DoubleLine Capital. The equity sleeve is predominately
divvied up between an absolute return strategy run by
First Pacific Advisors and a merger-arbitrage strategy run
by Water Island Capital (20% each), with a newer 10%
allocation to a long-short equity strategy run by Passport
Capital. Three of the five strategies are similar to what
the subadvisors are running in separate mutual funds, like
Gold-ratedFPACrescentFPACX.Thosemanagersallhave
Positive People scores, an indication of superior manager
talent and resources.
The diversification achieved through the allocation
process has paid off. Only twice since the fund launched
in 2011 have two subadvisors lost money in the same
quarter. Moreover, the fund has produced the best
Sharpe ratio in the category and annualized returns of
8.50% that top 85% of peers from inception through
February.
Although fees could be lower, this fund is a solid
choice.
Address: Masters Select Funds Trust Minimum Purchase: $1000 Add: $100 IRA: $500
Glendora CA 91741 Min Auto Inv Plan: $2500 Add: $250
800-960-0188 Sales Fees: No-load
Web Address: Management Fee: 1.40% mx./1.20% mn.
Inception: 09-30-11 Actual Fees: Mgt:1.40% Dist:0.25%
Advisor: Litman Gregory Fund Advisors LLC Expense Projections: 3Yr:$651 5Yr:$1127 10Yr:$2441
Subadvisor: Loomis Sayles & Company LP Income Distribution: Quarterly
©2016Morningstar, 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, email ß® Mutual Funds A