(PUB) Investing 2016

295 / 708

5 Morningstar FundInvestor July 2016
Data through June 30, 2016 FINRA members: For internal or institutional use only.
PRIMECAP Odyssey Aggressive Growth Ticker
POAGX
Yield
0.0%
Total Assets
$6,318 mil
Mstar Category
Mid-Cap Growth
Benchmark 1: Russell Mid Cap Growth TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 06-30-16
Œ
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
25.0
30.0
Historical Profile
Return
Risk
Rating
High
Above Avg
QQQQQ
Highest
8 8 8 8 8 8 8 8 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 06-16 History
14.34 14.22 9.30 13.99 16.47 16.07 19.48 29.65 32.93 32.40 31.23 NAV
21.57 -0.19 -34.60 50.43 21.57 -0.45 21.22 54.88 16.55 4.56 -3.61 Total Return %
10.91 -11.62 9.73 4.14 -4.82 1.20 5.41 19.14 4.65 4.76 -5.76 +/- Bmark 1
5.77 -5.69 2.40 23.97 6.51 -2.57 5.22 22.49 2.86 3.18 -7.45 +/- Bmark 2
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.19 0.01 0.00 Income Return %
21.57 -0.19 -34.60 50.43 21.57 -0.45 21.22 54.88 16.36 4.56 -3.61 Capital Return %
1 95 7 12 73 25 4 1 1 9 85 Total Rtn % Rank Cat
0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.00 Income $
0.20 0.09 0.00 0.00 0.53 0.32 0.00 0.51 1.48 2.03 0.00 Capital Gains $
0.99 0.78 0.78 0.77 0.71 0.68 0.68 0.64 0.62 0.62 0.63 Expense Ratio %
-0.33 -0.25 -0.46 -0.54 -0.45 -0.33 -0.32 -0.23 -0.09 0.17 -0.11 Income Ratio %
12 6 24 20 15 11 14 11 13 15 . Turnover Rate %
159 331 219 441 914 1,086 1,688 5,030 6,376 6,684 6,318 Net Assets $mil
Performance 06-30-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 14.81 2.98 2.79 -0.26 21.22
2013 15.91 9.34 14.26 6.95 54.88
2014 4.65 4.06 -1.18 8.30 16.55
2015 5.92 0.43 -11.36 10.90 4.56
2016 -3.21 -0.41 — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -0.41 -1.97 -2.87 89 9,959
6 Mo -3.61 -5.76 -7.45 85 9,639
1 Yr -5.25 -3.11 -9.25 40 9,475
3 Yr Avg 12.81 2.29 1.15 4 14,355
5 Yr Avg 15.00 5.02 2.90 1 20,111
10 Yr Avg 11.60 3.48 4.18 1 29,980
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 11.61 3 1.06 24
5 Yr (estimated) 14.14 1 0.75 22
10 Yr (estimated) 11.07 1 0.48 16
Potential Capital Gain Exposure: 28% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -5.25
3 Yr 12.81 High +Avg QQQQQ
5 Yr 15.00 High High QQQQQ
10 Yr 11.60 High +Avg QQQQQ
Incept 12.16
Other Measures Standard Index Best Fit Index
Alpha 0.6 2.2
Beta 1.09 1.08
R-Squared 64 87
Standard Deviation 15.30
Mean 12.81
Sharpe Ratio 0.86
Portfolio Analysis 03-31-16
Total Stocks: 149
Share change since 12-31-15 Sector YTD Ret % % Assets
TDreyfus Treasury Secs Cas — — 5.03
YEllie Mae Inc Technology 52.17 3.88
YAbiomed Inc Hlth Care 21.06 3.72
TSony Corp ADR Technology — 3.01
United Continental Holdin Industrl -28.38 2.98
TBlackBerry Ltd Technology — 2.82
TDelta Air Lines Inc Industrl -27.60 2.66
TAmerican Airlines Group I Industrl — 2.51
TNektar Therapeutics Inc Hlth Care -15.55 2.50
Dreamworks Animation SKG Cnsmr Cyc 58.60 2.20
Shutterfly Inc A Cnsmr Cyc 4.60 2.18
JetBlue Airways Corp Industrl -26.89 2.16
TSeattle Genetics Inc Hlth Care -9.96 2.13
Royal Caribbean Cruises L Cnsmr Cyc -32.91 2.01
Qiagen NV Hlth Care -21.12 1.78
MarketAxess Holdings Inc Finan Svcs 30.76 1.74
TCarMax Inc Cnsmr Cyc -9.15 1.63
Roche Holding AG Dividend Hlth Care — 1.62
Adobe Systems Inc Technology 1.97 1.54
TcomScore Inc Industrl -41.97 1.52
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 9.0
Large 23.5
Mid 29.2
Small 22.0
Micro 16.2
Avg $mil:
6,145
Value Measures Rel Category
Price/Earnings 18.51 0.81
Price/Book 2.31 0.68
Price/Sales 1.46 0.76
Price/Cash Flow 5.97 0.52
Dividend Yield % 0.64 0.61
Growth Measures % Rel Category
Long-Term Erngs 17.42 1.36
Book Value 2.14 0.29
Sales -1.79 -0.24
Cash Flow 17.63 1.65
Historical Erngs 34.30 3.30
Profitability %
Return on Equity 11.88
Return on Assets 2.51
Net Margin 5.91
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 17.14 0.47
r BasicMat 0.84 0.26
t CnsmrCyc 13.22 0.56
y FinanSvcs 3.08 0.71
u Real Est 0.00 0.00
j Sensitive 53.20 1.39
i CommSrvs 1.66 4.05
o Energy 0.50 0.38
p Industrl 16.93 0.86
a Technlgy 34.11 2.04
k Defensive 29.66 1.16
s CnsmrDef 1.07 0.10
d Hlthcare 28.59 1.95
f Utilities 0.00 0.00
Composition - Net
Cash 5.0
Stocks 94.8
Bonds 0.0
Other 0.1
Foreign 13.3
(% of Stock)
Morningstar's Take by David Kathman, CFA 06-30-16
Primecap Odyssey Aggressive Growth is one of six funds
managed by the Primecap team, whose Vanguard
Primecap VPMCX has achieved one of the fund industry’s
best track records during the past 30 years. The
managers' patient, disciplined contrarian growth strategy
emphasizes companies with strong growth potential but
temporarily depressed valuations, and they're willing to
hold on to stocks for a long time waiting for a turnaround.
Each of the five portfolio managers independently runs a
sleeveofassets,allowing them to follow theirconvictions
within this broad strategy, and they don’t hesitate to
make significant sector and industry bets in areas where
they see a lot of potential. In recent years, technology,
biotech, and airline stocks have been the managers’
favorites.
Within that framework, this fund is by far the most
aggressive of the team's funds, which is why it's the only
one of the six to be in the mid-cap growth Morningstar
Category. (Four of them are in the large-growth category,
while Primecap Odyssey Stock POSKX, the least risky of
the bunch, is in large-blend.) Like its siblings, this fund is
overweight relative to its peers in healthcare and tech
stocks, and those sector overweightings are even more
pronounced here than in the other funds. Also, the fund
tends to hold smaller, more-aggressive growth stocks
than its siblings; small and mid-caps make up more than
half the portfolio as of March 31, 2016, including 16% in
micro-cap stocks.
This approach has worked very well over time,
helping the fund to the best returns in the mid-growth
category since its inception in late 2004. It has trailed the
category only in two calendar years (2007 and 2010) and
has ranked in the top decile seven times, including each
year from 2012 through 2015. It has finally fallen to earth
in the first half of 2016, badly trailing the category, but
such short-term slumps are inevitable and can be
overcome longer term. The fund's stellar record and low
expenses earn it a Morningstar Analyst Rating of Gold.
It's closed to new investors, but siblings Primecap
Odyssey Stock and Primecap Odyssey Growth POGRX
remain open.
Address: PRIMECAP Odyssey Funds Minimum Purchase: $2000 Add: $100 IRA: $1000
Pasadena, CA 91101 Min Auto Inv Plan: — Add: $100
800-729-2307 Sales Fees: No-load
Web Address: Management Fee: 0.60% mx./0.55% mn.
Inception: 11-01-04 Actual Fees: Mgt:0.55% Dist:—
Advisor: PRIMECAP Management Company Expense Projections: 3Yr:$199 5Yr:$346 10Yr:$774
Subadvisor: None Income Distribution: Annually
©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