(PUB) Investing 2016

55 / 708

4
Data through January 31, 2016 FINRA members: For internal or institutional use only.
FMI Large Cap Ticker
FMIHX
Yield
1.1%
Total Assets
$7,734 mil
Mstar Category
Large Blend
Benchmark 1: Russell 1000 TR USD
Benchmark 2: S&P 500 TR USD
Morningstar Analyst Rating 01-22-16
Œ
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
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
15.0
20.0
Historical Profile
Return
Risk
Rating
Above Avg
Low
QQQQ
Above Avg
4 4 4 4 4 4 4 4 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 01-16 History
15.19 15.26 11.04 14.14 15.61 15.25 17.10 20.86 21.22 18.61 17.99 NAV
16.68 4.11 -26.91 29.68 11.41 1.49 14.86 30.48 12.36 -2.44 -3.33 Total Return %
1.22 -1.67 10.69 1.25 -4.68 -0.01 -1.56 -2.63 -0.88 -3.35 2.05 +/- Bmark 1
0.88 -1.39 10.09 3.22 -3.65 -0.62 -1.14 -1.90 -1.33 -3.82 1.63 +/- Bmark 2
0.74 0.89 0.75 1.55 0.97 1.14 1.29 1.03 0.87 0.98 0.00 Income Return %
15.94 3.22 -27.66 28.13 10.44 0.35 13.57 29.45 11.49 -3.42 -3.33 Capital Return %
13 71 3 34 81 26 58 67 39 69 9 Total Rtn % Rank Cat
0.10 0.13 0.11 0.17 0.14 0.18 0.20 0.18 0.18 0.21 0.00 Income $
0.33 0.43 0.00 0.00 0.00 0.42 0.21 1.24 2.05 1.84 0.00 Capital Gains $
1.11 1.03 1.11 0.97 0.97 0.97 0.96 0.96 0.94 0.93 . Expense Ratio %
0.88 1.06 1.13 1.80 1.18 1.03 1.25 0.95 0.87 0.87 . Income Ratio %
29 19 30 32 20 28 21 30 31 18 . Turnover Rate %
301 639 1,543 2,404 3,676 4,477 6,233 8,689 9,631 8,245 7,734 Net Assets $mil
Performance 01-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2011 4.74 1.83 -14.05 10.71 1.49
2012 11.08 -2.07 4.76 0.79 14.86
2013 11.40 3.10 4.48 8.74 30.48
2014 2.49 5.75 -1.77 5.53 12.36
2015 1.79 0.19 -7.58 3.52 -2.44
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo -6.00 0.78 0.19 21 9,400
6 Mo -8.61 -0.72 -1.84 46 9,139
1 Yr -3.08 -1.26 -2.42 51 9,692
3 Yr Avg 9.32 -1.62 -1.98 56 13,063
5 Yr Avg 9.48 -1.20 -1.43 48 15,726
10 Yr Avg 7.38 0.86 0.90 6 20,388
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 6.73 57 2.37 71
5 Yr (estimated) 7.64 53 1.68 73
10 Yr (estimated) 6.18 5 1.12 65
Potential Capital Gain Exposure: 13% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -3.08
3 Yr 9.32 Avg Low QQQ
5 Yr 9.48 Avg -Avg QQQ
10 Yr 7.38 High Low QQQQQ
Incept 8.02
Other Measures Standard Index Best Fit Index
Alpha -0.6 1.5
Beta 0.88 0.88
R-Squared 93 93
Standard Deviation 9.99
Mean 9.32
Sharpe Ratio 0.94
Portfolio Analysis 12-31-15
Total Stocks: 27
Share change since 09-30-15 Sector YTD Ret % % Assets
YHoneywell International I Industrl -0.36 5.02
YUnitedHealth Group Inc Hlth Care -2.11 4.90
YBerkshire Hathaway Inc Cl Finan Svcs -1.72 4.83
YComcast Corp Class A Comm Svcs -0.83 4.68
YMicrosoft Corp Technology -0.70 4.48
YProgressive Corp Finan Svcs -1.73 4.48
YBank of New York Mellon C Finan Svcs -11.72 4.31
YAccenture PLC Class A Technology 1.00 4.21
YOmnicom Group Inc Cnsmr Cyc -3.05 4.17
YDanone ADR Cnsmr Def — 4.11
YDollar General Corp Cnsmr Def 4.44 4.10
YRoss Stores Inc Cnsmr Cyc 4.55 4.05
YSchlumberger Ltd Energy 3.61 3.90
YTE Connectivity Ltd Technology -11.53 3.82
YNestle SA ADR Cnsmr Def — 3.35
YeBay Inc Cnsmr Cyc -14.63 3.23
YComerica Inc Finan Svcs -18.00 3.16
YPotash Corp of Saskatchew Basic Mat — 3.15
YExpeditors International Industrl 0.04 3.01
YStanley Black & Decker In Industrl -11.61 2.97
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 41.5
Large 42.3
Mid 16.3
Small 0.0
Micro 0.0
Avg $mil:
46,949
Value Measures Rel Category
Price/Earnings 16.98 1.01
Price/Book 2.41 1.04
Price/Sales 1.32 0.86
Price/Cash Flow 8.47 0.87
Dividend Yield % 2.29 1.01
Growth Measures % Rel Category
Long-Term Erngs 8.28 0.82
Book Value 5.87 0.98
Sales 9.84 2.37
Cash Flow 7.46 1.21
Historical Erngs 3.23 0.53
Profitability %
Return on Equity 18.91
Return on Assets 7.01
Net Margin 8.89
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 35.83 1.10
r BasicMat 3.29 1.21
t CnsmrCyc 11.95 0.99
y FinanSvcs 20.59 1.44
u Real Est 0.00 0.00
j Sensitive 42.30 1.06
i CommSrvs 4.89 1.15
o Energy 6.65 1.05
p Industrl 17.70 1.57
a Technlgy 13.06 0.73
k Defensive 21.87 0.79
s CnsmrDef 14.66 1.50
d Hlthcare 7.21 0.49
f Utilities 0.00 0.00
Composition - Net
Cash 4.2
Stocks 95.8
Bonds 0.0
Other 0.0
Foreign 13.7
(% of Stock)
Morningstar's Take by Gretchen Rupp 01-22-16
A rocky 2015 highlights the risk of FMI Large Cap's
relatively concentrated approach to investing, but there's
still plenty of reason to hold this fund, which has a
Morningstar Analyst Rating of Gold, in high regard.
Portfolio manager Pat English and his team generally
populate this portfolio with fewer than 30 stocks, so
individual holdings can meaningfully affect fund returns.
That was largely the case in 2015, when stock prices for
Potash Corp POT and Devon Energy DVN dropped by
almost half. These losses contributed significantly to the
fund's overall 2.4% loss in 2015, which put it behind two
thirds of its large-blend peers.
The team focuses on the long-term, though, and it
continues to hold on to and believe in the potential of both
stocks. Management's research-intensive process takes
a "business owner's" approach to investing, focusing on
companies with strong recurring revenues and attractive
returns on invested capital. The team members also pay
close attention to industry dynamics and trends,
examining competitive environments and how
businesses stand apart in areas such as cost structure
and distribution. As the world's largest potash producer
with a number mines at the lower part of the cost curve,
Potash readily fits the bill.
English, who has managed the fund since its 2001
inception, has built a compelling long-term record
executing this process. From his start through the end of
2015, the fund's8.3%annualizedgaineasilyoutpaces the
typical competitor's 5.3% return. In a hallmark of the
higher-quality names that tend to populate this portfolio,
the fund does so with a measure of downside protection;
overEnglish'stenure,the fundbeatsthecategoryaverage
more than 70% of the time. (Of course, it also tends to
lag peers in up markets, another common characteristic
of a higher-quality portfolio.) The fund's disappointing
results in 2015's volatile environment demonstrate how
the team's concentrated approach can sometimes set
those patterns off course. But investors who share the
team's patient ways continue to have much to like here.
Address: FMI Funds Inc Minimum Purchase: $1000 Add: $100 IRA: $1000
Milwaukee, WI 53202 Min Auto Inv Plan: $1000 Add: $50
800-811-5311 Sales Fees: No-load
Web Address: Management Fee: 0.75% mx./0.60% mn.
Inception: 12-31-01 Actual Fees: Mgt:0.69% Dist:—
Advisor: Fiduciary Management, Inc. of Milwaukee Expense Projections: 3Yr:$278 5Yr:$482 10Yr:$1073
Subadvisor: None Income Distribution: None
©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