(PUB) Morningstar FundInvestor

April 2 014

Morningstar FundInvestor

7

Data through March 31, 2014 Yacktman Focused Svc

Ticker

Status Yield Total Assets

Mstar Category

YAFFX Limited 0.5% $11,676 mil

Large Blend

Morningstar Analyst Rating 03-28-14

Investment Style Equity Stock %

Historical Profile Return Risk Rating High Average Highest

77% 88% 90% 86% 88% 86% 85% 79%

Manager Change Partial Manager Change

15.0 20.0 25.0 32.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Neutral Negative

¶ § ∞ ∞ ∞

Investment Values of Fund Investment Values of S&P 500

People Parent Price

10.0

NAV Total Return % +/-S&P 500 +/-Russ 1000 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $ Performance Quartile (within Category) History

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 03-14

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 ¨

16.28 31.79

15.83 9.96 -0.92 -1.44 0.18 9.78

14.96 -1.83 -6.74 -8.10 1.39 -3.22

16.00 16.13

14.00

9.97

16.13 62.76 36.30 34.33

17.68 11.84 -3.22 -4.26

18.78

20.52 10.57 -5.43 -5.85

25.15 27.01 -5.38 -6.10

25.31 0.64 -1.17 -1.41 0.00 0.64

-23.48 3.46

7.41 5.30 5.91 0.67 6.74 0.12 0.09 1.25 0.89 6

3.11 1.90 0.53

0.34 0.67 1.43

-2.03 -2.31 1.45

13.52 14.12

1.11

0.51

0.65

0.87 9.70 0.16 0.08 1.26 0.90 90

0.68

31.26

14.70

-24.59 2.01

62.25

11.19

26.33

57

97

98

75

35

2

1

73

85

88

Pillar Spectrum Positive ∞

0.07 0.10 1.26 0.51

0.03 2.04 1.25 0.16

0.22 0.36 1.25 1.30

0.21 1.16 1.25 1.40

0.23 2.34 1.25 1.23

0.16 0.57 1.25 1.31

0.05 0.05 1.25 0.79

0.10 0.26 1.25 0.93

0.14 0.77 1.25 0.62

0.00 0.00

§ Negative

¶ Neutral

. . .

Performance 03-31-14 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

6 . .

31 91

30 67

67 65

8

6

2

3

17

2009 2010 2011 2012 2013

-5.72 36.91 16.94 7.82 62.76 4.96 -9.27 10.29 6.50 11.84 5.60 2.41 -8.68 8.76 7.41 6.76 -0.27 4.12 -0.27 10.57 12.09 4.04 1.84 6.95 27.01

127

98

85

666

1,984

4,424

6,599

8,627

8,414

Portfolio Analysis 12-31-13 Share change since 09-13 Total Stocks:37 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

PepsiCo Inc

Cnsmr Def 18.5 -3.46 9.62 Cnsmr Def 21.1 -2.64 7.26 Cnsmr Cyc 14.0 -8.74 6.95 Cnsmr Def 20.1 -7.53 6.72 Technology 14.4 -2.05 4.69 Technology 14.2 3.15 4.14 Cnsmr Def 21.7 -0.22 3.90 Technology 16.7 2.54 3.60 Hlth care 17.3 10.64 3.37 Hlth care 31.0 8.83 3.21 Hlth care 20.4 7.97 2.92 Cnsmr Cyc 17.0 0.45 2.20 Cnsmr Def 20.5 -4.36 2.07 Cnsmr Cyc 27.0 7.12 1.47 Finan Svs 13.7 1.83 1.36 Cyclical 19.31 0.67 BasicMat 0.94 0.31 1 1 CnsmrCyc13.38 1.56 23 13 FinanSvs 4.99 0.32 6 3 Real Est 0.00 0.00 . . Sensitive 25.33 0.58 CommSrvs 1.21 0.30 2 1 Energy 4.59 0.43 5 3 Industrl 2.11 0.19 2 1 Technlgy 17.42 0.99 18 14 Defensive55.36 2.01 CnsmrDef40.18 3.30 43 36 Hlthcare 15.18 1.28 19 14 Utilities 0.00 0.00 . . h r t y u j i o p a k s d f Energy 13.1 -4.25 2.46 Industrl 14.3 -11.12 1.27 Hlth care 11.5 8.22 1.24 Energy 10.3 -4.90 1.18 Cnsmr Def . -9.81 1.04 Sector Weightings % of Stocks Rel S&P 500 High 3 Year Low

1 Yr 3 Yr 5 Yr

14.04 12.86 23.99 10.68

Trailing

Total

+/-

+/- Russ %Rank Growth of

Procter & Gamble Co Twenty-First Century Fox

Return% S&P 500 0.64 -1.17 7.63 -4.88 14.04 -7.82 12.86 -1.80 23.99 2.83 10.68 3.26 10.49 6.03

1000 -1.41 -4.85 -8.37 -1.89 2.26 2.88 5.55

Cat

$10,000

Avg High High

Low Avg Avg

3 Mo 6 Mo 1 Yr

88 10,064 97 10,763 95 11,404 60 14,375 6 29,304 1 27,586 1 44,652

Coca-Cola Co Cisco Systems Inc

10 Yr Incept

9.83

Microsoft Corporation Sysco Corporation Oracle Corporation Stryker Corporation Johnson & Johnson Exxon Mobil Corporation Viacom, Inc. Class B C.R. Bard, Inc.

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index S&P 500 Mstar Large Core TR

Alpha

3.0

0.7

Beta

0.66

0.71

R-Squared

82

88

Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 12.25 48 0.54 45 23.43 5 0.45 44 9.42 1 1.14 84 Potential Capital Gain Exposure: 23% of assets Morningstar’s Take by Kevin McDevitt, CFA 03-28-14 Yacktman Focused is poised to do what it does best. This recently closed fund has had its first sizable outflows in more than 10 years, but those who left may eventually look back with regret. The nearly $190 million in combined January and February outflows didn’t have much impact on the fund given its 21% cash stake and $11.6 billion in assets. If anything, the outflows eased pressure on an asset base that has exploded over the past five years. Rapid growth led management to close the fund to new investors at year-end 2013. The move was made in part to preserve the flexibility to buy mid-cap stocks, but such flexibility is already limited. This fund and similar sibling Yacktman YACKX together have $25 billion in assets, which would make the combined fund the third largest actively managed large-blend offering. Those who have bolted may be reacting to the fund’s post-2011 underperformance, but this is partly to be expected. The fund lagged the S&P 500 index by more than 5 percentage points in both 2012 and 2013 and is off to a slow start in 2014. But early profit-taking

Standard Deviation

9.03

Clorox Company

Mean

12.86

eBay Inc

Sharpe Ratio

1.38

U.S. Bancorp

CH Robinson Worldwide, I

WellPoint Inc ConocoPhillips Avon Products Inc

is an occupational hazard for this value-oriented team. They did much the same during the late 1990s bubble and again during the mid-2000s bull market, which led to similarly poor relative results. Then as now, cash was often greater than 20%, which can be a major drag during rallies. But that cushion, along with a conservative portfolio, leaves the fund well prepared for the next bear market. Believing that record-high corporate margins will eventually revert to the historical mean, the team has gradually trimmed cyclical stocks since the bull market began five years ago. In March 2009, cheap cyclicals were 58% of the equity portfolio, and they powered the fund’s fantastic showing that year as the market rebounded. But cyclicals were cut to just 19% of the equity portfolio by year-end 2013. The team has recently added to slow-growth technology and consumer staples names such as Pepsi PEP. The fund’s caution can hold it back late in rallies, but has also led to superb results over full market cycles. It’s prepared to excel once again.

Current Investment Style

Market Cap % Giant 69.4 Large 17.8 Mid 12.0 Small 0.8 Micro 0.0 Avg $mil: 80,243

Value Blnd Growth

Large Mid Small

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

16.73 3.13 1.74 12.19 2.39 10.72 8.52 4.46 4.29 9.94

1.16 1.53 1.38 1.72 1.10 1.03 1.60 1.53 0.63 0.55

% Rel Category

Composition - Net

Cash 20.5 Stocks 79.4 Bonds 0.0 Other 0.1 Foreign 0.7

Address:

800 Connecticut Avenue Norwalk, CT 06854 800-835-3879 www.managersinvest.com

Minimum Purchase: Min Auto Inv Plan:

$2500 $500

Add: $100 IRA: $500

Add: $100

Profitability

% Rel Category

Sales Fees:

No-load, 2.00%R 1.00%, 0.03%A

Return on Equity Return on Assets Net Margin

23.11 9.08 14.91

1.20 1.18 1.17

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

Management Fee:

(% of Stock)

05-01-97

Actual Fees:

Mgt:1.00% Dist: .

Yacktman Asset Management, L.P. Yacktman Asset Management, L.P. Fidelity Retail-NTF, CommonWealth NTF

Expense Projections: Income Distribution:

3Yr:$397 Annually

5Yr:$686 10Yr:$1511

Mutual Funds ß ®

© 2014Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted to be accurate, correct, complete or timely. Pastperformance is no guarantee of future results.Accessupdated reportsat To order reprints, call 312-696-6100. mfb.morningstar.com.

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