(PUB) Morningstar FundInvestor
September 2 014
Morningstar FundInvestor
5
Data through August 31, 2014 Sound Shore Investor
Ticker
Status Yield Total Assets
Mstar Category
SSHFX Open
2.2% $2,548 mil
Large Value
Morningstar Analyst Rating 08-13-14
Investment Style Equity Stock %
Historical Profile Return Risk Rating Above Avg Above Avg Above Avg
96% 96% 95% 96% 97% 98% 97% 99% 98%
„
Manager Change Partial Manager Change
14.0 18.0 22.0 27.6
Morningstar Pillars Process Performance
Growth of $10,000
¶ ∞ ∞ ∞ ∞ ∞
Positive Positive Positive Positive Neutral
Investment Values of Fund Investment Values of S&P 500
People Parent Price
10.0
Performance Quartile (within Category) History
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 08-14
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 ¨
33.51 31.74
36.70 15.34 4.46 -1.15 0.30 15.04
36.63 6.80 1.89 -0.25 0.18 6.62
39.19 16.56 0.77 -5.69 0.57 15.99
35.68
22.76
28.58 26.64
31.82 12.13 -2.93 -3.38
29.53 -6.18 -8.29 -6.57 1.05 -7.23
34.91 19.32
49.05 41.53
53.26 10.69
NAV
-35.60 2.58
Total Return %
3.06 1.71 0.20
-2.91 2.75 0.54
1.40 1.25 0.72
0.18 6.95 0.96
3.32 1.81 1.03
9.14 9.00 0.92
0.80 0.34 2.06 8.63 1.01 0.00 14
+/-S&P 500
+/-Russ 1000 Vl Income Return % Capital Return %
0.71
31.54
-36.32 2.04
25.68
11.42
18.29
40.61
21
21
35
71
44
37
30
69
86
6
2
Total Rtn % Rank Cat
Pillar Spectrum Positive ∞
0.05 0.44 0.98 0.18
0.10 1.85 0.98 0.33
0.07 2.51 0.98 0.20
0.21 3.30 0.92 0.54
0.21 4.33 0.92 0.50
0.26 0.00 0.92 0.80 111
0.22 0.00 0.94 0.89
0.20 0.00 0.94 0.66
0.33 0.00 0.94 0.69
0.30 0.00 0.94 0.89
0.32 0.00 0.93 0.77
Income $
§ Negative
¶ Neutral
Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil
. . .
Performance 08-31-14 1st Qtr 2nd Qtr
3rd Qtr
4th Qtr
Total
62 . .
66
84
97
64
61
56
44
2010 2011 2012 2013 2014
4.23 -12.63 10.58 11.35 12.13 5.09 -1.40 -19.19 12.05 -6.18 14.93 -4.86 4.70 4.22 19.32 11.60 6.40 7.46 10.91 41.53 3.57 5.01 . . .
1,016
1,698
2,265
2,880
2,738
1,623
2,117
1,930
1,592
1,498
2,067
2,057
Portfolio Analysis 03-31-14 Share change since 12-13 Total Stocks:43 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
Qualcomm Inc BP PLC ADR
Technology 18.4 0.32 2.98
1 Yr 3 Yr 5 Yr
27.60 24.02 16.19
Trailing
Total
+/-
+/- Russ %Rank Growth of
Energy Industrl
13.1 3.12 2.81 18.8 -3.64 2.79
Return% S&P 500 1000 Vl
Cat
$10,000
High +Avg +Avg
+Avg +Avg
General Electric Co Bank of America Corporat
3 Mo 6 Mo 1 Yr
4.23 -0.46 8.69 -0.15 27.60 2.35 24.02 3.41 16.19 -0.69 8.79 0.41 8.19 3.41
-0.34 -0.98 3.17 2.45 -0.43 0.56 1.64
44 10,423 39 10,869 4 12,760 2 19,075 22 21,176 20 23,221 9 32,569
Finan Svs 25.6 -1.93 2.79 Hlth care 26.7 1.02 2.73
10 Yr Incept
8.79
Avg
Sanofi ADR Hess Corp
11.55
Energy Utilities
12.9 19.86 2.55 96.2 1.72 2.55
3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg
The AES Corporation Procter & Gamble Co CVS Caremark Corp
Other Measures
Standard Index
Best Fit Index
Cnsmr Def 20.9 4.41 2.52 Cnsmr Def 19.5 12.16 2.51
S&P 500
Alpha
0.2
3.9
Teradata Corp
Technology 20.4
2.49
.
Beta
1.15
0.90
Weatherford Internationa American International G Capital One Financial Co E I du Pont de Nemours &
Energy
44.42 2.49
.
R-Squared
92
96
Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat 3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated) 23.32 1 0.56 34 15.69 13 0.43 29 7.91 14 0.81 46 Potential Capital Gain Exposure: 40% of assets Morningstar’s Take by Gregg Wolper 08-13-14 Sound Shore doesn’t try to get fancy. This fund’s structure is as basic as it comes. Its three fund managers have decades of experience on the fund; no other managers have come or gone since its 1985 inception. They work with four analysts with tenures of at least six years on the fund. They do no advertising and offer no other mutual fund or strategy besides the moderate-value approach pursued by this fund and similar separate accounts. The investment process isn’t as simple, but it’s straightforward. The managers look for companies that meet basic price/earnings screens, then apply other value measures to see if they support the initial indication. The managers and analysts then conduct conventional fundamental research on the companies that survive these tests. They assemble a portfolio of just 40 stocks or so but distribute assets so that no single company gets much more than 3% of assets. The management team likes companies selling for far less than the team’s estimate of their value, owing to some problem that the team thinks can be
Finan Svs
9.3 2.31 2.48
Standard Deviation
13.92 24.02
Finan Svs 11.2 4.61 2.44 Basic Mat 20.8 0.37 2.44 Finan Svs 16.8 -6.08 2.41 Comm Svs 19.3 4.26 2.41
Mean
Citigroup Inc
Sharpe Ratio
1.62
Comcast Corp Class A
CIT Group Inc Microsoft Corp Schlumberger NV Novartis AG ADR
Finan Svs 14.4
2.36
.
Technology 17.3 16.87 2.34
Energy
21.4 21.17 2.33
addressed even if the solution may take time. Often it buys companies that have installed new management or have had issues with a manufacturing facility or another regulatory problem. It says Weatherford WFT is an example of a holding invigorated by new management, while Hospira HSP is one that had a problem at a plant that it considered temporary. The former is up 40% so far this year, while the latter has gained 32%, with takeover talk providing a boost. It is in the top decile of the large-value Morningstar Category for the year to date through Aug. 8; if it keeps that position at year-end, that would mark three straight years with such a lofty ranking. The fund had a couple of subpar years when recovery plays such as Bank of America BAC and Citigroup C were struggling, but its long-term results show the benefits of its approach. It has beaten the S&P 500 Index and the large-value and large-blend category averages since inception and over the 10- and 15-year periods through Aug. 11. Its style is not flashy, but it works.
Hlth care 24.1 11.54 2.30
Current Investment Style
Sector Weightings
% of Stocks
Rel S&P 500 High
3 Year Low
Market Cap % Giant 40.6 Large 43.5 Mid 15.8 Small 0.0 Micro 0.0 Avg $mil: 46,875
Value Blnd Growth
Large Mid Small
Cyclical 33.77 1.17 BasicMat 4.83 1.58 5 1 CnsmrCyc 8.08 0.94 11 6 FinanSvs 20.86 1.33 27 21 Real Est 0.00 0.00 . . Sensitive 40.98 0.94 CommSrvs 6.90 1.72 7 3 Energy 12.39 1.16 12 6 Industrl 4.86 0.43 8 4 Technlgy 16.83 0.96 19 13 Defensive25.26 0.92 CnsmrDef 5.14 0.42 13 4 Hlthcare 17.51 1.48 26 16 Utilities 2.61 0.72 3 2
h r t y u j i o p a k s d f
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
15.86 1.67 1.09 6.46 1.91
1.21 0.98 0.94 1.07 0.69 1.21 0.99 NMF 0.62 2.19
% Rel Category
10.61 5.09 -0.75
Composition - Net
Cash 2.2 Stocks 97.8 Bonds 0.0 Other 0.0 Foreign 17.1
3.41 7.64
Address:
3435 Stelzer Road Columbus, OH 43219 800-551-1980
Minimum Purchase: Min Auto Inv Plan:
$10000 $10000 No-load
Add: $0 IRA: $2000
Add: $50
Profitability
% Rel Category
Sales Fees:
Return on Equity Return on Assets Net Margin
12.53 5.70 11.47
0.77 0.95 0.96
Web Address: Inception: Advisor: Subadvisor: NTF Plans:
www.soundshorefund.com
Management Fee:
0.75%, 0.03%A
(% of Stock)
05-17-85
Actual Fees:
Mgt:0.75% Dist: .
Sound Shore Management Inc
Expense Projections: Income Distribution:
3Yr:$296
5Yr:$515 10Yr:$1143
None
Semi-Annually
Fidelity Retail-NTF, CommonWealth NTF
Mutual Funds ß ®
© 2014Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted tobe accurate, correct, completeor timely.Pastperformance isnoguaranteeof future results.Accessupdated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.
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