(PUB) Morningstar FundInvestor

November 2013

Morningstar FundInvestor

23

Data through October 31, 2013 Westwood Income Opportunity Instl

Ticker

Status Yield Total Assets

Mstar Category

WHGIX Open

1.6% $1,549 mil

Conservative Allocation

Morningstar Analyst Rating 10-08-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Above Avg Average Above Avg

58% 35% 30% 19% 41% 51% 55% 58% 57%

´

Manager Change Partial Manager Change

12.0 14.0 16.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Positive Positive Neutral Neutral

Investment Values of Fund Investment Values of M* MdTgRk

10.0

People Parent Price

¶ ¶

8.0

NAV Total Return % +/-M* MdTgRk +/-Mstr Md Cn Rk Income Return % Capital Return % Total Rtn % Rank Cat Performance Quartile (within Category) History

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 10-13

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 ¨

9.99 10.70 9.90 . . . . -4.58 17.61 8.48 3.45 -8.03 -8.20 -0.35 . . . . -7.58 2.88 . . . . 5.51 4.30 . . . . -5.08 8.30 . . . . 93 24 . . . . 0.42 0.04 . . . . 0.00 0.00 . . . . 1.00 1.00 . . . . 5.45 4.89 . . . . 62 45 . . . . 1 0.58 0.20 1.00 3.57 0.43

9.20

10.03 13.77

11.10

11.59 7.95 -4.09 -1.71 2.05 5.90

13.62 12.30

12.60 22.22 . . . *

12.18 -9.59 -3.13

7.10 6.51 4.50 2.63 4.47 0.29 0.00 0.90 2.93 5

1.44 4.12 2.94

0.25 4.66 1.27

3.04 9.14 0.34 0.00 1.00 3.22 92

10.83

11.03

6

74

2

Pillar Spectrum Positive

0.28 0.00 0.90 3.18

0.29 0.00 0.90 2.63

0.15 0.00

Income $

§ Negative

¶ Neutral

Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil

. . .

Performance 10-31-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

99 80

91

34

26

24

2009 2010 2011 2012 2013

-3.85 4.53 3.23 -0.27 3.20 1.51 4.24 0.60 8.46 0.91

6.71 4.59 12.18 7.54 2.76 13.77

92 3 . . .

114

146

223

504

815

1,403

-5.49 8.18 3.72 -0.75

7.10 7.95

Rating and Risk Time Load-Adj

Portfolio Analysis 09-30-13 Total Stocks:39

0.27

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

. .

P/E

YTD % Net

Period Return % Rtn vs Cat

Share change since 06-30-13

Sectors

Ratio Return % Assets 16.1 27.85 2.45 17.3 25.74 2.41 14.7 28.35 2.39 15.1 28.63 2.38 18.8 35.46 2.31 19.2 32.56 2.15 11.3 22.61 1.95 11.0 19.58 1.94 66.2 -1.47 1.92

1 Yr 3 Yr 5 Yr

12.27

Trailing

Total

+/- M* +/- Mstr

%Rank Growth of

Novartis AG ADR

Hlth care Cnsmr Def Cnsmr Def Industrl Hlth care Finan Svs Finan Svs Real Est Energy

Return% MdTgRk Md Cn Rk

Cat

$10,000

9.32

High +Avg

Avg Avg

PepsiCo Inc

3 Mo 6 Mo 1 Yr

1.01 -2.79 1.32 -3.75 12.27 -1.77 9.32 -0.01 10.61 -1.09

-1.70 -1.59 3.46 2.13 1.13

93 10,101 58 10,132 8 11,227 7 13,065

10.61

General Mills, Inc. General Electric Co Johnson & Johnson Spectra Energy Corp

10 Yr Incept

. . . .

7.58

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

Other Measures

Standard Index

Best Fit Index DJ IndusAvg

26 16,557 . . . . . . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

Travelers Companies, Inc.

M* MdTgRk

U.S. Bancorp

Alpha

2.9

2.9

Alexandria Real Estate Eq

Beta

0.67

0.52

Date of Maturity

Amount

Value % Net $000 Assets

R-Squared

75

82

Total Fixed-Income:33 General Elec Cap FRN

$000

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

8.51 9.64

3

0.74 0.88

31

Standard Deviation

6.56 9.32 1.38

12-31-49 12,500 13,594 0.93 12-29-49 14,000 13,090 0.89 04-27-17 13,000 13,045 0.89 01-25-23 13,750 12,802 0.87 02-15-23 11,500 10,625 0.72 11-20-14 10,000 10,280 0.70

22 34 . . . .

Mean

Citigroup FRN FNMA 1.125% Total Cap 2.7%

Sharpe Ratio

Potential Capital Gain Exposure: 12% of assets

Occidental Pete Corp Del

Morningstar’s Take by Laura Lallos 10-08-13 Westwood Income Opportunity has made good use of its freedom. This newly rated Bronze offering is one of the best in the conservative-allocation category for the year to date, with a 9.7% return through Oct. 4. Given that its equity stake is now twice the category norm of 25%, its outperformance during a stock rally may seem a given. There’s more to the story. Since its late 2005 inception, the fund has returned an annualized 7.3%, compared with 4.5% for its average peer. Its mild loss in 2008 reflects a lower stock allocation (between 20% and 40%) dating back to 2006, when manager Mark Freeman couldn’t pass up 6% yields on high-quality bonds. That quality focus held it back in 2009. Freeman began buying attractively valued equities following the financial crisis and kicked off a great run. The fund is now on the cusp of Morningstar’s moderate-allocation category (which includes funds with equity stakes between 50% and 70%). Yet its risk profile is in line with the conservative-allocation

FNMA 2.625%

Bk Amer Fdg 5.65%

05-01-18 03-27-19 01-13-22

9,000 10,157 0.69 8,000 8,803 0.60 9,000 8,760 0.60

category: Its Morningstar Risk ratings, which emphasize downside risk, are below average over the five-year period. With rising rates an inevitable threat to fixed-income investments, this fund is positioned to hold up better than many of its peers over the near term. How to use it? Its quirky custom benchmark is not much of a guide: 25% S&P 500 Index, 25% FTSE NAREIT Equity Index, 25% 3-month T-bills, and 25% 10-year Treasuries. Freeman says that isn’t a neutral allocation but that it reflects the fund’s ability to move among a wide range of securities, with REITs standing in for master limited partnerships, convertible bonds, and preferred stocks. He says it would be fair to consider this an alternative to a 60/40 balanced fund. It has beat Vanguard Balanced Index VBINX by a percentage point annualized since inception with lower standard deviation. It is not for investors looking to maximize income but is a strong choice for those who share Freeman’s goal: attractive total return with moderate risk.

FHLMC 3.75% FHLMC 2.375%

Equity Style

Fixed-Income Style Duration: . Quality: . Avg Eff Duration Avg Eff Maturity Avg Credit Quality Avg Wtd Coupon figure provided by fund 1 1

Style: Blend Size: Large-Cap Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Growth Measures Long-Term Erngs Book Value Sales Cash Flow Historical Erngs

. . .

Rel Category

17.82 1.96 1.65 9.51 3.35 8.75 8.66 5.53 -0.34 3.85

1.20 1.05 1.20 1.38 1.20 0.85 5.81 1.07 NMF 0.06

3.79%

Sector Weightings

% of Stocks

Rel M* MdTgRk High

3 Year Low

% Rel Category

Cyclical 25.13 0.64 BasicMat 5.32 0.90 5 2 CnsmrCyc 2.19 0.19 7 2 FinanSvs 10.59 0.60 11 2 Real Est 7.03 1.80 14 5 Sensitive 49.82 1.32 CommSrvs 4.27 1.11 7 2 Energy 27.45 3.03 31 20 Industrl 10.53 0.87 11 6 Technlgy 7.57 0.59 9 2 Defensive25.06 1.08 CnsmrDef10.55 1.20 13 8 Hlthcare 10.46 1.03 13 10 Utilities 4.05 0.97 18 4

h r t y u j i o p a k s d f

Market Cap % Giant 42.9 Large 39.0 Mid 16.0

Small Micro

2.1 0.0

Avg $mil:

46,599

Address:

Westwood Funds Kansas City, MO 877-386-3944

Minimum Purchase: Min Auto Inv Plan:

$100000 $100000 No-load

Add: $0 IRA: $0

Composition - Net

Add: $25

Cash 22.1 Stocks 56.9 Bonds 11.8 Other 9.2 Foreign 4.3

Sales Fees:

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

www.westwoodfunds.com

Management Fee:

0.75%, 0.12%A

12-19-05

Actual Fees:

Mgt:0.75% Dist: .

*

Westwood Management Corp Texas

Expense Projections: Income Distribution:

3Yr:$290 Quarterly

5Yr:$504 10Yr:$1120

None

(% of Stock)

N/A

Mutual Funds ß ®

© 2013Morningstar, Inc.All rights reserved. The information herein isnot represented orwarranted to be accurate, correct, complete or timely. Pastperformance isnoguarantee of future results.Access updated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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