Idea Transcript
MSCFX
June 30, 2018
As of 6/30/2018, Overall Morningstar Rating of 4 stars and 4 stars and 4 stars for the 3- and 5-year periods among 639, 639 and 539 small blend funds based on Morningstar Risk-Adjusted Return.1
Investment Objective
Seeks above-average, long-term appreciation.
Investment Philosophy
Mairs & Power believes the best way to manage money for shareholders is to consistently utilize a disciplined, long-term investment approach.
Investment Strategy •
•
•
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Focuses on companies with attractive business niches, strong competitive positions and the potential to grow revenues, earnings and cash flows consistently over the long-term. Considers the importance of capable management with a track record of prudent capital deployment. Emphasizes companies located in the Upper Midwest region of the United States. Seeks to keep its assets reasonably fully invested, to maintain modest portfolio turnover rates and to moderate risk by investing in a diversified portfolio of securities.
For More Information
The Fund’s investment objective, risks, charges and expenses must be considered carefully before investing. The summary prospectus or full prospectus contains this and other important information about the Fund and they may be obtained by calling Shareholder Services at 800-304-7404 or visiting www.mairsandpower.com. Read the summary prospectus or full prospectus carefully before investing.
S MA LL C AP
Performance (%)
Average Annualized
6/30/2018
Quarter
1 Year
3 Year
5 Year
Mairs & Power Small Cap Fund 3
8.66
8.02
10.65
12.19
17.15
S&P Small Cap 600 TR Index
8.77
20.50
13.84
14.60
16.94
Morningstar Small Blend Category
6.31
14.67
9.41
11.02
N/A
Lipper Small Cap Core Funds Index
6.01
15.45
10.75
Expense ratio: 1.04%
11.75 2
Since Inception 2
13.83
Inception: 08/11/2011
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. For most recent month-end performance figures, visit www.mairsandpower.com or call Shareholder Services at 800-304-7404. Performance information shown includes the reinvestment of dividend and capital gain distributions, but does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
3
Hypothetical Growth of $10,000 Since Inception 30000
25000
Mairs & Power Small Cap Fund
$27,385
S&P 600 TR Index
$27,008
20000 $000
®
15000
10000
5000 2011
2012
2013
2014
2015
2016
2017
PERIOD ENDING MARCH 31
Fund Facts - The Mairs & Power Small Cap Fund is closed to new investors. Ticker MSCFX
Expense Ratio
1.04%
Net Asset Value
Sales Charge
None7
$26.61
Number of Holdings
49
Portfolio Turnover Rate
6.78%
Fund Inception Year
2011
Minimum Initial Investment
$2,500
Active Share 96.57%
Minimum IRA Investment
$1,500
Sharpe Ratio
Income Distribution
Annual
Capital Gains Distribution
Annual
4
5
6
Total Net Assets
0.79 Approx. $424M
1
The Morningstar Rating for funds, or star rating, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-,and 10-year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five-year rating, 40% three-year rating for 60-119 months of total returns, and 50% 10-year rating, 30% five-year rating, 20% threeyear rating for 120 or more months of total returns. While the 10-year overall rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Copyright 2018, Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
800-304-7404 | www.mairsandpower.com
MSCFX
SMALL CAP
Portfolio Diversification
Portfolio Managers
Percent of Total Net Assets % Industrials 28.6
Andrew R. Adams, CFA Andrew has been the lead manager since the Fund’s inception in 2011. He holds a MS in Finance from the University of WisconsinMadison. He is also a graduate of its Applied Security Analysis Program. ®
Allen D. Steinkopf, CFA® Allen has been the co-manager since January 2015. He holds an MBA in Finance from the Carlson School of Management at the University of Minnesota.
June 30, 2018
Portfolio Composition Market Capitalization
Financials 22.1 Health Care
12.4
Information Technology
11.0
Consumer Discretionary
6.7
Real Estate
6.6
Materials 4.1 Utilities 2.9 Consumer Staples
2.7
Small Cap Mid Cap Micro Cap
Energy 1.4 Common Stocks
98.5
71% 29% 0%
Minnesota Upper Midwest Other
8
About the Adviser Mairs & Power, Inc. is an SEC-registered investment advisory firm and Minnesota’s oldest investment firm under private ownership and management. Based in historic downtown Saint Paul, the firm has been conscientiously serving clients since 1931. As of June 30, 2018, Mairs & Power manages over $9.1 billion in assets. The firm provides investment services to individuals, employee benefit plans, endowments, foundations and over 50,000 accounts in three no-load mutual funds. All investment decisions are made by the firm’s portfolio managers who have spent virtually their entire careers in the investment management business.
Short-term Investments 1.5 Median
$2.4 bil
Total 100.0
Weighted Average
$3.1 bil
Top Ten Common Stock Holdings
Geography
Percent of Total Net Assets Tennant Company
% 3.7
CoreSite Realty Corp.
3.7
Bio-Techne Corp.
3.7
Apogee Enterprises, Inc.
3.5
Great Western Bancorp Inc.
3.5
Glacier Bancorp Inc.
3.3
Small Cap 82%
Cullen/Frost Bankers Inc. Mid Cap3.3 18% Micro Cap Catalent Inc. 3.2 0.0% Donaldson Co., Inc.
3.1
Wintrust Financial Corp.
3.1
Upper Midwest Minnesota Other
46% 30% 24%
Important Considerations Lipper SmallCap Core Funds Index measures the performance of the 30 largest mutual funds in the small capitalization range, as determined by Lipper, Inc. It is not possible to invest directly in an index. The S&P SmallCap 600 TR Index is an index of small-company stocks managed by Standard and Poor’s that covers a broad range of small cap stocks in the U.S. The index is weighted according to market capitalization and covers about 3-4% of the total market for equities in the U.S. It tracks both the capital gains of a group of stocks over time and assumes that any cash distributions, such as dividends, are reinvested back in the index. It is not possible to invest directly in an index. Morningstar Small Blend Category, as defined by Morningstar are stocks in the bottom 10% of the capitalization of the U.S. equity market are defined as smallcap. The blend style is assigned to portfolios where neither growth nor value characteristics predominate. It is not possible to invest directly in an index. All holdings in the portfolio are subject to change without notice and may or may not represent current or future portfolio composition. The mention of specific securities is not intended as a recommendation or an offer of a particular security, nor is it intended to be a solicitation for the purchase or sale of any security. All investments have risks. The Fund is designed for long-term investors. Equity investments are subject to market fluctuations and the Fund’s share price can fall because of weakness in the broad market, a particular industry or specific holdings. Investments in small and midcap companies generally are more volatile. International investing risks include among others political, social or economic instability, difficulty in predicting international trade patterns, taxation and foreign trading practices and greater fluctuations in price than U.S. corporations. The Fund may invest in initial public offerings by small cap companies, which can involve greater risks than investments in companies which are already publicly traded. 4 Not annualized. 5 Active Share represents the proportion of portfolio holdings that differ from those in the benchmark index. 6 The risk-adjusted measure is calculated by using standard deviation and excess return to determine reward per unit of risk. 7 Although the Fund is no-load, investment management fees and other expenses still apply. 8 Represents short-term investments and other assets and liabilities (net). ALPS Distributors, Inc. is the Distributor for the Mairs & Power Funds. MNP001082