Motley Fool Independence Fund
Motley Fool Independence Fund A GLOBAL GO-ANYWHERE EQUITY MULTI-CAP FUND
FUND FACTS
FOR FINANCIAL PROFESSIONAL USE ONLY. DO NOT GIVE OR SHOW TO RETAIL INVESTORS. Ticker: FOOLX
Benchmark: MSCI World Index
Portfolio Manager: William H. Mann III
Net Expense Ratio: 1.36% *1
Inception Date: 6/16/2009
Gross Expense Ratio: 1.54% *
Assets: $258.5 million
(as stated in the Prospectus 02/28/2013)
Redemption Fee: 2.00%, when redeeming within 90 days of purchase
NAV: $16.79 Total # of Positions: 70
*The Fund’s net expense ratios reflect fee waivers and expense reimbursements by the investment advisor. The Adviser has contractually agreed to pay, waive or absorb a portion of the Independence Fund’s expenses through the end of February 2014, or such later date as may be determined by the Independence Fund and the Adviser. 1 The Net Expense Ratio includes a Monthly Performance Adjustment of 0.01% (as of April 1, 2013). See the Independence Fund Prospectus for additional information.
as of 3/31/13
FUND OBJECTIVE
Motley Fool Independence Fund seeks to achieve long-term capital appreciation by investing in what the Fund managers believe to be superior businesses at reasonable prices, period. Headquartered far from Wall Street in historic Alexandria, Virginia, Motley Fool Independence Fund “follows the value” without restriction on sector, company size, or geography. Overall Morningstar RatingTM: (based on Risk-Adjusted returns among 743 World Stock Funds as of 3/31/2013) The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. As of 03/31/2013, Motley Fool Independence Fund was rated against 743 World Stock funds in the last three years and received four-start rating. Past performance is no guarantee of future results.
FUND PERFORMANCE Independence Fund MSCI World Index $20,0000 $18,0000 $16,0000
Returns
Independence
MSCI World Index
One Year
9.28%*
12.53%
Annualized Since Inception (06/16/2009)
15.89%*
14.15%
The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Visit foolfunds.com for returns current to the most recent month-end. *The Fund’s performance would have been lower if the waivers/ reimbursements had not been in effect.
$14,0000 $12,0000 $10,0000
JUN 2009
OCT 2009
OCT 2010
OCT 2011
APR 2013
INVESTMENT APPROACH
GUIDING PRINCIPLES
The Fund’s managers analyze companies from a bottom-up perspective. They focus on companies with easily understandable business models, that have clear and reliable disclosures, that operate in markets where reliable regulatory frameworks exist and that have good corporate governance. They also focus on conservatively run companies that they believe the market has irrationally undervalued and that possess catalysts to help the companies realize their full market value.
• We will communicate with our shareholders and partners as clearly and candidly as possible. • We will not impose loads or 12b-1 charges, and we will apply redemption fees only to discourage short-term trading. • We will charge a “fulcrum fee” that allows our compensation to increase or decrease depending on fund performance. See the Prospectus for details. • We are — and will remain — significant investors in Motley Fool Independence Fund.
The fund’s managers may invest in any company, market, industry, or sector if their analysis reveals a potential opportunity for outsized riskadjusted return in alignment with this investment approach. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and re-demption fees), placing more emphasis on downward variations and rewarding consistent performance. “The top 10% of funds in each 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.
Visit Motley Fool Funds at www.foolfunds.com
© 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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.
as of 3/31/13
PORTFOLIO MANAGER AND CHIEF INVESTMENT OFFICER
FOR FINANCIAL PROFESSIONAL USE ONLY. DO NOT GIVE OR SHOW TO RETAIL INVESTORS. WILLIAM H. MANN III Bill specializes in identifying companies with underappreciated competitive advantages and assets. His expertise in corporate governance led the U.S. Senate Committee on Commerce, Science, and Transportation to ask him to be an expert witness at a 2001 hearing regarding the collapse of Enron. Before coming to Motley Fool Asset Management, he served as co-advisor for the Motley Fool Hidden Gems small-cap investment newsletter and was the founding advisor for the Motley Fool Global Gains international stock newsletter service. Bill is joined on the Motley Fool Funds investment team by Senior Analysts William Barker, Anthony Arsta, and Timothy Hanson.
THE TEAM
WILLIAM S. BARKER A longtime analyst for The Motley Fool, Bill Barker has worked on several of the company’s investing newsletter services, as well as three Motley Fool books. Before coming to The Motley Fool, Bill worked for the Securities and Exchange Commission, in its Office of Investor Education and Assistance, and also for the U.S. Department of the Treasury, in its Office of Foreign Assets Control, Foreign Terrorism Division. Prior to his work in finance, Bill was a trial lawyer for the City Solicitor’s Office in Philadelphia.
ANTHONY L. ARSTA Tony’s focus on statistical analysis and investor psychology complements his value-investing focus. After joining The Motley Fool in 2008, he contributed his writing and analysis to Motley Fool Million Dollar Portfolio, as well as several other newsletter services. Tony earned his M.B.A. with distinction from DePaul University, with a concentration in finance, and also holds a B.S. in computer science from the University of Wisconsin, Madison.
TIMOTHY B. HANSON Tim Hanson has worked for The Motley Fool for six years, contributing to the Motley Fool Global Gains and Hidden Gems investing newsletters. He subsequently became co-advisor of Global Gains and then head of the Fool’s global equities research team, overseeing newsletters in the U.S., U.K, and Australia. Prior to joining The Motley Fool, Tim worked at the White House, where he helped craft messaging for economic, environmental, and national security policy.
Please visit www.foolfunds.com to read the Prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before you invest. Please see the Prospectus containing this and other information. Read it carefully before you invest or send money. Motley Fool Funds are distributed by Foreside Funds Distributors LLC, Berwyn, Pa., a registered broker dealer not affiliated with The Motley Fool.
TOP 11 HOLDINGS Company (in alphabetical order)
Country
Berkshire Hathaway, Inc.
USA
Brookfield Asset Management Inc.
Canada
Compartamos S.A.A. DE C.V.
Mexico
Google Inc.
USA
HCC Insurance Holdings, Inc.
USA
Loews Corp.
Brazil
Markel Corp.
USA
Tod’s, S.p.A.
Italy
Wellpoint, Inc.
USA
YUM! Brands, Inc.
USA
Percentage of Total Net Assets in Top 11 Holdings: 26.5% % of US holdings for Independence Fund = 47.8% Holdings are subject to change.
HOLDINGS BY CONTINENT Continent
Percentage
USA
47.8%
Asia
19.5%
Europe
13.7%
Americas
13.5%
Other
5.5%
Holdings are subject to change.
HOLDINGS BY SECTOR Sector
Percentage
Financials
27.4%
Consumer Discretionary
19.7%
Information Technology
11.4%
Consumer Staples
10.2%
Health Care
10.1%
Energy
6.8%
Industrials
4.2%
Utilities
2.9%
Telecommunication Services
2.7%
Materials
2.4%
Holdings are subject to change.
®
FUND FACTS
FOR FINANCIAL PROFESSIONAL USE ONLY. DO NOT GIVE OR SHOW TO RETAIL INVESTORS. Ticker: FOOLX
Benchmark: MSCI World Index
Portfolio Manager: William H. Mann III
Net Expense Ratio: 1.36% *1
Inception Date: 6/16/2009
Gross Expense Ratio: 1.54% *
Assets: $258.5 million
(as stated in the Prospectus 02/28/2013)
Redemption Fee: 2.00%, when redeeming within 90 days of purchase
NAV: $16.79 Total # of Positions: 70
*The Fund’s net expense ratios reflect fee waivers and expense reimbursements by the investment advisor. The Adviser has contractually agreed to pay, waive or absorb a portion of the Independence Fund’s expenses through the end of February 2014, or such later date as may be determined by the Independence Fund and the Adviser. 1 The Net Expense Ratio includes a Monthly Performance Adjustment of 0.01% (as of April 1, 2013). See the Independence Fund Prospectus for additional information.
as of 3/31/13
FUND OBJECTIVE
Motley Fool Independence Fund seeks to achieve long-term capital appreciation by investing in what the Fund managers believe to be superior businesses at reasonable prices, period. Headquartered far from Wall Street in historic Alexandria, Virginia, Motley Fool Independence Fund “follows the value” without restriction on sector, company size, or geography. Overall Morningstar RatingTM: (based on Risk-Adjusted returns among 743 World Stock Funds as of 3/31/2013) The Overall Morningstar Rating™ for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. As of 03/31/2013, Motley Fool Independence Fund was rated against 743 World Stock funds in the last three years and received four-start rating. Past performance is no guarantee of future results.
FUND PERFORMANCE Independence Fund MSCI World Index $20,0000 $18,0000 $16,0000
Returns
Independence
MSCI World Index
One Year
9.28%*
12.53%
Annualized Since Inception (06/16/2009)
15.89%*
14.15%
The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Visit foolfunds.com for returns current to the most recent month-end. *The Fund’s performance would have been lower if the waivers/ reimbursements had not been in effect.
$14,0000 $12,0000 $10,0000
JUN 2009
OCT 2009
OCT 2010
OCT 2011
APR 2013
INVESTMENT APPROACH
GUIDING PRINCIPLES
The Fund’s managers analyze companies from a bottom-up perspective. They focus on companies with easily understandable business models, that have clear and reliable disclosures, that operate in markets where reliable regulatory frameworks exist and that have good corporate governance. They also focus on conservatively run companies that they believe the market has irrationally undervalued and that possess catalysts to help the companies realize their full market value.
• We will communicate with our shareholders and partners as clearly and candidly as possible. • We will not impose loads or 12b-1 charges, and we will apply redemption fees only to discourage short-term trading. • We will charge a “fulcrum fee” that allows our compensation to increase or decrease depending on fund performance. See the Prospectus for details. • We are — and will remain — significant investors in Motley Fool Independence Fund.
The fund’s managers may invest in any company, market, industry, or sector if their analysis reveals a potential opportunity for outsized riskadjusted return in alignment with this investment approach. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and re-demption fees), placing more emphasis on downward variations and rewarding consistent performance. “The top 10% of funds in each 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.
Visit Motley Fool Funds at www.foolfunds.com
© 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (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.
as of 3/31/13
PORTFOLIO MANAGER AND CHIEF INVESTMENT OFFICER
FOR FINANCIAL PROFESSIONAL USE ONLY. DO NOT GIVE OR SHOW TO RETAIL INVESTORS. WILLIAM H. MANN III Bill specializes in identifying companies with underappreciated competitive advantages and assets. His expertise in corporate governance led the U.S. Senate Committee on Commerce, Science, and Transportation to ask him to be an expert witness at a 2001 hearing regarding the collapse of Enron. Before coming to Motley Fool Asset Management, he served as co-advisor for the Motley Fool Hidden Gems small-cap investment newsletter and was the founding advisor for the Motley Fool Global Gains international stock newsletter service. Bill is joined on the Motley Fool Funds investment team by Senior Analysts William Barker, Anthony Arsta, and Timothy Hanson.
THE TEAM
WILLIAM S. BARKER A longtime analyst for The Motley Fool, Bill Barker has worked on several of the company’s investing newsletter services, as well as three Motley Fool books. Before coming to The Motley Fool, Bill worked for the Securities and Exchange Commission, in its Office of Investor Education and Assistance, and also for the U.S. Department of the Treasury, in its Office of Foreign Assets Control, Foreign Terrorism Division. Prior to his work in finance, Bill was a trial lawyer for the City Solicitor’s Office in Philadelphia.
ANTHONY L. ARSTA Tony’s focus on statistical analysis and investor psychology complements his value-investing focus. After joining The Motley Fool in 2008, he contributed his writing and analysis to Motley Fool Million Dollar Portfolio, as well as several other newsletter services. Tony earned his M.B.A. with distinction from DePaul University, with a concentration in finance, and also holds a B.S. in computer science from the University of Wisconsin, Madison.
TIMOTHY B. HANSON Tim Hanson has worked for The Motley Fool for six years, contributing to the Motley Fool Global Gains and Hidden Gems investing newsletters. He subsequently became co-advisor of Global Gains and then head of the Fool’s global equities research team, overseeing newsletters in the U.S., U.K, and Australia. Prior to joining The Motley Fool, Tim worked at the White House, where he helped craft messaging for economic, environmental, and national security policy.
Please visit www.foolfunds.com to read the Prospectus. Please consider the charges, risks, expenses, and investment objectives carefully before you invest. Please see the Prospectus containing this and other information. Read it carefully before you invest or send money. Motley Fool Funds are distributed by Foreside Funds Distributors LLC, Berwyn, Pa., a registered broker dealer not affiliated with The Motley Fool.
TOP 11 HOLDINGS Company (in alphabetical order)
Country
Berkshire Hathaway, Inc.
USA
Brookfield Asset Management Inc.
Canada
Compartamos S.A.A. DE C.V.
Mexico
Google Inc.
USA
HCC Insurance Holdings, Inc.
USA
Loews Corp.
Brazil
Markel Corp.
USA
Tod’s, S.p.A.
Italy
Wellpoint, Inc.
USA
YUM! Brands, Inc.
USA
Percentage of Total Net Assets in Top 11 Holdings: 26.5% % of US holdings for Independence Fund = 47.8% Holdings are subject to change.
HOLDINGS BY CONTINENT Continent
Percentage
USA
47.8%
Asia
19.5%
Europe
13.7%
Americas
13.5%
Other
5.5%
Holdings are subject to change.
HOLDINGS BY SECTOR Sector
Percentage
Financials
27.4%
Consumer Discretionary
19.7%
Information Technology
11.4%
Consumer Staples
10.2%
Health Care
10.1%
Energy
6.8%
Industrials
4.2%
Utilities
2.9%
Telecommunication Services
2.7%
Materials
2.4%
Holdings are subject to change.
®
