40-24B2 1 fmifoverview.htm JUNE 2009 QUARTERLY OVERVIEWS fmifoverview.htm - Generated by SEC Publisher for SEC Filing    
FMI Funds    Quarterly Review – June 30, 2009 
100 East Wisconsin Avenue, Suite 2200  FMI Focus Fund
Milwaukee, Wisconsin 53202 
800.811.5311 
www.fmifunds.com   

Investment Objective    Top Ten Equity Holdings     
Seeks capital appreciation through investments in stocks of  Kennametal Inc. 3.8% 
companies of all sizes, including small- to mid-capitalization  Altera Corp. 3.0% 
U.S. companies.    Molex Inc. Cl A      2.9% 
    Arrow Electronics, Inc.      2.9% 
    PartnerRe Ltd.      2.9% 
Manager - The FMI Focus Fund (the "Fund") is advised by  Charles River Laboratories Int'l, Inc. 2.5% 
Fiduciary Management, Inc. of Milwaukee and sub-advised by  Kohl's Corp.      2.5% 
Broadview Advisors, LLC. Both firms are 100% employee  Sapient Corp.      2.4% 
owned.    Fiserv, Inc.      2.4% 
    Werner Enterprises, Inc.    2.2% 
Investment Professionals - Richard E. Lane, CFA and         
Glenn Primack of Broadview Advisors, LLC are primarily  Portfolio Characteristics     
responsible for the day-to-day management of the Fund.  Weighted average market cap  $2.6 billion 
    Median market cap    $1.5 billion 
Strategy - The Fund invests in stocks of companies of all sizes,  P/E ratio (forward 4 quarters)                       16.2x 
but primarily invests in small- to mid-capitalization (i.e., less than  Estimated L-T earnings growth rate    12.9% 
$5.0 billion of market capitalization) companies, which have  Number of holdings      68 
substantial capital appreciation potential. Many of these         
companies have little or no following by the major stock  Top Ten Sectors       
brokerage firms. We look for stocks of businesses that are    Cash & Cash  Finance  
selling at what we believe are substantial discounts to prices  All Others  Equivalents  12.3%  
that accurately reflect their future earnings prospects. The Fund  11.5%   9.3%  Electronic
takes a "focused" approach to investing, meaning the Fund  Industrial     Technology
conducts extensive research (i.e. focuses) on each prospective  Services     10.6%
investment before purchasing. 4.7%
 
    Health   Technology
Fund Information    Technology   Services
Inception Date  12/16/1996  5.9%   9.5%
Net Assets    $337.3 million  Process Producer 
Net Asset Value  $18.14  Industries Manufacturing  
Expense Ratio  1.48%  6.1%      9.1% 
Ticker    FMIOX    Retail Trade  Commercial  Distribution  
6.7%  Services  Services  
  7.0%  7.3%  

Performance  Q2 2009  One Year  Three Years  Five Years  Ten Years  Since Inception 
Fund  17.49%  -17.49%  -5.43%  -0.19%  6.65%  14.09% 
Russell 2000 Index¹  20.69%  -25.01%  -9.89%  -1.71%  2.38%  4.35% 
Russell 2000 Growth Index²  23.38%  -24.85%  -7.83%  -1.32%  -0.89%  1.48% 

Note: Returns for periods longer than one year are annualized. Inception of the Fund was 12/16/96. Returns may not match those reported by other sources such as Morningstar due to slight valuation differences at the end of the reporting period.

Manager Commentary - The Broadview Advisors portfolio management team has used the last quarter to analyze and review companies that have moved toward our purchase price targets. Stocks tend to lead out of recessions before the overall economy picks up and our portfolio is positioned to take advantage of the undervalued companies our research has uncovered. We continue to be constructive on the markets looking out over the next two years and believe we have many attractive investments in the portfolio.

The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance data quoted represents past performance; past performance 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 since the above time period may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.fmifunds.com

For more information about the FMI Family of Funds, including fees and expenses, call 1-800-811-5311 for a free prospectus (also available from www.fmifunds.com). Please read the prospectus carefully to consider the investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and more information. Please read the prospectus carefully before investing.

1 The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index which comprises the 3,000 largest U.S. companies based on total market capitalization.

2 The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted growth values.

 
FMI Funds    Quarterly Review – June 30, 2009 
100 East Wisconsin Avenue, Suite 2200  FMI Large Cap Fund
Milwaukee, Wisconsin 53202 
800.811.5311 
www.fmifunds.com   

Investment Objective    Top Ten Equity Holdings     
The Fund seeks long-term capital appreciation through the  BP PLC - SP-ADR      5.0% 
purchase of a limited number of large capitalization value  Bank of New York Mellon Corp.    4.9% 
stocks.    Diageo PLC - SP-ADR      4.5% 
    Grainger (W.W.), Inc.      4.4% 
    Wal-Mart Stores, Inc.      4.3% 
Manager - The FMI Large Cap Fund (the "Fund") is managed  United Parcel Service, Inc. Cl B    4.2% 
by Fiduciary Management, Inc. ("FMI") of Milwaukee,   Tyco International Ltd.       4.1% 
Wisconsin. FMI, founded in 1980, manages approximately  Cintas Corp.     3.9% 
$5.3 billion in private accounts, pensions, Taft-Hartley accounts,  Kimberly-Clark Corp.       3.8% 
endowments and mutual funds. FMI is 100% employee owned.  Tyco Electronics Ltd.     3.8% 
         
Investment Professionals – All investment decisions are made         
by a team of investment professionals representing the Adviser,  Portfolio Characteristics     
any of whom may make recommendations subject to the final  Weighted average market cap    $40.0 billion 
approval of Ted D. Kellner or Patrick J. English.  Median market cap      $21.8 billion 
    P/E ratio (forward 4 quarters)    14x 
Strategy - The Fund buys good businesses at value prices.  Estimated L-T earnings growth rate    10.0% 
Some of the characteristics of good businesses may include  Return on equity (ROE)      18.0% 
high recurring revenue and attractive returns-on-invested  Number of holdings      27 
capital. A strong orientation to low absolute or relative valuation         
is key to the execution of the investment strategy. The  
FMI Large Cap Fund holds approximately 20-30 stocks, with  Top Ten Sectors       
most major industry groups represented. It is a non-diversified    Cash & Cash     
investment company; please see the prospectus for further  All Others  Equivalents     
details. Many studies show the benefits of diversification drop 10.4%  8.8%  Finance 
dramatically after ten stocks; nevertheless, we still expect the   Energy Minerals    11.9% 
Fund to be somewhat more volatile than a typical large cap  5.0%        Producer  
value fund.  Health 

Manufacturing 
Technology  10.9%
 5.9%    
Fund Information    Commercial  Distribution  
Inception Date    12/31/2001   Services  Services 
Net Assets    $1709.5 million  6.5%  10.6% 
Net Asset Value   $11.60  Technology       
Expense Ratio  0.99%   Services    Consumer Non- 
Ticker    FMIHX  7.1%   Electronic   Retail Durables 
 Technology  Trade  8.3% 
   7.2%   7.4%   

Performance  Q2 2009  One Year  Three Years  Five Years  Since Inception 
Fund  14.85%  -18.11%  -3.71%  2.35%  3.96% 
S&P 500¹  15.93%  -26.21%  -8.22%  -2.24%  -1.02% 

Note: Returns for periods longer than one year are annualized. Inception of the Fund was 12/31/01. Returns may not match those reported by other sources such as Morningstar due to slight valuation differences at the end of the reporting period.

Manager Commentary - The market's rebound in the June quarter appears to be in anticipation of a stronger economy. Thus far, there are few signs of improvements.

The returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Performance data quoted represents past performance; past performance 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 since the above time period may be higher or lower than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.fmifunds.com.

For more information about the FMI Family of Funds, including fees and expenses, call 1-800-811-5311 for a free prospectus (also available from www.fmifunds.com). Please read the prospectus carefully to consider the investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and more information. Please read the prospectus carefully before investing.

1 The S & P’s 500 Index consists of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The S & P’s Ratings Group designates the stocks to be included in the Index on a statistical basis. A particular stock’s weighting in the Index is based on its relative total market value (i.e., its market price per share times the number of shares outstanding). Stocks may be added or deleted from the Index from time to time.