Investment PhilosophyMairs and Power is an independent, employee owned firm whose strength and success has resulted from applying a consistent, conservative investment approach since 1931. The mutual funds and the individually managed accounts are built on a foundation of carefully selected, quality growth stocks and investment-grade fixed income securities purchased at reasonable valuation levels. Equity securities are purchased with the intention to hold them for relatively long periods of time to maximize tax-efficiency, to allow the power of compounding to build wealth for shareholders and to avoid undue risk. Fixed income securities are selected based upon their credit quality and ability to provide regular, current income. Fixed income securities are generally held to maturity. Occasionally sales are made in response to factors such as changing fundamentals, investment strategy shifts, and excessive valuation. This buy and hold strategy leads to low portfolio turnover which reduces costs and enhances performance. While this investment approach is not complicated, it has proven to be effective over the long-term. The cornerstone of our equity approach is a regional strategy. The mutual funds and individually managed portfolios have heavy representation in stocks of companies headquartered in the Upper Midwest. We use this approach because we believe there are an unusually large number of attractive companies in this region that we have been following for many years. While the Funds have a national charter, their success is largely due to our focused, regional approach. Another distinguishing feature of the Mairs & Power Funds is that they are managed by individuals with substantial investment experience. The four managers of the Mairs & Power Funds, along with the other five members of the Investment Committee, collectively bring more than 200 years of investment experience to the table. These professionals work collaboratively, leveraging their combined experience for the benefit of shareholders and clients. |