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FUND MANAGERS

Robert. W. Thompson, CFA, CIC

Co-Manager

BIO

Kevin V. Earley, CFA, CIC

Lead Manager

BIO

Inception 1961: MAPOX

Mairs & Power
Balanced Fund

  • Regional emphasis
  • Diversifies across a portfolio of approximately 60% equity and 40% fixed income 
  • Access to a portfolio of companies that exhibit
    • - Consistent, above average growth potential
    • - Durable competitive advantages
    • - Reasonable valuations
  • Low expense ratio
  • Low turnover, tax efficient
  • No load1

Resources

Explore the Balanced Fund

PERFORMANCE & NAV

Average Annualized Returns (%)

As of 9/30/2019

Inception 1/10/1961

FUND/INDEX 1 YR 5 YR 10 YR 20 YR SINCE INCEPTION
Mairs & Power Balanced Fund2 6.546.979.657.499.54
Composite Index3 7.508.109.676.169.03
Morningstar Category4 3.535.607.805.94-
S&P 500 TR Index5 4.2510.8413.246.33-
Bloomberg Barclays U.S.Govt/Credit Bond Index6 11.323.613.945.12-

Calendar Year Returns (%)

FUND/INDEX20182017201620152014201320122011201020092008200720062005200420032002200120001999
Mairs & Power Balanced Fund2 -2.8011.9011.42-2.548.0419.0217.343.2314.8721.35-21.124.2812.104.5012.0021.60-6.40-1.3016.504.60
Composite Index3 -2.5214.418.481.1310.6317.4011.585.0515.0612.17-21.916.2010.993.867.4618.17-8.09-4.08-0.4311.92
As of 12/11/2019: NAV - Daily Closing Price
Balanced Fund MAPOX$101.07
As of 4/30/2019 Prospectus Expense Ratio
0.72% annualized as of 12/31/18

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. Performance as of the most recent month end is available by calling 800-304-7404.

2Performance 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.

Mairs & Power Balanced Fund Has Out-Performed 4 of the Last 5 Full Economic Cycles

When Mairs & Power talks about the advantages of holding through a “full economic market cycle,” we are referring to the business cycle fluctuation between contraction and expansion, also called recession and recovery. Investors who enjoy growth opportunities during times of expansion must consider and prepare for times when the economy inevitably contracts. Mairs & Power’s portfolios are designed with the intent to help preserve capital over full cycles.

The periods in this chart are called “trough to trough.” The beginning point of each period marks the start of a recovery following a recession. During the period, a “peak” is reached and then another contraction begins. The end of the period marks the low point prior to the next recovery starting, and is also referred to as a “trough.”

A recessionary period is a period of significant decline in widespread economic activity spread lasting more than a few months, normally visible in real GDP (Gross Domestic Product), real income, employment, industrial production and wholesale-retail sales.

PERFORMANCE OVER ECONOMIC CYCLES, ANNUALIZED TOTAL RETURNS %: 1975-2019

FULL ECONOMIC CYCLES

CURRENT CYCLE (INCOMPLETE)

COMBINED PERIOD

FUND/INDEXES

  • Mairs & Power Balanced Fund
  • Composite Index3
PERIOD DATE RANGE
Per. 1 3/31/1975 - 7/31/1980
Per. 2 7/31/1980 - 11/30/1982
Per. 3 11/30/1982 - 3/29/1991
Per. 4 3/29/1991 - 11/30/2001
Per. 5 11/30/2001 - 6/30/2009
Current 6/30/2009 - 9/30/2019
Combined 3/31/1975 - 9/30/2019

The information shown is only for the time periods indicated. Performance for other periods may differ, possibly significantly.

MORNINGSTAR RATINGS & RANKINGS

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ANALYST RATING
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As of 30/09/2019 among Moderate Target Risk Funds based on risk-adjusted returns.
OVERALL 1 YR 3 YR 5 YR 10 YR Since Inception
Star Rating 5star - 4star 4star 5star -
Funds in Category 658-658581427-
Percentile Rank -1425168-
Funds in Category -716697656540-

Inception 1/10/1961

FUND FACTS

As of 30/09/2019:
TickerMAPOX
Inception
Date
10/01/1961
StyleBalanced
Annualized
Turnover7
14.48%
Expense
Ratio
0.72%
Equity
Holdings
51
Active
Share8
78.88%
Sharpe
Ratio9
0.40
Net/
Asset Value10
$97.53
Wtd. Ave. Market
Cap11
$155.2B
Fixed Income
Holdings
238
30-Day SEC
Yield12
1.88%
Effective
Maturity (Years)
7.8
Effective
Duration13
5.38
Total Net
Assets
$890M
Sales
Charge1
None
Min. Initial
Investment
$2,500
Min. Initial IRA
Investment
$1,000
Subsequent
Investment
$100
Income
Distribution
Quarterly
Capital Gains
Distributions
Annual

OBJECTIVE & STRATEGY

To provide capital growth, current income and preservation of capital.

  • Commits to long-term investing in consistently growing companies with minimal turnover
  • Emphasis on companies in Minnesota and the Upper Midwest
  • Identifies companies exhibiting the potential for strong returns on invested capital and consistent, above-average growth and durable competitive advantages
  • Considers the importance of capable management with a track record of prudent capital deployment
  • Seeks to keep assets reasonably fully invested, maintain modest portfolio turnover rates and mitigate risk by investing in a diversified portfolio of securities
  • Diversifies across a portfolio of approximately 60% equity and 40% fixed income
  • Buy and hold fixed income portfolio continually reinvests maturities 

PORTFOLIO CHARACTERISTICS

As of 9/30/2019
Equity Sector Weights % PORTFOLIO
Health Care 15.0
Industrials14.1
Financials11.2
Information Technology 5.5
Communication Services 4.4
Consumer Staples 4.1
Materials4.0
Energy2.2
Consumer Discretionary 2.1
Utilities0.5
Real Estate 0.0
Total Common Stock 63.1
TOP 10 HOLDINGS % PORTFOLIO
U.S. Bancorp 3.0
Alphabet Inc. 2.8
Medtronic PLC 2.7
Ecolab, Inc. 2.3
3M Company 2.3
Johnson & Johnson 2.2
Microsoft Corp. 2.0
Principal Financial Group Inc. 1.9
JPMorgan Chase & Co. 1.8
CH Robinson Worldwide Inc. 1.8

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

DISTRIBUTION HISTORY

The Mairs & Power Balanced Fund declares and pays dividend income quarterly, in March, June, September and December. If any capital gains are realized during the year, the Fund will distribute the net gains in December toward the end of the month.

RECORD DATE EX-DIVIDEND PAYABLE/REINVEST
DATE
REINVEST NAV DIVIDEND PER SHARE SHORT-TERM CAPITAL
GAINS
LONG-TERM CAPITAL
GAINS
27/03/201928/03/2019 $93.63 $0.5200 --
26/06/201927/06/2019 $96.03 $0.5100 --
26/09/201927/09/2019 $97.31 $0.5400 --
26/12/201927/12/2019----
ADDITIONAL RESOURCES

How to Invest

Existing shareholders: You can add to your current investment or open a new account in any of the Mairs & Power mutual funds by logging in to My Fund Account, calling Shareholder Services at 800-304-7404, or mailing your application and investment to the addresses below.

New investors working with financial advisors:  Your financial advisor can open an account for you on most platforms.

New direct investors: You can open a new account by

  • Going Online 
  • Calling Shareholder Services at 800-304-7404, or
  • Completing the appropriate application and mailing it with your check to: 

For regular mail delivery:

U.S. Bank Global Fund Services

P.O. Box 701

Milwaukee, WI 53201-0701

For express and overnight mail delivery:

U.S. Bank Global Fund Services

3rd Floor

615 East Michigan Street

Milwaukee, WI 53202

MINIMUM INVESTMENT AMOUNTS
New account $2,500
Subsequent investments $100
New IRA account $1,000
Subsequent IRA investments $100

QUESTIONS?

We’re here to help you with all your account opening or servicing questions.

Please call 800-304-7404

FUND DOCUMENTS

APPLICATIONS / MAINTENANCE

General

RESOURCES

Growth Fund

REPORTS

Prospectuses

FUND GOVERNANCE

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Mary Schmid Daugherty, CFA, PhD

Trustee, Chair of the Board

Bio

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James D. Alt

Trustee, Nominating & Governance Committee Chair

Bio

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Patrick A. Thiele, CFA

Trustee, Audit Committee Chair

Bio

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Susan E. Knight

Trustee

Bio

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Jon A. Theobald

Trustee

Bio

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Mark Henneman, CFA, CIC

Trustee & President of the Trust

Bio

MAIRS & POWER FUNDS TRUST OFFICERS

Andrew R. Adams, Vice President    Bio

 

Kevin V. Earley, Vice President    Bio

 

Allen D. Steinkopf, Vice President    Bio

 

Robert W. Mairs, Secretary & Chief Compliance Officer    Bio

 

Andrea C. Stimmel, Treasurer    Bio

 

 

EQUITY SECTOR ALLOCATION

See legend above

EQUITY MARKET CAP ALLOCATION
EQUITY GEOGRAPHIC ALLOCATION
ASSET ALLOCATION

IMPORTANT RISKS

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 mid-cap 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. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and non-rated securities present a greater risk of loss to principal and interest than higher-rated securities.

About Morningstar

Morningstar US Fund Allocation-50% to 70% Equity Category portfolios seek both capital appreciation and income by typically investing 50% to 70% of assets in equities and the remainder in fixed income and cash.

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 receives 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% three-year rating for 120 or more months of total returns. While the 10-year overall rating formula seems to give the most weight for the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The Morningstar Rankings represent a fund’s total-return rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees.

© 2019 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. Past performance is no guarantee of future results. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

1No load/Sales charge: You pay no sales charge for the purchase or sale of Fund shares and no 12b-1 marketing fees. You will, however, incur expenses for investment advisory, management and administrative services, which are included in annual fund operating expenses.

7Turnover ratio: The turnover ratio or turnover rate is the percentage of a mutual fund or other portfolio’s holdings that have been replaced in a given year (calendar year or whatever 12-month period represents the fund’s fiscal year).

8Active share: a measure of the percentage of stock holdings in a manager’s portfolio that differs from the benchmark index. Typically, managers with high Active Share outperform their benchmark indexes and Active Share tends to predict fund performance.

9Sharpe ratio: A measure that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment.

10Net Asset Value (NAV) Per Share.  

11Weighted average market capitalization is determined by multiplying the current market price by the number of outstanding shares and then taking an average to determine weighting. 

1230-day SEC yield reflects the dividends and interest earned during the period after the deduction of the Fund's expenses. It may help investors estimate income, expressed as a percentage. 

13Duration is a measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates.  

Upper Midwest includes Minnesota, Illinois, Iowa, Wisconsin, North Dakota and South Dakota.

Capitalization categories as defined by Mairs & Power: Large Cap - greater than $10 Billion; Mid Cap - $2B to $10B; Small Cap - less than $2B.