QG
Jensen Quality Growth Fund

Uncompromising Quality

Of the fewer than 200 companies that have met our initial threshold for inclusion in the Jensen Quality Universe, approximately 30 companies make the final cut for participation in the Jensen Quality Growth Fund. We believe these quality businesses to be successful, well-managed companies that are attractively valued and positioned for long-term leadership in their industries.

Tab Name: Philosophy
Tab Handle: philosophy

Philosophy

A consistent, sustainable investment process is vital to weathering all economic climates. The strength of our investment philosophy is based on an unwavering commitment to investing in quality businesses. We believe these quality companies possess sustainable competitive advantages, creating value as profitable businesses that can, over time, provide attractive returns with less risk than the overall market. Derived from this singular philosophy, we offer both our quality growth and quality value strategies through mutual funds.

Tab Name: Process
Tab Handle: process

Process

We conduct fundamental analysis of the qualifying businesses on a bottom-up basis without regard to sector, industry group or market capitalization. To determine future value creation, we analyze both the growth and the use of free cash flow to benefit shareholders. Our proprietary discounted cash flow analysis and other metrics allow us to determine what we believe to be the full value of the business. We will purchase the stock only when its current market price represents a discount to our valuation.

Investment Process

Sell Discipline

Our sell discipline monitors the key tenets of our buy discipline: sustainable competitive advantages, growth, value creation and price. We will sell a company if:

  • Company fundamentals deteriorate below our minimum business standard of a 15% return on equity, on an annual basis, indicating a possible loss of competitive advantage
  • The market price of a business exceeds our estimate of full value
  • It is displaced by a better investment that allows an upgrade to the portfolio’s quality, growth outlook and/or valuation metrics

Return on Equity (ROE): Is equal to a company's after-tax earnings (excluding non-recurring items) divided by its average stockholder equity for the year.

Free Cash Flow: Is equal to the after-tax net income of a company plus depreciation and amortization less capital expenditures.

Tab Name: Performance
Tab Handle: performance

Performance

The tables shown below illustrate the Fund's returns and the Fund's performance from year to year (on a calendar basis). The tables show how the Fund's average annual returns compare with those for the S&P 500 Index and Russell 1000 Growth Index.

Subtab Name: month-end
Subtab Handle: jqgf-month-end

Average Annual Total Returns as of March 31, 2014

Year to Date 1 Year 3 Years 5 Years 10 Years 15 Years
Class J 0.33% 19.71% 12.69% 18.99% 6.82% 6.83%
Class I 0.38% 19.98% 13.01% 19.34% 7.08% 7.02%
S&P 500 1.81% 21.86% 14.66% 21.16% 7.42% 4.46%
Russell 1000 Growth 1.12% 23.22% 14.62% 21.68% 7.86% 2.98%
Subtab Name: quarter-end
Subtab Handle: jqgf-quarter-end

Average Annual Total Returns as of March 31, 2014

Quarter 1 Year 3 Years 5 Years 10 Years 15 Years
Class J 0.33% 19.71% 12.69% 18.99% 6.82% 6.83%
Class I 0.38% 19.98% 13.01% 19.34% 7.08% 7.02%
S&P 500 1.81% 21.86% 14.66% 21.16% 7.42% 4.46%
Russell 1000 Growth 1.12% 23.22% 14.62% 21.68% 7.86% 2.98%
Subtab Name: annual
Subtab Handle: jqgf-annual

Average Annual Total Returns as of December 31, 2013

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Class J 6.01% -1.40% 14.01% 7.29% -28.97% 28.98% 11.77% -1.05% 13.54% 32.33%
Class I 6.20% -1.26% 14.26% 7.53% -28.77% 29.28% 12.12% -0.70% 13.90% 32.63%
S&P 500 10.88% 4.91% 15.79% 5.49% -37.00% 26.46% 15.06% 2.11% 16.00% 32.39%
Russell 1000 Growth 6.30% 5.26% 9.07% 11.81% -38.44% 37.21% 16.71% 2.64% 15.26% 33.48%

Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and the 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. All returns include the reinvestment of dividends and capital gains.

The performance shown above for the class I Shares for periods prior to July 30, 2003 represents the performance for the original share class of the Fund, the J Shares. The J Shares were first offered on August 3, 1992, while the I Shares were first offered on July 30, 2003.  Performance for other Fund share classes will differ.

The S&P 500 is a broad based, market value weighted index consisting of 500 stocks, and is widely recognized as representative of the equity market in general. The index is unmanaged and you cannot invest directly in an index.

The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund.

For more complete information about the Jensen Quality Growth Fund including investment objectives, risks, fees and expenses, please go to prospectus, or call 800.992.4144. Read the prospectus carefully before you invest or send money.

Tab Name: Risk Management
Tab Handle: riskmanagement

Risk Management

Risk Management is an integral component of our investment philosophy and process. At Jensen we work to manage risk in three vital areas.

Investment Risk

  • Independent and internally generated fundamental research on eligible companies with a long-term view
  • Insistence on holding companies with high quality earnings and free cash flow
  • Buying stocks at a price below our determination of full value with continuous monitoring
  • Mandatory sell discipline

Operations Risk

  • Compliance monitors adherence to investment guidelines
  • Trading systems designed to prevent violations of restrictions
  • Off-site disaster recovery and operating ability

Organization Risk

  • Independent and employee-owned firm
  • Team-based portfolio management
  • Depth of staff in investment and client services
  • Investment team invests alongside clients
Tab Name: Distribution History
Tab Handle: distributionhistory

Distribution History

Ordinary Income Dividend DistributionS

An Ordinary Income Dividend Distribution was paid to shareholders on March 19, 2014. The record date, ex-dividend date, and payable/reinvestment date were as follows:

 

Record Date: March 18, 2014

Ex-dividend Date:  March 19, 2014

Payable/Reinvestment Date: March 19, 2014

Ordinary Income Dividend Distributions by Share Class:

Class J - $0.092 per share

Class R - $0.060 per share

Class I - $0.114 per share

 

Short-Term Capital Gains Distributions

The Jensen Quality Growth Fund did not make any short-term capital gains distributions for 2013.

Long-Term Capital Gains DistributionS

A Long-Term Capital Gains Distribution was paid to shareholders on December 20, 2013. The record date, ex-dividend date, and payable/reinvestment date were as follows: 

Record Date: December 19, 2013

Ex-dividend Date:  December 20, 2013

Payable/Reinvestment Date: December 20, 2013

Long-Term Capital Gains Distributions by Share Class:

Class J - $1.192 per share

Class R - $1.192 per share

Class I - $1.192 per share

 

 

The closing net asset value (NAV) for each share class on March 19, 2014 was reduced by the amount of the distribution, plus or minus any market activity for the day. As always, please consult your tax advisor for information specific to your particular situation.

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