0001135428-13-000042.txt : 20130111 0001135428-13-000042.hdr.sgml : 20130111 20130111163158 ACCESSION NUMBER: 0001135428-13-000042 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 7 FILED AS OF DATE: 20130111 DATE AS OF CHANGE: 20130111 EFFECTIVENESS DATE: 20130111 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Advisors Inner Circle Fund II CENTRAL INDEX KEY: 0000890540 IRS NUMBER: 233040006 STATE OF INCORPORATION: MA FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-50718 FILM NUMBER: 13525762 BUSINESS ADDRESS: STREET 1: ONE FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19456 BUSINESS PHONE: 6106761000 MAIL ADDRESS: STREET 1: ONE FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19456 FORMER COMPANY: FORMER CONFORMED NAME: ARBOR FUND DATE OF NAME CHANGE: 19920929

0000890540 S000021627 FROST GROWTH EQUITY FUND

C000061940 CLASS A SHARES FACEX

C000061941 INSTITUTIONAL CLASS SHARES FICEX

0000890540 S000021628 FROST KEMPNER TREASURY AND INCOME FUND

C000061942 CLASS A SHARES

C000061943 INSTITUTIONAL CLASS SHARES FIKTX

0000890540 S000021630 FROST MID CAP EQUITY FUND

C000061946 CLASS A SHARES

C000065022 INSTITUTIONAL CLASS SHARES FIKSX

0000890540 S000021631 FROST DIVIDEND VALUE EQUITY FUND

C000061947 CLASS A SHARES FADVX

C000061948 INSTITUTIONAL CLASS SHARES FIDVX

0000890540 S000021632 FROST KEMPNER MULTI-CAP DEEP VALUE EQUITY FUND

C000061949 CLASS A SHARES FAKDX

C000061950 INSTITUTIONAL CLASS SHARES FIKDX

0000890540 S000021633 FROST SMALL CAP EQUITY FUND

C000061951 CLASS A SHARES FAHMX

C000061952 INSTITUTIONAL CLASS SHARES FIHSX

0000890540 S000021634 FROST INTERNATIONAL EQUITY FUND

C000061953 INSTITUTIONAL CLASS SHARES FITNX

C000061954 CLASS A SHARES FANTX

0000890540 S000021635 FROST LOW DURATION BOND FUND

C000061955 CLASS A SHARES FADLX

C000061956 INSTITUTIONAL CLASS SHARES FILDX

0000890540 S000021636 FROST TOTAL RETURN BOND FUND

C000061957 CLASS A SHARES FATRX

C000061958 INSTITUTIONAL CLASS SHARES FIJEX

0000890540 S000021637 FROST MUNICIPAL BOND FUND

C000061959 CLASS A SHARES FAUMX

C000061960 INSTITUTIONAL CLASS SHARES FIMUX

0000890540 S000021638 FROST LOW DURATION MUNICIPAL BOND FUND

C000061962 INSTITUTIONAL CLASS SHARES FILMX

0000890540 S000021745 FROST STRATEGIC BALANCED FUND

C000062363 CLASS A SHARES FASTX

C000062364 INSTITUTIONAL CLASS SHARES FIBTX

0000890540 S000030974 FROST DIVERSIFIED STRATEGIES FUND

C000096016 CLASS A SHARES FDSFX

0000890540 S000034041 FROST NATURAL RESOURCES FUND

C000104923 CLASS A SHARES FNATX

C000104924 INSTITUTIONAL CLASS SHARES FNRFX

0000890540 S000039102 Frost Credit Fund

C000120211 Institutional Class Shares

C000120212 Class A Shares

0000890540 S000039103 Frost Cinque Large Cap Buy-Write Equity Fund

C000120213 Institutional Class Shares

C000120214 Class A Shares

497 1 frost_497.txt EXPLANATORY NOTE The sole purpose of this filing is to file revised risk/return summary information for the Frost Growth Equity Fund, the Frost Dividend Value Equity Fund, the Frost Kempner Multi-Cap Deep Value Equity Fund, the Frost Mid Cap Equity Fund, the Frost Small Cap Equity Fund, the Frost International Equity Fund, the Frost Natural Resources Fund, the Frost Cinque Large Cap Buy-Write Equity Fund, the Frost Diversified Strategies Fund, the Frost Strategic Balanced Fund, the Frost Total Return Bond Fund, the Frost Credit Fund, the Frost Low Duration Bond Fund, the Frost Municipal Bond Fund, the Frost Low Duration Municipal Bond Fund, and the Frost Kempner Treasury and Income Fund in interactive data format. EX-101.INS 3 aicii-20121128.xml 0000890540 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021627Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021627Member AICII:C000061940Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021627Member AICII:C000061940Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021627Member AICII:C000061940Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021627Member AICII:C000061940Member AICII:Russell1000GrowthIndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021631Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021631Member AICII:C000061947Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021631Member AICII:C000061947Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021631Member AICII:C000061947Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021631Member AICII:C000061947Member AICII:Russell1000ValueIndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member AICII:SAndP500IndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member AICII:MSCIAllCountryWorldEXUSIndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member AICII:BARCLAYSUSAggregateIndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021745Member AICII:C000062363Member AICII:FourtyEightByTweleveByFourtyBlendedIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021632Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021632Member AICII:C000061949Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021632Member AICII:C000061949Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021632Member AICII:C000061949Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021632Member AICII:C000061949Member AICII:SAndP500ValueIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021632Member AICII:C000061949Member AICII:LIPPERMULTICAPValueFundsIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021633Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021633Member AICII:C000061951Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021633Member AICII:C000061951Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021633Member AICII:C000061951Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021633Member AICII:C000061951Member AICII:Russell2000IndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021634Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021634Member AICII:C000061954Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021634Member AICII:C000061954Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021634Member AICII:C000061954Member AICII:MSCIACWIEXUSIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021634Member AICII:C000061954Member AICII:MSCIEAFEIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021634Member AICII:C000061954Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021635Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021635Member AICII:C000061955Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021635Member AICII:C000061955Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021635Member AICII:C000061955Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021635Member AICII:C000061955Member AICII:BARCLAYSUS1To5YearGovernmentCreditIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021636Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021636Member AICII:C000061957Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021636Member AICII:C000061957Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021636Member AICII:C000061957Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021636Member AICII:C000061957Member AICII:BARCLAYSUSAggragateBondIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021637Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021637Member AICII:C000061959Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021637Member AICII:C000061959Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021637Member AICII:C000061959Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021637Member AICII:C000061959Member AICII:BARCLAYSMunicipalBondIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021628Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021628Member AICII:C000061942Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021628Member AICII:C000061942Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021628Member AICII:C000061942Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021628Member AICII:C000061942Member AICII:BARCLAYSTreasuryBondIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021630Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021630Member AICII:C000061946Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021630Member AICII:C000061946Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021630Member AICII:C000061946Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021630Member AICII:C000061946Member AICII:RussellMidcapIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000021630Member AICII:C000061946Member AICII:Russell2500IndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000030974Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000034041Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000030974Member AICII:C000096016Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000034041Member AICII:C000104923Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021627Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021627Member AICII:C000061941Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021627Member AICII:C000061941Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021627Member AICII:C000061941Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021627Member AICII:C000061941Member AICII:Russell1000GrowthIndexMember 2012-12-21 2012-12-21 0000890540 AICII:S000021631Member AICII:ProspectusTwoMember 2012-12-21 2012-12-21 0000890540 AICII:S000021631Member AICII:ProspectusTwoMember AICII:C000061948Member 2012-12-21 2012-12-21 0000890540 AICII:S000021631Member AICII:ProspectusTwoMember AICII:C000061948Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021631Member AICII:C000061948Member AICII:ProspectusTwoMember rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021631Member AICII:ProspectusTwoMember AICII:Russell1000ValueIndexMember AICII:C000061948Member 2012-12-21 2012-12-21 0000890540 AICII:S000021745Member AICII:ProspectusTwoMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member AICII:SAndP500IndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member AICII:MSCIAllCountryWorldEXUSIndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member AICII:BARCLAYSUSAggregateIndexMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021745Member AICII:C000062364Member AICII:BlendedIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021632Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021632Member AICII:C000061950Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021632Member AICII:C000061950Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021632Member AICII:C000061950Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021632Member AICII:C000061950Member AICII:SAndP500ValueIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021632Member AICII:C000061950Member AICII:LIPPERMULTICAPValueFundsIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021633Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021633Member AICII:C000061952Member 2012-12-21 2012-12-21 0000890540 AICII:S000021633Member AICII:ProspectusTwoMember AICII:C000061952Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021633Member AICII:ProspectusTwoMember AICII:C000061952Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021633Member AICII:ProspectusTwoMember AICII:C000061952Member AICII:Russell2000IndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021634Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021634Member AICII:C000061953Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021634Member AICII:C000061953Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021634Member AICII:C000061953Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021634Member AICII:ProspectusTwoMember AICII:C000061953Member AICII:MSCIACWIEXUSIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:S000021634Member AICII:ProspectusTwoMember AICII:C000061953Member AICII:MSCIEAFEIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021635Member 2012-12-21 2012-12-21 0000890540 AICII:S000021635Member AICII:ProspectusTwoMember AICII:C000061956Member 2012-12-21 2012-12-21 0000890540 AICII:S000021635Member AICII:ProspectusTwoMember AICII:C000061956Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021635Member AICII:ProspectusTwoMember AICII:C000061956Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021635Member AICII:ProspectusTwoMember AICII:C000061956Member AICII:BARCLAYSUS1To5YearGovernmentCreditIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021636Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021636Member AICII:C000061958Member 2012-12-21 2012-12-21 0000890540 AICII:S000021636Member AICII:ProspectusTwoMember AICII:C000061958Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021636Member AICII:ProspectusTwoMember AICII:C000061958Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021636Member AICII:ProspectusTwoMember AICII:C000061958Member AICII:BARCLAYSUSAggragateBondIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:S000021637Member AICII:ProspectusTwoMember 2012-12-21 2012-12-21 0000890540 AICII:S000021637Member AICII:ProspectusTwoMember AICII:C000061960Member 2012-12-21 2012-12-21 0000890540 AICII:S000021637Member AICII:ProspectusTwoMember AICII:C000061960Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021637Member AICII:ProspectusTwoMember AICII:C000061960Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021637Member AICII:ProspectusTwoMember AICII:C000061960Member AICII:BARCLAYSMunicipalBondIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:S000021638Member AICII:ProspectusTwoMember 2012-12-21 2012-12-21 0000890540 AICII:S000021638Member AICII:ProspectusTwoMember AICII:C000061962Member 2012-12-21 2012-12-21 0000890540 AICII:S000021638Member AICII:ProspectusTwoMember AICII:C000061962Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021638Member AICII:ProspectusTwoMember AICII:C000061962Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021638Member AICII:ProspectusTwoMember AICII:C000061962Member AICII:BarclaysThreeYearMunicipalBondIndexMember 2012-12-21 2012-12-21 0000890540 AICII:S000021628Member AICII:ProspectusTwoMember 2012-12-21 2012-12-21 0000890540 AICII:S000021628Member AICII:ProspectusTwoMember AICII:C000061943Member 2012-12-21 2012-12-21 0000890540 AICII:S000021628Member AICII:ProspectusTwoMember AICII:C000061943Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021628Member AICII:ProspectusTwoMember AICII:C000061943Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021628Member AICII:ProspectusTwoMember AICII:C000061943Member AICII:BARCLAYSTreasuryBondIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000021630Member 2012-12-21 2012-12-21 0000890540 AICII:S000021630Member AICII:ProspectusTwoMember AICII:C000065022Member 2012-12-21 2012-12-21 0000890540 AICII:S000021630Member AICII:ProspectusTwoMember AICII:C000065022Member rr:AfterTaxesOnDistributionsMember 2012-12-21 2012-12-21 0000890540 AICII:S000021630Member AICII:ProspectusTwoMember AICII:C000065022Member rr:AfterTaxesOnDistributionsAndSalesMember 2012-12-21 2012-12-21 0000890540 AICII:S000021630Member AICII:ProspectusTwoMember AICII:C000065022Member AICII:RussellMidcapIndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:S000021630Member AICII:ProspectusTwoMember AICII:C000065022Member AICII:Russell2500IndexReturnMember 2012-12-21 2012-12-21 0000890540 AICII:S000034041Member AICII:ProspectusTwoMember 2012-12-21 2012-12-21 0000890540 AICII:S000034041Member AICII:ProspectusTwoMember AICII:C000104924Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000039103Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000039103Member AICII:C000120214Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000039102Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusOneMember AICII:S000039102Member AICII:C000120212Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000039103Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000039103Member AICII:C000120213Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000039102Member 2012-12-21 2012-12-21 0000890540 AICII:ProspectusTwoMember AICII:S000039102Member AICII:C000120211Member 2012-12-21 2012-12-21 iso4217:USD xbrli:pure AICII:Percent Other 2012-07-31 Advisors Inner Circle Fund II 0000890540 false AICII 2012-12-21 2012-12-21 2012-12-03 INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE INVESTMENT OBJECTIVE The Frost Growth Equity Fund (the "Fund") seeks to achieve long-term capital appreciation. The Frost Dividend Value Equity Fund (the "Fund") seeks long-term capital appreciation and current income. The Frost Strategic Balanced Fund (the "Fund") seeks long-term capital appreciation and current income. The Frost Kempner Multi-Cap Deep Value Equity Fund (the "Fund") seeks to generate a total pre-tax return, including capital growth and dividends, greater than the rate of inflation over a three-to-five year period. The Frost Small Cap Equity Fund (the "Fund") seeks to maximize total return. The Frost International Equity Fund (the "Fund") seeks to achieve long-term capital appreciation and current income. The Frost Low Duration Bond Fund (the "Fund") seeks to maximize total return, consisting of income and capital appreciation, consistent with the preservation of principal. The Frost Total Return Bond Fund (the "Fund") seeks to maximize total return, consisting of income and capital appreciation, consistent with the preservation of principal. The Frost Municipal Bond Fund (the "Fund") seeks to provide a consistent level of current income exempt from federal income tax with a secondary emphasis on maximizing total return through capital appreciation. The Frost Kempner Treasury and Income Fund (the "Fund") seeks to provide current income consistent with the preservation of capital. The Frost Mid Cap Equity Fund (the "Fund") seeks to maximize long-term capital appreciation. The Frost Diversified Strategies Fund (the "Fund") seeks capital growth with reduced correlation to the stock and bond markets. The Frost Natural Resources Fund (the "Fund") seeks long-term capital growth with a secondary goal of current income. The Frost Growth Equity Fund (the "Fund") seeks to achieve long-term capital appreciation. The Frost Dividend Value Equity Fund (the "Fund") seeks long-term capital appreciation and current income. The Frost Strategic Balanced Fund (the "Fund") seeks long-term capital appreciation and current income. The Frost Kempner Multi-Cap Deep Value Equity Fund (the "Fund") seeks to generate a total pre-tax return, including capital growth and dividends, greater than the rate of inflation over a three-to-five year period. The Frost Small Cap Equity Fund (the "Fund") seeks to maximize total return. The Frost International Equity Fund (the "Fund") seeks to achieve long-term capital appreciation and current income. The Frost Low Duration Bond Fund (the "Fund") seeks to maximize total return, consisting of income and capital appreciation, consistent with the preservation of principal. The Frost Total Return Bond Fund (the "Fund") seeks to maximize total return, consisting of income and capital appreciation, consistent with the preservation of principal. The Frost Municipal Bond Fund (the "Fund") seeks to provide a consistent level of current income exempt from federal income tax with a secondary emphasis on maximizing total return through capital appreciation. The Frost Low Duration Municipal Bond Fund (the "Fund") seeks to provide a consistent level of current income exempt from federal income tax with a secondary emphasis on maximizing total return. The Frost Kempner Treasury and Income Fund (the "Fund") seeks to provide current income consistent with the preservation of capital. The Frost Mid Cap Equity Fund (the "Fund") seeks to maximize long-term capital appreciation. The Frost Natural Resources Fund (the "Fund") seeks long-term capital growth with a secondary goal of current income. The Frost Cinque Large Cap Buy-Write Equity Fund (the "Fund") seeks long-term capital appreciation and current income. The Frost Credit Fund (the "Fund") seeks to maximize total return, consisting of income and capital appreciation. The Frost Cinque Large Cap Buy-Write Equity Fund (the "Fund") seeks long-term capital appreciation and current income. The Frost Credit Fund (the "Fund") seeks to maximize total return, consisting of income and capital appreciation. FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES FUND FEES AND EXPENSES The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $1,000,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $1,000,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $1,000,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $1,000,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of this prospectus, and in the Fund's Statement of Additional Information. This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charges discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of the prospectus, and in the Fund's Statement of Additional Information. This table describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional, in the section "Sales Charges" on page 105 of the prospectus, and in the Fund's Statement of Additional Information. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. This table describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $500,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional and in the section "Sales Charges" on page 105 of this prospectus. The table below describes the fees and expenses that you may pay if you buy and hold Class A Shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $1,000,000 in Class A Shares of the Frost Funds. More information about these and other discounts is available from your financial professional and in the section "Sales Charges" on page 105 of this prospectus. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. The table below describes the fees and expenses that you may pay if you buy and hold Institutional Class Shares of the Fund. ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT YOU PAY EACH YEAR AS A PERCENTAGE OF THE VALUE OF YOUR INVESTMENT) EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year, and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year, and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs maybe higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs maybe higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year, and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds.   The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER PORTFOLIO TURNOVER The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 46% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 90% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 18% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 24% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 113% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 20% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 73% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 61% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 8% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 0% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 108% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 150% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During the period from the commencement of the Fund's operations (September 27, 2011) through the end of its most recent fiscal year, the Fund's portfolio turnover rate was 49% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 46% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 90% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 18% of the average value of its portfolio.   The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 24% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 113% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 20% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 73% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 61% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 8% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 14% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 0% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During its most recent fiscal year, the Fund's portfolio turnover rate was 108% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. During the period from the commencement of the Fund's operations (September 27, 2011) through the end of its most recent fiscal year, the Fund's portfolio turnover rate was 49% of the average value of its portfolio. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. The Fund pays transaction costs when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. The Fund pays transaction costs when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in total annual fund operating expenses or in the example, affect the Fund's performance. PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGY PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES   PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGY PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES PRINCIPAL INVESTMENT STRATEGIES Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund intends to invest in companies that Frost Investment Advisors, LLC (the "Adviser") believes will have growing revenues and earnings. The Fund will generally invest in equity securities of domestic companies, but may also invest in equity securities of foreign companies and American Depositary Receipts ("ADRs"). The Adviser performs in-depth analyses of company fundamentals and industry dynamics to identify companies displaying strong earnings and revenue growth relative to the overall market or relative to their peer group, improving returns on equity and a sustainable competitive advantage.   The Adviser focuses on a number of factors to assess the growth potential of individual companies, such as:   <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Historical and expected organic revenue growth rates;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Historical and expected earnings growth rates;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Signs of accelerating growth potential;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Positive earnings revisions;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Earnings momentum;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Improving margin and return on equity trends; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Positive price momentum.</td> </tr></table>   When an attractive growth opportunity is identified, the Adviser seeks to independently develop an intrinsic valuation for the stock. The Adviser believes that the value of a company is determined by discounting the company's future cash flows or earnings. Valuation factors considered in identifying securities for the Fund's portfolio include: <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/earnings ratio;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/sales ratio;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/earnings to growth ratio;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Enterprise value/earnings before interest, taxes, depreciation and amortization;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Enterprise value/sales;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/cash flow;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Balance sheet strength; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Returns on equity and returns on invested capital.</td> </tr></table>   The Adviser also seeks to understand a firm's competitive position and the industry dynamics in which the firm operates. The Adviser assesses industry growth potential, market share opportunities, cyclicality and pricing power. Further analysis focuses on corporate governance and management's ability to create value for shareholders.   The Adviser augments its independent fundamental research process with quantitative screens and models. The models are derived from proprietary research or securities industry research studies and score companies based upon a number of fundamental factors. The Adviser uses quantitative analysis to provide an additional layer of objectivity, discipline and consistency to its equity research process. This quantitative analysis complements the fundamental analyses that the Adviser conducts on companies during its stock selection process.   The Fund seeks to buy and hold securities for the long term and seeks to keep portfolio turnover to a minimum. However, the Adviser may sell a security if its price exceeds the Adviser's assessment of its fair value or in response to a negative company event, a change in management, poor relative price performance, achieved fair valuation, or a deterioration in a company's business prospects, performance or financial strength. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that pay, or are expected to pay, dividends. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund will generally invest in equity securities of domestic companies, but may also invest in equity securities of foreign companies and American Depositary Receipts ("ADRs"). The Adviser expects that the Fund's investments in foreign companies will normally represent less than 30% of the Fund's assets.   The Adviser seeks to identify and invest in companies that have attractive valuations and a dividend that has the potential to grow as fast as inflation and whose yield is greater than the market or its sector or industry average. The Adviser considers dividends to be a significant component of total long-term equity returns and focuses on the sustainability and growth of dividends with attractive yields. To access the sustainability of a firm's dividend, the Adviser analyzes a firm's dividend history, its competitive position and the industry dynamics in which the firm operates.   The Adviser employs both quantitative and qualitative analyses to select companies that have capital appreciation and dividend growth potential, with a focus on the following stock characteristics:   <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left">o</td><td style="width: 5pt"></td><td style="text-align: left">Attractive valuation based on intrinsic, absolute and relative value;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left">o</td><td style="width: 5pt; text-align: left"></td><td style="text-align: left">Dividend yields greater than the market or their sector or industry;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left">o</td><td style="width: 5pt; text-align: left"></td><td style="text-align: left">History of growing dividends with the likelihood of sustainable growth of dividends;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left"></td><td style="width: 5pt; text-align: left"></td><td style="text-align: left"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left">o</td><td style="width: 5pt; text-align: left"></td><td style="text-align: left">Attractive business models that generate the necessary cash flow to cover and sustain the dividend and its growth; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: left">o</td><td style="width: 5pt; text-align: left"></td><td style="text-align: left">Sound balance sheets.</td> </tr></table>   The Adviser seeks to manage the Fund in a tax-efficient manner although portfolio turnover rates can vary, depending upon market conditions. The Adviser has disciplines in place that serve as sell signals, such as if the price of the security exceeds the Adviser's assessment of its fair value or in response to dividend yield declining below the Adviser's yield objective, a negative company event, a change in management, poor relative price performance, or a deterioration in a company's business prospects, performance or financial strength. Under normal circumstances, the Fund seeks to achieve its investment objective by investing in a diversified portfolio of global fixed income and equity securities. The overarching principle of Frost Investment Advisors, LLC(the "Adviser") is to structure the Fund to be well diversified across many asset classes and securities. In selecting securities for the Fund, the Adviser uses the following strategies:   o Strategic asset allocation; o Tactical asset allocation; o Security selection; o Bond asset class allocation; o Foreign currency exposure; and o Derivatives.   Between 40% to 80% of the Fund's assets may be invested in domestic and international equity securities, including emerging markets equity securities. The balance of the Fund's portfolio will be invested in fixed income asset classes and cash. Additionally, up to 40% of the Fund's assets may be invested in non-core equity classes/styles such as real estate, infrastructure or commodities, and hedged equity, which may also be internationally diversified. The Adviser may alter these asset allocation guidelines according to its outlook for each asset class. As an alternative to directly investing in securities in these asset classes, the Fund may also invest in other investment companies, including mutual funds, closed-end funds and exchange-traded funds ("ETFs"), to gain exposure to equity and fixed-income markets. The degree to which the Fund invests in other investment companies for these purposes will vary, and at times may be significant, depending on factors such as overall Fund asset levels and the Adviser's views on the most efficient method for achieving diversified exposure to a particular asset class consistent with the Fund's investment objective. The Fund may also invest in derivatives to manage risk, increase or decrease exposure to an asset class, and/or to enhance total return. The Fund is reallocated at least annually to manage asset class drift and improve the risk-reward profile of the Fund.   The Fund's asset class selection is based on the Adviser's outlook for the reward and risks presented by each asset class. These assumptions are used in a model-driven framework to make allocation decisions. The principal strategy offers diversification and breadth by providing access to a broad array of sources of returns through exposure to a broad selection of partially correlated asset classes. The Adviser directs the Fund's asset market allocation toward opportunities that are identified to be greater and away from those that are smaller.   The Adviser has discretion to add or remove asset classes from the Fund based on its analysis of valuation, opportunity and risk, provided the Fund's asset allocation guidelines are met. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund invests primarily in common stocks, but may also invest in other types of equity securities, such as preferred stock, convertible securities, warrants, real estate investment trusts ("REITs") or other similar publicly traded securities. The Fund may also purchase American Depositary Receipts ("ADRs").   In selecting securities for the Fund, the Fund's sub-adviser, Kempner Capital Management, Inc., ("KCM") utilizes a deep value style of investing in which it chooses securities that it believes are currently undervalued in the market but have earnings potential or other factors that make them attractive. The securities purchased are frequently out of favor with or have been ignored by the investment community market and thus provide the opportunity to purchase at prices significantly below their true value. KCM analyzes securities on an individual, bottom-up basis, to determine which securities can deliver capital appreciation and steady dividend earnings over the long-term. The Fund may invest in companies of all capitalizations.   KCM selects securities for the Fund's portfolio based on individual stocks rather than on industries or industry groups. KCM screens a universe of approximately 7,500 stocks to find companies which meet most of its criteria for price-earnings ratio (15X), projected 12-month earnings, price/cash flow multiple, price/book multiple and price less than or equal to 20% above the 52-week low. A dividend yield is required. KCM considers it unrealistic for it to be able to purchase a stock at its bottom, and as a result, KCM purchases securities for the Fund's portfolio gradually, averaging down. KCM also considers it unrealistic for it to be able to sell a stock at its highest price level, and as a result, KCM seeks to lock in reasonable returns when they are offered and generally sells gradually as an issue rises. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of small-capitalization companies. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders.   The Fund intends to invest in companies that Cambiar Investors, LLC ("Cambiar"), the Fund's sub-adviser, believes are undervalued, profitable, and capable of generating significant cash flow. In managing the Fund, Cambiar will select value-oriented small-cap stocks for the Fund's portfolio. Value-oriented managers generally select stocks they believe are attractively valued in light of fundamental characteristics such as earnings, capital structure and/or return on invested capital.     In selecting investments for the Fund, Cambiar utilizes a bottom-up, research-focused investment philosophy that seeks to identify quality companies that are currently undervalued to their historical trading range, yet demonstrate catalysts not yet recognized by the market that could result in significant appreciation over a 1-2 year time horizon. While Cambiar may use various metrics in selecting securities for the Fund, a company must possess the following characteristics: attractive valuation, an identifiable performance catalyst(s) and material upside potential. In selecting investments for the Fund, Cambiar generally considers small-capitalization companies to be those companies with total market capitalizations less than $3 billion at the time of initial purchase. In implementing its sell discipline, Cambiar sells stocks once a stock reaches its price target, when there is a decline in fundamentals, or the anticipated catalyst at purchase fails to materialize. Stocks may also be sold in favor of a more attractive investment opportunity. Cambiar will also trim a holding if it becomes an outsized position within the Fund's portfolio.   The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of non-U.S. issuers. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund invests primarily in common stocks, but may also invest in other types of equity securities, such as preferred stock, convertible securities, warrants or other similar publicly traded securities. The Fund may also purchase American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs").   The Fund's investments are ordinarily diversified among regions, countries and currencies, as determined by its sub-adviser, Thornburg Investment Management Inc. ("Thornburg"). Thornburg intends to invest on an opportunistic basis when it believes there is intrinsic value. The Fund's principal focus will be on traditional or "basic" value stocks. However, the portfolio may include stocks that, in Thornburg's opinion, provide value in a broader or different context. The relative proportions of these different types of securities will vary over time. The Fund ordinarily invests in stocks that may be undervalued or reflect unfavorable market perceptions of company or industry fundamentals. The Fund may invest in companies of any size.   Debt securities will be considered for investment when Thornburg believes them to be more attractive than equity alternatives. The Fund may purchase debt securities of any maturity and quality. The Fund evaluates currency risk on a stock-by-stock basis. The Fund will hedge currency exposure utilizing forward contracts if deemed appropriate by the portfolio management team. Currency hedging, if utilized, is to protect the investment thesis for a given stock from being significantly undermined by dollar/foreign currency fluctuations when we perceive currency risk to be high.   Thornburg primarily uses individual company and industry analysis to make investment decisions. Value, for purposes of Thornburg's selection criteria, relates to both current and projected measures. Among the specific factors considered by Thornburg in identifying undervalued securities for inclusion in the Fund's portfolio are:   <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">price/earnings ratio</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">price/book value</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">price/cash flow ratio</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">debt/capital ratio</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">dividend yield</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">security and consistency of revenue stream</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">undervalued assets</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">relative earnings growth potential</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">industry growth potential</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">industry leadership</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">dividend growth potential</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">franchise value</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">potential for favorable developments</td> </tr></table>   The Fund typically makes equity investments in the following three types of companies:   <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">BASIC VALUE companies which, in Thornburg's opinion, are financially sound companies with well established businesses whose stock is selling at low valuations relative to the companies' net assets or potential earning power.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">CONSISTENT EARNER companies when they are selling at valuations below historic norms. Stocks in this category sometimes sell at premium valuations and sometimes at discount valuations. Generally, they show steady earnings and dividend growth.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">EMERGING FRANCHISES are value-priced companies that in Thornburg's opinion are in the process of establishing a leading position in a product, service or market and which Thornburg expects will grow, or continue to grow, at an above average rate. Under normal conditions, the proportion of the Fund invested in companies of this type will be less than the proportions of the Fund invested in basic value or consistent earner companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund's emphasis is on total return with low volatility by investing primarily in shorter-term investment grade securities. Short-term bonds are considered more stable than longer - maturity bonds, but less stable than money market securities.   To achieve its objective, the Fund invests in a diversified mix of taxable fixed income securities. The Adviser actively manages the maturity of the Fund and purchases securities which will, on average, mature in less than 5 years. The Adviser actively manages the duration of the Fund and purchases securities such that the average weighted duration of the Fund's portfolio will typically range within plus or minus one year of the Barclays U.S. 1-5 Year Government Credit Index duration. The Fund seeks to maintain a low duration but may lengthen or shorten its duration within that range to reflect changes in the overall composition of the short-term investment-grade debt markets. Duration is a measure of a bond price's sensitivity to a given change in interest rates. Generally, the longer a bond's duration, the greater its price sensitivity to a change in interest rates. For example, the price of a bond with a duration of three years would be expected to fall approximately 3% if rates were to rise by one percentage point. The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve position; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection.     The Fund typically invests in the following U.S. dollar-denominated fixed income securities: U.S. Treasury securities; governmental agency debt; corporate debt; asset-backed securities; taxable municipal bonds; and, to a lesser extent, residential and commercial mortgage-backed securities. The Fund's fixed income investments are primarily of investment grade (rated in one of the four highest rating categories by at least one rating agency), but may at times include securities rated below investment grade (high yield or "junk" bonds). In addition, the Fund's fixed income securities may include unrated securities, if deemed by the Adviser to be of comparable quality to investment grade. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders.     The Adviser actively manages the duration of the Fund and purchases securities such that the average weighted duration of the Fund's portfolio will typically range within plus or minus three years of the Fund benchmark's duration. The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve positioning; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection. The "total return" sought by the Fund consists of income earned on the Fund's investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security.   The Fund typically invests in the following U.S. dollar-denominated fixed income securities: U.S. Treasury securities; governmental agency debt; corporate debt; asset-backed securities; taxable municipal bonds; collateralized mortgage obligations ("CMO's") and residential and commercial mortgage-backed securities. The Fund's fixed income investments focus primarily on investment grade securities (rated in one of the four highest rating categories by a rating agency), but may at times include securities rated below investment grade (high yield or "junk" bonds). In addition, the Fund's fixed income securities may include unrated securities, if deemed by the Adviser to be of comparable quality to investment grade. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal securities that generate income exempt from federal income tax, but not necessarily the federal alternative minimum tax ("AMT"). These securities include securities of municipal issuers located in Texas as well as in other states, territories and possessions of the United States. This investment policy may not be changed without shareholder approval. The Fund may invest more than 25% of its total assets in bonds of issuers in Texas. The Adviser considers the relative yield, maturity and availability of various types of municipal bonds and the general economic outlook in determining whether to over- or under-weight a specific type of municipal bond in the Fund's portfolio. Duration adjustments are made relative to the Barclays Municipal Bond Index. The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve positioning, with a typical range of three years; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection. Securities will be considered for sale in the event of or in anticipation of a credit downgrade; to effect a change in duration or sector weighting of the Fund; to realize an aberration in a security's valuation; or when the Adviser otherwise deems appropriate. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in full faith and credit U.S. Treasury obligations. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. In selecting investments for the Fund, the Fund's sub-adviser, Kempner Capital Management, Inc. ("KCM"), tries to increase income without adding undue risk by analyzing yields. The Fund's investments include Treasury bonds, Treasury notes, Treasury Inflated Protection Securities and short-term U.S. government money market funds. In evaluating a security for the Fund's portfolio, KCM considers, among other factors, the security's interest rate, yield and maturity. KCM actively manages the maturity of the Fund and its portfolio to maximize the Fund's yield based on current market interest rates and KCM's outlook on the market. The Fund may invest in full faith and credit money market instruments. The percentage of the Fund invested in such holdings varies depending on various factors, including market conditions. Consistent with preservation of capital, a larger percentage of the Fund's net assets may be invested in cash or money market instruments in order to provide capital and reduce the magnitude of loss in a period of falling market prices. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of mid-capitalization companies. This investment strategy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund considers mid-capitalization companies to be those companies with total market capitalizations between $2 billion and $15 billion at the time of initial purchase. The equity securities in which the Fund may invest include common stocks, preferred stocks, convertible securities, rights and warrants. Preferred stocks are units of ownership in a company that normally have preference over common stock in the payment of dividends and the liquidation of the company. Convertible securities are securities that may be exchanged for, converted into, or exercised to acquire a predetermined number of shares of the company's common stock at the holder's option during a specified time period. A right is a privilege granted to existing shareholders of a company to subscribe to shares of a new issue of common stock before it is issued. Warrants are securities that are usually issued together with a debt security or preferred stock that give the holder the right to buy a proportionate amount of common stock at a specified price. The Fund intends to invest in companies that the Fund's sub-adviser, Luther King Capital Management Corporation ("LKCM"), believes are likely to have above-average growth in revenue, above-average earnings and/or the potential for above-average capital appreciation. In selecting investments for the Fund, LKCM performs analyses of financial and fundamental criteria to identify high-quality companies, focusing on the following characteristics: <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Consistently high profitability;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Strong balance sheets;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Competitive advantages;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">High and/or improving financial returns;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Free cash flow;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Reinvestment opportunities; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Prominent market share positions.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> The Fund does not sell stocks simply because they are no longer within LKCM's capitalization range used for the initial purchase. In seeking to achieve the Fund's objective, Frost Investment Advisors LLC (the "Adviser"), the Fund's investment adviser, employs two distinct investment approaches: a traditional allocation providing exposure to the stock and bond markets, and an allocation providing exposure to alternative asset strategies. The Fund will gain exposure to both allocations primarily through investment in exchange-traded products ("ETPs"), which include exchange-traded funds and exchange-traded notes. The Adviser expects to maintain an approximate 60% to 40% split between traditional and alternative asset strategies, respectively. The traditional allocation involves exposure, primarily through ETPs, to stocks of domestic and foreign companies (including American Depository Receipts ("ADRs")) of any size and fixed income obligations issued by U.S. and foreign governments and corporations ("traditional asset classes"). The proportion of Fund assets invested in each traditional asset class, either indirectly in ETPs or directly in stocks or bonds, is continually monitored and adjusted by the Adviser as it deems appropriate, with no limit on the percentage of assets that may be allocated among ETPs, stocks or bonds, except such limits as one consistent with the Fund's taxation as a regulated investment company, as described below. When selecting ETPs for investment, the Adviser considers the ETPs' investment goals and strategies, the investment adviser and portfolio manager, and past performance (absolute, relative and risk-adjusted). The Adviser then enhances or reduces exposure to traditional asset class sub-categories (such as sector (e.g., small- or mid-cap or corporate or asset-backed), region (e.g., Europe or Asia) or country (e.g., China or Japan)) by over- or under-weighting ETPs in each sub-category based on the Adviser's outlook of the market for those sub-categories. The Adviser may sell an investment if it determines that the subcategory or the traditional asset class in general is no longer desirable or if the Adviser believes that another ETP offers a better opportunity to achieve the Fund's objective. The Adviser may use option collars to reduce the effects of market volatility. The alternative allocation involves exposure to investment strategies that the Adviser believes will produce attractive returns regardless of the performance of traditional asset classes. These strategies offer an expanded universe of available investments, such as currencies, commodities and derivatives, employ a broader range of trading strategies and often emphasize absolute returns rather than returns relative to an index benchmark. As a result, these strategies may offer returns that have a low correlation to the performance of traditional asset classes and may serve to hedge risk associated with investments in traditional asset classes. The Fund seeks exposure to these strategies by investing in shares of ETPs, mutual funds and closed-end funds that track, on a replication basis, broad hedge fund indices and/or individual inverse or low correlation hedge fund strategies. Specific strategies will be selected by the Adviser based on its estimate of most appropriate investments for current economic or market conditions. The underlying assets of such investments include stocks, bonds, derivatives or cash instruments, as well as investment companies or other pooled vehicles that invest in such instruments. The Fund may also invest in ETPs designed to provide investment results that match a positive or negative multiple of the performance of an underlying index ("Enhanced TPs"). In addition, the Fund may invest in ETFs that are not registered or regulated under the Investment Company Act of 1940, as amended (the "1940 Act"). These instruments typically hold commodities, such as gold or oil, currency or other property that is itself not a security. In addition, in seeking returns that are expected to have reduced correlation to the stock and bond markets, the Fund may also invest in real estate investment trusts ("REITs"), master limited partnerships ("MLPs"), business development companies ("BDCs") and index-related commodity securities. In selecting these specific strategy investments, the Adviser evaluates manager experience, trading liquidity, assets in the investment vehicle, and tracking error when compared to the relevant benchmark. The Adviser employs a top-down analysis of broad economic and financial indicators and trends to establish position weightings within the Fund's portfolio. The Adviser may sell a security if (i) its price reaches the Adviser's assessment of its fair value; (ii) the Adviser deems it no longer aligns with the Fund's objective; (iii) the Adviser believes another security provides a superior investment alternative. In seeking to achieve its objectives, the Fund, under normal circumstances,invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in natural resources industries. Companies in natural resources industries include: (i) companies that Frost Investment Advisors, LLC (the "Adviser"), the Fund's adviser, considers to be engaged, either directly or indirectly, in the exploration, discovery, development, production, marketing or distribution of natural resources; the development of proprietary technologies for the production or efficient utilization of natural resources; or the provision of related supplies or services; and (ii) to the extent not included in the foregoing, those industries that comprise the S&P North American Natural Resources Index. Within natural resources industries, the Adviser anticipates that the Fund will generally invest a significant portion of its assets in the energy sector. Examples of natural resources include: <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">ENERGY -- such as companies engaged in the exploration and production of energy sources, as well as companies involved with energy equipment and services, drillers, refiners, storage transportation, utilities, coal.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">ALTERNATIVE ENERGY -- such as solar, nuclear, wind and fuel cell companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">INDUSTRIAL PRODUCTS -- such as chemical, building material, cement, aggregate, associated machinery and transport companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">FOREST PRODUCTS -- such as timber and paper companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">BASE METALS -- such as companies engaged in the exploration, mining, processing, fabrication, marketing or distribution of copper, iron ore, nickel, steel, aluminum, rare earth minerals and molybdenum.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">SPECIALTY METALS -- such as companies engaged in the exploration, mining, processing, fabrication, marketing or distribution of titanium-based alloys and zirconium.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">PRECIOUS METALS -- such as companies engaged in the exploration, mining, processing, fabrication, marketing or distribution of gold, silver, diamonds and platinum.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">AGRICULTURAL PRODUCTS -- such as companies engaged in producing, processing and distributing seeds, fertilizers and water.</td> </tr></table> The Fund generally invests in equity securities of domestic and foreign, including emerging market, natural resources companies. The equity securities in which the Fund may invest include common stocks, preferred stocks, American Depositary Receipts ("ADRs"), Global Depositary Receipts ("GDRs"), convertible securities, warrants and rights, and master limited partnerships ("MLPs"). In addition, the Fund may also invest in exchange-traded funds, exchange-traded notes and other exchange-traded products to gain exposure to certain segments of the natural resources market. The Fund may invest in securities of issuers with any market capitalization. The Adviser combines fundamental analysis and quantitative screening to select securities for the Fund's portfolio. In particular, the Adviser focuses on companies with desirable growth and value attributes. These attributes will include but not be exclusive to the following: attractive debt adjusted production growth per share; prospects for above average growth in earnings or cash flow per share; an ability to generate high returns on invested capital throughout an investment cycle; asset quality greater than peers; efficient capital allocation; management strength; favorable relative price/earnings, price/book and price/cash flow ratios; and trading at a discount to intrinsic value. In addition, the Adviser considers the availability of specific natural resources and the relative value of those resources given changing supply/demand dynamics in the market. The Adviser may sell a security when the security reaches a specified value or the Adviser's original investment rationale is no longer considered valid. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund intends to invest in companies that Frost Investment Advisors, LLC (the "Adviser") believes will have growing revenues and earnings. The Fund will generally invest in equity securities of domestic companies, but may also invest in equity securities of foreign companies and American Depositary Receipts ("ADRs"). The Adviser performs in-depth analyses of company fundamentals and industry dynamics to identify companies displaying strong earnings and revenue growth relative to the overall market or relative to their peer group, improving returns on equity and a sustainable competitive advantage.     The Adviser focuses on a number of factors to assess the growth potential of individual companies, such as:   <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Historical and expected organic revenue growth rates;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Historical and expected earnings growth rates;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Signs of accelerating growth potential;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Positive earnings revisions;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Earnings momentum;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Improving margin and return on equity trends; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Positive price momentum.</td> </tr></table>   When an attractive growth opportunity is identified, the Adviser seeks to independently develop an intrinsic valuation for the stock. The Adviser believes that the value of a company is determined by discounting the company's future cash flows or earnings. Valuation factors considered in identifying securities for the Fund's portfolio include: <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/earnings ratio;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/sales ratio;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/earnings to growth ratio;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Enterprise value/earnings before interest, taxes, depreciation and amortization;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Enterprise value/sales;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Price/cash flow;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Balance sheet strength; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/normal Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Returns on equity and returns on invested capital.</td> </tr></table>   The Adviser also seeks to understand a firm's competitive position and the industry dynamics in which the firm operates. The Adviser assesses industry growth potential, market share opportunities, cyclicality and pricing power. Further analysis focuses on corporate governance and management's ability to create value for shareholders.   The Adviser augments its independent fundamental research process with quantitative screens and models. The models are derived from proprietary research or securities industry research studies and score companies based upon a number of fundamental factors. The Adviser uses quantitative analysis to provide an additional layer of objectivity, discipline and consistency to its equity research process. This quantitative analysis complements the fundamental analyses that the Adviser conducts on companies during its stock selection process.   The Fund seeks to buy and hold securities for the long term and seeks to keep portfolio turnover to a minimum. However, the Adviser may sell a security if its price exceeds the Adviser's assessment of its fair value or in response to a negative company event, a change in management, poor relative price performance, achieved fair valuation, or a deterioration in a company's business prospects, performance or financial strength. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that pay, or are expected to pay, dividends. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund will generally invest in equity securities of domestic companies, but may also invest in equity securities of foreign companies and American Depositary Receipts ("ADRs"). The Adviser expects that the Fund's investments in foreign companies will normally represent less than 30% of the Fund's assets.    The Adviser seeks to identify and invest in companies that have attractive valuations and a dividend that has the potential to grow as fast as inflation and whose yield is greater than the market or its sector or industry average. The Adviser considers dividends to be a significant component of total long-term equity returns and focuses on the sustainability and growth of dividends with attractive yields. To access the sustainability of a firm's dividend, the Adviser analyzes a firm's dividend history, its competitive position and the industry dynamics in which the firm operates.   The Adviser employs both quantitative and qualitative analyses to select companies that have capital appreciation and dividend growth potential, with a focus on the following stock characteristics:   <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Attractive valuation based on intrinsic, absolute and relative value;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Dividend yields greater than the market or their sector or industry;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">History of growing dividends with the likelihood of sustainable growth of dividends;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"></td><td style="width: 5pt"></td><td style="text-align: justify"></td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Attractive business models that generate the necessary cash flow to cover and sustain the dividend and its growth; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Sound balance sheets.</td> </tr></table>   The Adviser seeks to manage the Fund in a tax-efficient manner although portfolio turnover rates can vary, depending upon market conditions. The Adviser has disciplines in place that serve as sell signals, such as if the price of the security exceeds the Adviser's assessment of its fair value or in response to dividend yield declining below the Adviser's yield objective, a negative company event, a change in management, poor relative price performance, or a deterioration in a company's business prospects, performance or financial strength. Under normal circumstances, the Fund seeks to achieve its investment objective by investing in a diversified portfolio of global fixed income and equity securities. The overarching principle of Frost Investment Advisors, LLC (the "Adviser") is to structure the Fund to be well diversified across many asset classes and securities. In selecting securities for the Fund, the Adviser uses the following strategies:   <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Strategic asset allocation;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Tactical asset allocation;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Security selection;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Bond asset class allocation;</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Foreign currency exposure; and</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Derivatives.</td> </tr></table>   Between 40% to 80% of the Fund's assets may be invested in domestic and international equity securities, including emerging markets equity securities. The balance of the Fund's portfolio will be invested in fixed income asset classes and cash. Additionally, up to 40% of the Fund's assets may be invested in non-core equity classes/styles such as real estate, infrastructure or commodities, and hedged equity, which may also be internationally diversified. The Adviser may alter these asset allocation guidelines according to its outlook for each asset class. As an alternative to directly investing in securities in these asset classes, the Fund may also invest in other investment companies, including mutual funds, closed-end funds and exchange-traded funds ("ETFs"), to gain exposure to equity and fixed-income markets. The degree to which the Fund invests in other investment companies for these purposes will vary, and at times may be significant, depending on factors such as overall Fund asset levels and the Adviser's views on the most efficient method for achieving diversified exposure to a particular asset class consistent with the Fund's investment objective. The Fund may also invest in derivatives to manage risk, increase or decrease exposure to an asset class, and/or to enhance total return. The Fund is reallocated at least annually to manage asset class drift and improve the risk-reward profile of the Fund.   The Fund's asset class selection is based on the Adviser's outlook for the reward and risks presented by each asset class. These assumptions are used in a model-driven framework to make allocation decisions. The principal strategy offers diversification and breadth by providing access to a broad array of sources of returns through exposure to a broad selection of partially correlated asset classes. The Adviser directs the Fund's asset market allocation toward opportunities that are identified to be greater and away from those that are smaller.   The Adviser has discretion to add or remove asset classes from the Fund based on its analysis of valuation, opportunity and risk, provided the Fund's asset allocation guidelines are met. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund invests primarily in common stocks, but may also invest in other types of equity securities, such as preferred stock, convertible securities, warrants, and real estate investment trusts ("REITs")or other similar publicly traded securities. The Fund may also purchase American Depositary Receipts ("ADRs").    In selecting securities for the Fund, the Fund's sub-adviser, Kempner Capital Management, Inc., ("KCM") utilizes a deep value style of investing in which it chooses securities that it believes are currently undervalued in the market but have earnings potential or other factors that make them attractive. The securities purchased are frequently out of favor with or have been ignored by the investment community market and thus provide the opportunity to purchase at prices significantly below their true value. KCM analyzes securities on an individual, bottom-up basis, to determine which securities can deliver capital appreciation and steady dividend earnings over the long-term. The Fund may invest in companies of all capitalizations.   KCM selects securities for the Fund's portfolio based on individual stocks rather than on industries or industry groups. KCM screens a universe of approximately 7,500 stocks to find companies which meet most of its criteria for price-earnings ratio (15X), projected 12-month earnings, price/cash flow multiple, price/book multiple and price less than or equal to 20% above the 52-week low. A dividend yield is required. KCM considers it unrealistic for it to be able to purchase a stock at its bottom, and as a result, KCM purchases securities for the Fund's portfolio gradually, averaging down. KCM also considers it unrealistic for it to be able to sell a stock at its highest price level, and as a result, KCM seeks to lock in reasonable returns when they are offered and generally sells gradually as an issue rises. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of small-capitalization companies. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders.   The Fund intends to invest in companies that Cambiar Investors, LLC ("Cambiar"), the Fund's sub-adviser, believes are undervalued, profitable, and capable of generating significant cash flow. In managing the Fund, Cambiar will select value-oriented small-cap stocks for the Fund's portfolio. Value-oriented managers generally select stocks they believe are attractively valued in light of fundamental characteristics such as earnings, capital structure and/or return on invested capital.    In selecting investments for the Fund, Cambiar utilizes a bottom-up, research-focused investment philosophy that seeks to identify quality companies that are currently undervalued to their historical trading range, yet demonstrate catalysts not yet recognized by the market that could result in significant appreciation over a 1-2 year time horizon. While Cambiar may use various metrics in selecting securities for the Fund, a company must possess the following characteristics: attractive valuation, an identifiable performance catalyst(s) and material upside potential. In selecting investments for the Fund, Cambiar generally considers small-capitalization companies to be those companies with total market capitalizations less than $3 billion at the time of initial purchase. In implementing its sell discipline, Cambiar sells stocks once a stock reaches its price target, when there is a decline in fundamentals, or the anticipated catalyst at purchase fails to materialize. Stocks may also be sold in favor of a more attractive investment opportunity. Cambiar will also trim a holding if it becomes an outsized position within the Fund's portfolio.   The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of non-U.S. issuers. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund invests primarily in common stocks, but may also invest in other types of equity securities, such as preferred stock, convertible securities, warrants or other similar publicly traded securities. The Fund may also purchase American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs").   The Fund's investments are ordinarily diversified among regions, countries and currencies, as determined by its sub-adviser, Thornburg Investment Management Inc. ("Thornburg"). Thornburg intends to invest on an opportunistic basis when it believes there is intrinsic value. The Fund's principal focus will be on traditional or "basic" value stocks. However, the portfolio may include stocks that, in Thornburg's opinion, provide value in a broader or different context. The relative proportions of these different types of securities will vary over time. The Fund ordinarily invests in stocks that may be undervalued or reflect unfavorable market perceptions of company or industry fundamentals. The Fund may invest in companies of any size.   Debt securities will be considered for investment when Thornburg believes them to be more attractive than equity alternatives. The Fund may purchase debt securities of any maturity and quality. The Fund evaluates currency risk on a stock-by-stock basis. The Fund will hedge currency exposure utilizing forward contracts if deemed appropriate by the portfolio management team. Currency hedging, if utilized, is to protect the investment thesis for a given stock from being significantly undermined by dollar/foreign currency fluctuations when we perceive currency risk to be high.   Thornburg primarily uses individual company and industry analysis to make investment decisions. Value, for purposes of Thornburg's selection criteria, relates to both current and projected measures. Among the specific factors considered by Thornburg in identifying undervalued securities for inclusion in the Fund's portfolio are:   <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">price/earnings ratio</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">price/book value</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">price/cash flow ratio</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">debt/capital ratio</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">dividend yield</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">security and consistency of revenue stream</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">undervalued assets</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">relative earnings growth potential</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">industry growth potential</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">industry leadership</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">dividend growth potential</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">franchise value</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">potential for favorable developments</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> The Fund typically makes equity investments in the following three types of companies: <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">BASIC VALUE companies which, in Thornburg's opinion, are financially sound companies with well established businesses whose stock is selling at low valuations relative to the companies' net assets or potential earning power.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">CONSISTENT EARNER companies when they are selling at valuations below historic norms. Stocks in this category sometimes sell at premium valuations and sometimes at discount valuations. Generally, they show steady earnings and dividend growth.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">EMERGING FRANCHISES are value-priced companies that in Thornburg's opinion are in the process of establishing a leading position in a product, service or market and which Thornburg expects will grow, or continue to grow, at an above average rate. Under normal conditions, the proportion of the Fund invested in companies of this type will be less than the proportions of the Fund invested in basic value or consistent earner companies.</td> </tr></table> Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund's emphasis is on total return with low volatility by investing primarily in shorter-term investment grade securities. Short-term bonds are considered more stable than longer-maturity bonds, but less stable than money market securities.   To achieve its objective, the Fund invests in a diversified mix of taxable fixed income securities. The Adviser actively manages the maturity of the Fund and purchases securities which will, on average, mature in less than 5 years. The Adviser actively manages the duration of the Fund and purchases securities such that the average weighted duration of the Fund's portfolio will typically range within plus or minus one year of the Barclays U.S. 1-5 Year Government Credit Index duration. The Fund seeks to maintain a low duration but may lengthen or shorten its duration within that range to reflect changes in the overall composition of the short-term investment-grade debt markets. Duration is a measure of a bond price's sensitivity to a given change in interest rates. Generally, the longer a bond's duration, the greater its price sensitivity to a change in interest rates. For example, the price of a bond with a duration of three years would be expected to fall approximately 3% if rates were to rise by one percentage point. The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve position; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection.   The Fund typically invests in the following U.S. dollar-denominated fixed income securities: U.S. Treasury securities; governmental agency debt; corporate debt; asset-backed securities; taxable municipal bonds; and, to a lesser extent, residential and commercial mortgage-backed securities. The Fund's fixed income investments are primarily of investment grade (rated in one of the four highest rating categories by at least one rating agency), but may at times include securities rated below investment grade (high yield or "junk" bonds). In addition, the Fund's fixed income securities may include unrated securities, if deemed by the Adviser to be of comparable quality to investment grade. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders.     The Adviser actively manages the duration of the Fund and purchases securities such that the average weighted duration of the Fund's portfolio will typically range within plus or minus three years of the Fund benchmark's duration. The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve positioning; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection. The "total return" sought by the Fund consists of income earned on the Fund's investments, plus capital appreciation, if any, which generally arises from decreases in interest rates or improving credit fundamentals for a particular sector or security.   The Fund typically invests in the following U.S. dollar-denominated fixed income securities: U.S. Treasury securities; governmental agency debt; corporate debt; asset-backed securities; taxable municipal bonds; collateralized mortgage obligations ("CMO's") and residential and commercial mortgage-backed securities. The Fund's fixed income investments focus primarily on investment grade securities (rated in one of the four highest rating categories by a rating agency), but may at times include securities rated below investment grade (high yield or "junk" bonds). In addition, the Fund's fixed income securities may include unrated securities, if deemed by the Adviser to be of comparable quality to investment grade. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal securities that generate income exempt from federal income tax, but not necessarily the federal alternative minimum tax ("AMT"). These securities include securities of municipal issuers located in Texas as well as in other states, territories and possessions of the United States. This investment policy may not be changed without shareholder approval. The Fund may invest more than 25% of its total assets in bonds of issuers in Texas.   The Adviser considers the relative yield, maturity and availability of various types of municipal bonds and the general economic outlook in determining whether to over- or under-weight a specific type of municipal bond in the Fund's portfolio. Duration adjustments are made relative to the Barclays Municipal Bond Index. The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve positioning, with a typical range of three years; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection.    Securities will be considered for sale in the event of or in anticipation of a credit downgrade; to effect a change in duration or sector weighting of the Fund; to realize an aberration in a security's valuation; or when the Adviser otherwise deems appropriate. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, at the time of initial purchase, in municipal securities that generate income exempt from federal income tax, but not necessarily the federal alternative minimum tax ("AMT"). These securities include securities of municipal issuers located in Texas as well as in other states, territories and possessions of the United States. This investment policy may not be changed without shareholder approval.     The Fund primarily invests in securities that are of investment grade (rated in one of the four highest rating categories). The Fund may invest more than 25% of its total assets in bonds of issuers in Texas. The Adviser actively manages the portfolio, as well as the maturity of the Fund, and purchases securities which will, on average, mature in less than five years. The Fund tends to have an average duration within plus or minus one year of the Barclays Three-Year Municipal Bond Index. The Fund seeks to maintain a low duration, but may lengthen or shorten its duration within its target range to reflect changes in the overall composition of the short-term investment-grade debt markets. Duration is a measure of a bond price's sensitivity to a given change in interest rates. Generally, the longer a bond's duration, the greater its price sensitivity to a change in interest rates. For example, the price of a bond with a duration of three years would be expected to fall approximately 3% if rates were to rise by one percentage point.   The Adviser, in constructing and maintaining the Fund's portfolio, employs the following four primary strategies to varying degrees depending on its views of economic growth prospects, interest rate predictions and relative value assessments: interest rate positioning based on duration and yield curve positioning; asset category allocations; credit sector allocations relating to security ratings by the national ratings agencies; and individual security selection. Securities will be considered for sale in the event of or in anticipation of a credit downgrade; to effect a change in duration or sector weighting of the Fund; to realize an aberration in a security's valuation; or when the Adviser otherwise deems appropriate.   Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in full faith and credit U.S. Treasury obligations. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. In selecting investments for the Fund, the Fund's sub-adviser, Kempner Capital Management, Inc. ("KCM"), tries to increase income without adding undue risk by analyzing yields. The Fund's investments include Treasury bonds, Treasury notes, Treasury Inflated Protection Securities and short-term U.S. government money market funds. In evaluating a security for the Fund's portfolio, KCM considers, among other factors, the security's interest rate, yield and maturity. KCM actively manages the maturity of the Fund and its portfolio to maximize the Fund's yield based on current market interest rates and KCM's outlook on the market.   The Fund may invest in full faith and credit money market instruments. The percentage of the Fund invested in such holdings varies depending on various factors, including market conditions. Consistent with preservation of capital, a larger percentage of the Fund's net assets may be invested in cash or money market instruments in order to provide capital and reduce the magnitude of loss in a period of falling market prices. Under normal market conditions, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of mid-capitalization companies. This investment strategy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund considers mid- capitalization companies to be those companies with total market capitalizations between $2 billion and $15 billion at the time of initial purchase.   The equity securities in which the Fund may invest include common stocks, preferred stocks, convertible securities, rights and warrants. Preferred stocks are units of ownership in a company that normally have preference over common stock in the payment of dividends and the liquidation of the company. Convertible securities are securities that may be exchanged for, converted into, or exercised to acquire a predetermined number of shares of the company's common stock at the holder's option during a specified time period. A right is a privilege granted to existing shareholders of a company to subscribe to shares of a new issue of common stock before it is issued. Warrants are securities that are usually issued together with a debt security or preferred stock that give the holder the right to buy a proportionate amount of common stock at a specified price.     The Fund intends to invest in companies that the Fund's sub-adviser, Luther King Capital Management Corporation ("LKCM"), believes are likely to have above-average growth in revenue, above-average earnings and/or the potential for above-average capital appreciation. In selecting investments for the Fund, LKCM performs analyses of financial and fundamental criteria to identify high-quality companies, focusing on the following characteristics:   o Consistently high profitability; o Strong balance sheets; o Competitive advantages; o High and/or improving financial returns; o Free cash flow; o Reinvestment opportunities; and o Prominent market share positions.   The Fund does not sell stocks simply because they are no longer within LKCM's capitalization range used for the initial purchase.   In seeking to achieve its objectives, the Fund, under normal circumstances, invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities of companies in natural resources industries. Companies in natural resources industries include: (i) companies that Frost Investment Advisors, LLC (the "Adviser"), the Fund's adviser, considers to be engaged, either directly or indirectly, in the exploration, discovery, development, production, marketing or distribution of natural resources; the development of proprietary technologies for the production or efficient utilization of natural resources; or the provision of related supplies or services; and (ii) to the extent not included in the foregoing, those industries that comprise the S&P North American Natural Resources Index. Within natural resources industries, the Adviser anticipates that the Fund will generally invest a significant portion of its assets in the energy sector. Examples of natural resources include:   <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">ENERGY -- such as companies engaged in the exploration and production of energy sources, as well as companies involved with energy equipment and services, drillers, refiners, storage transportation, utilities, coal.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">ALTERNATIVE ENERGY -- such as solar, nuclear, wind and fuel cell companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">INDUSTRIAL PRODUCTS -- such as chemical, building material, cement, aggregate, associated machinery and transport companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">FOREST PRODUCTS -- such as timber and paper companies.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">BASE METALS -- such as companies engaged in the exploration, mining, processing, fabrication, marketing or distribution of copper, iron ore, nickel, steel, aluminum, rare earth minerals and molybdenum.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">SPECIALTY METALS -- such as companies engaged in the exploration, mining, processing, fabrication, marketing or distribution of titanium-based alloys and zirconium.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">PRECIOUS METALS -- such as companies engaged in the exploration, mining, processing, fabrication, marketing or distribution of gold, silver, diamonds and platinum.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify"> </td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt/115% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: justify">o</td><td style="width: 5pt; text-align: justify"></td><td style="text-align: justify">AGRICULTURAL PRODUCTS -- such as companies engaged in producing, processing and distributing seeds, fertilizers and water.</td> </tr></table>   The Fund generally invests in equity securities of domestic and foreign, including emerging market, natural resources companies. The equity securities in which the Fund may invest include common stocks, preferred stocks, American Depositary Receipts ("ADRs"), Global Depositary Receipts ("GDRs"), convertible securities, warrants and rights, and master limited partnerships ("MLPs"). In addition, the Fund may also invest in exchange-traded funds, exchange-traded notes and other exchange-traded products to gain exposure to certain segments of the natural resources market. The Fund may invest in securities of issuers with any market capitalization.   The Adviser combines fundamental analysis and quantitative screening to select securities for the Fund's portfolio. In particular, the Adviser focuses on companies with desirable growth and value attributes. These attributes will include but not be exclusive to the following: attractive debt adjusted production growth per share; prospects for above average growth in earnings or cash flow per share; an ability to generate high returns on invested capital throughout an investment cycle; asset quality greater than peers; efficient capital allocation; management strength; favorable relative price/earnings, price/book and price/cash flow ratios; and trading at a discount to intrinsic value. In addition, the Adviser considers the availability of specific natural resources and the relative value of those resources given changing supply/demand dynamics in the market. The Adviser may sell a security when the security reaches a specified value or the Adviser's original investment rationale is no longer considered valid. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of large-capitalization companies and exchange traded funds ("ETFs") designed to track the performance of large capitalization companies, and options on securities of large capitalization companies. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund primarily will invest in common stocks, but will also invest in ETFs and sell call options on an asset it owns, also known as a "buy-write" strategy. The Fund to a lesser extent will also buy call and put options on an asset, a market sector or an index. The Adviser expects that approximately 5% of the Fund's assets will dedicated to its options strategy, although such allocation is subject to change based on market and other conditions. Cinque Partners LLC ("Cinque"), the Fund's sub-adviser, generally considers large-capitalization companies to be those companies with market capitalizations of $5 billion or greater. The Fund may invest up to 20% of its net assets in small and mid-capitalization companies.   In constructing the Fund's portfolio, Cinque uses a systematic, proprietary process that combines individual stock selection and sector and index exposures into a portfolio that is then coupled with an option hedging strategy. Cinque selects stocks for the Fund using its Combo Rank Stock model, which analyses measures of value, growth, balance sheet analysis and overall profitability of a company. The output of this model is then ranked within each sector of the S&P Composite 1500 Index universe. Cinque then selects a stock based on its ratings and establishes a target weight that is based on Cinque's thorough qualitative and quantitative assessment of that company's risk-reward characteristics. Sector or index ETFs may also be selected to capture macroeconomic performance inputs through the economic cycle. Cinque periodically reviews the companies in its investment universe in order to re-evaluate whether or not the assumptions and tenets (price targets, balance sheet quality, operating trends, potential stock downside) of the original investment thesis still hold.     Cinque also intends to utilize an option strategy that includes buy-writes, protective puts and long-call options in an attempt to improve portfolio downside protection and increase portfolio income. Cinque analyzes over 400 different options combinations, using S&P 500 Index options, to arrive at the position that, in Cinque's view, provides the best chance of capturing the excess return associated with the Fund's long portfolio, while reducing the downside risk associated with the market. Cinque also may sell call options to take advantage of what it perceives to be mispriced options premiums based on its view of market volatility. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities of U.S. and foreign corporate issuers, which will include corporate bonds and mortgage-backed and other asset-backed securities, and structured notes with economic characteristics similar to fixed income securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund will invest in callable bonds, as well as fixed income securities that pay a fixed or floating interest rate or interest that is payable in kind or payable at maturity. The Fund will invest in high yield fixed income securities, also referred to as "junk" bonds, which are generally rated below BBB- by Standard & Poor's Ratings Services or Fitch, Inc. or Baa3 by Moody's Investor Service at the time of purchase or are unrated but judged to be of comparable quality by Frost Investment Advisors, LLC, the Fund's investment adviser (the "Adviser"). All securities in which the Fund invests will be denominated in U.S. dollars.   The Fund seeks to achieve its objective through a combination of active portfolio management, a focus on relative value opportunities, sector weightings and individual asset selection. In selecting assets for the Fund, the Adviser uses a top-down approach to analyze industry fundamentals and select individual securities based on its view of their relative value and interest rate characteristics. The Adviser also will consider its view of the yield curve and the potential for individual securities to produce consistent income. The Adviser expects that more than half of the Fund's returns will be derived from credit risk, rather than interest rate risk. Generally, the greater the credit risk that a fixed income security presents, the higher the interest rate the issuer must pay in order to compensate investors for assuming such higher risk. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of large-capitalization companies and exchange traded funds ("ETFs") designed to track the performance of large capitalization companies, and options on securities of large capitalization companies. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund primarily will invest in common stocks, but will also invest in ETFs and sell call options on an asset it owns, also known as a "buy-write" strategy. The Fund to a lesser extent will also buy call and put options on an asset, a market sector or an index. The Adviser expects that approximately 5% of the Fund's assets will dedicated to its options strategy, although such allocation is subject to change based on market and other conditions. Cinque Partners LLC ("Cinque"), the Fund's sub-adviser, generally considers large-capitalization companies to be those companies with market capitalizations of $5 billion or greater. The Fund may invest up to 20% of its net assets in small and mid-capitalization companies.   In constructing the Fund's portfolio, Cinque uses a systematic, proprietary process that combines individual stock selection and sector and index exposures into a portfolio that is then coupled with an option hedging strategy. Cinque selects stocks for the Fund using its Combo Rank Stock model, which analyses measures of value, growth, balance sheet analysis and overall profitability of a company. The output of this model is then ranked within each sector of the S&P Composite 1500 Index universe. Cinque then selects a stock based on its ratings and establishes a target weight that is based on Cinque's thorough qualitative and quantitative assessment of that company's risk-reward characteristics. Sector or index ETFs may also be selected to capture macroeconomic performance inputs through the economic cycle. Cinque periodically reviews the companies in its investment universe in order to re-evaluate whether or not the assumptions and tenets (price targets, balance sheet quality, operating trends, potential stock downside) of the original investment thesis still hold.     Cinque also intends to utilize an option strategy that includes buy-writes, protective puts and long-call options in an attempt to improve portfolio downside protection and increase portfolio income. Cinque analyzes over 400 different options combinations, using S&P 500 Index options, to arrive at the position that, in Cinque's view, provides the best chance of capturing the excess return associated with the Fund's long portfolio, while reducing the downside risk associated with the market. Cinque also may sell call options to take advantage of what it perceives to be mispriced options premiums based on its view of market volatility. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed income securities of U.S. and foreign corporate issuers, which will include corporate bonds and mortgage-backed and other asset-backed securities, and structured notes with economic characteristics similar to fixed income securities. This investment policy may be changed by the Fund upon 60 days' prior notice to shareholders. The Fund will invest in callable bonds, as well as fixed income securities that pay a fixed or floating interest rate or interest that is payable in kind or payable at maturity. The Fund will invest in high yield fixed income securities, also referred to as "junk" bonds, which are generally rated below BBB- by Standard & Poor's Ratings Services or Fitch, Inc. or Baa3 by Moody's Investor Service at the time of purchase or are unrated but judged to be of comparable quality by Frost Investment Advisors, LLC, the Fund's investment adviser (the "Adviser"). All securities in which the Fund invests will be denominated in U.S. dollars.   The Fund seeks to achieve its objective through a combination of active portfolio management, a focus on relative value opportunities, sector weightings and individual asset selection. In selecting assets for the Fund, the Adviser uses a top-down approach to analyze industry fundamentals and select individual securities based on its view of their relative value and interest rate characteristics. The Adviser also will consider its view of the yield curve and the potential for individual securities to produce consistent income. The Adviser expects that more than half of the Fund's returns will be derived from credit risk, rather than interest rate risk. Generally, the greater the credit risk that a fixed income security presents, the higher the interest rate the issuer must pay in order to compensate investors for assuming such higher risk. PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS PRINCIPAL RISKS As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   GROWTH STYLE RISK-- The price of equity securities rises and falls in response to many factors, including the historical and prospective earnings of the issuer of the stock, the value of its assets, general economic conditions, interest rates, investor perceptions, and market liquidity. The Fund may invest in securities of companies that the Adviser believes have superior prospects for robust and sustainable growth of revenues and earnings. These may be companies with new, limited or cyclical product lines, markets or financial resources, and the management of such companies may be dependent upon one or a few key people. The stocks of such companies can therefore be subject to more abrupt or erratic market movements than stocks of larger, more established companies or the stock market in general.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   INVESTMENT STYLE RISK -- The Fund pursues a "value style" of investing. Value investing focuses on companies with stocks that appear undervalued in light of factors such as the company's earnings, book value, revenues or cash flow. If the Adviser's assessment of a company's value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds. In addition, "value stocks" can continue to be undervalued by the market for long periods of time.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   DERIVATIVES RISKS -- Derivatives may involve risks different from, and possibly greater than, those of traditional investments. The Fund may use derivatives (such as futures, options, and swaps) to attempt to achieve its investment objective and offset certain investment risks, while at the same time maintaining liquidity. These positions may be established for hedging or non-hedging purposes. Risks associated with the use of derivatives include the following risks associated with hedging and leveraging activities:   o The success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets, and movements in interest rates.   o The Fund may experience losses over certain ranges in the market that exceed losses experienced by a fund that does not use derivatives.   o There may be an imperfect or no correlation between the changes in market value of the securities held by the Fund and the prices of derivatives.   o There may not be a liquid secondary market for derivatives.   o Trading restrictions or limitations may be imposed by an exchange.   o Government regulations may restrict trading derivatives.   o The other party to an agreement (e.g., options or expense swaps) may default; however, in certain circumstances, such counterparty risk may be reduced by having an organization with very good credit act as intermediary. Because options premiums paid or received by the Fund are small in relation to the market value of the investments underlying the options, buying and selling put and call options can be more speculative than investing directly in securities.   REAL ESTATE RISK -- The Fund may invest in funds, ETFs or companies that invest in real estate. Real estate risk is the risk that real estate will underperform the market as a whole. The general performance of the real estate industry has historically been cyclical and particularly sensitive to economic downturns. Real estate can be affected by changes in real estate values and rental income, changes in interest rates, changing demographics and regional economic cycles.   REIT RISK -- Real Estate Investment Trusts ("REITs") are pooled investment vehicles that own, and usually operate, income-producing real estate. REITs are susceptible to the risks associated with direct ownership of real estate, such as: declines in property values; increases in property taxes, operating expenses, rising interest rates or competition overbuilding; zoning changes; and losses from casualty or condemnation. REITs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in REITs will result in the layering of expenses, such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to paying Fund expenses.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   ALLOCATION RISK -- The Fund will allocate its investments between various asset classes, including derivatives. These investments are based upon judgments made by the Adviser, which may not accurately predict changes in the market. As a result, the Fund could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of American Depository Receipts ("ADRs"), which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies.   FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.   INVESTMENTS IN INVESTMENT COMPANIES AND ETFS -- ETFs are pooled investment vehicles, such as registered investment companies and grantor trusts, whose shares are listed and traded on U.S. stock exchanges or otherwise traded in the over-the-counter market. To the extent the Fund invests in other investment companies, such as ETFs, closed-end funds and other mutual funds, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such other investment companies. As a shareholder of another investment company, the Fund relies on that investment company to achieve its investment objective. If the investment company fails to achieve its objective, the value of the Fund's investment could decline, which could adversely affect the Fund's performance. By investing in another investment company, Fund shareholders indirectly bear the Fund's proportionate share of the fees and expenses of the other investment company, in addition to the fees and expenses that Fund shareholders directly bear in connection with the Fund's own operations. The Fund does not intend to invest in other investment companies unless the Adviser believes that the potential benefits of the investment justify the payment of any additional fees or expenses. Federal securities laws impose limitations on the Fund's ability to invest in other investment companies.   Because closed-end funds and ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. Investments in closed-end funds and ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund. In addition, because the value of closed-end funds and ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   INVESTMENT STYLE RISK -- The Fund pursues a "value style" of investing. Value investing focuses on companies with stocks that appear undervalued in light of factors such as the company's earnings, book value, revenues or cash flow. If the Adviser's assessment of a company's value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds. In addition, "value stocks" can continue to be undervalued by the market for long periods of time.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.   REIT RISK - REITs are pooled investment vehicles that own, and usually operate, income-producing real estate. REITs are susceptible to the risks associated with direct ownership of real estate, such as: declines in property values; increases in property taxes, operating expenses, rising interest rates or competition overbuilding; zoning changes; and losses from casualty or condemnation. REITs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in REITs will result in the layering of expenses, such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to paying Fund expenses. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INITIAL PUBLIC OFFERINGS ("IPO") RISK -- The Fund may invest a portion of its assets in securities of companies offering shares in IPOs. IPOs may have a magnified performance impact on a fund with a small asset base. The impact of IPOs on the Fund's performance likely will decrease as the Fund's asset size increases, which could reduce the Fund's total returns. IPOs may not be consistently available to the Fund for investing. Because IPO shares frequently are volatile in price, the Fund may hold IPO shares for a very short period of time. This may increase the turnover of the Fund's portfolio and may lead to increased expenses for the Fund, such as commissions and transaction costs. By selling IPO shares, the Fund may realize taxable gains it will subsequently distribute to shareholders. In addition, the market for IPO shares can be speculative and/or inactive for extended periods of time. The limited number of shares available for trading in some IPOs may make it more difficult for the Fund to buy or sell significant amounts of shares without an unfavorable impact on prevailing prices. Holders of IPO shares can be affected by substantial dilution in the value of their shares, by sales of additional shares and by concentration of control in existing management and principal shareholders.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL-CAPITALIZATION COMPANY RISK -- The small-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   ACTIVE TRADING RISK -- The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. Active trading may cause the Fund to incur increased costs, which can lower the actual return of the Fund. Active trading may also increase short-term gains and losses, which affect taxes that must be paid.   LIQUIDITY RISK -- Particular investments may be difficult to purchase or sell. The Fund may make investments that become less liquid in response to market developments or adverse investor perceptions, which may reduce the returns of the Fund because it may be unable to sell the illiquid securities at an advantageous time or price.     MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   When the Fund invests in foreign fixed income securities, it will be subject to risks not typically associated with domestic securities. Foreign investments, especially investments in emerging markets, can be riskier and more volatile than investments in the United States. Adverse political and economic developments or changes in the value of foreign currency can make it more difficult for the Fund to sell its securities and could reduce the value of your shares. Differences in tax and accounting standards and difficulties in obtaining information about foreign companies can negatively affect investment decisions. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed.   EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies.   FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.   HEDGING RISK. The Fund may use forward currency contracts for hedging purposes. Hedging through the use of these instruments does not eliminate fluctuations in the underlying prices of the securities that the Fund owns or intends to purchase or sell. While entering into these instruments tends to reduce the risk of loss due to a decline in the value of the hedged asset, such instruments also limit any potential gain that may result from the increase in value of the asset. To the extent that the Fund engages in hedging strategies, there can be no assurance that such strategy will be effective or that there will be a hedge in place at any given time.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate. Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.   INVESTMENT STYLE RISK -- The Fund pursues a "value style" of investing. Value investing focuses on companies with stocks that appear undervalued in light of factors such as the company's earnings, book value, revenues or cash flow. If Thornburg's assessment of a company's value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds. In addition, "value stocks" can continue to be undervalued by the market for long periods of time.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.     As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   MUNICIPAL ISSUERS RISK -- There may be economic or political changes that impact the ability of municipal issuers to repay principal and to make interest payments on municipal securities. Changes in the financial condition or credit rating of municipal issuers also may adversely affect the value of the Fund's municipal securities. Constitutional or legislative limits on borrowing by municipal issuers may result in reduced supplies of municipal securities. Moreover, certain municipal securities are backed only by a municipal issuer's ability to levy and collect taxes.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of three years means the price of a debt security will change about 3% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment- grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.     MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.     MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below. MUNICIPAL ISSUERS RISK -- There may be economic or political changes that impact the ability of municipal issuers to repay principal and to make interest payments on municipal securities. Changes in the financial condition or credit rating of municipal issuers also may adversely affect the value of the Fund's municipal securities. Constitutional or legislative limits on borrowing by municipal issuers may result in reduced supplies of municipal securities. Moreover, certain municipal securities are backed only by a municipal issuer's ability to levy and collect taxes. STATE-SPECIFIC RISK -- The Fund is subject to the risk that the economy of the states in which it invests, and the revenues underlying state municipal bonds, may decline. Investing primarily in a single state means that the Fund is more exposed to negative political or economic factors in that state than a fund that invests more widely. INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall. The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security. Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate. Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate. Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents. CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal. Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are. High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately. MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall. Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate. Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.     MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below. EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. MID-CAPITALIZATION COMPANY RISK -- The mid-capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. CONVERTIBLE SECURITIES RISK -- The value of a convertible security is influenced by changes in interest rates (with investment value declining as interest rates increase and increase as interest rates decline) and the credit standing of the issuer. The price of a convertible security will also normally vary in some proportion to changes in the price of the underlying common stock because of the conversion or exercise feature. PREFERRED STOCK RISK -- Preferred stocks are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company's assets in the event of a liquidation are generally subordinate to the rights associated with a company's debt securities. RIGHTS AND WARRANTS RISK -- The purchase of rights or warrants involves the risk that the Fund could lose the purchase value of a right or warrant if the right to subscribe to additional shares is not executed prior to the right's or warrant's expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the subscribed security's market price such as when there is no movement in the level of the underlying security. MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY GOVERNMENT AGENCY. The principal risk factors affecting shareholders' investments in the Fund are set forth below.   ALLOCATION RISK -- The Fund will allocate its investments between various asset classes, including derivatives. These investments are based upon judgments made by the Adviser, which may not accurately predict changes in the market. As a result, the Fund could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines. INVESTMENTS IN INVESTMENT COMPANIES AND OTHER POOLED VEHICLES -- To the extent the Fund invests in other investment companies, such as exchange-traded funds ("ETFs"), closed-end funds and other mutual funds, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such other investment companies. Such risks are described below. As a shareholder of another investment company, the Fund relies on that investment company to achieve its investment objective. If the investment company fails to achieve its objective, the value of the Fund's investment could decline, which could adversely affect the Fund's performance. By investing in another investment company, Fund shareholders indirectly bear the Fund's proportionate share of the fees and expenses of the other investment company, in addition to the fees and expenses that Fund shareholders directly bear in connection with the Fund's own operations. The Fund may invest in ETFs that are not registered or regulated under the Investment Company Act of 1940, as amended (the "1940 Act"). These instruments typically hold commodities, such as gold or oil, currency or other property that is itself not a security. The Fund does not intend to invest in other investment companies unless the Adviser believes that the potential benefits of the investment justify the payment of any additional fees or expenses. Federal securities laws impose limitations on the Fund's ability to invest in other investment companies. Because closed-end funds and ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. Investments in closed-end funds and ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund. In addition, because the value of closed-end funds and ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance. INVESTMENTS IN ETNS -- An exchange-traded note ("ETN") is a debt security of an issuer that is listed and traded on U.S. stock exchanges or otherwise traded in the over-the-counter market. Similar to other debt securities, ETNs tend to have a maturity date and are backed only by the credit of the issuer. ETNs are designed to provide investors access to the returns of various market benchmarks, such as a securities index, currency or investment strategy, less fees and expenses. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market, changes in the applicable interest rates, and changes in the issuer's credit rating and economic, legal, political or geographic events that affect the referenced market. It is expected that the issuer's credit rating will be investment grade at the time of investment, however, the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect for any given time period. If a rating agency lowers the issuer's credit rating, the value of the ETN will decline and a lower credit rating reflects a greater risk that the issuer will default on its obligation. When the Fund invests in ETNs, it will bear its proportionate share of any fees and expenses associated with investment in such securities. Such fees reduce the amount of return on investment at maturity or upon redemption. There may be restrictions on the Fund's right to redeem its investment in an ETN, which are meant to be held until maturity. There are no periodic interest payments for ETNs, and principal is not protected. As is the case with ETFs, an investor could lose some of or the entire amount invested in ETNs. The Fund's decision to sell its ETN holdings may be limited by the availability of a secondary market. EQUITY RISK -- The Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. INTEREST RATE RISK -- The value of a debt security is affected by changes in interest rates. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall. The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security. Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate. CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal. DERIVATIVES RISK -- Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses. There are various factors that affect the Fund's ability to achieve its investment objective with derivatives. Successful use of a derivative depends upon the degree to which prices of the underlying assets correlate with price movements in the derivatives the Fund buys or sells. The Fund could be negatively affected if the change in market value of its securities fails to correlate perfectly with the values of the derivatives it purchased or sold. The lack of a liquid secondary market for a derivative may prevent the Fund from closing its derivative positions and could adversely impact its ability to achieve its investment objective or to realize profits or limit losses. Because derivative instruments may be purchased by the Fund for a fraction of the market value of the investments underlying such instruments, a relatively small price movement in the underlying investment may result in an immediate and substantial gain or loss to the Fund. Derivatives are often more volatile than other investments and the Fund may lose more in a derivative than it originally invested in it. Additionally, derivative instruments, particularly market access products, are subject to counterparty risk, meaning that the party that issues the derivative may experience a significant credit event and may be unwilling or unable to make timely settlement payments or otherwise honor its obligations. The Fund may purchase or sell options, which involve the payment or receipt of a premium by the investor and the corresponding right or obligation, as the case may be, to either purchase or sell the underlying security for a specific price at a certain time or during a certain period. In particular, the Fund may engage in option collars. An option collar involves the purchase of a put option on a security owned by the Fund while writing a call option on the same security. The put option leg of the collar enables the Fund to sell the instrument underlying the option at a fixed price (i.e., the strike price), thereby hedging against a decline in the market value of the underlying security. The call option leg of the collar obligates the Fund to deliver the underlying security at a higher strike price than the strike price of the put option leg. Although the Fund receives a premium for writing the call option contract, the Fund's upside potential is limited if the security's market price exceeds the call option's strike price. Therefore, an option collar provides protection from extreme downward price movement, but limits the asset's upward price movement at the call option strike price. Purchasing options involves the risk that the underlying instrument will not change price in the manner expected, so that the investor loses its premium. Selling options involves potentially greater risk because the investor is exposed to the extent of the actual price movement in the underlying security rather than only the premium payment received (which could result in a potentially unlimited loss). Over-the-counter options also involve counterparty solvency risk. LEVERAGING RISK -- The Fund may invest in ETPs designed to provide investment results that match a positive or negative multiple of the performance of an underlying index ("Enhanced ETPs"). To the extent the Fund invests in such Enhanced ETPs that achieve leveraged exposure to their underlying indexes through the use of derivative instruments, the Fund will indirectly be subject to leveraging risk. The more an Enhanced ETP invests in derivative instruments that give rise to leverage, the more this leverage will magnify any losses on those investments. Leverage will cause the value of an Enhanced ETP's shares to be more volatile than if the Enhanced ETP did not use leverage. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of an Enhanced ETP's portfolio securities or other investments. An Enhanced ETP will engage in transactions and purchase instruments that give rise to forms of leverage. Such transactions and instruments may include, among others, the use of reverse repurchase agreements and other borrowings, the investment of collateral from loans of portfolio securities, the use of when issued, delayed-delivery or forward commitment transactions or short sales. The use of leverage may also cause an Enhanced ETP to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations or to meet segregation requirements. Certain types of leveraging transactions could theoretically be subject to unlimited losses in cases where an Enhanced ETP, for any reason, is unable to close out the transaction. In addition, to the extent an Enhanced ETP borrows money, interest costs on such borrowed money may not be recovered by any appreciation of the securities purchased with the borrowed funds and could exceed the Enhanced ETP's investment income, resulting in greater losses. The value of an Enhanced ETP's shares will tend to increase or decrease more than the value of any increase or decrease in its underlying index due to the fact that the Enhanced ETP's investment strategies involve consistently applied leverage. SMALL- AND MID-CAPITALIZATION COMPANY RISK -- Small- and mid-capitalization companies may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-cap stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. REIT RISK -- REITs are pooled investment vehicles that own, and usually operate, income-producing real estate. REITs are susceptible to the risks associated with direct ownership of real estate, such as: declines in property values; increases in property taxes, operating expenses, rising interest rates or competition overbuilding; zoning changes; and losses from casualty or condemnation. REITs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in REITs will result in the layering of expenses, such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to paying Fund expenses. MLP RISK -- MLPs are limited partnerships in which the ownership units are publicly traded. MLP units are registered with the U.S. Securities and Exchange Commission (the "SEC") and are freely traded on a securities exchange or in the over-the-counter market. MLPs often own several properties or businesses (or own interests) that are related to oil and gas industries or other natural resources, but they also may finance other projects. To the extent that an MLP's interests are all in a particular industry, the MLP will be negatively impacted by economic events adversely impacting that industry. The risks of investing in a MLP are generally those involved in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded to investors in a MLP than investors in a corporation; for example, investors in MLPs may have limited voting rights or be liable under certain circumstances for amounts greater than the amount of their investment. In addition, MLPs may be subject to state taxation in certain jurisdictions which will have the effect of reducing the amount of income paid by the MLP to its investors. FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of American Depository Receipts ("ADRs"), which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies. FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries. INVERSE CORRELATION RISK -- To the extent the Fund invests in Enhanced ETPs that seek to provide investment results that match a negative multiple of the performance of an underlying index, the Fund will indirectly be subject to the risk that the performance of such Enhanced ETP will fall as the performance of that Enhanced ETP's benchmark rises -- a result that is the opposite from traditional mutual funds. MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY GOVERNMENT AGENCY. The principal risk factors affecting shareholders' investments in the Fund are set forth below. EQUITY RISK -- The Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. CONCENTRATION RISK -- Due to the Fund's concentration in securities of companies in the natural resources industries, events that affect the natural resources industries will have a greater effect on the Fund than they would on a fund that is more widely diversified among a number of unrelated industries. Such factors include warehousing and delivery constraints, changes in supply and demand dynamics, a potential lack of fungibility, weather, monetary and currency exchange processes, domestic and foreign political and economic events and policies, disease, technological developments, and changes in interest rates. In addition, certain natural resources sub-sectors are subject to greater governmental regulation than are other industries; therefore, changes in tax and other government regulations may be more likely to adversely affect the Fund. INVESTMENTS IN INVESTMENT COMPANIES AND OTHER POOLED VEHICLES -- To the extent the Fund invests in other investment companies, such as exchange-traded funds ("ETFs"), closed-end funds and other mutual funds, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such other investment companies. Such risks are described below. As a shareholder of another investment company, the Fund relies on that investment company to achieve its investment objective. If the investment company fails to achieve its objective, the value of the Fund's investment could decline, which could adversely affect the Fund's performance. By investing in another investment company, Fund shareholders indirectly bear the Fund's proportionate share of the fees and expenses of the other investment company, in addition to the fees and expenses that Fund shareholders directly bear in connection with the Fund's own operations. The Fund does not intend to invest in other investment companies unless the Adviser believes that the potential benefits of the investment justify the payment of any additional fees or expenses. Federal securities laws impose limitations on the Fund's ability to invest in other investment companies. Because closed-end funds and ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. Investments in closed-end funds and ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund. In addition, because the value of closed-end funds and ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance. INVESTMENTS IN ETNS -- An exchange-traded note ("ETN") is a debt security of an issuer that is listed and traded on U.S. stock exchanges or otherwise traded in the over-the-counter market. Similar to other debt securities, ETNs tend to have a maturity date and are backed only by the credit of the issuer. ETNs are designed to provide investors access to the returns of various market benchmarks, such as a securities index, currency or investment strategy, less fees and expenses. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market, changes in the applicable interest rates, and changes in the issuer's credit rating and economic, legal, political or geographic events that affect the referenced market. It is expected that the issuer's credit rating will be investment grade at the time of investment, however, the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect for any given time period. If a rating agency lowers the issuer's credit rating, the value of the ETN will decline and a lower credit rating reflects a greater risk that the issuer will default on its obligation. When the Fund invests in ETNs, it will bear its proportionate share of any fees and expenses associated with investment in such securities. Such fees reduce the amount of return on investment at maturity or upon redemption. There may be restrictions on the Fund's right to redeem its investment in an ETN, which are meant to be held until maturity. There are no periodic interest payments for ETNs, and principal is not protected. As is the case with ETFs, an investor could lose some of or the entire amount invested in ETNs. The Fund's decision to sell its ETN holdings may be limited by the availability of a secondary market. FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of American Depository Receipts ("ADRs"), which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies. FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries. SMALL- AND MID-CAPITALIZATION COMPANY RISK -- Small- and mid-capitalization companies may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-cap stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. MLP RISK -- MLPs are limited partnerships in which the ownership units are publicly traded. MLP units are registered with the U.S. Securities and Exchange Commission (the "SEC") and are freely traded on a securities exchange or in the over-the-counter market. MLPs often own several properties or businesses (or own interests) that are related to oil and gas industries or other natural resources, but they also may finance other projects. To the extent that an MLP's interests are all in a particular industry, the MLP will be negatively impacted by economic events adversely impacting that industry. The risks of investing in a MLP are generally those involved in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded to investors in a MLP than investors in a corporation; for example, investors in MLPs may have limited voting rights or be liable under certain circumstances for amounts greater than the amount of their investment. In addition, MLPs may be subject to state taxation in certain jurisdictions which will have the effect of reducing the amount of income paid by the MLP to its investors. COMMODITY RISK -- Exposure to the commodities markets, through a company or an ETF, may subject the Fund to greater volatility than investments in traditional securities. Commodities are subject to substantial price fluctuations over short periods of time and may be affected by unpredictable economic, political and environmental events. MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   GROWTH STYLE RISK-- The price of equity securities rises and falls in response to many factors, including the historical and prospective earnings of the issuer of the stock, the value of its assets, general economic conditions, interest rates, investor perceptions, and market liquidity. The Fund may invest in securities of companies that the Adviser believes have superior prospects for robust and sustainable growth of revenues and earnings. These may be companies with new, limited or cyclical product lines, markets or financial resources, and the management of such companies may be dependent upon one or a few key people. The stocks of such companies can therefore be subject to more abrupt or erratic market movements than stocks of larger, more established companies or the stock market in general.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks,including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security,poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   INVESTMENT STYLE RISK -- The Fund pursues a "value style" of investing. Value investing focuses on companies with stocks that appear undervalued in light of factors such as the company's earnings, book value, revenues or cash flow. If the Adviser's assessment of a company's value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds. In addition, "value stocks" can continue to be undervalued by the market for long periods of time.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.     DERIVATIVES RISKS -- Derivatives may involve risks different from, and possibly greater than, those of traditional investments. The Fund may use derivatives (such as futures, options, and swaps) to attempt to achieve its investment objective and offset certain investment risks, while at the same time maintaining liquidity. These positions may be established for hedging or non-hedging purposes. Risks associated with the use of derivatives include the following risks associated with hedging and leveraging activities:   <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">The success of a hedging strategy may depend on an ability to predict movements in the prices of individual securities, fluctuations in markets, and movements in interest rates.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">The Fund may experience losses over certain ranges in the market that exceed losses experienced by a fund that does not use derivatives.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">There may be an imperfect or no correlation between the changes in market value of the securities held by the Fund and the prices of derivatives.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">There may not be a liquid secondary market for derivatives.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Trading restrictions or limitations may be imposed by an exchange.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">Government regulations may restrict trading derivatives.</td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right"> </td><td style="width: 5pt"></td><td style="text-align: justify"> </td> </tr></table> <table cellpadding="0" cellspacing="0" style="font: 10pt Courier New, Courier, Monospace; margin-top: 0; margin-bottom: 6pt"><tr style="vertical-align: top; text-align: justify"> <td style="width: 15pt; text-align: right">o</td><td style="width: 5pt"></td><td style="text-align: justify">The other party to an agreement (e.g., options or expense swaps) may default; however, in certain circumstances, such counterparty risk may be reduced by having an organization with very good credit act as intermediary. Because options premiums paid or received by the Fund are small in relation to the market value of the investments underlying the options, buying and selling put and call options can be more speculative than investing directly in securities.</td> </tr></table>   REAL ESTATE RISK -- The Fund may invest in funds, ETFs or companies that invest in real estate. Real estate risk is the risk that real estate will underperform the market as a whole. The general performance of the real estate industry has historically been cyclical and particularly sensitive to economic downturns. Real estate can be affected by changes in real estate values and rental income, changes in interest rates, changing demographics and regional economic cycles.   REIT RISK -- Real Estate Investment Trusts ("REITs") are pooled investment vehicles that own, and usually operate, income-producing real estate. REITs are susceptible to the risks associated with direct ownership of real estate, such as: declines in property values; increases in property taxes, operating expenses, rising interest rates or competition overbuilding; zoning changes; and losses from casualty or condemnation. REITs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in REITs will result in the layering of expenses, such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to paying Fund expenses.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks,including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   ALLOCATION RISK -- The Fund will allocate its investments between various asset classes, including derivatives. These investments are based upon judgments made by the Adviser, which may not accurately predict changes in the market. As a result, the Fund could miss attractive investment opportunities by underweighting markets that subsequently experience significant returns and could lose value by overweighting markets that subsequently experience significant declines.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of American Depository Receipts ("ADRs"), which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result,changes in the value of those currencies compared to the U.S. dollar may affect(positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition,emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies.   FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration,the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.   INVESTMENTS IN INVESTMENT COMPANIES AND ETFS -- ETFs are pooled investment vehicles, such as registered investment companies and grantor trusts, whose shares are listed and traded on U.S. stock exchanges or otherwise traded in the over-the-counter market. To the extent the Fund invests in other investment companies, such as ETFs closed-end funds and other mutual funds, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such other investment companies. As a shareholder of another investment company, the Fund relies on that investment company to achieve its investment objective. If the investment company fails to achieve its objective, the value of the Fund's investment could decline, which could adversely affect the Fund's performance. By investing in another investment company, Fund shareholders indirectly bear the Fund's proportionate share of the fees and expenses of the other investment company, in addition to the fees and expenses that Fund shareholders directly bear in connection with the Fund's own operations. The Fund does not intend to invest in other investment companies unless the Adviser believes that the potential benefits of the investment justify the payment of any additional fees or expenses. Federal securities laws impose limitations on the Fund's ability to invest in other investment companies.   Because closed-end funds and ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. Investments in closed-end funds and ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund. In addition, because the value of closed-end funds and ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.     As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- The small- and mid-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks,including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security,poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition,investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   INVESTMENT STYLE RISK -- The Fund pursues a "value style" of investing. Value investing focuses on companies with stocks that appear undervalued in light of factors such as the company's earnings, book value, revenues or cash flow. If the Adviser's assessment of a company's value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds. In addition, "value stocks" can continue to be undervalued by the market for long periods of time.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.   REIT RISK - REITs are pooled investment vehicles that own, and usually operate,income-producing real estate. REITs are susceptible to the risks associated with direct ownership of real estate, such as: declines in property values; increases in property taxes, operating expenses, rising interest rates or competition overbuilding; zoning changes; and losses from casualty or condemnation. REITs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in REITs will result in the layering of expenses, such that shareholders will indirectly bear a proportionate share of the REITs' operating expenses, in addition to paying Fund expenses. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INITIAL PUBLIC OFFERINGS ("IPO") RISK -- The Fund may invest a portion of its assets in securities of companies offering shares in IPOs. IPOs may have a magnified performance impact on a fund with a small asset base. The impact of IPOs on the Fund's performance likely will decrease as the Fund's asset size increases, which could reduce the Fund's total returns. IPOs may not be consistently available to the Fund for investing. Because IPO shares frequently are volatile in price, the Fund may hold IPO shares for a very short period of time. This may increase the turnover of the Fund's portfolio and may lead to increased expenses for the Fund, such as commissions and transaction costs. By selling IPO shares, the Fund may realize taxable gains it will subsequently distribute to shareholders. In addition, the market for IPO shares can be speculative and/or inactive for extended periods of time. The limited number of shares available for trading in some IPOs may make it more difficult for the Fund to buy or sell significant amounts of shares without an unfavorable impact on prevailing prices. Holders of IPO shares can be affected by substantial dilution in the value of their shares, by sales of additional shares and by concentration of control in existing management and principal shareholders.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   SMALL-CAPITALIZATION COMPANY RISK -- The small-capitalization companies in which the Fund may invest may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small-sized companies may pose additional risks, including liquidity risk,because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over the counter or listed on an exchange.   ACTIVE TRADING RISK -- The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. Active trading may cause the Fund to incur increased costs, which can lower the actual return of the Fund. Active trading may also increase short-term gains and losses, which affect taxes that must be paid.   LIQUIDITY RISK -- Particular investments may be difficult to purchase or sell. The Fund may make investments that become less liquid in response to market developments or adverse investor perceptions, which may reduce the returns of the Fund because it may be unable to sell the illiquid securities at an advantageous time or price.    MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security,poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in the irrespective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   When the Fund invests in foreign fixed income securities, it will be subject to risks not typically associated with domestic securities. Foreign investments,especially investments in emerging markets, can be riskier and more volatile than investments in the United States. Adverse political and economic developments or changes in the value of foreign currency can make it more difficult for the Fund to sell its securities and could reduce the value of your shares. Differences in tax and accounting standards and difficulties in obtaining information about foreign companies can negatively affect investment decisions. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed.   EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition,emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity;significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore,foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers,expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies.   FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.   HEDGING RISK. The Fund may use forward currency contracts for hedging purposes. Hedging through the use of these instruments does not eliminate fluctuations in the underlying prices of the securities that the Fund owns or intends to purchase or sell. While entering into these instruments tends to reduce the risk of loss due to a decline in the value of the hedged asset, such instruments also limit any potential gain that may result from the increase in value of the asset. To the extent that the Fund engages in hedging strategies,there can be no assurance that such strategy will be effective or that there will be a hedge in place at any given time.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds,may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate. Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.   INVESTMENT STYLE RISK -- The Fund pursues a "value style" of investing. Value investing focuses on companies with stocks that appear undervalued in light of factors such as the company's earnings, book value, revenues or cash flow. If Thornburg's assessment of a company's value or prospects for exceeding earnings expectations or market conditions is wrong, the Fund could suffer losses or produce poor performance relative to other funds. In addition, "value stocks"can continue to be undervalued by the market for long periods of time.    MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   MUNICIPAL ISSUERS RISK -- There may be economic or political changes that impact the ability of municipal issuers to repay principal and to make interest payments on municipal securities. Changes in the financial condition or credit rating of municipal issuers also may adversely affect the value of the Fund's municipal securities. Constitutional or legislative limits on borrowing by municipal issuers may result in reduced supplies of municipal securities. Moreover, certain municipal securities are backed only by a municipal issuer's ability to levy and collect taxes.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of three years means the price of a debt security will change about 3% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.     MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.     MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   MUNICIPAL ISSUERS RISK -- There may be economic or political changes that impact the ability of municipal issuers to repay principal and to make interest payments on municipal securities. Changes in the financial condition or credit rating of municipal issuers also may adversely affect the value of the Fund's municipal securities. Constitutional or legislative limits on borrowing by municipal issuers may result in reduced supplies of municipal securities. Moreover, certain municipal securities are backed only by a municipal issuer's ability to levy and collect taxes.   STATE-SPECIFIC RISK -- The Fund is subject to the risk that the economy of the states in which it invests, and the revenues underlying state municipal bonds, may decline. Investing primarily in a single state means that the Fund is more exposed to negative political or economic factors in that state than a fund that invests more widely.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.    Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   MUNICIPAL ISSUERS RISK -- There may be economic or political changes that impact the ability of municipal issuers to repay principal and to make interest payments on municipal securities. Changes in the financial condition or credit rating of municipal issuers also may adversely affect the value of the Fund's municipal securities. Constitutional or legislative limits on borrowing by municipal issuers may result in reduced supplies of municipal securities. Moreover, certain municipal securities are backed only by a municipal issuer's ability to levy and collect taxes.   STATE-SPECIFIC RISK -- The Fund is subject to the risk that the economy of the states in which it invests, and the revenues underlying state municipal bonds, may decline. Investing primarily in a single state means that the Fund is more exposed to negative political or economic factors in that state than a fund that invests more widely.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of three years means the price of a debt security will change about 3% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall. Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, duration of five years means the price of a debt security will change about 5% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate. Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal.   Although the Fund's U.S. government securities are considered to be among the safest investments, they are not guaranteed against price movements due to changing interest rates. Obligations issued by some U.S. government agencies are backed by the U.S. Treasury, while others are backed solely by the ability of the agency to borrow from the U.S. Treasury or by the government sponsored agency's own resources. As a result, investments in securities issued by government sponsored agencies that are not backed by the U.S. Treasury are subject to higher credit risk than those that are.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- Since it purchases equity securities, the Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund. MID-CAPITALIZATION COMPANY RISK -- The mid-capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, mid-capitalization stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange. CONVERTIBLE SECURITIES RISK -- The value of a convertible security is influenced by changes in interest rates (with investment value declining as interest rates increase and increase as interest rates decline) and the credit standing of the issuer. The price of a convertible security will also normally vary in some proportion to changes in the price of the underlying common stock because of the conversion or exercise feature. PREFERRED STOCK RISK -- Preferred stocks are sensitive to interest rate changes, and are also subject to equity risk, which is the risk that stock prices will fall over short or extended periods of time. The rights of preferred stocks on the distribution of a company's assets in the event of a liquidation are generally subordinate to the rights associated with a company's debt securities. RIGHTS AND WARRANTS RISK -- The purchase of rights or warrants involves the risk that the Fund could lose the purchase value of a right or warrant if the right to subscribe to additional shares is not executed prior to the right's or warrant's expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the subscribed security's market price such as when there is no movement in the level of the underlying security. MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY GOVERNMENT AGENCY. The principal risk factors affecting shareholders' investments in the Fund are set forth below.   EQUITY RISK -- The Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   CONCENTRATION RISK -- Due to the Fund's concentration in securities of companies in the natural resources industries, events that affect the natural resources industries will have a greater effect on the Fund than they would on a fund that is more widely diversified among a number of unrelated industries. Such factors include warehousing and delivery constraints, changes in supply and demand dynamics, a potential lack of fungibility, weather, monetary and currency exchange processes, domestic and foreign political and economic events and policies, disease, technological developments, and changes in interest rates. In addition, certain natural resources sub-sectors are subject to greater governmental regulation than are other industries; therefore, changes in tax and other government regulations may be more likely to adversely affect the Fund.   INVESTMENTS IN INVESTMENT COMPANIES AND OTHER POOLED VEHICLES -- To the extent the Fund invests in other investment companies, such as exchange-traded funds ("ETFs"), closed-end funds and other mutual funds, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities held by such other investment companies. Such risks are described below. As a shareholder of another investment company, the Fund relies on that investment company to achieve its investment objective. If the investment company fails to achieve its objective, the value of the Fund's investment could decline, which could adversely affect the Fund's performance. By investing in another investment company, Fund shareholders indirectly bear the Fund's proportionate share of the fees and expenses of the other investment company, in addition to the fees and expenses that Fund shareholders directly bear in connection with the Fund's own operations. The Fund does not intend to invest in other investment companies unless the Adviser believes that the potential benefits of the investment justify the payment of any additional fees or expenses. Federal securities laws impose limitations on the Fund's ability to invest in other investment companies.   Because closed-end funds and ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. Investments in closed-end funds and ETFs are also subject to brokerage and other trading costs, which could result in greater expenses to the Fund. In addition, because the value of closed-end funds and ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance.   INVESTMENTS IN ETNS -- An exchange-traded note ("ETN") is a debt security of an issuer that is listed and traded on U.S. stock exchanges or otherwise traded in the over-the-counter market. Similar to other debt securities, ETNs tend to have a maturity date and are backed only by the credit of the issuer. ETNs are designed to provide investors access to the returns of various market benchmarks, such as a securities index, currency or investment strategy, less fees and expenses. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market, changes in the applicable interest rates, and changes in the issuer's credit rating and economic, legal, political or geographic events that affect the referenced market. It is expected that the issuer's credit rating will be investment grade at the time of investment, however, the credit rating may be revised or withdrawn at any time and there is no assurance that a credit rating will remain in effect for any given time period. If a rating agency lowers the issuer's credit rating, the value of the ETN will decline and a lower credit rating reflects a greater risk that the issuer will default on its obligation. When the Fund invests in ETNs, it will bear its proportionate share of any fees and expenses associated with investment in such securities. Such fees reduce the amount of return on investment at maturity or upon redemption. There may be restrictions on the Fund's right to redeem its investment in an ETN, which are meant to be held until maturity. There are no periodic interest payments for ETNs, and principal is not protected. As is the case with ETFs, an investor could lose some of or the entire amount invested in ETNs. The Fund's decision to sell its ETN holdings may be limited by the availability of a secondary market.   FOREIGN COMPANY RISK -- Investing in foreign companies, whether through investments made in foreign markets or made through the purchase of American Depository Receipts ("ADRs"), which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   EMERGING MARKET SECURITIES RISK -- Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in non-U.S. securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, emerging markets securities may be subject to smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant price volatility; restrictions on foreign investment; and possible restrictions on repatriation of investment income and capital. Furthermore, foreign investors may be required to register the proceeds of sales, and future economic or political crises could lead to price controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization or creation of government monopolies.   FOREIGN CURRENCY RISK -- Because non-U.S. securities are usually denominated in currencies other than the dollar, the value of the Fund's portfolio may be influenced by currency exchange rates and exchange control regulations. The currencies of emerging market countries may experience significant declines against the U.S. dollar, and devaluation may occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had, and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.   SMALL- AND MID-CAPITALIZATION COMPANY RISK -- Small- and mid-capitalization companies may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, these small- and mid-sized companies may pose additional risks, including liquidity risk, because these companies tend to have limited product lines, markets and financial resources, and may depend upon a relatively small management group. Therefore, small- and mid-cap stocks may be more volatile than those of larger companies. These securities may be traded over-the-counter or listed on an exchange.   MLP RISK -- MLPs are limited partnerships in which the ownership units are publicly traded. MLP units are registered with the U.S. Securities and Exchange Commission (the "SEC") and are freely traded on a securities exchange or in the over-the-counter market. MLPs often own several properties or businesses (or own interests) that are related to oil and gas industries or other natural resources, but they also may finance other projects. To the extent that an MLP's interests are all in a particular industry, the MLP will be negatively impacted by economic events adversely impacting that industry. The risks of investing in a MLP are generally those involved in investing in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive than state law governing corporations. Accordingly, there may be fewer protections afforded to investors in a MLP than investors in a corporation; for example, investors in MLPs may have limited voting rights or be liable under certain circumstances for amounts greater than the amount of their investment. In addition, MLPs may be subject to state taxation in certain jurisdictions which will have the effect of reducing the amount of income paid by the MLP to its investors.   COMMODITY RISK -- Exposure to the commodities markets, through a company or an ETF, may subject the Fund to greater volatility than investments in traditional securities. Commodities are subject to substantial price fluctuations over short periods of time and may be affected by unpredictable economic, political and environmental events.   MANAGEMENT RISK -- The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio managers in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.     INVESTMENTS IN ETFS - To the extent that the Fund invests in ETFs, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities comprising the index on which the ETF is based and the value of the Fund's investment will fluctuate in response to the performance of the underlying index. ETFs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in ETFs will result in the layering of expenses such that shareholders will indirectly bear a proportionate share of the ETFs' operating expenses, in addition to paying Fund expenses. Because ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. In addition, because the value of ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance.     EQUITY RISK - The Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   DERIVATIVES RISK - Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses. There are various factors that affect the Fund's ability to achieve its investment objective with derivatives. Successful use of a derivative depends upon the degree to which prices of the underlying assets correlate with price movements in the derivatives the Fund buys or sells. The Fund could be negatively affected if the change in market value of its securities fails to correlate perfectly with the values of the derivatives it purchased or sold.   The lack of a liquid secondary market for a derivative may prevent the Fund from closing its derivative positions and could adversely impact its ability to achieve its investment objective or to realize profits or limit losses.   Because derivative instruments may be purchased by the Fund for a fraction of the market value of the investments underlying such instruments, a relatively small price movement in the underlying investment may result in an immediate and substantial gain or loss to the Fund. Derivatives are often more volatile than other investments and the Fund may lose more in a derivative than it originally invested in it.   Additionally, derivative instruments, particularly market access products, are subject to counterparty risk, meaning that the party that issues the derivative may experience a significant credit event and may be unwilling or unable to make timely settlement payments or otherwise honor its obligations.     The Fund may purchase or sell options, which involve the payment or receipt of a premium by the investor and the corresponding right or obligation, as the case may be, to either purchase or sell the underlying security for a specific price at a certain time or during a certain period. Purchasing options involves the risk that the underlying instrument will not change price in the manner expected, so that the investor loses its premium. For instance, the Fund would ordinarily realize a gain if, during the option period, the value of the underlying securities decreased below the exercise price sufficiently to cover the premium and transaction costs. However, if the price of the underlying instrument does not fall enough to offset the cost of purchasing the option, a put buyer would lose the premium and related transaction costs. Selling options involves potentially greater risk because the investor is exposed to the extent of the actual price movement in the underlying security rather than only the premium payment received (which could result in a potentially unlimited loss). Over-the-counter options also involve counterparty solvency risk.   SMALL-CAP AND MID-CAP RISK - The smaller and medium capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, small and medium capitalization companies may have limited product lines, markets and financial resources and may depend upon a relatively small management group. Therefore, small and medium capitalization stocks may be more volatile than those of larger companies. Small and medium capitalization stocks may be traded over-the-counter or listed on an exchange.   MANAGEMENT RISK - The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio manager in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.   NEW FUND RISK - Because the Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of three means the price of a debt security will change about 3% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal. For a Fund of this type, credit risk is an important contributing factor over time to the performance of the Fund.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.     ZERO COUPON, DEFERRED INTEREST AND PAY-IN-KIND BOND RISK - These bonds are issued at a discount from their face value because interest payments are typically postponed until maturity. Pay-in-kind securities are securities that have interest payable by the delivery of additional securities. The market prices of these securities generally are more volatile than the market prices of interest-bearing securities and are likely to respond to a greater degree to changes in interest rates than interest-bearing securities having similar maturities and credit quality.   DERIVATIVES RISK - Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses. There are various factors that affect the Fund's ability to achieve its investment objective with derivatives. Successful use of a derivative depends upon the degree to which prices of the underlying assets correlate with price movements in the derivatives the Fund buys or sells. The Fund could be negatively affected if the change in market value of its securities fails to correlate perfectly with the values of the derivatives it purchased or sold. For instance, the Fund would ordinarily realize a gain if, during the option period, the value of the underlying securities decreased below the exercise price sufficiently to cover the premium and transaction costs. However, if the price of the underlying instrument does not fall enough to offset the cost of purchasing the option, a put buyer would lose the premium and related transaction costs.     The lack of a liquid secondary market for a derivative may prevent the Fund from closing its derivative positions and could adversely impact its ability to achieve its investment objective or to realize profits or limit losses.   Because derivative instruments may be purchased by the Fund for a fraction of the market value of the investments underlying such instruments, a relatively small price movement in the underlying investment may result in an immediate and substantial gain or loss to the Fund. Derivatives are often more volatile than other investments and the Fund may lose more in a derivative than it originally invested in it.   Additionally, derivative instruments, particularly market access products, are subject to counterparty risk, meaning that the party that issues the derivative may experience a significant credit event and may be unwilling or unable to make timely settlement payments or otherwise honor its obligations.   STRUCTURED NOTE RISK - The Fund may invest in fixed income linked structured notes. Structured notes are typically privately negotiated transactions between two or more parties. The fees associated with a structured note may lead to increased tracking error. The Fund also bears the risk that the issuer of the structured note will default. The Fund bears the risk of loss of its principal investment and periodic payments expected to be received for the duration of its investment. In addition, a liquid market may not exist for the structured notes. The lack of a liquid market may make it difficult to sell the structured notes at an acceptable price or to accurately value them.   MARKET RISK - The risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.   ISSUER RISK - The risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services.   LEVERAGE RISK - The use of leverage can amplify the effects of market volatility on the Fund's share price and may also cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations.   LIQUIDITY RISK - The risk that certain securities may be difficult or impossible to sell at the time and the price that the Fund would like. The Fund may have to lower the price, sell other securities instead or forego an investment opportunity, any of which could have a negative effect on Fund management or performance.     ASSET-BACKED AND MORTGAGE-BACKED SECURITIES RISK - Payment of principal and interest on asset-backed securities is dependent largely on the cash flows generated by the assets backing the securities, and asset-backed securities may not have the benefit of any security interest in the related assets, which raises the possibility that recoveries on repossessed collateral may not be available to support payments on these securities. Asset-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations. To lessen the effect of failures by obligors on underlying assets to make payments, the entity administering the pool of assets may agree to ensure the receipt of payments on the underlying pool occurs in a timely fashion ("liquidity protection"). In addition, asset-backed securities may obtain insurance, such as guarantees, policies or letters of credit obtained by the issuer or sponsor from third parties, for some or all of the assets in the pool ("credit support"). Delinquency or loss more than that anticipated or failure of the credit support could adversely affect the return on an investment in such a security.   Mortgage-backed securities are affected by, among other things, interest rate changes and the possibility of prepayment of the underlying mortgage loans. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations. In addition, a variety of economic, geographic, social and other factors, such as the sale of the underlying property, refinancing or foreclosure, can cause investors to repay the loans underlying a mortgage-backed security sooner than expected. If the prepayment rates increase, the Fund may have to reinvest its principal at a rate of interest that is lower than the rate on existing mortgage-backed securities.     PREPAYMENT AND EXTENSION RISK - Prepayment and extension risk is the risk that a loan, bond or other security might be called or otherwise converted, prepaid or redeemed before maturity. This risk is primarily associated with corporate-backed, mortgage-backed and asset-backed securities. If a security is converted, prepaid or redeemed before maturity, particularly during a time of declining interest rates or spreads, the Fund may not be able to invest the proceeds in securities providing as high a level of income, resulting in a reduced yield to the Fund. Conversely, as interest rates rise or spreads widen, the likelihood of prepayment decreases. The Fund may be unable to capitalize on securities with higher interest rates or wider spreads because the Fund's investments are locked in at a lower rate for a longer period of time.   MANAGEMENT RISK - The risk that the investment techniques and risk analyses applied by the adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the adviser and the individual portfolio manager in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.   FOREIGN COMPANY RISK - Investing in foreign companies, whether through investments made in foreign markets or made through purchasing ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.     NEW FUND RISK - Because the Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT INSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.     INVESTMENTS IN ETFS - To the extent that the Fund invests in ETFs, the Fund will be subject to substantially the same risks as those associated with the direct ownership of the securities comprising the index on which the ETF is based and the value of the Fund's investment will fluctuate in response to the performance of the underlying index. ETFs typically incur fees that are separate from those of the Fund. Accordingly, the Fund's investments in ETFs will result in the layering of expenses such that shareholders will indirectly bear a proportionate share of the ETFs' operating expenses, in addition to paying Fund expenses. Because ETFs are listed on national stock exchanges and are traded like stocks listed on an exchange, their shares potentially may trade at a discount or premium. In addition, because the value of ETF shares depends on the demand in the market, the Adviser may not be able to liquidate the Fund's holdings at the most optimal time, which could adversely affect Fund performance.     EQUITY RISK - The Fund is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility, which is the principal risk of investing in the Fund.   DERIVATIVES RISK - Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses. There are various factors that affect the Fund's ability to achieve its investment objective with derivatives. Successful use of a derivative depends upon the degree to which prices of the underlying assets correlate with price movements in the derivatives the Fund buys or sells. The Fund could be negatively affected if the change in market value of its securities fails to correlate perfectly with the values of the derivatives it purchased or sold.   The lack of a liquid secondary market for a derivative may prevent the Fund from closing its derivative positions and could adversely impact its ability to achieve its investment objective or to realize profits or limit losses.   Because derivative instruments may be purchased by the Fund for a fraction of the market value of the investments underlying such instruments, a relatively small price movement in the underlying investment may result in an immediate and substantial gain or loss to the Fund. Derivatives are often more volatile than other investments and the Fund may lose more in a derivative than it originally invested in it.   Additionally, derivative instruments, particularly market access products, are subject to counterparty risk, meaning that the party that issues the derivative may experience a significant credit event and may be unwilling or unable to make timely settlement payments or otherwise honor its obligations.   The Fund may purchase or sell options, which involve the payment or receipt of a premium by the investor and the corresponding right or obligation, as the case may be, to either purchase or sell the underlying security for a specific price at a certain time or during a certain period. Purchasing options involves the risk that the underlying instrument will not change price in the manner expected, so that the investor loses its premium. For instance, the Fund would ordinarily realize a gain if, during the option period, the value of the underlying securities decreased below the exercise price sufficiently to cover the premium and transaction costs. However, if the price of the underlying instrument does not fall enough to offset the cost of purchasing the option, a put buyer would lose the premium and related transaction costs. Selling options involves potentially greater risk because the investor is exposed to the extent of the actual price movement in the underlying security rather than only the premium payment received (which could result in a potentially unlimited loss). Over-the-counter options also involve counterparty solvency risk.   SMALL-CAP AND MID-CAP RISK - The smaller and medium capitalization companies in which the Fund invests may be more vulnerable to adverse business or economic events than larger, more established companies. In particular, small and medium capitalization companies may have limited product lines, markets and financial resources and may depend upon a relatively small management group. Therefore, small and medium capitalization stocks may be more volatile than those of larger companies. Small and medium capitalization stocks may be traded over-the-counter or listed on an exchange.   MANAGEMENT RISK - The risk that the investment techniques and risk analyses applied by the Adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the Adviser and the individual portfolio manager in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.   NEW FUND RISK - Because the Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation. As with all mutual funds, a shareholder is subject to the risk that his or her investment could lose money. A FUND SHARE IS NOT A BANK DEPOSIT AND IT IS NOT NSURED OR GUARANTEED BY THE FDIC, OR ANY GOVERNMENT AGENCY. The principal risks affecting shareholders' investments in the Fund are set forth below.   INTEREST RATE RISK - As with most funds that invest in debt securities, changes in interest rates are one of the most important factors that could affect the value of your investment. Rising interest rates tend to cause the prices of debt securities (especially those with longer maturities) and the Fund's share price to fall.   The concept of duration is useful in assessing the sensitivity of a fixed income fund to interest rate movements, which are usually the main source of risk for most fixed-income funds. Duration measures price volatility by estimating the change in price of a debt security for a 1% change in its yield. For example, a duration of three means the price of a debt security will change about 3% for every 1% change in its yield. Thus, the higher duration, the more volatile the security.   Debt securities have a stated maturity date when the issuer must repay the principal amount of the bond. Some debt securities, known as callable bonds, may repay the principal earlier than the stated maturity date. Debt securities are most likely to be called when interest rates are falling because the issuer can refinance at a lower rate.   Rising interest rates may also cause investors to pay off mortgage-backed and asset-backed securities later than anticipated, forcing the Fund to keep its money invested at lower rates. Falling interest rates, however, generally cause investors to pay off mortgage-backed and asset-backed securities earlier than expected, forcing the Fund to reinvest the money at a lower interest rate.   Mutual funds that invest in debt securities have no real maturity. Instead, they calculate their weighted average maturity. This number is an average of the effective or anticipated maturity of each debt security held by the mutual fund, with the maturity of each security weighted by the percentage of its assets of the mutual fund it represents.   CREDIT RISK - The credit rating or financial condition of an issuer may affect the value of a debt security. Generally, the lower the quality rating of a security, the greater the risk that the issuer will fail to pay interest fully and return principal in a timely manner. If an issuer defaults or becomes unable to honor its financial obligations, the security may lose some or all of its value. The issuer of an investment-grade security is more likely to pay interest and repay principal than an issuer of a lower rated bond. Adverse economic conditions or changing circumstances, however, may weaken the capacity of the issuer to pay interest and repay principal. For a Fund of this type, credit risk is an important contributing factor over time to the performance of the Fund.   High yield, or "junk," bonds are highly speculative securities that are usually issued by smaller less credit worthy and/or highly leveraged (indebted) companies. Compared with investment-grade bonds, high yield bonds carry a greater degree of risk and are less likely to make payments of interest and principal. Market developments and the financial and business conditions of the corporation issuing these securities influences their price and liquidity more than changes in interest rates, when compared to investment-grade debt securities. Insufficient liquidity in the junk bond market may make it more difficult to dispose of junk bonds and may cause the Fund to experience sudden and substantial price declines. A lack of reliable, objective data or market quotations may make it more difficult to value junk bonds accurately.     ZERO COUPON, DEFERRED INTEREST AND PAY-IN-KIND BOND RISK - These bonds are issued at a discount from their face value because interest payments are typically postponed until maturity. Pay-in-kind securities are securities that have interest payable by the delivery of additional securities. The market prices of these securities generally are more volatile than the market prices of interest-bearing securities and are likely to respond to a greater degree to changes in interest rates than interest-bearing securities having similar maturities and credit quality.   DERIVATIVES RISK - Derivatives are often more volatile than other investments and may magnify the Fund's gains or losses. There are various factors that affect the Fund's ability to achieve its investment objective with derivatives. Successful use of a derivative depends upon the degree to which prices of the underlying assets correlate with price movements in the derivatives the Fund buys or sells. The Fund could be negatively affected if the change in market value of its securities fails to correlate perfectly with the values of the derivatives it purchased or sold. For instance, the Fund would ordinarily realize a gain if, during the option period, the value of the underlying securities decreased below the exercise price sufficiently to cover the premium and transaction costs. However, if the price of the underlying instrument does not fall enough to offset the cost of purchasing the option, a put buyer would lose the premium and related transaction costs.   The lack of a liquid secondary market for a derivative may prevent the Fund from closing its derivative positions and could adversely impact its ability to achieve its investment objective or to realize profits or limit losses.   Because derivative instruments may be purchased by the Fund for a fraction of the market value of the investments underlying such instruments, a relatively small price movement in the underlying investment may result in an immediate and substantial gain or loss to the Fund. Derivatives are often more volatile than other investments and the Fund may lose more in a derivative than it originally invested in it.   Additionally, derivative instruments, particularly market access products, are subject to counterparty risk, meaning that the party that issues the derivative may experience a significant credit event and may be unwilling or unable to make timely settlement payments or otherwise honor its obligations.   STRUCTURED NOTE RISK - The Fund may invest in fixed income linked structured notes. Structured notes are typically privately negotiated transactions between two or more parties. The fees associated with a structured note may lead to increased tracking error. The Fund also bears the risk that the issuer of the structured note will default. The Fund bears the risk of loss of its principal investment and periodic payments expected to be received for the duration of its investment. In addition, a liquid market may not exist for the structured notes. The lack of a liquid market may make it difficult to sell the structured notes at an acceptable price or to accurately value them.   MARKET RISK - The risk that the value of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably, due to factors affecting securities markets generally or particular industries.   ISSUER RISK - The risk that the value of a security may decline for a reason directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer's goods or services.   LEVERAGE RISK - The use of leverage can amplify the effects of market volatility on the Fund's share price and may also cause the Fund to liquidate portfolio positions when it would not be advantageous to do so in order to satisfy its obligations.   LIQUIDITY RISK - The risk that certain securities may be difficult or impossible to sell at the time and the price that the Fund would like. The Fund may have to lower the price, sell other securities instead or forego an investment opportunity, any of which could have a negative effect on Fund management or performance.     ASSET-BACKED AND MORTGAGE-BACKED SECURITIES RISK - Payment of principal and interest on asset-backed securities is dependent largely on the cash flows generated by the assets backing the securities, and asset-backed securities may not have the benefit of any security interest in the related assets, which raises the possibility that recoveries on repossessed collateral may not be available to support payments on these securities. Asset-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations. To lessen the effect of failures by obligors on underlying assets to make payments, the entity administering the pool of assets may agree to ensure the receipt of payments on the underlying pool occurs in a timely fashion ("liquidity protection"). In addition, asset-backed securities may obtain insurance, such as guarantees, policies or letters of credit obtained by the issuer or sponsor from third parties, for some or all of the assets in the pool ("credit support"). Delinquency or loss more than that anticipated or failure of the credit support could adversely affect the return on an investment in such a security.   Mortgage-backed securities are affected by, among other things, interest rate changes and the possibility of prepayment of the underlying mortgage loans. Mortgage-backed securities are also subject to the risk that underlying borrowers will be unable to meet their obligations. In addition, a variety of economic, geographic, social and other factors, such as the sale of the underlying property, refinancing or foreclosure, can cause investors to repay the loans underlying a mortgage-backed security sooner than expected. If the prepayment rates increase, the Fund may have to reinvest its principal at a rate of interest that is lower than the rate on existing mortgage-backed securities.     PREPAYMENT AND EXTENSION RISK - Prepayment and extension risk is the risk that a loan, bond or other security might be called or otherwise converted, prepaid or redeemed before maturity. This risk is primarily associated with corporate-backed, mortgage-backed and asset-backed securities. If a security is converted, prepaid or redeemed before maturity, particularly during a time of declining interest rates or spreads, the Fund may not be able to invest the proceeds in securities providing as high a level of income, resulting in a reduced yield to the Fund. Conversely, as interest rates rise or spreads widen, the likelihood of prepayment decreases. The Fund may be unable to capitalize on securities with higher interest rates or wider spreads because the Fund's investments are locked in at a lower rate for a longer period of time.   MANAGEMENT RISK - The risk that the investment techniques and risk analyses applied by the adviser will not produce the desired results and that legislative, regulatory, or tax developments may affect the investment techniques available to the adviser and the individual portfolio manager in connection with managing the Fund. There is no guarantee that the investment objective of the Fund will be achieved.   FOREIGN COMPANY RISK - Investing in foreign companies, whether through investments made in foreign markets or made through purchasing ADRs, which are traded on U.S. exchanges and represent an ownership in a foreign security, poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These risks will not necessarily affect the U.S. economy or similar issuers located in the United States. In addition, investments in foreign companies are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect (positively or negatively) the value of the Fund's investments. These currency movements may occur separately from, and in response to, events that do not otherwise affect the value of the security in the issuer's home country. While ADRs provide an alternative to directly purchasing the underlying foreign securities in their respective national markets and currencies, investments in ADRs continue to be subject to many of the risks associated with investing directly in foreign securities.   NEW FUND RISK - Because the Fund is new, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, may not employ a successful investment strategy, or may fail to attract sufficient assets under management to realize economies of scale, any of which could result in the Fund being liquidated at any time without shareholder approval and at a time that may not be favorable for all shareholders. Such liquidation could have negative tax consequences for shareholders and will cause shareholders to incur expenses of liquidation. PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION PERFORMANCE INFORMATION The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.   Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.   Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.   Institutional Class Shares first became available on June 30, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to June 30, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is July 31, 2006 ("Performance Start Date").   The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.   Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank and sub-advised by KCM (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is July 31, 2002 ("Performance Start Date").   The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to April 25, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.   Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").     The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Prior to February 1, 2010, the Fund employed a different investment strategy. Prior to June 29, 2010, the Fund was primarily managed by a different sub-adviser and prior to September 4, 2012 a portion of the Fund was managed by another sub-adviser. Therefore, the past performance shown below may have differed had the Fund's current investment strategy been in effect and had the current sub-adviser been primarily managing the Fund. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.     Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank and sub-advised by Thornburg and INVESCO Global Asset Management N.A. (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.     Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").     The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The performance information provided includes the returns of Institutional Class Shares for periods prior to June 30, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares.   Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST.  The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance. The performance information provided includes the returns of Institutional Class Shares for periods prior to August 28, 2008. Institutional Class Shares of the Fund are offered in a separate prospectus. Institutional Class Shares would have substantially similar performance as Class A Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares. Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date"). The bar chart figures do not include sales charges that may have been paid when investors bought and sold Class A Shares of the Fund. If sales charges were included, the returns would be lower. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance. Class A Shares of the Fund are not available for purchase and therefore do not have a full calendar year of performance. Consequently, the bar chart shows the performance of the Fund's Institutional Class Shares from year to year and the performance table compares the average annual total returns of the Fund's Institutional Class Shares to those of a broad measure of market performance. The Fund's Institutional Class Shares are offered in a separate prospectus. Class A Shares of the Fund would have substantially similar performance as Institutional Class Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of the Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares. Institutional Class Shares first became available on April 25, 2008, when the Fund succeeded to the assets and operations of a common trust fund that was managed by Frost Bank and sub-advised by KCM (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is November 30, 2006 ("Performance Start Date"). Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 year and since inception compare with those of a broad measure of market performance. Class A Shares of the Fund do not have a full calendar year of performance. Consequently, the bar chart shows the performance of the Fund's Institutional Class Shares from year to year and the performance table compares the average annual total returns of the Fund's Institutional Class Shares to those of a broad measure of market performance. The Fund's Institutional Class Shares are offered in a separate prospectus. Class A Shares of the Fund would have substantially similar performance as Institutional Class Shares because the shares are invested in the same portfolio of securities and the annual returns would differ only to the extent that the expenses of the Class A Shares are higher than the expenses of the Institutional Class Shares and, therefore, returns for the Class A Shares would be lower than those of the Institutional Class Shares. Institutional Class Shares performance presented has been adjusted to reflect the Distribution (12b-1) fees and, for the performance table, the Maximum Sales Charge (Load), applicable to Class A Shares. Institutional Class Shares first became available on April 25, 2008. Prior to February 13, 2012, the Fund employed a different investment strategy. Therefore, the past performance shown below may have differed had the Fund's current investment strategy been in effect. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The Fund commenced operations on January 7, 2011 and therefore does not have performance history for a full calendar year. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance. The Fund commenced operations on September 27, 2011 and therefore does not have performance history for a full calendar year. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.     The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").     Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.comor by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to June 30, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is July 31, 2006 ("Performance Start Date").   Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.comor by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank and sub-advised by KCM (the"Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is July 31, 2002 ("Performance Start Date").   Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.    The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund").The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   Prior to February 1, 2010, the Fund employed a different investment strategy. Prior to June 29, 2010, the Fund was primarily managed by a different sub-adviser and prior to September 4, 2012 a portion of the Fund was managed by another sub-adviser. Therefore, the past performance shown below may have differed had the Fund's current investment strategy been in effect and had the current sub-adviser been primarily managing the Fund. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank and sub-advised by Thornburg and INVESCO Global Asset Management N.A. (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date"). Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.comor by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").     Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.     The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling  1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is May 31, 2002 ("Performance Start Date").   Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.     The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower.     Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 and 5 years and since inception compare with those of a broad measure of market performance.   The Fund commenced operations after succeeding to the assets and operations of a common trust fund that was managed by Frost Bank and sub-advised by KCM (the "Predecessor Fund"). The performance information provided includes the returns of the Predecessor Fund for periods prior to April 25, 2008 and has been adjusted to reflect expenses for Institutional Class Shares of the Fund. Because the Predecessor Fund was not a registered mutual fund, it was not subject to the same investment and tax restrictions as the Fund; if it had been, the Predecessor Fund's performance may have been lower. Although the Predecessor Fund commenced operations prior to the periods shown, the earliest date for which its performance can be calculated applying the relevant performance standards is November 30, 2006 ("Performance Start Date").   Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The bar chart and the performance table below illustrate the risks and volatility of an investment in the Fund by showing changes in the Fund's performance from year to year and by showing how the Fund's average annual total returns for 1 year and since inception compare with those of a broad measure of market performance. Of course, the Fund's past performance (before and after taxes) does not necessarily indicate how the Fund will perform in the future. Updated performance information is available on the Fund's website at www.frostbank.com or by calling 1-877-71-FROST. The Fund commenced operations on September 27, 2011 and therefore does not have performance history for a full calendar year. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance. The Fund is new, and therefore has no performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance.   The Fund is new, and therefore has no performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance. The Fund is new, and therefore has no performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance. The Fund is new, and therefore has no performance history. Once the Fund has completed a full calendar year of operations, a bar chart and table will be included that will provide some indication of the risks of investing in the Fund by showing the variability of the Fund's return based on net assets and comparing the Fund's performance to a broad measure of market performance. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">15.48%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(20.79)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 13.99%. <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">BEST QUARTER</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">WORST QUARTER</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">19.06%</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(16.85)%</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(06/30/2009)</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 6.60%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">13.22%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(11.48)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>       The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 10.34%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="padding-left: 10pt; text-indent: -10pt; width: 15pc">18.59%</td> <td style="padding-left: 10pt; text-indent: -10pt">(20.35)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 9.41%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">19.78%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(25.80)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(12/31/2011)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 6.55%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">22.80%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(22.20)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(09/30/2011)</td></tr> </table>   The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 9.82%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">4.46%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(1.94)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(06/30/2004)</td></tr> </table>       The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 3.63%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">7.08%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(3.53)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(06/30/2004)</td></tr> </table>       The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 8.28%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">4.23%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(2.97)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2010)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Class A Shares from 1/1/12 to 9/30/12 was 3.90%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">4.44%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">1.35%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2010)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2010)</td></tr> </table>   The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 2.85%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">18.76%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(21.15)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(09/30/2011)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 9.98%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">15.46%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(20.78)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 14.18%. <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">BEST QUARTER</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">19.14%</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(16.80)%</td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(06/30/2009)</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 6.92%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">13.29%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(11.43)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 10.53%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">18.66%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(20.30)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 9.61%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">19.90%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(25.69)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(12/31/2011)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2008)</td></tr> </table>   The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 6.74%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">22.57%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(22.26)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(09/30/2011)</td></tr> </table>   The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 10.08%. <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">BEST QUARTER</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">WORST QUARTER</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">4.53%</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(1.87)%</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(06/30/2009)</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(06/30/2004)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 3.82%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">7.15%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(3.39)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(06/30/2004)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 8.48%. <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">BEST QUARTER</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">4.29%</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(3.00)%</td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%"> <tr style="vertical-align: top"> <td style="width: 240px; padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt; text-align: left">(09/30/2009)</td> <td style="padding-left: 10pt; font: 10pt/115% Courier New, Courier, Monospace; text-indent: -10pt">(12/31/2010)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 3.99%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">2.19%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(1.19)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(12/31/2008)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(03/31/2005)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 0.97%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">4.51%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(1.29)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt/normal Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(06/30/2010)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(12/31/2010)</td></tr> </table>     The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 3.04%. <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">BEST QUARTER</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">WORST QUARTER</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">18.83%</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(21.10)%</td></tr> </table> <table cellpadding="0" cellspacing="0" border="0" style="width: 100%; font: 10pt Courier New, Courier, Monospace"> <tr style="vertical-align: top"> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt; width: 15pc">(09/30/2009)</td> <td style="text-align: left; padding-left: 10pt; text-indent: -10pt">(09/30/2011)</td></tr> </table>   The performance information shown above is based on a calendar year. The Fund's performance for Institutional Class Shares from 1/1/12 to 9/30/12 was 10.05%. AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31,2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 2011 This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell 1000 Growth Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell 1000 Value Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to appropriate broad-based indices. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the S&P 500 Value Index and the Lipper Multi-Cap Value Funds Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell 2000 Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Morgan Stanley Capital International All Country World ex-US Index ("MSCI ACWI ex-US Index") and the Morgan Stanley Capital International Europe, Australasia, Far East Index ("MSCI EAFE Index"). After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.   Returns after taxes on distributions and sale of Fund shares may be higher than before-tax returns when a net capital loss occurs upon the redemption of Fund shares. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays U.S. 1-5 Year Government/Credit Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays U.S. Aggregate Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Class A Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays Municipal Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.  After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays Treasury Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell Midcap Index and the Russell 2500 Index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell 1000 Growth Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell 1000 Value Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to appropriate broad-based indices. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are,therefore, unavailable for the 5 year and since Performance Start Date periods.    After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the S&P 500 Value Index and the Lipper Multi-Cap Value Funds Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.    After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell 2000 Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.    After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Morgan Stanley Capital International All Country World ex-U.S. Index ("MSCI ACWI ex-U.S. Index") and the Morgan Stanley Capital International Europe, Australasia, Far East Index ("MSCI EAFE Index"). After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.    After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts.    Returns after taxes on distributions and sale of Fund shares may be higher than before-tax returns when a net capital loss occurs upon the redemption of Fund shares. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays U.S. 1-5 Year Government/Credit Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays U.S. Aggregate Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays Municipal Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays Three-Year Municipal Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.     After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Barclays Treasury Bond Index. After-tax returns cannot be calculated for periods before the Fund's registration as a mutual fund and they are, therefore, unavailable for the 5 year and since Performance Start Date periods.   After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. This table compares the Fund's Institutional Class Shares' average annual total returns for the periods ended December 31, 2011 to those of the Russell Midcap Index and the Russell 2500 Index. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns will depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT) FROST GROWTH EQUITY FUND FROST DIVIDEND VALUE EQUITY FUND FROST STRATEGIC BALANCED FUND FROST KEMPNER MULTI-CAP DEEP VALUE EQUITY FUND FROST SMALL CAP EQUITY FUND FROST INTERNATIONAL EQUITY FUND FROST LOW DURATION BOND FUND FROST TOTAL RETURN BOND FUND FROST MUNICIPAL BOND FUND FROST KEMPNER TREASURY AND INCOME FUND FROST MID CAP EQUITY FUND FROST DIVERSIFIED STRATEGIES FUND FROST NATURAL RESOURCES FUND FROST GROWTH EQUITY FUND FROST DIVIDEND VALUE EQUITY FUND FROST STRATEGIC BALANCED FUND FROST KEMPNER MULTI-CAP DEEP VALUE EQUITY FUND FROST SMALL CAP EQUITY FUND FROST INTERNATIONAL EQUITY FUND FROST LOW DURATION BOND FUND FROST TOTAL RETURN BOND FUND FROST MUNICIPAL BOND FUND FROST LOW DURATION MUNICIPAL BOND FUND FROST KEMPNER TREASURY AND INCOME FUND FROST MID CAP EQUITY FUND FROST NATURAL RESOURCES FUND FROST CINQUE LARGE CAP BUY-WRITE EQUITY FUND FROST CREDIT FUND FROST CINQUE LARGE CAP BUY-WRITE EQUITY FUND FROST CREDIT FUND <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021627Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021631Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021745Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021632Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021633Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021634Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021635Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021636Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021637Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021628Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000021630Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000030974Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000034041Member column rr_ProspectusShareClassAxis compact AICII_C000104923Member row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021627Member column rr_ProspectusShareClassAxis compact AICII_C000061941Member row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021631Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021745Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021632Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021633Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021634Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021635Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021636Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021637Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021638Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021628Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000021630Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000034041Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000039103Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusOneMember column dei_LegalEntityAxis compact AICII_S000039102Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000039103Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> <div style="display: none">~ http://xbrl.sec.gov/rr/role/OperatingExpensesData column period compact * column dei_DocumentInformationDocumentAxis compact AICII_ProspectusTwoMember column dei_LegalEntityAxis compact AICII_S000039102Member column rr_ProspectusShareClassAxis compact * row primary compact * ~</div> 0.0325 0.0325 0.0325 0.0325 0.0325 0.0325 0.0225 0.0225 0.0225 0.0225 0.0325 0.0325 0.0325 .0080 0.0325 0.0225 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 .0016 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 .0001 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 -0.02 0.0000 0.0000 0.0000 0.0000 0.0000 -0.0200 0.0000 -.0097 -0.0200 0.0000 0.0000 0.0080 0.0080 0.0070 0.0059 0.0093 0.0093 0.0050 0.0050 0.0050 0.0035 0.0090 0.0080 0.0080 0.0080 0.0080 0.0070 0.0059 0.0093 0.0093 0.0050 0.0050 0.0050 0.0050 0.0035 0.0090 0.0080 0.0090 0.0060 0.0090 0.0060 0.0025