X0101 EFFECT 33 LIVE 2010-02-19 13:45:00

N-14

0001277946 FBR FUNDS 333-164052 0001277946 FBR FUNDS S000009268 FBR TECHNOLOGY FUND C000025321 FBR TECHNOLOGY FUND Investor Class 0001030802 AFBA 5STAR FUNDS S000000897 AFBA 5STAR SCIENCE AND TECHNOLOGY FUND C000002559 AFBA 5STAR SCIENCE AND TECHNOLOGY FUND ADVISOR CLASS 0001277946 FBR FUNDS S000009268 FBR TECHNOLOGY FUND C000025321 FBR TECHNOLOGY FUND Investor Class 0001030802 AFBA 5STAR FUNDS S000000897 AFBA 5STAR SCIENCE AND TECHNOLOGY FUND C000002561 AFBA 5STAR SCIENCE AND TECHNOLOGY FUND CLASS C 0001277946 FBR FUNDS S000009268 FBR TECHNOLOGY FUND C000064357 FBR Technology Fund I Class 0001030802 AFBA 5STAR FUNDS S000000897 AFBA 5STAR SCIENCE AND TECHNOLOGY FUND C000002562 AFBA 5STAR SCIENCE AND TECHNOLOGY FUND CLASS I 0001277946 FBR FUNDS S000009269 FBR PEGASUS SMALL CAP GROWTH FUND C000025322 FBR PEGASUS SMALL CAP GROWTH FUND Investor Class 0001030802 AFBA 5STAR FUNDS S000000898 AFBA 5STAR SMALL CAP FUND C000002564 AFBA 5STAR SMALL CAP FUND ADVISOR CLASS 0001277946 FBR FUNDS S000009269 FBR PEGASUS SMALL CAP GROWTH FUND C000025322 FBR PEGASUS SMALL CAP GROWTH FUND Investor Class 0001030802 AFBA 5STAR FUNDS S000000898 AFBA 5STAR SMALL CAP FUND C000002566 AFBA 5STAR SMALL CAP FUND CLASS C 0001277946 FBR FUNDS S000009269 FBR PEGASUS SMALL CAP GROWTH FUND C000064360 FBR Pegasus Small Cap Growth Fund I Class 0001030802 AFBA 5STAR FUNDS S000000898 AFBA 5STAR SMALL CAP FUND C000002567 AFBA 5STAR SMALL CAP FUND CLASS I 0001277946 FBR FUNDS S000009271 FBR PEGASUS FUND C000025324 FBR PEGASUS FUND Investor Class 0001030802 AFBA 5STAR FUNDS S000000895 AFBA 5STAR LARGE CAP GROWTH FUND C000002549 AFBA 5STAR LARGE CAP GROWTH FUND ADVISOR CLASS 0001277946 FBR FUNDS S000009271 FBR PEGASUS FUND C000025324 FBR PEGASUS FUND Investor Class 0001030802 AFBA 5STAR FUNDS S000000895 AFBA 5STAR LARGE CAP GROWTH FUND C000002551 AFBA 5STAR LARGE CAP GROWTH FUND CLASS C 0001277946 FBR FUNDS S000009271 FBR PEGASUS FUND C000064362 FBR Pegasus Fund I Class 0001030802 AFBA 5STAR FUNDS S000000895 AFBA 5STAR LARGE CAP GROWTH FUND C000002552 AFBA 5STAR LARGE CAP GROWTH FUND CLASS I 0001277946 FBR FUNDS S000015856 FBR Pegasus Mid Cap Fund C000043550 FBR Pegasus Mid Cap Fund Investor Class 0001030802 AFBA 5STAR FUNDS S000000899 AFBA 5STAR MID CAP VALUE FUND C000002569 AFBA 5STAR MID CAP VALUE FUND ADVISOR CLASS 0001277946 FBR FUNDS S000015856 FBR Pegasus Mid Cap Fund C000043550 FBR Pegasus Mid Cap Fund Investor Class 0001030802 AFBA 5STAR FUNDS S000000899 AFBA 5STAR MID CAP VALUE FUND C000002571 AFBA 5STAR MID CAP VALUE FUND CLASS C 0001277946 FBR FUNDS S000015856 FBR Pegasus Mid Cap Fund C000064364 FBR Pegasus Mid Cap Fund I Class 0001030802 AFBA 5STAR FUNDS S000000899 AFBA 5STAR MID CAP VALUE FUND C000002572 AFBA 5STAR MID CAP VALUE FUND CLASS I 0001277946 FBR FUNDS S000028101 FBR Balanced Fund C000085607 Investor Class 0001030802 AFBA 5STAR FUNDS S000000893 AFBA 5STAR BALANCED FUND C000002539 AFBA 5STAR BALANCED FUND ADVISOR CLASS 0001277946 FBR FUNDS S000028101 FBR Balanced Fund C000085607 Investor Class 0001030802 AFBA 5STAR FUNDS S000000893 AFBA 5STAR BALANCED FUND C000002541 AFBA 5STAR BALANCED FUND CLASS C 0001277946 FBR FUNDS S000028101 FBR Balanced Fund C000085608 I Class 0001030802 AFBA 5STAR FUNDS S000000893 AFBA 5STAR BALANCED FUND C000002542 AFBA 5STAR BALANCED FUND CLASS I 0001277946 FBR FUNDS S000028102 FBR Core Bond Fund C000085609 Investor Class 0001030802 AFBA 5STAR FUNDS S000000896 AFBA 5STAR TOTAL RETURN BOND FUND C000002554 AFBA 5STAR TOTAL RETURN BOND FUND ADVISOR CLASS 0001277946 FBR FUNDS S000028102 FBR Core Bond Fund C000085609 Investor Class 0001030802 AFBA 5STAR FUNDS S000000896 AFBA 5STAR TOTAL RETURN BOND FUND C000002556 AFBA 5STAR TOTAL RETURN BOND FUND CLASS C 0001277946 FBR FUNDS S000028102 FBR Core Bond Fund C000085610 I Class 0001030802 AFBA 5STAR FUNDS S000000896 AFBA 5STAR TOTAL RETURN BOND FUND C000002557 AFBA 5STAR TOTAL RETURN BOND FUND CLASS I