485BPOS 1 d837555d485bpos.htm RS INVESTMENT TRUST RS Investment Trust
Table of Contents

As filed with the Securities and Exchange Commission

on April 30, 2015

Registration Nos. 033-16439 and 811-05159

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-1A

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933 x
Pre-Effective Amendment No. ¨
Post-Effective Amendment No. 141 x

REGISTRATION STATEMENT

UNDER

THE INVESTMENT COMPANY ACT OF 1940 x
Amendment No. 143 x

 

 

RS INVESTMENT TRUST

(Exact Name of Registrant as Specified in Charter)

 

 

One Bush Street

San Francisco, California 94104

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code: (800) 766-3863

 

 

MATTHEW H. SCANLAN

c/o RS Investments

One Bush Street

San Francisco, California 94104

(Name and Address of Agent for Service)

TIMOTHY W. DIGGINS, Esq.

Ropes & Gray LLP

Prudential Tower

800 Boylston Street

Boston, MA 02199-3600

 

 

Approximate Date of Proposed Public Offering: As soon as practicable after the effective date of this Amendment.

It is proposed that this filing will become effective (check appropriate box)

¨ immediately upon filing pursuant to paragraph (b)
x on May 1, 2015 pursuant to paragraph (b)
¨ 60 days after filing pursuant to paragraph (a)(1)
¨ on [date] pursuant to paragraph (a)(1)
¨ 75 days after filing pursuant to paragraph (a)(2)
¨ on [date] pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:

  ¨ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

This Amendment relates to each series of RS Investment Trust (the “Trust”) except RS Equity Income Fund. This Amendment does not supersede or amend any disclosure in the Trust’s Registration Statement relating to RS Equity Income Fund.

 

 

 


Table of Contents

LOGO

 

PROSPECTUS

MAY 1, 2015

RS INVESTMENT TRUST

CLASS A, C, K, AND Y SHARES

ALTERNATIVES   CLASS A   CLASS C   CLASS K   CLASS Y
RS Focused Opportunity Fund   RSFOX   RSOCX     RSOYX
RS Focused Growth Opportunity Fund   RSFGX   RGOCX     RGOYX
VALUE                
RS Partners Fund   RSPFX     RSPKX   RSPYX
RS Value Fund   RSVAX   RVACX   RSVKX   RSVYX
RS Large Cap Alpha Fund   GPAFX   RCOCX   RCEKX   RCEYX
RS Investors Fund   RSINX   RIVCX   RSIKX   RSIYX
GLOBAL NATURAL RESOURCES            
RS Global Natural Resources Fund   RSNRX   RGNCX   RSNKX   RSNYX
GROWTH                
RS Small Cap Growth Fund   RSEGX   REGWX   RSEKX   RSYEX
RS Select Growth Fund   RSDGX   RSGFX   RSDKX   RSSYX
RS Mid Cap Growth Fund   RSMOX   RMOCX   RSMKX   RMOYX
RS Growth Fund   RSGRX   RGWCX   RSGKX   RGRYX
RS Technology Fund   RSIFX   RINCX   RIFKX   RIFYX
RS Small Cap Equity Fund   GPSCX   RSCCX   RSCKX   RSCYX
INTERNATIONAL                
RS International Fund   GUBGX   RIGCX   RIGKX   RSIGX
RS Global Fund   RSGGX   RGGCX   RGGKX   RGGYX
RS Emerging Markets Fund   GBEMX   REMGX   REMKX   RSENX
RS Emerging Markets Small Cap Fund   RSMSX   RSMGX     RSMYX
RS China Fund   RSCHX   RCHCX   RCHKX   RCHYX
FIXED INCOME                
RS Investment Quality Bond Fund   GUIQX   RIQCX   RIQKX   RSQYX
RS Low Duration Bond Fund   RLDAX   RLDCX   RLDKX   RSDYX
RS High Yield Fund   GUHYX   RHYCX   RHYKX   RSYYX
RS Tax-Exempt Fund   GUTEX   RETCX     RSTYX
RS High Income Municipal Bond Fund   RSHMX   RSHCX     RHMYX
RS Floating Rate Fund   RSFLX   RSFCX   RSFKX   RSFYX
RS Strategic Income Fund   RSIAX   RSICX   RINKX   RSRYX

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

LOGO


Table of Contents

TABLE OF CONTENTS

 

Alternatives Fund Summaries   
RS Focused Opportunity Fund      2   
RS Focused Growth Opportunity Fund      6   
Value Fund Summaries   
RS Partners Fund      10   
RS Value Fund      14   
RS Large Cap Alpha Fund      18   
RS Investors Fund      22   
Global Natural Resources Fund Summary   
RS Global Natural Resources Fund      26   
Growth Fund Summaries   
RS Small Cap Growth Fund      30   
RS Select Growth Fund      34   
RS Mid Cap Growth Fund      38   
RS Growth Fund      42   
RS Technology Fund      46   
RS Small Cap Equity Fund      50   
International Fund Summaries   
RS International Fund      54   
RS Global Fund      58   
RS Emerging Markets Fund      62   
RS Emerging Markets Small Cap Fund      66   
RS China Fund      69   
Fixed Income Fund Summaries   
RS Investment Quality Bond Fund      73   
RS Low Duration Bond Fund      77   
RS High Yield Fund      81   
RS Tax-Exempt Fund      85   
RS High Income Municipal Bond Fund      89   
RS Floating Rate Fund      93   
RS Strategic Income Fund      97   
Additional Information   
Additional Information About Principal Risks      102   
Additional Information About the Funds’ Investment Strategies and Risks      110   
Fund Benchmarks      113   
Additional Information on Expenses      115   
Impact on Returns      115   
Management of the Funds      118   
Investment Team Biographical Information      119   
Types of Shares Available      122   
How Shares Are Priced      127   
How to Purchase Shares      128   
How to Sell Shares      130   
Exchanges      131   
Cost Basis Reporting      132   
Frequent Purchases and Redemptions      132   
Special Purchase and Sale Plans      132   
USA Patriot Act      133   
Dividends and Distributions      133   
Taxes      133   
Disclosure of Portfolio Holdings      135   
Financial Highlights   
RS Partners Fund      136   
RS Value Fund      138   
RS Large Cap Alpha Fund      140   
RS Investors Fund      142   
RS Global Natural Resources Fund      144   
RS Small Cap Growth Fund      146   
RS Select Growth Fund      148   
RS Mid Cap Growth Fund      150   
RS Growth Fund      152   
RS Technology Fund      154   
RS Small Cap Equity Fund      156   
RS International Fund      158   
RS Global Fund      160   
RS Emerging Markets Fund      162   
RS Emerging Markets Small Cap Fund      164   
RS China Fund      166   
RS Investment Quality Bond Fund      168   
RS Low Duration Bond Fund      170   
RS High Yield Fund      172   
RS Tax-Exempt Fund      174   
RS High Income Municipal Bond Fund      174   
RS Floating Rate Fund      176   
RS Strategic Income Fund      178   
Appendix A   
Supplemental Performance Information for RS Focused Growth Opportunity Fund      180   
 


Table of Contents

RS FOCUSED OPPORTUNITY FUND

 

RS Focused Opportunity Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class Y  
     
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None   
     
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None   
        

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

  
Share Class    Class A      Class C      Class Y  
     
Management Fees      1.25%         1.25%         1.25%   
     
Distribution (12b-1) Fees      0.25%         1.00%         N/A   
     
Dividend/Interest Expense on Short Sales4      1.16%         1.16%         1.16%   
     
Other Expenses3      1.52%         1.59%         1.42%   
     
Total Annual Fund Operating Expenses4      4.18%         5.00%         3.83%   
     
Fee Waiver/Expense Reimbursement4      -1.12%         -1.19%         -1.02%   
     
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement4      3.06%         3.81%         2.81%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   “Other Expenses” are based on estimated amounts for the Fund’s current fiscal year.

 

4   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), dividend and interest expense on short sales, and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.90% for Class A shares, 2.65% for Class C shares, and 1.65% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

     Class A      Class C      Class Y  
1 Year    $ 769       $ 483       $ 284   
3 Years    $ 1,588       $ 1,395       $ 1,076   

Assuming No Redemption

 

     Class A      Class C      Class Y  
1 Year    $ 769       $ 383       $ 284   
3 Years    $ 1,588       $ 1,395       $ 1,076   
 

 

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Table of Contents

RS FOCUSED OPPORTUNITY FUND

 

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. Portfolio turnover information for the Fund is not presented because the Fund had not completed a full year of investment operations as of the date of this Prospectus.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund invests principally in a diversified portfolio of equity securities of U.S. companies that RS Investments considers to be high quality companies. The Fund will take short positions in an attempt to eliminate or reduce specific investment or risk exposures within the portfolio and to focus the Fund’s potential for investment return on the most desirable opportunities presented by its portfolio of investments.

The domestic equity research team at RS Investments, made up of members of both the Growth and Value investment teams at RS Investments, identifies companies for investment by the Fund using a fundamental stock selection process. The process seeks to identify companies with, among other things, attractive relative valuations, strong and stable growth, increasing return on invested capital, and improving market sentiment. The Fund’s investment team also uses a quantitative analytical model, taking into account many of the same factors, to evaluate individual securities and to aid in the portfolio construction process. RS Investments currently expects that the Fund will typically hold between 40 and 70 equity securities in long positions. The Fund may hold any number of short positions, and the number and aggregate investment exposure of the Fund’s short positions at any time may be greater than the number and aggregate exposure of the Fund’s long positions. The Fund may use derivatives transactions, including options, total return swaps, futures, and contracts for differences, to gain long or short exposure to equity securities, as an alternative to direct positions in those equity securities. Although short positions will be used primarily to reduce specific risk exposures in the Fund’s portfolio, RS Investments will generally attempt to enter into short positions on securities it expects to decline in value, attempting to create over time an incremental total return, or “alpha,” to the Fund.

Through the combination of long and short positions, RS Investments intends to create a portfolio with significantly less exposure to broad market risks than a typical long-only portfolio, and with focused exposures to individual company, industry, and broad market themes. The Fund generally expects to forego some of the potential up-side return associated with a long-only investment strategy in return for the potential for reduced volatility provided by its short positions, although RS Investments seeks to minimize this effect over time through above-average returns on the Fund’s long investments. The Fund’s use of short sales may create investment leverage in the portfolio, and the Fund may lose money both on the long positions in its portfolio and on the short positions. RS Investments will, however, enter into short positions in an effort to eliminate or reduce risk exposure in the Fund’s long positions. The aggregate of the investment exposures created by the Fund’s long positions and its short positions will likely exceed the value of the Fund’s assets.

The Fund invests primarily in equity securities of companies of any size market capitalization. Equity securities may include common and preferred stocks, and options, warrants, or rights with respect to common or preferred stocks. The Fund may invest in other investment companies, including, for example, other open-end or closed-end investment companies, exchange-traded funds (“ETFs”), and private investment vehicles, including investment companies sponsored or managed by RS Investments or its affiliates. The Fund typically invests most of its assets in equity securities of U.S. companies but may invest any portion of its assets in foreign securities, including direct investments and investments through American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs), or similar investment vehicles.

The Fund’s short positions might include, for example, taking a short position on a basket of equity securities or index of equity securities to reduce broad equity market risk. The Fund might also take a short position on one or a small number of equity securities in order to eliminate more specific investment elements, such as risks of investments in particular industries or sectors, or certain risks the Fund’s investment team identifies as potentially affecting a number of the Fund’s portfolio investments. The Fund’s investment team may create short positions for the Fund by entering into short sales of specific equity securities or groups of securities, or by entering into derivatives transactions, including options, total return swaps, futures, and contracts for differences, providing short exposure to one or more equity securities or indices of equity securities. The Fund’s investment team relies on fundamental and quantitative analyses in identifying investment exposures and risks it might seek to reduce within the Fund’s portfolio and in identifying the specific short exposures that are intended to reduce those exposures and risks.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in growth and value style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

 

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

 

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Table of Contents

RS FOCUSED OPPORTUNITY FUND

>  

Short Sale Risk

An increase in the value of a security over the price at which it was sold short will result in a loss to the Fund, and there can be no assurance that RS Investments will be able to close out the position at any particular time or at an acceptable price. The loss from a short position is potentially unlimited. A Fund’s use of short sales will likely result in the creation of leverage in the Fund.

 

>  

Derivatives Risk

Derivative transactions can create investment leverage and may be highly volatile. It is possible that a derivative transaction will result in a much greater loss than the principal amount invested, and the Fund may not be able to close out a derivative transaction at a favorable time or price. The counterparty to a derivatives contract may be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

 

>  

Leverage Risk

Use of leverage by the Fund may have the effect of increasing the volatility of the value of the Fund’s portfolio, and may entail risk of loss in excess of the Fund’s invested capital.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s primary benchmark increases the risk that the Fund will underperform its primary benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its primary benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s primary benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s primary benchmark.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

>  

Portfolio Turnover Risk

Frequent purchases and sales of portfolio securities may result in higher Fund expenses and may result in more significant distributions of short-term capital gains to investors, which are taxed as ordinary income.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Prime Brokerage Risk

In the event of a default, insolvency, or failure of the prime broker used by a Fund in connection with its short investments, there is

no guarantee that the Fund would be able to recover its assets from the prime broker. The Fund may be delayed or prevented from recovering its assets, resulting in losses to the Fund.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

Fund Performance

The bar chart and performance table are not included because the Fund had not completed one full calendar year of investment operations as of the date of this Prospectus.

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

Rick Brandt has been a member of the Fund’s investment team since its inception.

Purchase and Sale of Fund Shares

 

Investment Minimums    Class A      Class C      Class Y  
     
Minimum Initial Investment    $ 2,500       $ 2,500         None   
     
Minimum Subsequent Investments    $ 100       $ 100       $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Focused Opportunity Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

 

 

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Table of Contents

RS FOCUSED OPPORTUNITY FUND

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

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Table of Contents

RS FOCUSED GROWTH OPPORTUNITY FUND

 

RS Focused Growth Opportunity Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class Y  
     
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None   
     
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None   
        

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

Share Class    Class A      Class C      Class Y  
     
Management Fees      1.25%         1.25%         1.25%   
     
Distribution (12b-1) Fees      0.25%         1.00%         N/A   
     
Dividend/Interest Expense on Short Sales4      1.16%         1.16%         1.16%   
     
Other Expenses3      0.88%         0.95%         0.78%   
     
Total Annual Fund Operating Expenses4      3.54%         4.36%         3.19%   
     
Fee Waiver/Expense Reimbursement4      -0.48%         -0.55%         -0.38%   
     
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement4      3.06%         3.81%         2.81%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   “Other Expenses” are based on estimated amounts for the Fund’s current fiscal year.

 

4   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), dividend and interest expense on short sales, and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.90% for Class A shares, 2.65% for Class C shares, and 1.65% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

     Class A      Class C      Class Y  
1 Year    $ 769       $ 483       $ 284   
3 Years    $ 1,467       $ 1,271       $ 948   

Assuming No Redemption

 

     Class A      Class C      Class Y  
1 Year    $ 769       $ 383       $ 284   
3 Years    $ 1,467       $ 1,271       $ 948   
 

 

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Table of Contents

RS FOCUSED GROWTH OPPORTUNITY FUND

 

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. Portfolio turnover information for the Fund is not presented because the Fund had not completed a full year of investment operations as of the date of this Prospectus.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund invests principally in a diversified portfolio of growth-oriented equity securities selected by RS Investments using a fundamental stock selection process. The Fund will take short positions in an attempt to eliminate or reduce specific investment or risk exposures within the portfolio and to focus the Fund’s potential for investment return on the most desirable opportunities presented by its portfolio of investments.

The Fund’s investment team employs fundamental analysis to identify companies that can produce sustainable earnings growth over a multi-year horizon. Those companies typically exhibit some or all of the following key characteristics: strong organic revenue growth, expanding margins and profitability, innovative products or services, defensible competitive advantages, growing market share, and experienced management teams. Valuation is an integral part of the investment process and purchase decisions are based on the Fund’s investment team’s expectation of the potential reward relative to risk of each security based in part on the investment team’s proprietary earnings calculations. The Fund’s investment team also applies a quantitative analytical model to evaluate overall portfolio construction and investment themes within the portfolio. RS Investments currently expects that the Fund will typically hold between 40 and 70 equity securities in long positions. The Fund may hold any number of short positions, and the number and aggregate investment exposure of the Fund’s short positions at any time may be greater than the number and aggregate exposure of the Fund’s long positions. The Fund may use derivatives transactions, including options, total return swaps, futures, and contracts for differences, to gain long or short exposure to equity securities, as an alternative to direct positions in those securities. Although short positions will be used primarily to reduce specific risk exposures in the Fund’s portfolio, RS Investments will generally attempt to enter into short positions on securities it expects to decline in value, attempting to create over time an incremental total return, or “alpha,” to the Fund.

Through the combination of long and short positions, RS Investments intends to create a portfolio with significantly less exposure to broad market risks than a typical long-only portfolio, and with focused exposures to individual company, industry, and broad market themes. The Fund generally expects to forego some of the potential up-side return associated with a long-only investment strategy in return for the potential for reduced volatility provided by its short positions, although RS Investments seeks to minimize this effect over time through above-average returns on the Fund’s long investments. The Fund’s use of short sales may create investment leverage in the portfolio, and the Fund may lose money both on the long positions in its portfolio and on the short positions. RS Investments will, however, enter into short positions

in an effort to eliminate or reduce risk exposure in the Fund’s long positions. The aggregate of the investment exposures created by the Fund’s long positions and its short positions will likely exceed the value of the Fund’s assets.

The Fund invests primarily in equity securities of companies of any size market capitalization. Equity securities may include common and preferred stocks, and options, warrants, or rights with respect to common or preferred stocks. The Fund may invest in other investment companies, including, for example, other open-end or closed-end investment companies, exchange-traded funds (“ETFs”), and domestic or foreign private investment vehicles, including investment companies sponsored or managed by RS Investments or its affiliates. The Fund typically invests most of its assets in equity securities of U.S. companies but may invest any portion of its assets in foreign securities, including direct investments and investments through American Depositary Receipts (ADRs), European Depositary Receipts (EDRs), Global Depositary Receipts (GDRs), or similar investment vehicles.

The Fund’s short positions might include, for example, taking a short position on a basket of equity securities or index of equity securities to reduce broad equity market risk. The Fund might also take a short position on one or a small number of equity securities in order to eliminate more specific investment elements, such as risks of investments in particular industries or sectors, or certain risks the Fund’s investment team identifies as potentially affecting a number of the Fund’s portfolio investments. The Fund’s investment team may create short positions for the Fund by entering into short sales of specific equity securities or groups of securities, or by entering into derivatives transactions, including options, total return swaps, futures, and contracts for differences, providing short exposure to one or more equity securities or indices of equity securities. The Fund’s investment team relies on fundamental and quantitative analyses in identifying investment exposures and risks it might seek to reduce within the Fund’s portfolio and in identifying the specific short exposures that are intended to reduce those exposures and risks.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in growth style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

 

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the

 

 

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RS FOCUSED GROWTH OPPORTUNITY FUND

market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

>  

Short Sale Risk

An increase in the value of a security over the price at which it was sold short will result in a loss to the Fund, and there can be no assurance that RS Investments will be able to close out the position at any particular time or at an acceptable price. The loss from a short position is potentially unlimited. A Fund’s use of short sales will likely result in the creation of leverage in the Fund.

 

>  

Derivatives Risk

Derivative transactions can create investment leverage and may be highly volatile. It is possible that a derivative transaction will result in a much greater loss than the principal amount invested, and the Fund may not be able to close out a derivative transaction at a favorable time or price. The counterparty to a derivatives contract may be unable or unwilling to make timely settlement payments, return the Fund’s margin, or otherwise honor its obligations.

 

>  

Leverage Risk

Use of leverage by the Fund may have the effect of increasing the volatility of the value of the Fund’s portfolio, and may entail risk of loss in excess of the Fund’s invested capital.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s primary benchmark increases the risk that the Fund will underperform its primary benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its primary benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s primary benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s primary benchmark.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

>  

Portfolio Turnover Risk

Frequent purchases and sales of portfolio securities may result in higher Fund expenses and may result in more significant distributions of short-term capital gains to investors, which are taxed as ordinary income.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

>  

Prime Brokerage Risk

In the event of a default, insolvency, or failure of the prime broker used by a Fund in connection with its short investments, there is no guarantee that the Fund would be able to recover its assets from the prime broker. The Fund may be delayed or prevented from recovering its assets, resulting in losses to the Fund.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

Fund Performance

The bar chart and performance table are not included because the Fund had not completed one full calendar year of investment operations as of the date of this Prospectus.

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

Rick Brandt has been a member of the Fund’s investment team since its inception.

Purchase and Sale of Fund Shares

 

Investment Minimums    Class A      Class C      Class Y  
     
Minimum Initial Investment    $ 2,500       $ 2,500         None   
     
Minimum Subsequent Investments    $ 100       $ 100       $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Focused Growth Opportunity Fund,

 

 

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RS FOCUSED GROWTH OPPORTUNITY FUND

P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

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RS PARTNERS FUND

 

RS Partners Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class K      Class Y  
     
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None   
     
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         None         None   
        

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

Share Class    Class A      Class K      Class Y  
     
Management Fees      1.00%         1.00%         1.00%   
     
Distribution (12b-1) Fees      0.25%         0.65%         N/A   
     
Other Expenses      0.30%         0.23%         0.18%   
     
Total Annual Fund Operating Expenses2      1.55%         1.88%         1.18%   
     
Fee Waiver/Expense Reimbursement2      -0.10%         -0.07%         -0.06%   
     
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement2      1.45%         1.81%         1.12%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.45% for Class A shares, 1.81% for Class K shares, and 1.12% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated, whether or not you redeem at the end of such periods. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although

your actual costs may be higher or lower, based on these assumptions, your costs would be:

 

     Class A      Class K      Class Y  
1 Year    $ 616       $ 184       $ 114   
3 Years    $ 932       $ 584       $ 369   
5 Years    $ 1,271       $ 1,010       $ 643   
10 Years    $ 2,225       $ 2,195       $ 1,426   
 

 

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RS PARTNERS FUND

 

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 47% of the average value of its portfolio.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund invests principally in equity securities of small-capitalization companies. The Fund’s investment team considers a company to be a small-capitalization company if its market capitalization (at the time of purchase) is either up to $3 billion or 120% of the market capitalization of the largest company included in the Russell 2000® Index on the last day of the most recent quarter (currently, approximately $9.0 billion, based on the size of the largest company in the Index on March 31, 2015), whichever is greater. The Fund typically invests most of its assets in equity securities of U.S. companies but may also invest any portion of its assets in foreign securities. The Fund’s investment team currently expects that the Fund typically will hold between 40 and 65 securities positions.

In evaluating investments for the Fund, the Fund’s investment team conducts fundamental research to identify companies with improving returns on invested capital. The investment team’s research efforts seek to identify the primary economic and value drivers for each company. Research focuses on a company’s capital deployment strategy, including decisions about capital expenditures, acquisitions, cost-saving initiatives, and share repurchase/dividend plans, as the Fund’s investment team seeks to understand how returns on invested capital may improve over time. Valuation is considered an important part of the process. The investment team seeks to invest in companies based on the investment team’s assessment of risk (the possibility of permanent capital impairment) and its assessment of reward (the future value of the enterprise).

The Fund may at times, but will not necessarily, hold a substantial portion of its assets in cash and cash equivalents.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in value style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

 

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established

companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s benchmark increases the risk that the Fund will underperform its benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s benchmark.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

 

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RS PARTNERS FUND

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5, and 10 years and since inception compare with those of a broad measure of market performance. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Second Quarter 2009  23.54%            Worst Quarter  Fourth Quarter 2008  -29.23%

Average Annual Total Returns (PERIODS ENDED 12/31/14)

 

         
Class A Shares   Inception Date
of Share Class
7/12/95
  1 Year     5 Years     10 Years     Since
Inception
         
Return Before Taxes         -8.42%        12.94%        6.86%      11.75%
         
Return After Taxes on Distributions         -13.24%        10.43%        4.91%      10.26%
         
Return After Taxes on Distributions and Sale of Fund Shares         -1.98%        10.03%        5.16%      9.83%
         
Russell 2000® Value Index
(reflects no deduction for fees, expenses or taxes)
        4.22%        14.26%        6.89%      10.41%
         
Class K Shares   10/13/06   -4.21%    

13.56%

       

6.36%

         
Russell 2000® Value Index
(reflects no deduction for fees, expenses or taxes)
        4.22%        14.26%             5.64%
         
Class Y Shares   5/1/07   -3.53%    

14.41%

       

5.91%

         
Russell 2000® Value Index
(reflects no deduction for fees, expenses or taxes)
        4.22%        14.26%             5.09%

After-tax returns are shown for Class A shares only; after-tax returns for other classes will vary. 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 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.

 

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RS PARTNERS FUND

 

 

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

RS Partners Fund is team-managed by members of the RS Value Team. The following list comprises five members of the investment team with responsibility for the day-to-day management of the Fund: Byron E. Penstock, CFA (with RS Investments since 2004) has been a member of the Fund’s investment team since 2012; Joseph M. Mainelli (with RS Investments since 2007) has been a member of the Fund’s investment team since 2013; and Paul Hamilos, CFA (with RS Investments since 2011), Robert J. Harris (with RS Investments since 2005), and Daniel Lang, M.D. (with RS Investments since 2009) have each been a member of the Fund’s investment team since 2014.

Purchase and Sale of Fund Shares

The Fund is currently offered only to certain investors. See “Other Information About Purchasing Shares” on page 129 of the Fund’s Prospectus.

 

Investment Minimums   Class A     Class K     Class Y  
     
Minimum Initial Investment   $ 2,500      $ 1,000        None   
     
Minimum Subsequent Investments   $ 100        None      $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Partners Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

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RS VALUE FUND

 

RS Value Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class K      Class Y  
       

Maximum Sales Charge (Load) Imposed on Purchases

(as a percentage of offering price)

     4.75%         None         None         None   
       
Maximum Deferred Sales Charge (Load) (as a percentage of the lower
of sale proceeds or the original offering price)
     None1         1.00%2         None         None   
           

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

Share Class    Class A      Class C      Class K      Class Y  
       
Management Fees      0.85%         0.85%         0.85%         0.85%   
       
Distribution (12b-1) Fees      0.25%         1.00%         0.65%         N/A   
       
Other Expenses      0.25%         0.26%         0.23%         0.26%   
       
Total Annual Fund Operating Expenses3      1.35%         2.11%         1.73%         1.11%   
       
Fee Waiver/Expense Reimbursement3      -0.05%         -0.04%         -0.04%         -0.05%   
       
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement3      1.30%         2.07%         1.69%         1.06%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.30% for Class A shares, 2.07% for Class C shares, 1.69% for Class K shares, and 1.06% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 601      $ 310      $ 172      $ 108   
3 Years   $ 878      $ 657      $ 541      $ 348   
5 Years   $ 1,175      $ 1,130      $ 935      $ 607   
10 Years   $ 2,018      $ 2,438      $ 2,038      $ 1,347   
 

 

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RS VALUE FUND

 

Assuming No Redemption

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 601      $ 210      $ 172      $ 108   
3 Years   $ 878      $ 657      $ 541      $ 348   
5 Years   $ 1,175      $ 1,130      $ 935      $ 607   
10 Years   $ 2,018      $ 2,438      $ 2,038      $ 1,347   

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 56% of the average value of its portfolio.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund invests principally in equity securities that the Fund’s investment team believes are undervalued, of companies with market capitalizations between $1 billion and 120% of the market capitalization of the largest company included in the Russell Midcap® Index on the last day of the most recent quarter (currently, approximately $44.8 billion, based on the size of the largest company in the Index on March 31, 2015). The Fund typically invests most of its assets in equity securities of U.S. companies but may also invest any portion of its assets in foreign securities. The Fund’s investment team currently expects that the Fund typically will hold between 40 and 60 securities positions.

In evaluating investments for the Fund, the Fund’s investment team conducts fundamental research to identify companies with improving returns on invested capital. The investment team’s research efforts seek to identify the primary economic and value drivers for each company. Research focuses on a company’s capital deployment strategy, including decisions about capital expenditures, acquisitions, cost-saving initiatives, and share repurchase/dividend plans, as the Fund’s investment team seeks to understand how returns on invested capital may improve over time. Valuation is considered an important part of the process. The investment team seeks to invest in companies based on the investment team’s assessment of risk (the possibility of permanent capital impairment) and its assessment of reward (the future value of the enterprise).

The Fund may at times, but will not necessarily, hold a substantial portion of its assets in cash and cash equivalents.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in value style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s benchmark increases the risk that the Fund will underperform its benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s benchmark.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

 

www.rsinvestments.com   15


Table of Contents

RS VALUE FUND

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5, and 10 years and since inception compare with those of a broad measure of market performance. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Third Quarter 2009  20.05%            Worst Quarter  Fourth Quarter 2008  -26.55%

Average Annual Total Returns (PERIODS ENDED 12/31/14)

 

           
Class A Shares   Inception Date
of Share Class
6/30/93
  1 Year     5 Years     10 Years     Since
Inception
 
         
Return Before Taxes         6.31%        13.20%        7.26%        7.67%   
         
Return After Taxes on Distributions         1.83%        11.99%        6.36%        7.11%   
         
Return After Taxes on Distributions and Sale of Fund Shares         5.87%        10.34%        5.68%        6.41%   
         
Russell Midcap® Value Index
(reflects no deduction for fees, expenses or taxes)
        14.75%        17.43%        9.43%        11.69%   
           
Class C Shares   5/1/07  

9.81%

   

13.46%

       

4.50%

 
         
Russell Midcap® Value Index
(reflects no deduction for fees, expenses or taxes)
        14.75%        17.43%               6.96%   
           
Class K Shares   12/4/06  

11.15%

   

13.86%

       

5.81%

 
         
Russell Midcap® Value Index
(reflects no deduction for fees, expenses or taxes)
        14.75%        17.43%               7.69%   
           
Class Y Shares   5/1/07  

11.85%

   

14.62%

       

5.59%

 
         
Russell Midcap® Value Index
(reflects no deduction for fees, expenses or taxes)
        14.75%        17.43%               6.96%   

After-tax returns are shown for Class A shares only; after-tax returns for other classes will vary. 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 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.

 

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RS VALUE FUND

 

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

RS Value Fund is team-managed by members of the RS Value Team. The following list comprises five members of the investment team with responsibility for the day-to-day management of the Fund: Joseph M. Mainelli (with RS Investments since 2007) and Byron E. Penstock, CFA (with RS Investments since 2004) have each been a member of the Fund’s investment team since 2013; and Paul Hamilos, CFA (with RS Investments since 2011), Robert J. Harris (with RS Investments since 2005), and Daniel Lang, M.D. (with RS Investments since 2009) have each been a member of the Fund’s investment team since 2014.

Purchase and Sale of Fund Shares

 

Investment Minimums   Class A     Class C     Class K     Class Y  
       
Minimum Initial Investment   $ 2,500      $ 2,500      $ 1,000        None   
       
Minimum Subsequent Investments   $ 100      $ 100        None      $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic

investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Value Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

www.rsinvestments.com   17


Table of Contents

RS LARGE CAP ALPHA FUND

 

RS Large Cap Alpha Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class K      Class Y  
       
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None         None   
       
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None         None   
           

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

Share Class    Class A      Class C      Class K      Class Y  
       
Management Fees      0.50%         0.50%         0.50%         0.50%   
       
Distribution (12b-1) Fees      0.25%         1.00%         0.65%         N/A   
       
Other Expenses      0.17%         0.23%         0.16%         0.16%   
       
Total Annual Fund Operating Expenses      0.92%         1.73%         1.31%         0.66%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 564      $ 276      $ 133      $ 67   
3 Years   $ 754      $ 545      $ 415      $ 211   
5 Years   $ 960      $ 939      $ 718      $ 368   
10 Years   $ 1,553      $ 2,041      $ 1,579      $ 822   

Assuming No Redemption

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 564      $
176
  
  $ 133      $ 67   
3 Years   $ 754      $ 545      $ 415      $ 211   
5 Years   $ 960      $ 939      $ 718      $ 368   
10 Years   $ 1,553      $ 2,041      $ 1,579      $ 822   

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 60% of the average value of its portfolio.

 

 

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RS LARGE CAP ALPHA FUND

 

Investments, Risks, and Performance

Principal Investment Strategies

The Fund normally invests at least 80% of its net assets in companies considered by the Fund’s investment team (at the time of purchase) to be large-capitalization companies. The Fund’s investment team considers a company to be large-capitalization if its market capitalization is at least $5 billion. The Fund’s investment team currently expects that the Fund typically will hold between 35 and 50 securities positions.

In evaluating investments for the Fund, the Fund’s investment team conducts fundamental research to identify companies with improving returns on invested capital. The investment team’s research efforts seek to identify the primary economic and value drivers for each company. Research focuses on a company’s capital deployment strategy, including decisions about capital expenditures, acquisitions, cost-saving initiatives, and share repurchase/dividend plans, as the Fund’s investment team seeks to understand how returns on invested capital may improve over time. Valuation is considered an important part of the process. The investment team seeks to invest in companies based on the investment team’s assessment of risk (the possibility of permanent capital impairment) and its assessment of reward (the future value of the enterprise).

The Fund may at times, but will not necessarily, hold a substantial portion of its assets in cash and cash equivalents.

The Fund will typically invest principally in equity securities. The Fund typically invests most of its assets in equity securities of U.S. companies but may also invest any portion of its assets in foreign securities.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in value style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s primary benchmark increases the risk that the Fund will underperform its primary benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its primary benchmark.

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s primary benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s primary benchmark.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

>  

Mid-sized Companies Risk

Mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

 

www.rsinvestments.com   19


Table of Contents

RS LARGE CAP ALPHA FUND

 

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5, and 10 years and since inception compare with those of two broad measures of market performance. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. The Fund’s investment strategy and investment team changed on March 30, 2009. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Third Quarter 2009  17.47%            Worst Quarter  Third Quarter 2011  -20.78%

Average Annual Total Returns (PERIODS ENDED 12/31/14)

 

           
Class A Shares   Inception Date
of Share Class
6/1/72
  1 Year     5 Years     10 Years     Since
Inception
 
         
Return Before Taxes         7.70%        12.94%        8.51%        11.96%   
         
Return After Taxes on Distributions         4.08%        11.68%        7.74%          
         
Return After Taxes on Distributions and Sale of Fund Shares         5.99%        9.98%        6.68%          
         
Russell 1000® Value Index
(reflects no deduction for fees, expenses or taxes)
        13.45%        15.42%        7.30%        N/A 1 
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%        7.67%        10.43% 2 
           
Class C Shares   8/7/00  

11.16%

   

13.15%

   

8.12%

   

1.71%

 
         
Russell 1000® Value Index
(reflects no deduction for fees, expenses or taxes)
        13.45%        15.42%        7.30%        6.82%   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%        7.67%        4.32%   
           
Class K Shares   5/15/01  

12.62%

   

13.62%

   

8.62%

   

5.21%

 
         
Russell 1000® Value Index
(reflects no deduction for fees, expenses or taxes)
        13.45%        15.42%        7.30%        6.79%   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%        7.67%        5.80%   
           
Class Y Shares   5/1/07  

13.34%

   

14.38%

       

8.30%

 
         
Russell 1000® Value Index
(reflects no deduction for fees, expenses or taxes)
        13.45%        15.42%               5.14%   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%               6.63%   
1  

No since inception return for the Russell 1000® Value Index is shown for Class A shares because the inception date for Class A shares was prior to the inception date of the Russell 1000® Value Index.

 

2  

Since inception return for the S&P 500® Index shown in the table for Class A shares is since May 31, 1972, the month end prior to the inception of Class A shares.

After-tax returns are shown for Class A shares only; after-tax returns for other classes will vary. 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 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.

 

20   800.766.3863


Table of Contents

RS LARGE CAP ALPHA FUND

 

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

RS Large Cap Alpha Fund is team-managed by members of the RS Value Team. The following list comprises five members of the investment team with responsibility for the day-to-day management of the Fund: Joseph M. Mainelli (with RS Investments since 2007) has been a member of the Fund’s investment team since 2012; Byron E. Penstock, CFA (with RS Investments since 2004) has been a member of the Fund’s investment team since 2013; and Paul Hamilos, CFA (with RS Investments since 2011), Robert J. Harris (with RS Investments since 2005), and Daniel Lang, M.D. (with RS Investments since 2009) have each been a member of the Fund’s investment team since 2014.

Purchase and Sale of Fund Shares

 

Investment Minimums   Class A     Class C     Class K     Class Y  
       
Minimum Initial Investment   $ 2,500      $ 2,500      $ 1,000        None   
       
Minimum Subsequent Investments   $ 100      $ 100        None      $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic

investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Large Cap Alpha Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

www.rsinvestments.com   21


Table of Contents

RS INVESTORS FUND

 

RS Investors Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class K      Class Y  
       
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None         None   
       
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None         None   
           

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

Share Class    Class A      Class C      Class K      Class Y  
       
Management Fees      1.00%         1.00%         1.00%         1.00%   
       
Distribution (12b-1) Fees      0.25%         1.00%         0.65%         N/A   
       
Other Expenses      0.27%         0.29%         0.32%         0.17%   
       
Total Annual Fund Operating Expenses3      1.52%         2.29%         1.97%         1.17%   
       
Fee Waiver/Expense Reimbursement3      -0.19%         -0.22%         -0.02%         -0.12%   
       
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement3      1.33%         2.07%         1.95%         1.05%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.33% for Class A shares, 2.07% for Class C shares, 1.95% for Class K shares, and 1.05% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 604      $ 310      $ 198      $ 107   
3 Years   $ 915      $ 694      $ 616      $ 360   
5 Years   $ 1,247      $ 1,205      $ 1,061      $ 632   
10 Years   $ 2,186      $ 2,609      $ 2,294      $ 1,410   
 

 

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RS INVESTORS FUND

 

Assuming No Redemption

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 604      $ 210      $ 198      $ 107   
3 Years   $ 915      $ 694      $ 616      $ 360   
5 Years   $ 1,247      $ 1,205      $ 1,061      $ 632   
10 Years   $ 2,186      $ 2,609      $ 2,294      $ 1,410   

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 83% of the average value of its portfolio.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund invests in equity securities that the Fund’s investment team believes are undervalued. The Fund will typically invest most of its assets in equity securities of small-, mid-, or large-capitalization companies. The Fund typically invests most of its assets in equity securities of U.S. companies but may also invest any portion of its assets in foreign securities. The Fund will likely hold a more limited number of securities than many other mutual funds. The Fund’s investment team currently expects that the Fund typically will hold between 25 and 30 securities positions.

In evaluating investments for the Fund, the Fund’s investment team conducts fundamental research to identify companies with improving returns on invested capital. The investment team’s research efforts seek to identify the primary economic and value drivers for each company. Research focuses on a company’s capital deployment strategy, including decisions about capital expenditures, acquisitions, cost-saving initiatives, and share repurchase/dividend plans, as the Fund’s investment team seeks to understand how returns on invested capital may improve over time. Valuation is considered an important part of the process. The investment team seeks to invest in companies based on the investment team’s assessment of risk (the possibility of permanent capital impairment) and its assessment of reward (the future value of the enterprise).

The Fund may at times, but will not necessarily, hold a substantial portion of its assets in cash and cash equivalents.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in value style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s benchmark increases the risk that the Fund will underperform its benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s benchmark.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

>  

Portfolio Turnover Risk

Frequent purchases and sales of portfolio securities may result in higher Fund expenses and may result in more significant distributions of short-term capital gains to investors, which are taxed as ordinary income.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell

 

 

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RS INVESTORS FUND

 

substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect

management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1 and 5 years and since inception compare with those of a broad measure of market performance. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Second Quarter 2009  26.20%            Worst Quarter  Fourth Quarter 2008  -35.17%

Annual Return for Class A Shares (PERIODS ENDED 12/31/14)

 

         
Class A Shares   Inception Date
of Share Class
11/15/05
  1 Year     5 Years     Since
Inception
       
Return Before Taxes         -0.58%        15.91%      7.57%
       
Return After Taxes on Distributions         -2.44%        15.34%      6.31%
       
Return After Taxes on Distributions and Sale of Fund Shares         -0.17%        12.62%      5.59%
       
Russell 3000® Value Index
(reflects no deduction for fees, expenses or taxes)
        12.70%        15.34%      7.48%
       
Class C Shares   7/24/07   2.64%    

16.32%

   

5.19%

       
Russell 3000® Value Index
(reflects no deduction for fees, expenses or taxes)
        12.70%        15.34%      5.32%
       
Class K Shares   1/3/07   3.90%    

16.63%

   

5.95%

       
Russell 3000® Value Index
(reflects no deduction for fees, expenses or taxes)
        12.70%        15.34%      5.60%
       
Class Y Shares   5/1/07   4.72%    

17.23%

   

6.14%

       
Russell 3000® Value Index
(reflects no deduction for fees, expenses or taxes)
        12.70%        15.34%      5.14%

After-tax returns are shown for Class A shares only; after-tax returns for other classes will vary. 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 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.

 

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RS INVESTORS FUND

 

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

RS Investors Fund is team-managed by members of the RS Value Team. The following list comprises five members of the investment team with responsibility for the day-to-day management of the Fund: Joseph M. Mainelli (with RS Investments since 2007) and Byron E. Penstock, CFA (with RS Investments since 2004) each of whom has been a member of the Fund’s investment team since 2013; and Paul Hamilos, CFA (with RS Investments since 2011), Robert J. Harris (with RS Investments since 2005), and Daniel Lang, M.D. (with RS Investments since 2009) each of whom has been a member of the Fund’s investment team since 2014.

Purchase and Sale of Fund Shares

 

Investment Minimums   Class A     Class C     Class K     Class Y  
       
Minimum Initial Investment   $ 2,500      $ 2,500      $ 1,000        None   
       
Minimum Subsequent Investments   $ 100      $ 100        None      $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic

investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Investors Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

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RS GLOBAL NATURAL RESOURCES FUND

 

RS Global Natural Resources Fund

 

Investment Objective

Long-term capital appreciation.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class K      Class Y  
       
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None         None   
       
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None         None   
           

Annual Fund Operating Expenses

(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)

  

  

Share Class    Class A      Class C      Class K      Class Y  
       
Management Fees      1.00%         1.00%         1.00%         1.00%   
       
Distribution (12b-1) Fees      0.25%         1.00%         0.65%         N/A   
       
Other Expenses      0.23%         0.24%         0.20%         0.14%   
       
Total Annual Fund Operating Expenses3      1.48%         2.24%         1.85%         1.14%   
       
Fee Waiver/Expense Reimbursement3      0.00%         0.00%         0.00%         0.00%   
       
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement3      1.48%         2.24%         1.85%         1.14%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.48% for Class A shares, 2.28% for Class C shares, 1.86% for Class K shares, and 1.15% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

    Class A     Class C     Class K      Class Y  
1 Year   $ 618      $ 327      $ 188       $ 116   
3 Years   $ 921      $ 700      $ 582       $ 362   
5 Years   $ 1,245      $ 1,200      $ 1,001       $ 628   
10 Years   $ 2,159      $ 2,575      $ 2,169       $ 1,386   

Assuming No Redemption

 

    Class A     Class C     Class K      Class Y  
1 Year   $ 618      $ 227      $ 188       $ 116   
3 Years   $ 921      $ 700      $ 582       $ 362   
5 Years   $ 1,245      $ 1,200      $ 1,001       $ 628   
10 Years   $ 2,159      $ 2,575      $ 2,169       $ 1,386   

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 34% of the average value of its portfolio.

 

 

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RS GLOBAL NATURAL RESOURCES FUND

 

Investments, Risks, and Performance

Principal Investment Strategies

The Fund normally invests at least 80% of its net assets in securities of companies that the Fund’s investment team considers to be principally engaged in natural resources industries. The Fund may invest in securities of issuers located anywhere in the world and normally will invest in securities of companies located in at least three countries, which may include the United States. The Fund will likely hold a more limited number of securities than many other mutual funds. The Fund’s investment team currently expects that the Fund typically will hold between 20 and 30 securities positions.

In evaluating investments for the Fund, the Fund’s investment team conducts fundamental analysis focused on the following factors: supply cost curve of a given commodity, asset location along that curve to identify “advantaged assets,” inventory of future projects which provide the basis for future value creation, management team quality to determine capital allocation discipline and history of value creation, and country risk. “Advantaged assets” are the low cost producers of a given commodity that the investment team believes offer a competitive advantage in the form of achieving higher returns on capital relative to their cost of capital and the returns of other producers.

The Fund’s investment team believes that investments in the securities of advantaged producers run by capable management teams can create value for long-term investors independent of commodity prices. Valuation is an important part of the investment process. The Fund’s investment team seeks to purchase interests in companies with these characteristics when the investment team believes the price reflects a limited possibility of permanent capital impairment.

The Fund’s investment team seeks to identify companies that have the potential to provide favorable long-term investment performance in any of the natural resources industries over a commodity price cycle. The Fund may invest in companies of any size, although it is likely that many of the companies offering the most attractive long-term returns will be smaller and medium-sized companies. The Fund’s investment team does not attempt to replicate within the Fund’s portfolio the commodity exposures of broad natural resources equity indices or to replicate or approximate any index return. As a result, the representations of the various natural resources equity industries in the Fund’s portfolio will likely differ significantly from the representations of those same industries in any one or more natural resources equity indices, and the Fund’s investment performance will likely differ, at times substantially, from that of such indices.

Companies in natural resources industries include companies that the Fund’s investment team considers to be principally engaged in the discovery, development, production, or distribution of natural resources; the development of technologies for the production or efficient use of natural resources; or the furnishing of related supplies or services. Natural resources may include, for example, energy sources, precious and other metals, forest products, real estate, food and agriculture, and other basic commodities.

A particular company will be considered to be principally engaged in natural resources industries if at the time of investment at least 50% of the company’s assets, gross income, cash flow, or net profits is, in the Fund’s investment team’s judgment, committed to, or derived from, those industries. A company will also be considered to be principally engaged in natural resources industries if the Fund’s investment team believes that the company has the potential for capital appreciation primarily as a result of particular products, technology, patents, or other market advantages in natural resources industries.

The Fund may at times, but will not necessarily, hold a substantial portion of its assets in cash and cash equivalents.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in value style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

 

>  

Natural Resources Investment Risk

Investment in companies in natural resources industries can be significantly affected by (often rapid) changes in supply of, or demand for, various natural resources. They may also be affected by changes in energy prices, international political and economic developments, environmental incidents, energy conservation, the success of exploration projects, changes in commodity prices, and tax and other government regulations. Investments in interests in oil, gas or mineral exploration or development programs, including pipelines, may be held through master limited partnerships (“MLPs”), which are generally subject to many of the risks that apply to partnerships and may also be subject to certain tax risks.

 

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Concentration Risk

Concentrating investments in the natural resources sector increases the risk of loss because the stocks of many or all of the companies in the sector may decline in value due to developments adversely affecting the sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the natural resources sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together

 

 

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RS GLOBAL NATURAL RESOURCES FUND

 

with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

>  

Currency Risk

Investments in foreign securities are often denominated and traded in foreign currencies. The value of the Fund’s assets may be affected favorably or unfavorably by currency exchange rates, currency exchange control regulations, and restrictions or prohibitions on the repatriation of foreign currencies. To attempt to protect against changes in currency exchange rates, the Fund may, but will not necessarily, engage in forward foreign-currency exchange transactions. The use of foreign exchange transactions to reduce foreign-currency exposure can eliminate some or all of the benefit of an increase in the value of a foreign currency versus the U.S. dollar.

 

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5, and 10 years and since inception compare with those of a broad measure of market performance and one or more other measures of performance that are specific to the Fund’s investment strategy. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Third Quarter 2005  28.74%            Worst Quarter  Third Quarter 2008  -34.23%

Average Annual Total Returns (PERIODS ENDED 12/31/14)

 

           
Class A Shares   Inception Date
of Share Class
11/15/95
  1 Year     5 Years     10 Years     Since
Inception
 
         
Return Before Taxes         -26.51%        -2.04%        3.83%        7.40%   
         
Return After Taxes on Distributions         -28.06%        -2.70%        2.83%        6.73%   
         
Return After Taxes on Distributions and Sale of Fund Shares         -13.95%        -1.55%        3.09%        6.27%   
         
MSCI World Commodity Producers Index (Gross)
(reflects no deduction for fees, expenses or taxes)
        -12.10%        0.33%        5.81%        N/A1   
         
S&P North American Natural Resources Sector Index
(reflects no deduction for fees, expenses or taxes)
        -9.77%        4.28%        7.65%        N/A1   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%        7.67%        8.71%   
           
Class C Shares   5/1/07   -24.11%    

-1.82%

       

-2.57%

 
         
MSCI World Commodity Producers Index (Gross)
(reflects no deduction for fees, expenses or taxes)
        -12.10%        0.33%               0.38%   
         
S&P North American Natural Resources Sector Index
(reflects no deduction for fees, expenses or taxes)
        -9.77%        4.28%               2.35%   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%               6.62%   

 

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RS GLOBAL NATURAL RESOURCES FUND

 

           
     Inception Date
of Share Class
  1 Year     5 Years     10 Years     Since
Inception
 
Class K Shares   12/4/06   -23.12%    

-1.48%

       

-1.11%

 
         
MSCI World Commodity Producers Index (Gross)
(reflects no deduction for fees, expenses or taxes)
        -12.10%        0.33%               1.28%   
         
S&P North American Natural Resources Sector Index
(reflects no deduction for fees, expenses or taxes)
        -9.77%        4.28%               3.01%   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%               7.08%   
       
Class Y Shares   5/1/07   -22.56%    

-0.75%

       

-1.47%

 
         
MSCI World Commodity Producers Index (Gross)
(reflects no deduction for fees, expenses or taxes)
        -12.10%        0.33%               0.38%   
         
S&P North American Natural Resources Sector Index
(reflects no deduction for fees, expenses or taxes)
        -9.77%        4.28%               2.35%   
         
S&P 500® Index
(reflects no deduction for fees, expenses or taxes)
        13.69%        15.45%               6.62%   
1  

No since inception performance returns are shown for Class A shares because the inception date of the Class A shares was prior to the inception date of the MSCI World Commodity Producers Index (Gross) and the S&P North American Natural Resources Sector Index.

After-tax returns are shown for Class A shares only; after-tax returns for other classes will vary. 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 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.

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC (“RS Investments”)

Investment Sub-Adviser

SailingStone Capital Partners LLC (“SailingStone”)

Investment Team

RS Global Natural Resources Fund is team-managed by investment personnel at SailingStone. The members of the team that are primarily responsible for the day-to-day management of the Fund are MacKenzie B. Davis, CFA, a member of the Fund’s investment team since 2005, and Kenneth L. Settles Jr., CFA, a member of the Fund’s investment team since 2007.

Purchase and Sale of Fund Shares

 

Investment Minimums   Class A     Class C     Class K     Class Y  
       
Minimum Initial Investment   $ 2,500      $ 2,500      $ 1,000        None   
       
Minimum Subsequent Investments   $ 100      $ 100        None      $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic investment plans, and qualified retirement plans. A $25 minimum

initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Global Natural Resources Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

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RS SMALL CAP GROWTH FUND

 

RS Small Cap Growth Fund

 

Investment Objective

Long-term capital growth.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class K      Class Y  
       
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None         None   
       
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None         None   
           
Annual Fund Operating Expenses
(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
    
Share Class    Class A      Class C      Class K      Class Y  
       
Management Fees      0.95%         0.95%         0.95%         0.95%   
       
Distribution (12b-1) Fees      0.25%         1.00%         0.65%         N/A   
       
Other Expenses      0.22%         0.34%         0.28%         0.18%   
       
Total Annual Fund Operating Expenses3      1.42%         2.29%         1.88%         1.13%   
       
Fee Waiver/Expense Reimbursement3      -0.02%         -0.13%         -0.02%         0.00%   
       
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement3      1.40%         2.16%         1.86%         1.13%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.40% for Class A shares, 2.16% for Class C shares, 1.86% for Class K shares, and 1.13% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 611      $ 319      $ 189      $ 115   
3 Years   $ 901      $ 703      $ 589      $ 359   
5 Years   $ 1,213      $ 1,213      $ 1,014      $ 622   
10 Years   $ 2,094      $ 2,616      $ 2,199      $ 1,375   
 

 

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RS SMALL CAP GROWTH FUND

 

Assuming No Redemption

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 611      $ 219      $ 189      $ 115   
3 Years   $ 901      $ 703      $ 589      $ 359   
5 Years   $ 1,213      $ 1,213      $ 1,014      $ 622   
10 Years   $ 2,094      $ 2,616      $ 2,199      $ 1,375   

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 104% of the average value of its portfolio.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund normally invests at least 80% of its net assets in small-capitalization companies. The Fund’s investment team currently considers a company to be a small-capitalization company if its market capitalization (at the time of purchase) is either up to $3 billion or 120% of the market capitalization of the largest company included in the Russell 2000® Index on the last day of the most recent quarter (currently, approximately $9.0 billion, based on the size of the largest company in the Index on March 31, 2015), whichever is greater. The Fund typically invests most of its assets in equity securities of U.S. companies but may also invest any portion of its assets in foreign securities.

The Fund’s investment team employs both fundamental analysis and quantitative screening in seeking to identify companies that the investment team believes will produce sustainable earnings growth over a multi-year horizon. Investment candidates typically exhibit some or all of the following key criteria: strong organic revenue growth, expanding margins and profitability, innovative products or services, defensible competitive advantages, growing market share, and experienced management teams. The investment team seeks to categorize each potential investment based on its view of a company’s stage of development on a spectrum that identifies companies as promising, developing, or proven. Valuation is an integral part of the growth investment process. Purchase decisions are based on the investment team’s expectation of the potential reward relative to risk of each security based in part on the investment team’s proprietary earnings calculations.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in growth style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

>  

Small Companies Risk

Small companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s benchmark increases the risk that the Fund will underperform its benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s benchmark.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

>  

Portfolio Turnover Risk

Frequent purchases and sales of portfolio securities may result in higher Fund expenses and may result in more significant distributions of short-term capital gains to investors, which are taxed as ordinary income. In recent periods, the Fund has experienced annual portfolio turnover in excess of 100% and will likely experience high portfolio turnover rates in the future.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

 

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RS SMALL CAP GROWTH FUND

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5, and 10 years and since inception compare with those of a broad measure of market performance. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Second Quarter 2009  18.99%            Worst Quarter  Fourth Quarter 2008  -25.39%

Average Annual Total Returns (PERIODS ENDED 12/31/14)

 

           
Class A Shares    Inception Date
of Share Class
11/30/87
  1 Year     5 Years     10 Years     Since
Inception
 
         
Return Before Taxes          4.16%        17.35%        8.42%        13.59%   
         
Return After Taxes on Distributions          2.53%        16.42%        7.99%        12.08%   
         
Return After Taxes on Distributions and Sale of Fund Shares          3.37%        13.92%        6.81%        11.31%   
         
Russell 2000® Growth Index
(reflects no deduction for fees, expenses or taxes)
         5.60%        16.80%        8.54%        9.15%   
           
Class C Shares    9/6/07  

7.52%

   

17.28%

   

   

7.81%

 
         
Russell 2000® Growth Index
(reflects no deduction for fees, expenses or taxes)
         5.60%        16.80%               8.38%   
           
Class K Shares    1/22/07  

8.86%

   

17.87%

   

   

9.40%

 
         
Russell 2000® Growth Index
(reflects no deduction for fees, expenses or taxes)
         5.60%        16.80%               8.72%   
           
Class Y Shares    5/1/07   9.65%    

18.88%

       

10.01%

 
         
Russell 2000® Growth Index
(reflects no deduction for fees, expenses or taxes)
         5.60%        16.80%               8.17%   

After-tax returns are shown for Class A shares only; after-tax returns for other classes will vary. 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 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.

 

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RS SMALL CAP GROWTH FUND

 

 

Management of the Fund

Investment Adviser

RS Investment Management Co. LLC

Investment Team

Stephen J. Bishop, Melissa Chadwick-Dunn, and D. Scott Tracy, CFA have each been a co-portfolio manager and analyst of the Fund since 2007. Christopher W. Clark, CFA has been a co-portfolio manager of the Fund since 2014 and an analyst of the Fund since 2007.

Purchase and Sale of Fund Shares

The Fund is currently offered only to certain investors. See “Other Information About Purchasing Shares” on page 129 of the Fund’s Prospectus.

 

Investment Minimums   Class A     Class C     Class K     Class Y  
       
Minimum Initial Investment   $ 2,500      $ 2,500      $ 1,000        None   
       
Minimum Subsequent Investments   $ 100      $ 100        None      $ 100   

A $1,000 minimum purchase amount and a $100 minimum subsequent purchase amount apply for Individual Retirement Accounts (IRAs), gift/transfer to minor accounts, automatic investment plans, and qualified retirement plans. A $25 minimum initial and subsequent purchase amount applies for payroll deduction accounts.

You may redeem your shares on any business day when the New York Stock Exchange is open by mail (Boston Financial Data Services, RS Small Cap Growth Fund, P.O. Box 219717, Kansas City, MO 64121-9717), by telephone (800.766.3863), or online (www.rsinvestments.com).

Tax Information

Fund distributions are generally taxable to you as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account, in which case you will generally be taxed only upon withdrawal of monies from the arrangement.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.

 

 

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RS SELECT GROWTH FUND

 

RS Select Growth Fund

 

Investment Objective

Long-term capital growth.

Fees and Expenses of the Fund

The tables below describe the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts for the purchase of Class A shares if you

and your family invest, or agree to invest in the future, at least $50,000 in RS Funds. More information about these and other discounts is available from your financial professional and in the “Types of Shares Available — Class A Shares” section on page 124 of the Fund’s Prospectus and the “Waivers of Certain Sales Loads” section on page 47 of the Fund’s Statement of Additional Information.

 

 

Shareholder Fees (FEES PAID DIRECTLY FROM YOUR INVESTMENT)

 

Share Class    Class A      Class C      Class K      Class Y  
       
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
     4.75%         None         None         None   
       
Maximum Deferred Sales Charge (Load) (as a percentage of the lower of sale proceeds or the original offering price)      None1         1.00%2         None         None   
           
Annual Fund Operating Expenses
(EXPENSES ARE DEDUCTED FROM FUND ASSETS AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS)
    
Share Class    Class A      Class C      Class K      Class Y  
       
Management Fees      1.00%         1.00%         1.00%         1.00%   
       
Distribution (12b-1) Fees      0.25%         1.00%         0.65%         N/A   
       
Other Expenses      0.18%         0.25%         0.32%         0.18%   
       
Total Annual Fund Operating Expenses3      1.43%         2.25%         1.97%         1.18%   
       
Fee Waiver/Expense Reimbursement3      -0.03%         -0.07%         -0.06%         -0.04%   
       
Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement3      1.40%         2.18%         1.91%         1.14%   
1   Deferred sales load of 1.00% applies to purchases of $1 million or more of Class A shares if these shares are sold within 18 months of purchase.

 

2   Deferred sales load applies for shares sold within one year of purchase.

 

3   RS Investments has contractually agreed to pay or reimburse the Fund’s expenses (excluding expenses indirectly incurred by the Fund through investments in pooled investment vehicles, interest, taxes, investment-related expenses (e.g., brokerage commissions), and extraordinary expenses), to the extent necessary to limit Total Annual Fund Operating Expenses to 1.40% for Class A shares, 2.18% for Class C shares, 1.91% for Class K shares, and 1.14% for Class Y shares. This expense limitation will continue through April 30, 2016 and cannot be terminated by RS Investments prior to that date without the action or consent of the Fund’s Board of Trustees.

 

Example

This Example is intended to help you compare the cost of investing in the Fund with the costs of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. This Example also assumes that your investment earns a 5% return each year and that the Fund’s operating expenses remain the same as shown above. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:

Assuming Redemption at End of Period

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 611      $ 321      $ 194      $ 116   
3 Years   $ 903      $ 697      $ 613      $ 371   
5 Years   $ 1,217      $ 1,199      $ 1,057      $ 645   
10 Years   $ 2,104      $ 2,580      $ 2,291      $ 1,428   
 

 

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RS SELECT GROWTH FUND

 

Assuming No Redemption

 

    Class A     Class C     Class K     Class Y  
1 Year   $ 611      $ 221      $ 194      $ 116   
3 Years   $ 903      $ 697      $ 613      $ 371   
5 Years   $ 1,217      $ 1,199      $ 1,057      $ 645   
10 Years   $ 2,104      $ 2,580      $ 2,291      $ 1,428   

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 for you if your Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 96% of the average value of its portfolio.

Investments, Risks, and Performance

Principal Investment Strategies

The Fund typically invests in a portfolio of small- and mid-capitalization growth-oriented companies. The Fund typically invests most of its assets in equity securities of U.S. companies but may also invest any portion of its assets in foreign securities.

The Fund invests principally in equity securities of companies with market capitalizations (at the time of purchase) of either up to $8 billion or 120% of the market capitalization of the largest company included in the Russell 2500® Index on the last day of the most recent quarter (currently, approximately $31.1 billion, based on the size of the largest company in the Index on March 31, 2015), whichever is greater. The Fund may hold investments in companies whose market capitalizations fall outside the preceding parameters due to changes in values of those companies after the Fund’s purchase of their securities.

The Fund’s investment team employs both fundamental analysis and quantitative screening in seeking to identify companies that the investment team believes will produce sustainable earnings growth over a multi-year horizon. Investment candidates typically exhibit some or all of the following key criteria: strong organic revenue growth, expanding margins and profitability, innovative products or services, defensible competitive advantages, growing market share, and experienced management teams. Valuation is an integral part of the investment process and purchase decisions are based on the investment team’s expectation of the potential reward relative to risk of each security based in part on the investment team’s proprietary earnings calculations.

Principal Risks

You may lose money by investing in the Fund. The Fund may not achieve its investment objective. The principal risks of investing in the Fund, which could adversely affect its net asset value and total return, are as follows.

 

>  

Equity Securities Risk

The value of a company’s stock may decline in response to factors affecting that particular company or stock markets generally.

 

>  

Investment Style Risk

A mutual fund investing principally in growth style stocks may at times underperform other mutual funds that invest more broadly or that have different investment styles.

 

>  

Small and Mid-sized Companies Risk

Small and mid-sized companies may be subject to a number of risks not associated with larger, more established companies, potentially making their stock prices more volatile and increasing the risk of loss.

>  

Limited Portfolio Risk

To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

>  

Overweighting Risk

Overweighting investments in companies relative to the Fund’s primary benchmark increases the risk that the Fund will underperform its primary benchmark because a general decline in the prices of stocks in such companies will affect the Fund to a greater extent than its primary benchmark.

 

>  

Underweighting Risk

When the Fund underweights its investment in companies relative to the Fund’s primary benchmark, the Fund will participate in any general increase in the value of such companies to a lesser extent than the Fund’s primary benchmark.

 

>  

Focused Investment Risk

Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries) increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to developments adversely affecting the market or sector. In addition, investors may buy or sell substantial amounts of the Fund’s shares in response to factors affecting or expected to affect the particular market or sector, resulting in extreme inflows and outflows of cash into and out of the Fund. Such inflows or outflows might affect management of the Fund adversely to the extent they were to cause the Fund’s cash position or cash requirements to exceed normal levels.

 

>  

Portfolio Turnover Risk

Frequent purchases and sales of portfolio securities may result in higher Fund expenses and may result in more significant distributions of short-term capital gains to investors, which are taxed as ordinary income. In recent periods, the Fund has experienced annual portfolio turnover in excess of 100% and will likely experience high portfolio turnover rates in the future.

 

>  

Cash Position Risk

To the extent the Fund holds assets in cash and cash equivalents, the ability of the Fund to meet its objective may be limited.

 

>  

Liquidity Risk

Lack of a ready market or restrictions on resale may limit the ability of the Fund to sell a security at an advantageous time or price. Adverse market or economic conditions may adversely affect the liquidity of the Fund’s investments and may lead to increased redemptions. In addition, the Fund, by itself or together with other accounts managed by RS Investments may hold a position in a security that is large relative to the typical trading volume for that security, which can make it difficult for the Fund to dispose of the position at an advantageous time or price.

 

>  

Foreign Securities Risk

Foreign securities are subject to political, regulatory, and economic risks not present in domestic investments. In addition, when the Fund buys securities denominated in a foreign currency, there are special risks such as changes in currency exchange rates and the risk that a foreign government could regulate foreign exchange transactions. In addition, to the extent investments are made in a limited number of countries, events in those countries will have a more significant impact on the Fund.

 

 

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RS SELECT GROWTH FUND

Fund Performance

The bar chart and performance table provide some indication of the risks of investing in the Fund by showing changes in the Fund’s performance from year to year and by showing how the Fund’s average annual returns for 1, 5, and 10 years and since inception compare with those of two broad measures of market performance. The returns in the bar chart do not reflect the impact of sales loads. If they did, the returns would be lower than those shown. Prior to May 1, 2007, the Fund was known as “RS Diversified Growth Fund”. Since May 1, 2007, the Fund has been managed by a different investment team and it has generally invested in a portfolio of fewer stocks than previously. The Fund’s past performance (before and after taxes) is not an indication of future performance. Updated performance information for the Fund is available at www.rsinvestments.com or by calling 800.766.3863.

Annual Total Return for Class A Shares (CALENDAR YEAR-END)

 

LOGO

Best Quarter  Third Quarter 2009  18.08%            Worst Quarter  Fourth Quarter 2008  -25.49%

Average Annual Total Returns (PERIODS ENDED 12/31/14)

 

           
Class A Shares    Inception Date
of Share Class
8/1/96
  1 Year     5 Years     10 Years     Since
Inception
 
         
Return Before Taxes          -3.65%        16.88%        7.89%        11.37%   
         
Return After Taxes on Distributions          -4.92%        16.48%        7.71%        10.37%   
         
Return After Taxes on Distributions and Sale of Fund Shares          -1.39%        13.63%        6.41%        9.28%   
         
Russell 2500® Growth Index
(reflects no deduction for fees, expenses or taxes)
         7.05%        17.27%        9.37%        8.47%   
         
Russell 2000® Growth Index
(reflects no deduction for fees, expenses or taxes)
         5.60%        16.80%        8.54%        6.96%   
           
Class C Shares    11/15/07   -0.56%     16.97%         7.88%  
         
Russell 2500® Growth Index
(reflects no deduction for fees, expenses or taxes)
         7.05%        17.27%               9.05%   
         
Russell 2000® Growth Index
(reflects no deduction for fees, expenses or taxes)
         5.60%        16.80%               8.68%   
           
Class K Shares    2/12/07  

0.78%

   

17.21%

       

8.61%

 
         
Russell 2500® Growth Index
(reflects no deduction for fees, expenses or taxes)