Distributed by Quasar Distributors, LLC Empiric Core Equity Fund December 31 st , 2007 Mutual Fund Investing Involves Risk. Principal loss is possible. The Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility, and differences in accounting methods. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund’s use of derivative instruments involves the risk that such instruments may not work as intended due to unanticipated developments in market conditions or other causes. Derivatives often involve the risk that the other party to the transaction will be unable to close out the position at any particular time or at an acceptable price. When a Fund uses certain types of derivative instruments for investment purposes, it could lose more than the original cost of the investment and its potential loss could be unlimited. The presentation will speak about Growth and Value stocks in the presentation. Please keep in mind that Growth stocks typically are more volatile than Value stocks; however, Value stocks have a lower expected growth rate in earnings and sales.
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Distributed by Quasar Distributors, LLC Empiric Core Equity Fund December 31 st, 2007 Mutual Fund Investing Involves Risk. Principal loss is possible.
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Distributed by Quasar Distributors, LLC
Empiric Core Equity FundDecember 31st, 2007
Mutual Fund Investing Involves Risk. Principal loss is possible. The Fund invests in smaller companies, which involve additional risks such as limited liquidity and greater volatility. The Fund invests in foreign securities which involve political, economic and currency risks, greater volatility, and differences in accounting methods. The Fund is non-diversified, meaning it may concentrate its assets in fewer individual holdings than a diversified fund. Therefore, the Fund is more exposed to individual stock volatility than a diversified fund. The Fund’s use of derivative instruments involves the risk that such instruments may not work as intended due to unanticipated developments in market conditions or other causes. Derivatives often involve the risk that the other party to the transaction will be unable to close out the position at any particular time or at an acceptable price. When a Fund uses certain types of derivative instruments for investment purposes, it could lose more than the original cost of the investment and its potential loss could be unlimited.
The presentation will speak about Growth and Value stocks in the presentation. Please keep in mind that Growth stocks typically are more volatile than Value stocks; however, Value stocks have a lower expected growth rate in earnings and sales.
Investment Performance Results – As of 12/31/07Average Annual Performance Core Equity Core Equity S&P 5002 Russell 20002
as of 12/31/07 Class A1 Class A1
Load Waived
Larger Stocks Smaller Stocks
Last 3 months 0.93 1.76 -3.33 -4.58
Last 6 months 2.64 3.48 -1.37 -7.53
Last 1 Year 8.43 15.04 5.49 -1.57
Last 3 Years 10.53 12.74 8.62 6.80
Last 5 Years 22.29 23.75 12.83 16.25
Last 10 Years 9.08 9.73 5.91 7.08
Since Inception – Class A shares (11/06/95)
12.88 13.43 11.72 9.36
Gross Expense Ratio 1.65
[1] The returns shown do not reflect the deduction of taxes that a shareholder may pay on fund distributions or the redemption of fund shares. [2] The Russell 2000 and S&P 500 are unmanaged indices widely recognized as representative of smaller and larger companies, respectively. Neither index bears transaction costs, nor management fees, and cannot be actually bought or sold. Class “C” Shares Available.
. . .
Shaded areas indicate highest relative performance.
Performance data quoted represents past performance: past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month may be obtained by calling 800-880-0234. Performance data shown for the Class A Shares reflects the Class A maximum sales charge of 5.75%. Performance data shown for the Class A Load Waived shares does not reflect the deduction of the sales load or fee. If reflected, the load or fee would reduce the performance quoted.
Empiric Core Equity Fund may be suitable for investors• Seeking Core Equity• Wanting Global Equity exposure• Wanting to complement income-oriented portfolios• Seeking total return v. style box approach• Seeking a disciplined, repeatable investment approach• Wanting to balance an indexed-biased portfolio with active
management• Who want their managers invested along with them
Short Experiment Rk (1.0) (0.3) 2.4 13.8 9.0 3.3 0.2
Source: Empiric Advisors as of 2/08/09
The above is a “slice” of the many models Empiric Advisors monitors for returns. Red text in the name indicates models for shorts and “Short Experiment Rk” is also a short model. Few models on the long side currently indicate positive returns.
• Continuous, Disciplined, and Repeatable process– Compare entire portfolio with universe of options daily
• Little emotional bias• No attention bias• No style-box limitations
– Buy based on:• Expected return next 12 months• Impact on return/risk profile of entire portfolio• Perform quick qualitative overlay by using sound judgment
and experience to validate the models– Sell based on:
• Price change of more than 20% in one day • Availability of more attractive opportunities• Perform quick qualitative overlay to validate the models
Portfolio Characteristics- Top Ten Holdingswith Percent of Assets (as of 12/31/07)
Cola-Cola Femsa ADR KOF 2.3%
Mosaic Co MOS 2.1%
Champion Enterprises Inc. CHB -2.1%
Veolia Environmental ADR VE 2.0%
CF Industries Holdings CF 1.8%
Diageo PLC ADR DEO 1.8%
Posco ADR POS 1.7%
Vodafone Group ADR VOD 1.6%
Amerco UHAL -1.6%
Agrium Inc. AGU 1.6%
Total 18.6%
Asset Allocation, fund holdings and portfolio industries are subject to change and are not recommendations to buy or sell any security. Shorts are totaled as positives.
Portfolio Characteristics- Top Ten Holdings with Percent of Assets (as of 02/08/08)
Cola-Cola Femsa ADR KOF 2.4%
Minas Buenaventa ADR BVN 2.1%
Veolia Environnement ADR VE 2.0%
Diageo ADR DEO 1.9%
Vodafone Group ADR VOD 1.8%
Syngenta ADR SYT 1.7%
Lockheed Martin LMT 1.7%
Wal-Mart Stores WMT 1.7%
Posco ADR PKX 1.7%
Norfolk Southern NSC 1.7%
Total 18.7%
Asset Allocation, fund holdings and portfolio industries are subject to change and are not recommendations to buy or sell any security. Shorts are totaled as positives.
• Sales Charge– Class A – 5.75% front-end (also available load-waived)– Class C – 1.00% deferred
• Expense Ratio– Class A – 1.66%– Class C – 2.41%
• The Fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 800-880-0324 or by visiting www.EmpiricFunds.com. Read it carefully before investing.
Lipper ratings for Total Return reflect funds' historical total return performance relative to peers as of December 31, 2007. Lipper ratings for Tax Efficiency reflect funds’ historical success in postponing taxable distributions relative to peers as of December 31, 2007. Tax Efficiency offers no benefit to investors in tax-sheltered accounts such as 401(k) plans. The Lipper ratings are subject to change every month and are based on an equal-weighted average of percentile ranks for the Total Return, Consistent Return, and Tax Efficiency metrics over three-, five-, and ten-year periods (if applicable). The highest 20% of funds in each peer group are named Lipper Leader or a score of 1, the next 20% receive a score of 2, the middle 20% receive are scored 3, the next 20% are scored 4, and the lowest 20% are scored 5. Empiric Core Equity Fund, in Lipper's Multi-Cap Value classification, received the following ratings for the overall, 3-, 5-, and 10-year periods, respectively: Total Return; Leader (332 funds), Leader (332), Leader (267 funds), and Leader (95 funds): Tax Efficiency (in the Multi-Cap Value class) 4 (332 funds), 3 (332), 4 (267 funds), and Leader (95 funds): Consistent Returns;4 (327), Leader (322), Leader (262), and 1 (93), Lipper ratings are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. More information is available at www.lipperweb.com. Lipper Leader Copyright 2007.
Alpha: A statistic that measures the difference between the fund’s actual returns and its expected performance, given its level of risk as measured by beta. The difference is expressed as an annual percentage.
Basis Points: One one-hundredth of a percent, used in measuring yield differences among bonds.
Beta: A statistic that measures the volatility of the fund, as compared to that of the overall market.
Sharpe Ratio: A ratio developed by Nobel laureate William F. Sharpe to measure risk-adjusted performance. It is calculated by subtracting the risk-free rate - such as that of the 90 day U.S. treasury bill - from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.
Risk-Free Rate of Return: The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.