Fund Descriptions
Value Fund

“This Fund typically invests in medium- and large-sized companies, and, as its name implies, we manage the Fund using a value approach,” says portfolio manager Stuart Teach. “Is this stock at this price a good value? To answer that question, we apply a battery of traditional fundamental tests to determine whether a stock is attractively priced. We look at current stock price relative to potential earnings power. We assess the company’s profitability relative to its peers. We also consider the company’s competitive position and management team.”

Stocks added to the portfolio tend to be long-term, buy-and-hold positions.

“We have to give the company time to experience a turnaround, and, while it’s our expectation that the stock will return to full and fair valuation within a reasonable time period, this doesn’t always occur,” says Mr. Teach.

Companies are eliminated from the portfolio when they no longer meet the portfolio managers’ valuation standards, which could happen as a result of the stock price being bid higher or because a new analysis of the company’s situation dims its attractiveness.

Performance

The tables below show the Fund’s average annual and year-to-date total returns for various holding periods compared to its benchmark index. An index is a collection of securities intended to represent some slice of the total securities market.

The bar chart shows the Fund's annual return in each of the last 10 years or for each year since the Fund's inception. This indicates how widely performance has varied year-by-year.

Value Fund Historical Annual Total Returns

The total returns shown above represent past performance which does not guarantee future results. Investment return and principal value of an investment will fluctuate. An investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted.

Portfolio Composition

The following two tables show how the Value Fund is diversified and what its top holdings are.

Value Fund Industry Diversification
On 12/31/11 Health care 22.2% Industrials 17.7% Information technology 17.5% Energy 17.3% Financials  7.7% Consumer discretionary   6.4% Materials  6.1% Consumer staples  3.9% Short-term and other assets  1.2% Total  100%

Value Fund Top Ten Holdings
% of Total Investment at 12/31/11 Bristol-Myers Squibb Co. 5.4% Intel Corp. 5.0% Pfizer Inc. 4.4% Abbott Laboratories 4.2% Chevron Corp. 3.9% Dow Chemical Co. (The) 3.7% Genuine Parts Co. 3.6% ConocoPhillips 3.5% Parker-Hannifin Corp. 3.5% Dell Inc. 3.5% Total 40.7%

Fund assets on 12/31/11

$540,772,000

Comparison of Growth

This line graph is a comparison of the change in value of a $10,000 investment in the Fund and the Standard & Poor’s 500 Stock Index.

Value Fund Growth of $10,000

The Value Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares.

Distributions

If this Fund has declared income or capital gains distributions in the current year, they will be listed in the table below.  See Track Earnings Distributions for the Fund's distribution schedule.

Value Fund 2012 Earnings Distributions
Distribution Type Declaration Date $/Per Share                  N/A N/A N/A

Value Fund 2011 Earnings Distributions
Distribution Type Declaration Date $/Per Share Ordinary Income 06/30/11 $0.2425 Ordinary Income 12/31/11 $0.2548

Share Price History

This table shows how widely the Fund’s share price has fluctuated over time.

Value Fund Share Price History

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year End $25.50 $22.24 $27.52 $30.44 $32.78 $35.94 $35.48 $22.03 $27.52 $30.70 $30.71 Year High $27.78 $27.10 $27.81 $31.42 $33.98 $38.61 $40.55 $34.99 $28.07 $30.90 $34.22 Year Low $22.40 $19.52 $19.36 $26.92 $29.26 $33.32 $35.33 $18.44 $16.15 $25.45 $26.08