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. The portfolio is typically fairly concentrated, with assets usually invested in 40 to 50 names.

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 09/30/08  On 06/30/08 Healthcare 20.4% 19.0% Financials 17.3% 15.0% Industrials 15.5% 17.6% Information technology  15.1%  14.9% Energy  9.9%  12.2% Materials  5.9% 5.5% Consumer Staples  3.8%  3.0% Utilities  3.5%  5.7% Consumer Discretionary   2.8%  3.2% Telecommunications services  1.7%  1.5% Cash Equivalents  4.1%  2.4% Total 100% 100%

Value Fund Top Ten Holdings
% of Total Investment at 09/30/08 Abbott Laboratories 3.9% JPMorgan Chase & Co. 3.6% Pfizer Inc. 3.5% Cisco Systems, Inc. 3.0% Bristol-Myers Squibb Co. 3.0% Marathon Oil Corp. 2.9% Parker-Hannifin Corp. 2.9% ConocoPhillips 2.8% Chevron Corp. 2.8% Hewlett-Packard Co. 2.8% Total 31.2%

Fund assets on 12/31/08

$417,181,000

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 2008 Earnings Distributions
Distribution Type Declaration Date $/Per Share Ordinary Income 06/30/08 $0.2666 Ordinary Income 12/31/08 $0.3283

Value Fund 2007 Earnings Distributions
Distribution Type Declaration Date $/Per Share Ordinary Income 06/29/07 $0.5198 Ordinary Income 12/31/07 $0.3145 Short Term Capital Gains 12/31/07 $0.0027 Long Term Capital Gains 12/31/07 $0.8277

Share Price History

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

Value Fund Share Price History

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Year End $26.50 $23.53 $23.38 $25.50 $22.24 $27.52 $30.44 $32.78 $35.94 $35.48 $22.03 Year High $28.94 $30.61 $25.78 $27.78 $27.10 $27.81 $31.42 $33.98 $38.61 $40.55 $34.99 Year Low $23.25 $23.53 $20.07 $22.40 $19.52 $19.36 $26.92 $29.26 $33.32 $35.33 $18.44