Inside: Detailed reports on 10 of the very best mutual funds for the second half of 2007.

By Ian Wyatt, Editor-in-Chief

Amy Buttell Crane, Research Analyst
 Table of Contents
Champlain Small Company Adv. (CIPSX)
Dodge & Cox International Fund (DODFX)
Henderson Global Technology Fund (HFGAX)
Marsico 21st Century Fund (MXXIX)
Meridian Growth Fund (MERDX)
Muhlenkamp Fund (MUHLX)
Oberweis China Opportunities Fund (OBCHX)
Pax World Balanced Fund (PAXWX)
Perritt Emerging Opportunities Fund (PREOX)
T. Rowe Price Emerging Markets Stock (PRMSX)
Fund Comparison
M anagement is what makes or breaks a mutual fund. If the ten funds featured
in this special report possess one quality that distinguishes them from the
4,732 stock funds in the market today, it is superior management.
Let’s face it: if you’re going to bet on actively-managed funds, you’ve got to identify the
fund families and managers with staying power. Otherwise, you might as well buy
shares in an index fund or two and leave it at that. Many investors choose a strategy
that relies heavily on index funds, with additional exposure through mutual funds.
Following the success of our stock investment newsletters, we’re launching this mutu-
al fund report in the same spirit: to demystify the opaque world of mutual funds for
individual investors. Every few months, we’ll highlight exceptional funds that don’t
make it on to the radar screen of most financial advisors, publications and websites.
In selecting these funds, we trolled through the universe of actively managed funds
seeking funds with outstanding performance, experienced management teams, a
unique investment philosophy, a consistent strategy and time-tested stock selection and
portfolio management skills.
While some of the ten funds on our list are operating in hot sectors, we don’t expect
them to flame out once the market cools. Take Oberweis China Opportunities, for
example. As a new fund, just out of the gate, it benefited from the strong performance
of Chinese companies in 2007, posting a one-year average annual return of 72.26% as
of June 30, 2007.
The Oberweis fund family, founded by Jim Oberweis, operates all its funds based on
the same eight investing principles known as the “Oberweis Octagon.” As a single
country fund, we believe Oberweis China Opportunities will take shareholders on
a volatile, but ultimately profitable ride.
Two of the other funds in this report – Champlain Small Company Adv and Perritt
Emerging Opportunities – are also young funds with limited track records.
However, both, like Oberweis China Opportunities, are backed by strong management
with impressive track records at other funds and with privately-managed accounts.
Management at Champlain Small Company compiled an outstanding record at
Sentinel funds. Their strategies are showcased in this small-cap growth fund that pays
attention to company valuations and is one of the few in this space still open to new
investors.
Perritt Emerging Opportunities, a micro-cap – or in management’s words, a nano-cap
fund – focuses on the smallest publicly traded companies seeking those with expand-
ing profit margins, clean balance sheets and low debt. It’s an extension of a winning
formula that has worked for the fund’s sibling, Perritt Micro-cap fund, which is current-
ly closed to new investors.
Along with the emergence of China as a world economic power, other countries in the
developing world are benefiting from economic and political stability. Henderson
Global Technology Class A approaches technology investing from a global perspec-
tive. The fund’s tiny asset base gives it the flexibility to rapidly capitalize on investment
opportunities in both developing and emerging markets.
T. Rowe Price Emerging Markets Stock Fund takes a long-term approach to
Summer 2007
Released August 8, 2007
©2007, Business Financial Publishing, LLC - All Rights Reserved.
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investing in emerging markets and doesn’t follow the herd. Management, backed by a
deep bench of analysts working across the globe, finds sound investing opportunities
around the world from South America to Africa to former Soviet Republics such as
Kazakhstan.
Dodge and Cox International, on the other hand, trolls in more familiar waters using
its large-cap value approach to find suitable investment candidates in more developed
markets, although it does hold 15.5% of its portfolio in emerging markets. The firm’s
patient low turnover approach has bested the MSCI EAFE Index during the past one,
three and five-average annual report periods.
For socially responsible investors, we offer Pax World Balanced Fund, the only fund
holding both stocks and bonds as part of its investment mandate. Pax World Balanced
is the nation’s oldest socially responsible fund, selecting companies for inclusion in its
portfolio based on a fundamental series of social screens. During the long-term, the
fund has outperformed the S&P 500 despite the weight of its bond portfolio.
Marsico 21st Century Fund offers investors access to the growth-oriented strategies
of former Janus investment guru Tom Marsico in a more aggressive package than the
family’s five other funds. With a sizeable helping of mid- and small-cap as well as for-
eign companies, this fund leverages its top-down, bottom-up investing strategy as well
as its deep bench of managers and analysts.
The last two funds on our list are run by long-lasting boutique firms, the Muhlenkamp
and Meridian Growth funds. Muhlenkamp Fund, run by manager Ron
Muhlenkamp out of modest offices in a suburb of Pittsburgh, Penn., is one of the few
funds that successfully stakes its strategy on macro-economic calls. It’s a tough job, but
someone has to do it and Mulhenkamp’s track record during the past 20 years has
silenced most critics as he sidestepped the tech-wreck of the early part of the decade
and capitalized on the boom in housing-related stocks from 2002 to 2006.
Meridian Growth is a mid-cap growth fund managed by Richard Aster, a patient
investor seeking growth at a reasonable price. While Aster’s strategies haven’t always
produced sterling results in the short-term, this fund has proven itself over the long
haul. Like most of the managers of funds in this report, Aster has a significant stake in
his own management as the bulk of his personal savings are invested in this and the
two other funds he runs.
We hope that you enjoy this special report, our first publication dedicated to mutual
funds. In the next few weeks you can also expect to begin receiving our weekly
MutualsAdvisor.com e-mail newsletter, MutualsAdvisor.com Weekly – also free of charge.
You’ll receive insightful articles on mutual fund investing and the latest news on mutu-
al fund opportunities to help make your investment portfolio even more profitable.
We hope these mutual funds provide you with some new and fresh investment ideas
for your portfolio. We trust that you have the investing smarts to figure out the right
investment strategy for you given your investment goals and objectives. But the fund
world, with its thousands of choices, is confusing, so we try to shine a light in those
shadowed places to help you find outstanding funds worthy of your consideration.
Thanks again for turning to MutualsAdvisor.com as your trusted source for investment
research and information.
Champlain Small Company Adv. (CIPSX)
To evaluate whether a stock meets the high-quality growth company
Fund Type: Small Growth standard, the fund managers examine the strength of a company’s
Expense Ratio: 1.4% management team. They also prefer companies with a higher-than-
average return on equity, low debt and strong and consistent earn-
Min. Investment: $10,000 ings, revenue and cash flow growth. The fund generally invests in
Web: http://www.cipvt.com companies with a market capitalization of less than $2.5 billion.

Top 3 Holdings Also unusual for a fund investing in small companies, management
is committed to minimizing capital losses for investors in its funds.
Aptar Group, Inc. 2.52% Sentinel Fund, which Brayman managed previously, posted negative
Del Monte Foods Company 2.01% returns for only one year – a 14.1% loss in 2002 – of the eight full
Ventana Medical Systems 1.92% calendar years he managed that fund.

In a further effort to reduce losses, management avoids sectors that

it believes to be fully valued or overvalued, which is currently the

A
s one of the few small-cap growth funds with a good track case with the energy segment. In the fund’s most recent shareholder
record that is still open to new investors, Champlain Small report, Brayman described the energy sector as fully valued and
Company Adv. is in a sweet spot. If you’re interested in buy- noted that oil prices would need to reach $100/barrel for many ener-
ing shares, though, don’t wait too long – manager Scott Brayman, gy investments made by funds and institutions to fully pay off.
CFA, has stated his intention to close the fund when total assets of Management also considers many cyclical stocks to be overvalued in
the fund and privately managed accounts reach $1.5 billion. With a similar fashion to technology stocks in the early 2000s.
total assets approaching $1 billion in June, it likely won’t be very Radio
long Shack
before Brayman closes the fund to new investors. Instead, the managers are looking at companies in sectors it consid-
ers undervalued such as health care, industrials and technology.
While the fund itself has a short performance history – it was Consequently, the fund weights industrial (17.9%), information tech-
launched on Nov. 30, 2004 – Brayman and his team of four portfo- nology (16.3%), healthcare (15%) and financials (14.2%) and under-
lio managers established an excellent track record at Sentinel Small weights consumer staples, energy and materials.
Company, which they managed from November 1995 to September
2004. That fund out-performed both the Russell 2000 and the When deciding when to hold or sell a stock, management will gener-
Russell 2000 small-cap index during the nine years Brayman was at ally hold on to a company with strong fundamentals and good
the helm. prospects, even if that company experiences a weak quarter or two.
The fund will sell companies that it considers fully valued, as well as
Brayman’s team includes three other CFAs – chartered financial ana- companies that grow out of the small-cap arena. The fund’s portfo-
lysts, the most prestigious designation in the investment manage- lio turnover rate is 93%, higher than its peer group average of
ment business – and a fourth co-manager. Collectively, they have an 67.66%. Investors considering purchasing fund shares may wish to
average of 16 years of investment management experience. The do so in a tax-deferred account so as to minimize any adverse tax
strength of the management team means that if one manager leaves consequences associated with a higher-than-average turnover rate.
the fund, the remaining managers can easily pick up the slack.
The fund’s minimum investment amount is a higher-than-average
Unusual for a fund company, Champlain is employee owned. Fund $10,000. The expense ratio is 1.40%, just a hair below its small-cap
managers hold 60% of the company, while 40% is controlled by an growth peer group average of 1.48%.
outside partnership that supplied seed money to the firm to get start-
ed. That outside partnership plans to gradually sell its stake to the For investors who think there is continued upside to the U.S. econo-
firm’s partners, who will be 100% owners of the firm by 2010, my, owning shares in a small-cap growth fund as part of a diversified
according to fund analysts at Morningstar. portfolio makes a lot of sense. For those who are willing to pay up
the minimum $10,000 investment, Champlain Small Cap Growth
Unlike most small-cap growth funds, Champlain pays close attention Adv. represents one of the best opportunities available.
to company valuations. It is the stated intention of management to
invest in high-quality growth companies trading at or below their
intrinsic or fair value. To determine fair value, management performs
cash flow analysis, verifies the basic soundness of the company’s
fundamentals and examines the merger and acquisitions activity in
the sector.

3
Dodge & Cox International Fund (DODFX)
Fund Type: International Stock Besides the value approach, the firm and fund practice a buy-
and-hold investing philosophy. When purchasing a stock, the
Expense Ratio: 0.66% firm aims to hold it for three to five years. The fund's portfo-
lio turnover rate is 9%, compared with a 63.3% average
Min. Investment: $2,500 turnover rate for its international stock fund peers, according
Web: http://www.dodgeandcox.com to Standard & Poor's. A low portfolio turnover rate is associ-
ated with lower fund brokerage costs - which are passed on to
Top 3 Holdings fund investors - and increased tax efficiency for investors who
hold the fund in a taxable account.
Nokia 2.6%
Sanofi-Aventis 2.6% In terms of country weighting, the fund is more diversified
HSBC Holdings PLC 2.5% than the index, with a lower percentage of assets invested in
Europe and Japan and a higher percentage invested in Latin
America, the United States, Africa and Canada. It takes more

T
risk than the index, holding 15.5% of its portfolio in emerging
alk about a long and slow development pipeline - in its
markets, compared with none for the index.
77 year history, Dodge and Cox has launched a total of
four funds. Dodge and Cox International, launched in
Among countries categorized as emerging markets, the fund
May 2001, is the firm's newest fund. In the past six years, the
favors Brazil, Israel, South Africa, South Korea and Thailand,
fund has gathered an impressive $38 billion in assets and has,
among others. In terms of performance, the fund has bested
in Dodge and Cox's usual low-key manner, beaten the pants
the index during the past one-, three- and five-year periods.
off the competition.
Since inception, the fund has clobbered the EAFE Index by
6.57 percentage points on an average annual return basis.
You won't ever see a commercial touting Dodge and Cox, and
its management has no plans to advertise. Ever. Dodge and
Despite its red-hot performance history - or perhaps because
Cox has achieved its success based strictly on its merits. So
of it - the firm is taking steps to caution investors to have
successful is this boutique firm that two of its funds - Dodge
"realistic expectations" in regard to the fund's performance
and Cox Stock and Cox Balanced - are now closed to new
going forward, describing the returns of the past five years as
investors.
"exceptional." Truth be told, there aren't many fund compa-
nies that seek to dampen or actively discourage speculative
The firm takes a team investment approach. Talent is recruit-
investments based on past returns - just one more way that
ed right out of college or grad school and trained in house.
Dodge & Cox stands out from its peers.
Firm-wide, the investment philosophy and strategies are
shaped by a nine-member investment policy committee. Then
Low costs are another hallmark of Dodge and Cox. The firm,
each asset fund has its own investment policy committee. With
resolutely independent, keeps its expense ratio as low as possi-
deep talent on each team, the loss of any one individual team
ble. The fund currently boasts an expense ratio of 0.66, com-
member - which happens rarely at Dodge and Cox -- doesn't
pared with the average international fund's expense ratio of
affect the function or performance of a fund.
1.64% in 2007, according to Standard and Poor's. Morningstar
rates the fund's stewardship as outstanding, particularly in the
The International fund is guided by nine team members with
area of its board of directors, which boasts a majority of inde-
an average tenure at the company of 17 years - backed by a
pendent versus inside directors.
growing team of analysts. The firm's investment philosophy
has a value bias, which is reflected in its average portfolio
A cautious and low-key fund family, Dodge and Cox isn't like-
price-to-earnings ratio, which is 13.5 in comparison with the
ly to launch any new funds soon. Management is also not shy
14.1 average P/E ratio of the MSCI EAFE index, which rep-
when it comes to closing funds - two of this fund's siblings,
resents the developed markets outside of North America.
Dodge and Cox Stock and Dodge and Cox Balanced, are
closed. So if you're interested in this fund, don't wait too long
Dodge and Cox International takes a much more focused
to do your due diligence.
approach to international investing than the index; the fund
held 85 companies as of March 31, compared with 1,157 for
the index. The fund's bias is toward larger-cap companies; its
median market cap is $16 billion, versus $6 billion for the
index.

4
Henderson Global Technology Fund (HFGAX)
Fund Type: Specialty Technology
Expense Ratio: 1.99%
Min. Investment: $500
Web: http://www.henderson.com
Top 3 Holdings
Commscope Inc. 3.88%
Nokia 3.31%
NHN Corp. 3.16%
I
t’s not too often that you get the resources of an established fund fam-
ily in a small package. But Henderson Global Technology Fund, a six-
year-old fund, provides just such an opportunity. One of seven funds
managed by London-based Henderson Global Investors, the fund has
only $73 million in assets, but is backed by a far-flung global research team
and two experienced portfolio managers.
Founded in 1934, the fund advisor manages a total of $121.2 billion in
stock and bond mutual funds and privately managed accounts. While the
bulk of the fund’s assets are invested in companies based in the United
States, its global mandate gives it the freedom to invest around the world.
As the economy – particularly the technologically based economy –
becomes more global, manager Stuart O’Gorman expects to find more
technological innovation overseas.
Just as demand from emerging markets is fueling the energy sector, both
O’Gorman and Warmerdam believe it will drive increased technology
innovation and spending. Technology companies themselves are priced
globally at reasonable valuations and are carrying attractive amounts of
cash on their balance sheets, the managers reported in an April 30 fund
commentary.
In terms of country allocations, the fund has 69.1% of its assets invested
in the U.S.,8.4% in France, 5.4% in Japan, 4.4% in Taiwan, 3.3% in the
Netherlands and the remaining 11% spread among a number of smaller
positions,
The fund’s strategy doesn’t rule out investing in smaller, riskier companies,
but seeks companies – no matter what their size – that have a proven track
record. Fund data trackers classify the fund as either a large or mid-cap
growth fund. The stock selection process is focused on a bottom-up eval-
uation of each particular company rather than regional, country or over-
all macro-economic trends. In an effort to reduce risk, the fund spreads
its assets among different sized companies in different sectors across the
globe.
While the managers may hold a company for as long as it offers the poten-
tial for long-term growth, they may also engage in an active trading strat-
egy. The fund’s portfolio turnover ratio of 159% reflects more of an
active-trading than a buy-and-hold strategy, and is slightly lower than
5
Morningstar’s specialty technology peer group average of 179% for the
91 specialty technology funds with distinct portfolios.
An active trading strategy may increase costs for fund investors because
transactions costs are passed to investors; active trading may also increase
tax liabilities for investors who hold shares in a taxable account. Investors
interested in this fund and others that favor active trading strategies may
want to hold shares in a tax-deferred account such as an IRA or 401(k).
Recently acquired holdings include online retailer Amazon.com, Chinese
advertising company Focus Media and Taiwan-based Siliconware
Precision Industries, a packager and tester of semiconductors. The fund
generally sells companies when fundamentals deteriorate, the stock fails to
perform as expected, the stock reaches a pre-determined target price,
and/or a slowing in revenue and earnings per share growth. During the
first four months of the year the fund sold its position in Dell, computer
notebook manufacturer Acer and Chinese Internet company Tencent.
Within the technology sector, the fund concentrates its assets in the com-
munications equipment sector (23.3%), applications software (19.1%),
semiconductor and semiconductor equipment (17.2%), Internet software
and services (12%), computers and peripherals (8.7%), information tech-
nology services (6.1%), and other sectors (13.6%).
During the long-term, the fund has beaten its benchmark index, the MSCI
AC World IT Index, by 3.86% on a load-adjusted basis during the past five
years. It has also outperformed the Lipper Science & Technology Funds
Average during that period of time.
The fund’s sales load does negatively impact returns, especially in the short
term. It is available in three share classes: A, B and C. The A shares carry
a 5.75% front-end load and a 1.99% expense ratio; the B shares a 5%
deferred load and a 2.74% expense ratio; and the C shares a 1% deferred
load and a 2.74% expense ratio. Morningstar’s specialty technology funds
have, on average, a 1.82% expense ratio.
Despite the drag of the load, the fund’s out-performance compared with
its benchmark indexes speaks well of its long-term track record. The man-
agers have a high bar to overcome in terms of the load and the higher-
than-average expense ratio but have still managed to consistently deliver
the goods to shareholders.
In recognition of Henderson Global Investor’s superior returns on a con-
sistent risk-adjusted basis, Lipper designated Henderson as the Best
Equity Fund Family (small size) during a three-year period. Henderson
received this award for the second year in a row at the Lipper Annual
Fund Awards in Chicago on March 22.
The fund’s global approach to technology investing coupled with manage-
ment’s depth of experience and strong long-term track record serve its
investors well. If assets continue to grow, expenses may be reduced going
forward due to economies of scale, making a more compelling case to
potential shareholders.
Marsico 21st Century Fund (MXXIX)
Fund Type: Large Growth attractive valuation in the context of its growth rate and in comparison
with industry peers.
Expense Ratio: 1.33%
Management sticks with its investment process regardless of whether
Min. Investment: $2,500
growth investing is in favor at a particular time. The company has a deep
Web: http://www.marsicofunds.com bench of analysts, with three senior analysts and 11 analysts with a vari-
ety of academic and industry backgrounds.
Top 3 Holdings
The fund’s portfolio is generally concentrated with 35 to 50 holdings.
MasterCard, Inc. - Class A 5.41% Accordingly, the fund’s biggest holdings can take up a fairly big percent-
Holcim Ltd. 3.72% age of the portfolio on an individual basis. The fund’s top 10 holdings
Heineken Holding N.V. 3.72% consume 31.93% of the fund’s total assets.

Management favors the financial, consumer cyclical and consumer non-

I
cyclical sectors and is underweight in energy and basic materials. Nearly
n the 10 years since Tom Marsico left Janus to start Marsico Capital
one-quarter of the fund’s assets are in non-U.S. companies, giving
Management, Janus has fallen on hard times while Marsico has
investors in this fund some healthy international exposure.
flourished, expanding his fund company to six funds.
In terms of performance, the fund has outperformed both of its bench-
While Marsico doesn’t officially manage the 21st Century Fund – the
marks, the S&P 500 and the Russell 3000, during the past one-, three-
third fund started by the fund family – he works closely with manager
and five-year average annual return periods. Since the fund’s inception
Corydon Gilcrist, CFA. The fund invests in growth companies of any
on Feb. 1, 2000, it has handily outperformed both benchmarks.
size and boasts a concentrated portfolio of between 35 to 50 compa-
nies. It has more of a bent towards small-cap stocks than other funds in
While the fund may hold companies for a long period of time, it does-
the Marsico family.
n’t follow a buy-and-hold investment philosophy, preferring instead to
trade more frequently in an effort to capitalize on fast-breaking oppor-
The entire family emphasizes their internal process, where managers
tunities in the market. The portfolio turnover rate of 136% confirms
and analysts collaborate to generate investment ideas and test those
this active trading approach. Consequently, the fund may be a more suit-
ideas through their top-down, bottom-up investment process. The
able holding in a tax-deferred account due to potentially higher-than-
process begins with an examination of the macro-economic picture in
average capital gains distributions.
the economy and markets, including factors such as interest rates, infla-
tion, monetary policy, demographic trends, regulatory environment and
Criteria for selling a portfolio company include deteriorating fundamen-
the global competitive landscape.
tals, overvaluation, failure to realize growth potential and the discovery
of more compelling investment alternatives elsewhere. While manage-
With the macroeconomic picture in place, the investment team identi-
ment notes that it is “mindful” of the tax consequences of its invest-
fies sectors, industries and companies poised to benefit from these
ment decisions, it won’t hold back on selling a company that meets the
trends. To that end, Gilcrist and his team seek companies of all sizes
above sell criteria.
with earnings growth potential unrecognized by the market. In making
those assessments, management builds earnings and cash flow projec-
The fund’s expense ratio of 1.33% is slightly lower than its peer group
tion models in an effort to determine if a particular company meets its
average of 1.42%. Fund assets are $41.98 billion.
criteria.
Originally affiliated with Bank of America, Marsico Capital
Companies considered for inclusion in the fund’s portfolio generally
Management recently signed an agreement with the bank to become an
have strong fundamentals, including a robust balance sheet, rising return
independent investment firm. The transaction will close in the fourth
on equity, positive free cash flow, use of conservative financial account-
quarter of 2007. This is a noteworthy reversal of a trend in the fund
ing standards and management that is respectful of shareholder inter-
industry, where large financial services companies acquire boutique
ests. Management may also add companies to the portfolio that benefit
firms such as Marsico Capital Management.
from what Marsico terms “transformational catalysts” such as a new
management team or a particularly innovative product or service offer-
Backed by a deep bench of management and analyst stock-picking tal-
ing.
ent, Marsico 21st Century offers strong potential returns for growth-ori-
ented investors. As part of an independent fund family, this fund should
The investment process also examines a company’s market share, pric-
continue to have the scope it needs to successfully execute its proven
ing power and the durability of its franchise or franchises. Once a par-
strategies.
ticular company has cleared these hurdles, management looks for an

6
Meridian Growth Fund (MERDX)
Fund Type: Mid-Cap Growth company’s valuation to meet its requirements. Aster has found that in the
vast majority of cases, with patience, a company will fall into the desired
Expense Ratio: 0.85% valuation parameters. Management currently favors companies in the
healthcare, financial, consumer and technology sectors. It generally has
Min. Investment: $1,000 few holdings in the utilities and industrial segments, which Aster consid-
Web: http://www.meridianfund.com ers low or no-growth sectors.

Top 3 Holdings The fund’s buy-and-hold strategy means positions are held for three years
or longer, on average, producing long-term gains for shareholders, which
American Tower Corporation A 2.8% are taxed at a lower rate than short-term gains. The fund’s portfolio
United Stationers Inc. 2.7% turnover rate of 29% compares favorably with its peer group average of
BE Aerospace 2.6% 103.7%.

Overvaluation doesn’t generally prompt management to sell a position,

W
unless a company becomes extremely overvalued. The fund will also trim
hen Richard Aster launched Meridian Growth Fund, Ronald
positions that grow to make up too large a portion of the fund’s assets.
Reagan was president, the unemployment rate was 7.5% and
Other reasons for selling include a fundamental deterioration in a compa-
Apple manufactured the first Macintosh computer. In the 23
ny’s long-term growth prospects.
years since the fund was launched, a lot has changed, but not Aster’s
investment philosophy.
In terms of performance, the fund has beaten its benchmark index, the
Russell 2000, on an average annual return basis during the past ten years.
A patient investor, Aster aims to invest in growing companies purchased
Since the fund’s inception in 1984, it has returned 14.21% on an average
at reasonable prices. With the assistance of recently promoted co-manag-
annual return basis. In the past 10 years, the fund has had only one year
er Talal Qatato, CFA, Aster runs a concentrated, moderate mid-cap
of negative returns, in 2002, when it lost 17.8%.
growth portfolio. Previously, Qatato was an investment analyst with
Meridian Growth and served as a technology equity analyst with Friess
The fund generally owns between 40 to 45 companies. The portfolio’s
Associates, the advisors to Brandywine Funds, from 2000 to 2005.
average market capitalization is $4.7 billion, compared with $8.5 billion for
its peer group, according to Standard and Poor’s. Because Aster lets his
The fund’s investment philosophy is based on a five-point strategy: stocks
winner’s run rather than selling them at a predetermined point in time, the
outperform bonds and cash over the long term; earnings growth trumps
fund’s average market cap is significantly higher than it’s target for new
all in determining stock prices; valuation must be considered when invest-
holdings.
ing in stocks; first-hand research is vital; and investors should have at least
a three-year time frame.
The fund’s assets have quadrupled during the past three years. In 2004,
assets were a bit less than $500 million; currently they top $2 billion. Aster
Aster’s investment universe consists of companies with market capitaliza-
hasn’t announced any plans to close the fund should assets continue to
tions of $500 million to $2 billion. While the fund is usually classified as a
grow. Funds with a mid- and small-cap bias can become difficult to man-
mid-cap growth fund, it invests a sizeable percentage of its assets in small-
age effectively if asset growth is unchecked. Under such conditions, man-
cap companies, 30% at last count.
agers may find it difficult to invest an influx of cash quickly and efficient-
ly in the type of companies they prefer.
Aster believes the fund performs better during average and negative mar-
ket conditions as its attention to valuation leads it to lag during growth bull
Meridian Growth’s expense ratio is 0.85%, significantly lower than its peer
markets such as the late 1990s. Also, because Aster favors a low turnover
group, which has an average expense ratio of 1.8%.
approach, management may end up having to park excess funds in low-
earning cash accounts or invest in more liquid larger-cap companies that
As the founder of Aster Investment Management, the advisor for
tend to grow more slowly than mid- and small-cap companies
Meridian Growth and the two other Meridian Funds – Meridian Value
and Meridian Equity Income – Aster is the single largest private share-
Within the fund’s investable universe, Aster and Qatato follow 100 to 200
holder in Meridian Growth and has the bulk of his savings invested in the
companies that are potential investment candidates. For a company to
funds he manages.
merit inclusion in the portfolio, it must have the potential to grow EPS at
a double-digit rate for at least several years, serve a growing market, com-
Although it’s not a typical growth fund, Meridian Growth may appeal to
mand significant market share, boast a strong return on shareholder’s
risk-conscious investors due to Aster’s somewhat contrarian approach.
equity and have superior management.
Couple its lack of volatility compared to its peers with its lower-than-aver-
age expenses and turnover, and you have an attractive fund for patient,
Once those qualities are present, the fund’s management will wait for the
long-term investors.
7
Muhlenkamp Fund (MUHLX)
Fund Type: Large Value
Expense Ratio: 1.06%
Min. Investment: $1,500
Web: http://www.muhlenkamp.com
Top 3 Holdings
ConocoPhillips 5.9%
Cemex 5.4%
UnitedHealth Group Inc. 4.83%
I
f the fund industry awarded a prize for honesty, Muhlenkamp
Fund (MUHLX) manager Ron Muhlenkamp would win it, hands
down. And in an industry weighted down by scandal and spin,
that’s saying something.
Most managers, when confronted by shareholders seeking an expla-
nation for recent poor performance, would rather blame the market,
the Fed, China or anyone other than themselves. Muhlenkamp, in his
typical down-to-earth style, replies: “Folks, we’ve looked dumb
before.”
So with Muhlenkamp Fund, what you see is what you get. And what
you get is an incredibly experienced manager with a knack for fore-
casting macroeconomic events and translating them into investment
ideas that perform in the long haul. True, investment performance in
2006 and the first half of 2007 has been anything but stellar;
Muhlenkamp lagged his benchmark index by 11.7 percentage points
in 2006 and was 1.1 percentage points behind the benchmark for the
first five months of 2007.
But don’t let these recent numbers fool you. During the long term,
Muhlenkamp’s success in translating macroeconomic projections
into sound stock market investments has resulted in the fund beat-
ing the S&P 500 index by an average annual 4.99 percentage points
during the past ten years, placing him second overall in Morningstar’s
large value category.
So how does he do it? Muhlenkamp predicted the housing explosion
of the early to mid-2000s and bought shares of homebuilders, mort-
gage companies and others destined to profit from this boom. Since
he launched his fund in 1988, he’s been remarkably prescient in his
macroeconomic calls and the industry rotation of his portfolio.
Another cornerstone of Muhlenkamp’s investment philosophy is
buy-and-hold. The annual portfolio turnover rate of his fund is a
miniscule 6%, ten times lower than his large-value peers. Lower port-
folio turnover is linked to increased tax efficiency, a plus for anyone
who holds or is considering holding shares in Muhlenkamp Fund in
8
a taxable account. Low turnover also minimizes transaction costs
associated with buying and selling stock in a fund portfolio.
Muhlenkamp is a one-fund shop. While the firm runs other money
in the form of private accounts, all of the firm’s assets – whether
invested by smaller shareholders via the mutual fund or larger share-
holders via private accounts – are invested essentially the same way.
A third hallmark of the Muhlenkamp way is transparency. The
Muhlenkamp Fund website (www.muhlenkamp.com) is a treasure
trove of Muhlenkamp’s writings and presentations from the present
day back to 1988. Not only have the vast majority of fund managers
not been around for nearly 20 years, but few of them would want to
be confronted with their writings from that date.
Not so with Ron Muhlenkamp because his investment philosophy
and strategies haven’t changed. Muhlenkamp’s looked bad before –
such as during the tech bubble. But when those phantom dot-com
profits evaporated, his fund pounded his benchmark index by a jaw-
dropping 34.4% in 2001 and by 21.2% in 2001.
While most fund analysts describe Muhlenkamp Fund as a large-
value fund, its investment philosophy and strategies aren’t easily
defined. Over time, its portfolio has revealed itself as more of an all-
cap fund, because Muhlenkamp doesn’t confine himself to any par-
ticular area of the fund style box.
He goes where he wants to in terms of market capitalization – rather
than market cap, his picks are defined by what he considers to be
good companies. Muhlenkamp looks for companies that are above
average in profitability, as seen in a company’s return on sharehold-
er equity (ROE) in comparison to other companies in its industry
and undervalued by the market – those selling for below average
price-to-earnings (P/E) ratios.
The portfolio tends to be fairly concentrated by holdings and by sec-
tor. As of the end of March, the portfolio’s 10 largest companies
consumed 40% of the fund’s assets; of those 10 companies, four are
in the diversified financials industry and two are in the energy sector.
This makes sense in light of Muhlenkamp’s commitment to follow-
ing his macroeconomic hunches – he makes no claim of genius
when it comes to selecting individual issues, but does believe in his
ability to pick industry and sectors.
Finally, Muhlenkamp eats what he kills – the majority of his own
personal assets are invested in his own fund.
Muhlenkamp’s talents are an unusual blend of the macro and the
micro – the ability to forecast economic trends and translate those
into strong stock picks. Patient investors would be well-served to
consider adding shares of this fund to their portfolios.
Oberweis China Opportunities Fund (OBCHX)
Fund Type: China
Expense Ratio: 1.91%
Min. Investment: $1,000
Web: http://www.oberweisfunds.com/
Top 3 Holdings
Century Sunshine E 4%
Focus Media Holding, Ltd. ADR 3.62%
Lee & Man Paper Mfg 3.25%
W
hen Jim Oberweis launched a fund to take advantage of China’s
rapidly growing economy, he chose a road less traveled by pur-
chasing shares of small companies positioned to profit from
the country’s exploding middle class and its appetite for goods and serv-
ices.
Oberweis, chairman of Oberweis Asset Management, seeks to leverage
his firm’s expertise overseas in the China Fund and its recently launched
sibling, Oberweis International Opportunities Fund. While most U.S.-
based funds that invest in China concentrate on the large companies list-
ed on major indexes such as the FTSE Xinhua indexes and S&P/IFCI
China Index, Oberweis bets that smaller companies will deliver superior
long-term growth.
To supplement the company’s small-cap investment expertise, Oberweis
has hired a co-manager, Vanessa Shiu, based in Hong Kong, where she
works with two other analysts; a third analyst is based in the United States.
Capitalizing on that Hong Kong expertise, the fund concentrates its assets
on companies that do business in China but that are actually listed on the
Hong Kong Stock Exchange.
Those companies make up 55% of the portfolio, followed by companies
listed on the Singapore Exchange and in American Depository Receipts
– foreign companies listed on U.S. exchanges. This strategy enables the
fund to avoid the potential problems of investing in companies listed on
mainland Chinese stock exchanges, where corporate transparency and
financial reporting are questionable.
Specifically, the investment philosophy and strategy of Oberweis China
Opportunities revolve around the “Oberweis Octagon,” eight factors the
firm uses to evaluate potential companies for inclusion in its portfolio:
rapid revenue growth; rapid earnings growth; low relative price-to-earn-
ings ratio; future growth potential; earnings acceleration; low relative price
to sales ratio; quality of earnings, and top quartile relative strength.
While not every company in the fund portfolio will meet all eight criteria,
this underlying philosophy ensures that the fund managers and analysts
remain focused on the qualities that distinguish this fund from its peers:
AGARP (aggressive growth at a reasonable price). Fund management rec-
9
ognizes the potential perils of investing in China and cautions that the
fund is suitable only for long-term investors with an appetite for risk.
China’s markets and securities are volatile – markets were roiled in the first
quarter of 2007 by the central government’s attempt to slow the torrid
pace of growth by raising interest rates, improving tax collection and tight-
ening bank reserve requirements. Such measures had little impact as China
continues to see increases in its gross domestic product at around 11%.
Consumer retail spending – on which the fund is pinning its success – also
continues at a strong clip, rising 15% year over year. The fund’s sector
make-up reflects this focus with 29.2% of the assets invested in the con-
sumer discretionary sector, 11.3% in the consumer staples sector and
15.6% in the industrials sector. Compared with the S&P CitiGroup EMI
China Index, the fund’s benchmark, it is overweight in the consumer sec-
tors.
As a fund with not even two years of history, its asset growth is impres-
sive. However, with $801.32 million in assets as of May 31, 2007, the fund
is still small enough so the managers can easily build positions in the small
companies it focuses on, and get in and out of the markets where they
trade. Portfolio turnover is 94%, higher than its peer group, but is consis-
tent for an investing approach that favors fast-growing companies with
price momentum.
The fund held stakes in 88 companies at the end of May. Major holdings
included Century Sunshine Ecological Technologies, a manufacturer of
organic fertilizers, Focus Media, a company that owns flat-panel video dis-
plays used for advertising, and Nine Dragons Holdings, a manufacturer of
container boards.
The fund launched at a favorable time in terms of market conditions for
China-related companies, and returned 81.2% in 2006. As of late June
2007, year to date returns were nearly 30%. Oberweis funds have a his-
tory of not only turning in good short-term numbers, but also strong
long-term numbers, so if this fund’s siblings are any indication, this fund
should hold its ground well during the long-term. Oberweis Emerging
Growth, for example, has a five-year average annual return of 13.15%; the
Oberweis Micro-cap Fund, 19.67%; and Oberweis Mid-Cap Fund,
13.73%.
The fund celebrates its second birthday on Oct. 1, 2007. The fund does
not hedge for currency fluctuations. “We believe the effect of the expo-
sure to the Yuan will be positive over the next 10 years,” says Oberweis.
In terms of expenses, the fund’s current expense ratio is 1.91%, which
compares favorably to its China stock fund peers, which have an average
expense ratio of 2.33%, according to Standard & Poor’s.
Although Oberweis China Opportunities is a young fund, it’s a potential-
ly good opportunity for aggressive investors looking to invest in China
and get in on the ground floor with a fund with a small asset base backed
by experienced management.
Pax World Balanced Fund (PAXWX)
Fund Type: Balanced
Expense Ratio: 0.95%
Min. Investment: $250
Web: http://www.paxworld.com
Top 3 Holdings
Amer Movil Sab De Cv, Mexico 2.3%
Cisco Systems, Inc. 1.9%
CVS Corp. 1.8%
T
he country’s oldest socially responsible fund isn’t resting on its lau-
rels. The management and board of Pax World Balanced Fund
recently overhauled its socially responsible investing criteria for the
first time in 35 years. The fund also out-performed the S&P 500 index on
an average annual return basis from 1997 to 2006, no mean feat for a
fund that invests in bonds as well as stocks.
In revamping its socially responsible investing criteria, Pax World
Management added screens on corporate governance, community and
product integrity. The company, which serves as the advisor for all the Pax
World funds, sought to modernize its environmental and workplace
screens to include factors such as climate change, sustainable develop-
ment, global human rights standards and non-discrimination based on
sexual orientation.
While the changes update the company’s screens, they don’t alter the fun-
damentals of its approach to socially responsible investing, which rests on
four fundamental standards: social screening, shareholder activism, proxy
voting and community investment.
Many socially responsible funds confine themselves to screening out com-
panies that don’t meet their criteria; Pax World goes beyond mere screen-
ing to proactively encourage companies to strive for what it calls a “higher
bottom line.” Fund management discusses issues of concern such as
workplace conditions and product integrity with the management of
companies in its portfolio.
The fund’s manager, Christopher Brown, votes the fund’s proxies in line
with the fund’s socially responsible investment criteria and when deemed
appropriate, initiates shareholder resolutions at company annual meetings
and also supports the shareholder resolutions of others consistent with
fund goals.
To fulfill its mandate to invest in the community, the fund deposits idle
cash with domestic community development banks. Through the fund
10
family’s unique designator program, shareholders in Pax World Balanced
can assign a portion of their dividends and capital gains distributions from
the fund as a charitable donation to Mercy Corps (www.mercycorps.org),
an international nonprofit committed to humanitarian work.
Pax World Management’s board periodically audits the fund’s holdings to
ensure compliance with the socially responsible standards. If a particular
company held by the fund deviates from the fund’s standards and the
conflict can’t be resolved, the fund manager must sell that company from
the portfolio. Such a sale must take place within six months even if the
sale will result in a loss for the shareholders.
As a balanced fund, Pax World Balanced splits its portfolio between
stocks and bonds, with a target range of 50% to 75% of the portfolio in
stocks and 25% to 50% in bonds. Its investment objectives include preser-
vation of capital, income and long-term growth of capital. Although the
fund is classified as a large-growth fund, nearly one-third of its assets are
in mid-cap companies; 16.1% of the portfolio is comprised of foreign
stocks.
The bond portion of the portfolio focuses on high-quality corporate, gov-
ernment and government agency issues with medium and short maturi-
ties. Brown, in his 2006 year-end shareholder report, noted that the fund
continues to skew the portfolio more toward stocks, with a 70% stock /
29% bond allocation.
The cash and bond portions of the portfolio moderate the fluctuations of
the stocks portion. In line with its focus on income, capital preservation
and capital appreciation, the fund has experienced negative returns in only
two of the past 10 years – it lost 9.09% in 2001, and 8.86% in 2002, the
years after the tech bubble burst when many funds with large stock posi-
tions were down. During the long term, the fund has returned 8.97% on
an average annual return basis for the past 10 years, 9.88% for the past
five-year period and 10.84% for the last three-year period.
In the stocks portion of the portfolio, the largest sector concentrations are
in consumer discretionary and consumer staples; the fund’s holdings in
health care and information technology overweight the S&P 500 index
due to management’s belief in a rebound in these sectors. The fund’s port-
folio turnover rate of 29.19% is lower than its peers and results in lower
brokerage costs and higher tax efficiency for shareholders holding fund
shares in a taxable account.
The fund’s expense ratio is 0.96%, lower than its balanced fund peers.
However, considering its asset base of $2.3 billion, Morningstar believes
the expense ratio has room to fall and has lowered the fund’s stewardship
grade due to this relatively higher expense ratio. Despite the unfavorable
opinion on the fund’s expense ratio, Morningstar analysts have selected
Pax World Balanced as an Analyst Pick; Morningstar classifies 180 of the
more than 2,000 funds it covers in this selective category.
Perritt Emerging Opportunities Fund (PREOX)
Fund Type: Small Value
Expense Ratio: 1.67%
Min. Investment: $1,000
Web: http://www.perrittmutualfunds.com
Top 3 Holdings
MFRI Inc. 1.5%
Medtox Scientific Inc. 1.29%
North American Galvanizing and Coatings 1.3%
M
icro-cap stocks aren’t even on the radar screen for most indi-
vidual investors who consider this equity class far too risky. But
when they’re available in a diversified portfolio that stresses
growth at a reasonable price in the form of the Perritt Emerging
Opportunities Fund, it might be worth expanding your radar screen.
On the verge of celebrating its third birthday, the fund was founded to
complement its sibling, Perritt Microcap Fund, which is currently closed
to new investors. Perritt Microcap has an outstanding long-term track
record – on an average annual return basis, it has returned 14.59% for the
10-year period, 20.75% for the five-year period and 17.82% for the three-
year period.
While the Microcap portfolio focuses on companies with a market capi-
talization of $250 to $500 million, the Emerging Opportunities down-
sizes that even further, trolling for companies with market caps from $10
million to $350 million. As of June 30, the fund returned 25.82% for the
past year on an average annual return basis; returns for the first six
months of 2007 were 18.72%.
Manager Michael Corbett describes these companies as “nano-cap” and
strives to keep the fund’s average market capitalization below $100 mil-
lion. Corbett and his three analysts use a combination of a quantitative
and fundamental approach to sorting through the 3,000 companies that
make up the fund’s investment universe. This process seeks companies
with above average revenue and earnings per share growth, a low level of
long-term debt, a high percentage of insider ownership, expanding prof-
it margins, capable management, a clean balance sheet and reasonable
price-to-earnings and price-to-sales ratios relative to their long-term
growth prospects.
Because most of the companies in the fund’s investment universe aren’t
followed by major brokerage analysts, Corbett has developed relation-
ships with a network of two dozen regional brokers who feed him and
his analysts research ideas; he also pays research firms to assist him in
mining for suitable companies. Internally, the research team scans com-
pany SEC filings, runs screens and examines earnings releases and
newswires toward this effort.
11
Stock selection is generally sector-neutral. However, if one sector con-
sumes 20% to 30% of the portfolio, management takes notice and con-
siders cutting back. In terms of segments, management favors the tech-
nology (21.27%), consumer discretionary (19.68%) industrials (18.35%)
and health care (11.44%) sectors.
Under certain conditions, the fund will invest assets in micro-cap
exchange traded funds in a stop-gap effort to keep cash invested within
the fund’s investment mandate. The fund has used Powershares
Microcap and iShares Russell Microcap in the past, but sells those shares
as soon as it has the opportunity to invest in the types of individual com-
panies it prefers.
To manage risk within the fund’s mandate, management spreads its assets
among 100 to 150 different companies. When one company soaks up
more than 3% of the fund assets, Corbett begins to trim the position
back so as not to assume too much single-company risk.
Besides selling to eliminate sector and company risk, a company that
grows beyond the identified market-cap universe of the fund is usually
sold to conform to the fund’s mandate. In addition, positions are sold
when they become overvalued, which management identifies as selling at
a PE ratio of 1.5 to 2 times their growth rate.
Because of the fund’s nano-cap strategy, companies in the portfolio are
frequently buy-out targets, where the fund will receive either cash or
stock in the acquiring company. Management will also sell when a posi-
tion fails to perform as expected; while management won’t sell on a quar-
terly earnings disappointment, if a company fails to execute its strategy,
it will be a candidate for sale.
Unlike most micro-cap funds, this fund has a buy-and-hold strategy.
Under ideal conditions, management prefers to hold companies for three
to five years. The fund’s portfolio turnover rate of 26.7% reflects that
philosophy. This turnover rate is substantially lower than its peer group
average of 70.83%.
In an effort to preserve the fund’s ability to pursue its strategy, Corbett
has announced his intention to close the fund at $100 to $110 million in
assets. However, assets as of June 30 were already $125 million, accord-
ing to fund data-tracker Morningstar, over Corbett’s limit.
As assets have grown, the fund has cut its expense ratio from an initial
rate of 2.22% to 1.67% in January. Both Corbett and fund company
president Gerald Perritt, Ph.D., invested the initial seed money to start
this fund and continue to invest their personal assets in both of the fund
family’s funds.
If you’re interested in this young micro-cap fund, move fast. Corbett’s
success as a stock picker depends on keeping his funds small in terms of
assets and if the past is any guide, he won’t hesitate to close this fund
when he thinks it’s time.
T. Rowe Price Emerging Markets Stock (PRMSX)
Fund Type: Emerging Markets Stock
Expense Ratio: 1.25%
Min. Investment: $2,500
Web: http://www.troweprice.com
Top 3 Holdings
America Movil 3.26%
Savings Bank of the Russian Federation 2.13%
Kookmin Bank 1.97%
I
nvesting in emerging markets is risky, but taking the gamble via T.
Rowe Emerging Markets Stock fund hedges those risks with an
experienced and deep management team, transparency about fund
strategies and an outstanding long-term track record.
Boosted by overall robust returns in emerging markets and strong stock
selection, the fund has beaten its benchmark index, the MSCI Emerging
Markets Index, by 5.59% on an average annual return basis during the
past 10 years and by 12.77% during the past five years. In the fund’s
most recent shareholder report, managers warned investors not to
expect such outsize returns going forward as the fund has benefited
from the bull market in emerging market stocks that won’t last forever.
Lead manager Christopher Alderson commands a four-manager team
and an analyst staff of 15. Based in London, the management team has
an average of 18 years of investment experience. Detailed shareholder
letters reveal the fund’s stakes on a sector, regional and country basis and
share thoughts on why certain picks flourished and others didn’t.
Investing in emerging markets is inherently risky as less developed coun-
tries may have unstable governments, unregulated markets and volatile
currencies. However, Alderson believes that emerging markets have
become a safer place to invest in the past decade due to low inflation, a
rising appetite for consumer good and more stable currencies.
To capitalize on those trends, the fund favors investment in financials,
consumer products, transportation, construction and mobile phone
operators. In terms of sector diversification, the fund has 25.3% in
financials, 12.1% in industrials, 11.5% in energy, 10.3% in information
technology, 9.3% in consumer discretionary, 8.6% in consumer staples,
7.8% in materials, 7.7% in telecommunications services and 6.9%
spread over other sectors and in the cash reserves.
Alderson is bullish on Latin America, especially Brazil and Mexico. The
fund is overweight on the sector compared with the index, and was the
12
portfolio’s best performing region in the first six months of the year. In
the Far East, Alderson likes China, and he added holdings in several
companies including Focus Media, an advertising company, and energy
companies Huaneng Power International and China Shenhua Energy.
These new positions – as well as additions in India – were funded by
sales of companies in South Korea, which in Alderson’s view faces eco-
nomic challenges.
Outside of Latin America and the Far East, the fund is overweight in
Russia, Egypt, Turkey and Kazakhstan. While returns in Russia were rel-
atively weak due to anemic returns by oil stocks, Alderson likes selected
natural gas, financial and retailer companies. The fund bought shares in
Halyk Savings Bank, a Kazakhstan bank which had an IPO in late 2006
as the country benefits from a strong natural resource base, rising con-
sumer spending and market reforms.
The fund generally doesn’t hedge for foreign currency fluctuations, a
move that has benefited shareholders as the weak U.S. dollar means
portfolio holdings denominated in foreign currencies are worth more,
boosting fund returns. In terms of regions, the portfolio has 46% of its
assets invested in the Far East, 22.7% in Latin America, 14.3% in Africa
and the Middle East, and 11.7% in Europe.
In terms of style, the fund is a large-cap growth fund although its aver-
age market cap per holding is $11 billion, substantially lower than its
peer group average of $20.2 billion. Management likes to buy shares of
favorite companies on dips. Portfolio turnover is relatively low at 53.3%
compared with the fund’s peer group’s average of 65.6%.
The fund is a Morningstar analyst pick, and it is recommended as a long-
term holding. In terms of governance, T. Rowe Price as a whole is forth-
coming about its policies, posting a summary of its proxy voting record
in a prominent place on its website.
Emerging market funds tend to be expensive for shareholders. Higher
costs stem from maintaining analyst staff overseas and the intensive
nature of researching foreign markets and companies. Despite this, the
fund’s expense ratio currently stands at 1.25%; T. Rowe Price reduces
the expense ratio as assets grow and the most recent reduction came in
January, from 1.27% to 1.25%. This compares favorably to the fund’s
peer group, which averages 2.18%.
Sampling a wide variety of emerging market fare, T. Rowe Price
Emerging Markets fund doesn’t shy away from building positions in
companies in which management has confidence. If you’re an investor
comfortable with risk and want to add some zing to your portfolio,
taking a bet on this fund might be a good idea.
Fund Comparison

1-yr Total 3-yr Total 5-yr Total Expense Minimum

Fund Name Ticker Category
Return Return Return Ratio Investment

Champlain Small
CIPSX Small Growth 20.89% N.A. N.A. 1.40% $10,000.00
Company Adv

Dodge & Cox International

DODFX 28.91% 26.30% 22.99% 0.66% $2,500.00
International Stock

Henderson Global Specialty

HFGAX 27.03% 13.93% 16.93% 1.99% $500.00
Technology Class A Technology

Marsico 21st Century

MXXIX Large Growth 22.17% 18.70% 18.01% 1.33% $2,500.00
Growth

Mid-Cap
Meridian Growth MERDX 19.69% 10.59% 12.51% 0.85% $1,000.00
Growth

Muhlenkamp MUHLX Large Value 12.80% 11.30% 12.76% 1.06% $1,500.00

Oberweis China
OBCHX China 72.76% N.A. N.A. 1.91% $1,000.00
Opportunities

Pax World Balanced PAXWX Balanced 15.28% 10.83% 9.88% 0.95% $250.00

Perritt Emergning
PREOX Small Value 25.82% N.A. N.A. 1.67% $1,000.00
Opportunities

T. Rowe Price Emerging

PRMSX 51.04% 39.99% 31.02% 1.25% $2,500.00
Emerging Markets Markets Stock

* Data as of 6/30/07

13
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