The accompanying notes are an integral part of these financial statements.
SMH REPRESENTATION TRUST
NOTES TO FINANCIAL STATEMENTS
June 30, 2013
ANNUAL REPORT
(1)
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Mutual Fund Series Trust (the
“Trust”
), was organized as an Ohio business trust on February 27, 2006. The Trust is registered as an open-end management investment company under the Investment Company Act of 1940, as amended, (
“1940 Act”
). The Trust currently consists of twenty-two series. These financial statements include the following series: SMH Representation Trust (the
“
Fund
”
).
The Fund is registered as non-diversified. The Fund’s investment advisor is SMH Capital Advisors, Inc. (the
“
Advisor
”
or
“SMH”).
The Fund commenced operations on May 24, 2010. The Fund’s investment objective is to provide a high level of current income with capital appreciation as a secondary objective.
The Fund offers one class of shares.
The following is a summary of significant accounting policies consistently followed by the Fund and are in accordance with accounting principles generally accepted in the United States of America (
“GAAP”
).
a)
Investment Valuation —The net asset values per share of the Fund are determined as of the close of regular trading on the New York Stock Exchange (
“NYSE”)
(normally 4:00 p.m., Eastern Time) on each day when the NYSE is open for trading. Securities for which market quotations are available are valued as follows: (a) each listed security is valued at its closing price obtained from the respective primary exchange on which the security is listed, or in the case of securities listed on NASDAQ, at the NASDAQ Official Closing Price (
“NOCP”
), if there were no sales on that day, at its last reported current bid price; (b) debt securities (other than short-term obligations) are valued each day by an independent pricing service approved by the Board of Trustees (“Trustees”) using methods which include current market quotations from a major market maker in securities and based on methods which include the consideration of yields or prices of securities of comparable quality, coupon, maturity and type; (c) short-term money market instruments (such as certificates of deposit, bankers’ acceptances and commercial paper) are most often valued by bid quotations or by reference to bid quotations of available yields for similar instruments of issuers with similar credit ratings. All of these prices are obtained from services, which collect and disseminate such market prices. Bid quotations for short-term money market instruments reported by such a service are the bid quotations reported to it by the major dealers. Short-term securities with remaining maturities of sixty days or less for which market quotations and information from pricing services are not readily available are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value. When approved by the Trustees, certain securities may be valued on the basis of valuations provided by an independent pricing service when such prices the Trustees believe reflect the fair value of such securities. In the absence of an ascertainable market value, or if an event occurs after the close of trading on the domestic or foreign exchange or market on which the security is principally traded (prior to the time the NAV is calculated) that materially affects fair value, assets are valued at their fair value as determined by the Advisor using methods and procedures reviewed and approved by the Trustees.
In accordance with the Trust’s good faith pricing guidelines, the Advisor is required to consider all appropriate factors relevant to the value of securities for which it has determined other pricing sources are not available or reliable. No single standard for determining fair value exists, since fair value depends upon the circumstances of each individual case. As a general principle, the current fair value of securities being valued by the Advisor would appear to be the amount which the owner might reasonably expect to receive for them upon their current sale. Methods which are in accord with this principle may, for example, be based on (i) a multiple of earnings; (ii) a discount from market of a similar freely traded security (including a derivative security or a basket of securities traded on other markets, exchanges or among dealers); or (iii) yield to maturity with respect to debt issues, or a combination of these and other methods.
In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Fund discloses fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under GAAP are described below:
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities and identical securities in inactive markets, interest rates, amortized cost, credit risk, etc.)
Level 3 - Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.
SMH REPRESENTATION TRUST
NOTES TO FINANCIAL STATEMENTS(Continued)
June 30, 2013
ANNUAL REPORT
The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following tables summarize the inputs used as of June 30, 2013, for the Fund’s assets and liabilities measured at fair value:
(a)There were transfers into or out of Level 1 and Level 2 during the year. It is the Fund’s policy to recognize transfers into and out of Level 1 and Level 2 at the end of the reporting period.
(b) For a detailed break-out of common stock by industry classification, please refer to the Schedule of Investments.
(c)
All convertible corporate bonds and corporate bonds held in the Fund are Level 2 securities with the exception of one convertible corporate bond which is a Level 3 security. For a detailed break-out of bonds by industry classification, please refer to the Schedule of Investments.
(
d)
Included in Level 3 is Trump Entertainment Resorts, an unlisted security, with $0 market value and $0 change in unrealized depreciation from prior year. Also included is Energy Conversion Devices, Inc., an escrow receipt, with $334,006 market value and $184,148 change in unrealized appreciation from prior year.
The following amounts were transfers in/(out) of Level 2 assets:
![[CATALYSTSMHNCSR201309004.JPG]](http://content.edgar-online.com/edgar_conv_img/2013/09/10/0001162044-13-001047_CATALYSTSMHNCSR201309004.JPG)
There were no transfers from Level 1 to Level 2.
The following is a reconciliation of assets for which Level 3 inputs were used in determining value:
|
|
|
|
|
|
Trump Entertainment Resorts, Inc.
|
|
Energy Conversion Devices, Inc.
|
|
Common Stock
|
|
|
|
|
Beginning balance June 30, 2012
|
$ -
|
|
$ -
|
|
Total realized gain/(loss)
|
-
|
|
-
|
|
Change in unrealized depreciation
|
-
|
|
-
|
|
Capital Distribution
|
-
|
|
-
|
|
Tax Basis Adjustment
|
-
|
|
-
|
|
Net transfers in/(out) of Level 3
|
-
|
|
334,006
|
|
Ending balance June 30, 2013
|
$ -
|
|
$ 334,006
|
The total change in unrealized depreciation included in the Statement of Operations attributable to Level 3 investments still held at June 30, 2013, was $184,148.
SMH REPRESENTATION TRUST
NOTES TO FINANCIAL STATEMENTS(Continued)
June 30, 2013
ANNUAL REPORT
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b)
Federal Income Tax—The Fund has qualified and intends to continue to qualify as a regulated investment company and to comply with the applicable provisions of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its taxable income to its shareholders. Therefore, no Federal income or excise tax provisions are required.
As of and during the year ended June 30, 2013, the Fund did not have a liability for any unrecognized tax expense. The Fund recognizes interest and penalties, if any, related to unrecognized tax expense as income tax expense in the Statement of Operations. As of June 30, 2013, the Fund did not incur any interest or penalties. As required, management has analyzed the Fund’s tax positions taken or to be taken on Federal income tax returns for all open tax years (tax period or year ended June 30, 2010, June 30, 2011, June 30, 2012 and June 30, 2013) and has concluded that no provision for income tax is required in these financial statements. The tax filings are open for examination by applicable taxing authorities, U.S. Federal, Nebraska, and foreign jurisdictions. No examination of the Fund’s tax return is presently in progress.
c)
Distribution to Shareholders—Distributions to shareholders, which are determined in accordance with income tax regulations and may differ from GAAP, are recorded on the ex-dividend date.
d)
Other—Security transactions are accounted for on trade date. Interest income is recognized on an accrual basis. Discounts are accreted and premiums are amortized on securities purchased over the lives of the respective securities. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.
e)
Use of Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
f)
Commitments
and Contingencies—In the normal course of business, the Trust may enter into contracts that contain a variety of representations and warranties and provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, management considers the risk of loss from such claims to be remote.
(2)
INVESTMENT TRANSACTIONS
For the year
ended June 30, 2013
, aggregate purchases and proceeds from sales of investment securities (excluding short-term investments) for the Fund were as follows:
There were no government securities purchased or sold during the year.
(3)
MANAGEMENT AGREEMENT AND OTHER RELATED PARTY TRANSACTIONS
SMH acts as investment manager to the Fund pursuant to the terms of the Investment Advisory Agreement (the
“Advisory Agreement”
). Under the terms of the Advisory Agreement, the Advisor manages the investment operations of the Fund in accordance with the Fund’s investment policies and restrictions. The Advisor provides the Fund with investment advice and supervision and furnishes an investment program for the Fund. For its investment management services, the Fund pays to the Advisor, as of the last day of each month, an annualized fee equal to 0.55% of average net assets of the Fund, such fees to be computed daily based upon daily
SMH REPRESENTATION TRUST
NOTES TO FINANCIAL STATEMENTS(Continued)
June 30, 2013
ANNUAL REPORT
average net assets of the Fund. For the year ended June 30, 2013, management fees of $471,777 were incurred by the Fund, before the waiver and reimbursement described below. As of June 30, 2013, there were no advisory fees payable to the Advisor.
The Advisor and the Fund have entered into an Expense Limitation Agreement under which
the Advisor has agreed to waive 100% of its investment advisory fee and reimburse the ordinary operating expenses of the Fund through October 31, 2013. If the Advisor were to charge the Fund for its investment advisor services, the Advisor would be paid a monthly management fee at the annual rate of 0.55% of the average daily net assets of the Fund. However, the Fund is an integral part of one or more “wrap fee” programs sponsored by investment advisors or broker dealers that are not affiliated with the Advisor or the Fund. Participants in these programs pay a “wrap” fee to the sponsor of the program, a portion of which is paid to the Advisor pursuant to one or more agreements between the Advisor and the program sponsors. The Advisor pays expenses incurred by it in connection with acting as the advisor to the Fund, other than costs (including taxes and brokerage commissions, borrowing costs, costs of investing in underlying funds and extraordinary expenses, if any) of securities purchased for the Fund and certain other expenses paid by the Fund (as detailed in the Advisory Agreement). The Advisor pays for all employees, office space and facilities required by it to provide services under the Advisory Agreement, with the exception of specific items of expense (as detailed in the Advisory Agreement). Each waiver or reimbursement by the Advisor is subject to repayment by the Fund within the three fiscal years following the fiscal year in which that particular expense is incurred, if the Fund is able to make the repayment without exceeding the expense limitation in effect at that time and the repayment is approved by the Board of Trustees.
For the year ended
June 30, 2013
, the Advisor waived advisory fees of $471,777 and reimbursed expenses of $186,365. As of June 30, 2013, the Advisor owed the Fund $57,298 under the terms of the Expense Limitation Agreement.
The Advisor may recapture $562,563, no later than June 30, 2014, $548,988, no later than June 30, 2015 and $658,142, no later than June 30, 2016, subject to the terms of the Expense Limitation Agreement.
Officers of the Trust and Trustees who are "interested persons"
of the Trust or the Advisor will receive no salary or fees from the Trust. Trustees who are not "interested persons" as that term is defined in the 1940 Act, will be paid a quarterly retainer of $250 per fund in the Trust and $500 per special board meeting attended at the discretion of the Chairman. Currently, the Chairman of the Trust’s Audit Committee receives an additional quarterly fee of $750. Effective April 1, 2013, the Chairman of the Trust’s Audit Committee will receive a quarterly fee of $100 per fund. The fees paid to the Trustees are paid in fund shares and allocated pro rata among the funds in the complex. The Trust reimburses each Trustee and Officer for his or her travel and other expenses relating to attendance at such meetings.
A Trustee and Officer of the Trust is also the controlling member of MFund Services and Catalyst Capital Advisors LLC (an investment advisor to other series of the Trust), and is not paid any fees directly by the Trust for serving in such capacity.
Gemini Fund Services, LLC (“GFS”) provides administrative, fund accounting, and transfer agency services to the Fund pursuant to agreements with the Trust, for which it receives from each Fund: (i) basis points in decreasing amounts as assets reach certain breakpoints; and (ii) any related out-of-pocket expenses.
An Officer of the Fund is an employee of GFS, and is not paid any fees directly by the Trust for serving in such capacity.
The Trust has adopted a Distribution Plan (the
“Plan”
) pursuant to rule 12b-1 under the 1940 Act that allows the Fund to pay distribution and shareholder servicing expenses of up to 0.50% per annum for the Fund based on average daily net assets of the Fund. The fee may be used for a variety of purposes, including compensating dealers and other financial service organizations for eligible services provided by those parties to the Fund and its shareholders and to reimburse the Fund’s Distributor and Manager for distribution related expenses. The Plan has not been activated by the Fund and the Fund has no present intention to activate the Plan. For the year ended June 30, 2013, the Fund did not incur any 12b-1 expenses.
(5)
DISTRIBUTIONS TO SHAREHOLDERS AND TAX COMPONENTS OF CAPITAL
The tax character of Fund distributions paid for the following periods was as follows:
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SMH REPRESENTATION TRUST
NOTES TO FINANCIAL STATEMENTS(Continued)
June 30, 2013
ANNUAL REPORT
As of June 30, 2013, the components of accumulated earnings/(deficit) on a tax basis were as follows:
![[CATALYSTSMHNCSR201309007.JPG]](http://content.edgar-online.com/edgar_conv_img/2013/09/10/0001162044-13-001047_CATALYSTSMHNCSR201309007.JPG)
The difference between book basis and tax basis undistributed net investment income is primarily attributable to the tax treatment of defaulted bond income.
(6)
RECENT ACCOUNTING PRONOUNCEMENTS
In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11 related to disclosures about offsetting assets and liabilities. In January 2013, the FASB issued ASU No. 2013-01 which gives additional clarification to ASU 2011-11. The amendments in this ASU require an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The ASU is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. The guidance requires retrospective application for all comparative periods presented. Management is currently evaluating the impact these amendments may have on the Fund’s financial statements.
(7)
SUBSEQUENT EVENTS
Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has concluded that there is no impact requiring adjustment or disclosure in the financial statements.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders of the SMH Representation Trust and
the Board of Trustees of the Mutual Fund Series Trust
We have audited the accompanying statement of assets and liabilities of the SMH Representation Trust, a series of shares of beneficial interest of Mutual Fund Series Trust (the
"Fund"
), including the schedule of investments, as of June 30, 2013, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended and the financial highlights for each of the years in the three-year period then ended and for the period May 24, 2010 (commencement of operations) through June 30, 2010. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2013, by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the SMH Representation Trust, as of June 30, 2013, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended and its financial highlights for the each of the years in the three-year period then ended and for the period May 24, 2010 through June 30, 2010, in conformity with accounting principles generally accepted in the United States of America.
![[CATALYSTSMHNCSR201309009.JPG]](http://content.edgar-online.com/edgar_conv_img/2013/09/10/0001162044-13-001047_CATALYSTSMHNCSR201309009.JPG)
BBD, LLP
Philadelphia, Pennsylvania
August 29, 2013
SMH REPRESENTATION TRUST
June 30, 2013 (Unaudited)
ANNUAL REPORT
Approval of Interim and New Advisory and Sub-Advisory Agreements for SMH Representation Trust
The Board of Trustees of Mutual Fund Series Trust (the “Trust”), including the Independent Trustees, unanimously approved Interim and New Advisory Agreements for SMH Representation Trust (the “Fund”), between the Trust and SMH Capital Advisors, Inc. (“SMH” or the “Adviser”), and Interim and New Sub-Advisory Agreement for the Fund between Catalyst Capital Advisers LLC ("Catalyst") and SMH at a meeting of the Board of Trustees held on May 16, 2012.
In connection with their deliberations, the Board reviewed materials prepared by Adviser with respect to the Fund. The Trustees discussed the corporate organization of SMH and noted that SMH is not affiliated with the transfer agent, underwriter or custodian, and therefore will not derive any benefits from the relationships these parties have with the Trust. SMH may benefit indirectly from the 12b-1 fees of the Funds to the extent that the fees are used successfully to grow the assets of the Funds.
As to the nature, extent and quality of the services provided by SMH to the Fund, the Trustees reviewed SMH’s responses to a series of questions regarding the services provided by SMH, as well as information on the corporate structure, officers, owners and compliance record of SMH. The Trustees then discussed the nature of the SMH’s operations, the quality of its compliance infrastructure and the experience of its fund management personnel. The Board then reviewed financial information for SMH provided by the firm. The Trustees concluded that the adviser has provided a level of service consistent with the Board’s expectations.
As to the Fund’s performance on a comparative basis, the Trustees reviewed the Fund’s performance for the 2011 period and compared the performance to that of a group of similarly managed funds and a benchmark index. The Board noted that the Fund had underperformed its respective peer group averages and benchmark index for the year. The Trustees acknowledged that 2011 was a challenging year in the markets and for the advisor. Following discussion, the Board concluded that each Fund’s performance was acceptable. The Board noted that no change to the investment personnel servicing the Fund was anticipated as a result of the Transaction.
The Board considered the profits realized by the adviser in connection with the operation of the Fund, based on materials provided to the Board, and whether the amount of profit is a fair entrepreneurial profit for the management of the Fund. The Trustees concluded that the adviser’s level of profitability from its relationship with the Fund was not excessive.
As to comparative fees and expenses, the Trustees considered the management fee paid by the SMH Representation Trust and compared that fee to the management fees paid by funds in a peer group. The Board further noted that the advisor has contractually agreed to waive all fees and/or reimburse all ordinary expenses of the Fund so long as the Fund is used exclusively for “wrap account” programs and that SMH’s has agreed to continue such waiver of fees and expenses after the Transaction. Following discussion, the Trustees concluded that the management fee for the SMH Fund was reasonable.
As to economies of scale, the Board considered whether there will be economies of scale with respect to the management of the Fund and whether there is the potential for realization of any further economies of scale. After discussion, it was noted that because of the Fund’s size, economies of scale were unlikely to be realized in the near future and consequently, were not a relevant consideration at this time.
As a result of their considerations, the Trustees, including the Independent Trustees, unanimously determined that continuation of the Management Agreement between the Trust and SMH is in the best interests of the SMH Fund and its shareholders.
SMH REPRESENTATION TRUST
TRUSTEES AND OFFICERS (Unaudited)
Management Information.
Following are the Trustees and Officers of the Trust, their address and year of birth, their present position with the Trust, and their principal occupation during the past five years. In case a vacancy or an anticipated vacancy on the Board of Trustees shall for any reason exist, the vacancy shall be filled by the affirmative vote of a majority of the remaining Trustees, subject to certain restrictions under the 1940 Act. Those Trustees and Officers, who are “interested persons” (as defined in the 1940 Act) by virtue of their affiliation with either the Trust or the Manager, are indicated in the table. The Trust’s Statement of Additional Information includes additional information about the Trustees and Officers and is available, without charge, upon request by calling 1-888-329-4246.
Disinterested Trustees
* The term of office of each Trustee is indefinite.
** The Trustee who is an “interested person” of the Trust as defined in the 1940 Act is an interested person by virtue of being an officer of an advisor that manages a series of the Trust.
SMH REPRESENTATION TRUST
ADDITIONAL INFORMATION (Unaudited)
June 30, 2013 ANNUAL REPORT
Reference is made to the Prospectus and the Statement of Additional Information for more detailed descriptions of the Management Agreement, Services Agreement and Distribution and/or Service (12b-1) Plan, tax aspects of the Fund and the calculation of the net asset value of shares of the Fund.
The Fund files its complete schedules of portfolio holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at
http://www.sec.gov
. The Fund’s Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Commission’s Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-866-447-4228; and on the Commission’s website at
http://www.sec.gov
.
Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-866-447-4228; and on the Commission’s website at
http://www.sec.gov
.
SMH REPRESENTATION TRUST
Expense Examples (Unaudited)
June 30, 2013
ANNUAL REPORT
Information About Your Fund’s Expenses – SMH Representation Trust (the
“Fund”
)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, such as the redemption fees imposed by the Fund for certain redemptions by wire; and (2) ongoing costs, including management fees and other Fund expenses. The example below is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual table below illustrates an example investment of $1,000 at the beginning of the period and held for the entire period of 01/01/13 through 06/30/13. The “hypothetical” table assumes an investment made on 01/01/13 and held for the entire period of 01/01/13 through 06/30/13. Please note that this table is unaudited.
Actual Expenses
The first section of the table provides information about actual account values and actual expenses (relating to the example $1,000 investment made on 01/01/13). You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first row under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second section of the table provides information about the hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, redemption fees, or exchange fees. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. For more information on transactional costs, please refer to the Fund’s prospectus.
Expenses and Value of a $1,000 Investment for the period from
01/01/13
through 06/30/13