Introduction
David joined The FBR Funds in December of 1996 after spending 11-yrs managing the Fidelity
Select Home Finance Fund. During his 13 years with Fidelity David cultivated his investment style,
philosophy and discipline under the tutelage of famed value investor Peter Lynch.
Currently, David serves as President of The FBR Funds and Chief Investment Officer (CIO) for The FBR Equity
Funds. David also acts as portfolio manager of the FBR Large and Small Cap Financial Services Funds and
co-portfolio manager of the FBR Technology Fund. As CIO, David is primarily responsible for
developing the overall investment strategy and discipline across all The FBR Equity Funds.
Investment Goals The Fund, an open end no-load mutual fund, seeks
long-term capital appreciation.
Fund Strategy The Fund attempts to achieve long-term capital
appreciation by investing primarily in the equity securities of financial services companies. Dave's
investment philosophy involves buying financial services stocks with the best earnings growth outlook
selling at the lowest price-to-book and price-to-earnings multiples. Macro-economic factors influencing
the sector such as interest rates and credit quality are diligently monitored for positioning within the
portfolio.
Ratings* as of 3/31/2008
Specialty Financial
Overall
3 Year out of 134 Funds
5 Year out of 118 Funds
10 Year out of 47 Funds
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance
figures associated with its 3-, 5- and 10-yr (if applicable) Morningstar Rating metrics.
TOTAL RETURNS REPRESENT PAST PERFORMANCE, WHICH IS NO GUARANTEE OF FUTURE RESULTS. The current
performance may be lower or higher than performance data quoted. Investment return and principal will
fluctuate so that investors' shares, when redeemed, may be worth more or less than their original cost.
The performance data does not reflect the deduction of redemption fees and if reflected, the redemption
fee would reduce the performance quoted.
Investors should consider the investment objectives, risks, charges and expenses carefully before
investing. This and other important information about the investment company can be found in the
fund's prospectus. To obtain a prospectus, please visit the prospectus page or call 888.200.4710.
Please read the prospectus carefully before investing.
Fund investments are focused in the financial services industry,
which may be adversely affected by regulatory or other market conditions, such as
rising interest rates.
The indices are unmanaged and unlike the Small Cap Financial have no management fees or operating costs
that reduce reported returns. The volatility and other risk characteristics for the fund will differ
from the volatility and risk characteristics of the indices.
S&P 500 is a capitalization-weighted Index of 500 stocks. The Index is designed to represent
the broad domestic economy through changes in aggregate market value of 500 stocks representing all major
industries.
Philadelphia Bank Index (BKX) is a capitalization-weighted index consisting of 24 exchange-listed
and national market system stocks, representing national money center banks and leading regional
institutions.
Dow Jones Utility Index is a price weighted average of 15 utility companies listed on the New
York Stock Exchange and are involved in the production of electrical energy.
Russell 2000 is comprised of the smallest 2000 companies of the Russell 3000 Index, representing
approximately 11% of the Russell 3000’s total market-capitalization.
Lipper Fund Averages, Lipper Analytical Services, Inc., is a nationally recognized organization
that reports on mutual fund total return performance and calculates fund rankings. Peer averages are based
on universes of funds with the same investment objective. Peer group averages include reinvested dividends
and capital gains, if any, and exclude sales charges. These averages include the following: Lipper
Financial Services Index and the Lipper Small Cap Value Index.
Morningstar proprietary ratings reflect risk-adjusted performance as of the period stated above. For each fund with at least a 3-yr history,
Morningstar calculates a Morningstar Rating™ based on a Morningstar risk-adjusted return measure that accounts for variation
in a fund's monthly performance placing more emphasis on downward variations and rewarding consistent performance. The top
10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars the next 35% receive 3 stars, the next 22.5%
receive 2 stars and the bottom 10% receive 1 star.
1- Price-to-Book Value Ratio – Market price per share divided by book value.
2- Price-to-Earnings Ratio – Market price per share divided by earnings per share.
3- Earnings per Share – Profit available to equity shareholders divided by average number of shares outstanding.
The Daily NAV is as of the previous business day's closing. Funds NAV are updated at approximately
5:30 p.m. EST daily.
This website does not constitute an offer to sell or a solicitation of an offer to buy shares of
the FBR Funds to any person in any jurisdiction in which such offer, solicitation, purchase or sale
would be unlawful under the securities laws of such jurisdiction.
Investors should consider the investment objectives, risks, charges and expenses carefully before
investing. This and other important information about the investment company can be found in the
Fund's prospectus. To obtain a free prospectus, please call 888.200.4710. Please read the prospectus
carefully before investing.
The FBR Funds are distributed by FBR Investment Services, Inc. Member FINRA/SIPC.
Ratings* as of 3/31/2008
documents, you must
use