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.
Winsor H. Aylesworth Co-Portfolio Manager
Introduction
Prior to joining The FBR Funds in 1998, Winsor “Skip” Aylesworth served as President and
Founder of GrandView Advisers, Inc., where he managed two real estate funds and edited the
highly regarded REIT newsletter “The Winsor Report”. In addition to his six years as President
of GrandView, Skip spent over13 years as a real estate specialist at Bank of Boston holding
various positions including Executive Vice President and Manager of the Bank‘s Connecticut
based OREO group, overseeing 400 properties.
Currently, Skip serves as co-portfolio manager of the FBR Technology Fund and
portfolio manager of The FBR Gas Utility Index Fund. As co-portfolio manager, he is
responsible for the daily implementation and management of the Technology Fund’s
investment strategy.
Investment Goals
The Fund, an open-end, no-load mutual fund, seeks to achieve long-term capital appreciation.
Fund Strategy
The Fund focuses investments in equity securities of companies greater than $3B in
market cap that engage in the research, design, development, manufacturing or distribution
of products and services related to the overall technology industry. The Fund employs a
series of bottom-up financial and statistical screens designed to identify companies that
adhere to the strict criteria and guidelines governing the selection process.
Ratings* as of 3/31/2008
Specialty-Technology
Overall
3 Year out of 267 Funds
5 Year out of 241 Funds
10 Year
n/a
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 annual Fund operating expenses were 1.70%.
FBR Fund Advisers, Inc has agreed in writing to waive a portion of its advisory
fee and assume certain expenses of the Fund to the extent annual operating
expenses exceed 1.95% of the Fund’s average daily net assets. The Adviser has
agreed to maintain these expense limitations through November 1, 2008.
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 technology industry, which may be adversely affected
by rapidly changing technology, availability of capital, R&D, government regulation and the
relatively high risks of obsolescence caused by scientific and technological advances.
Fund Strategy
The FBR Technology Fund (“Tech Fund”) seeks value oriented technology companies that demonstrate
solid fundamentals; strong management teams and are leaders in their markets with strong product
cycles. Investment discipline involves, monitoring such factors as strength of balance sheet,
profitability and relative valuation. The net result, a diversified portfolio within the technology
sector that emphasizes conservatively financed mature companies selling at a reasonable multiple to
tangible book value. The Tech Fund may invest in companies of any size and may include but are not limited
to the following areas:
· Application Software
· Semiconductors
· Computing hardware, peripherals and electronic components
· Telecommunications and information technology
· Health-care technology and biotechnology
· Defense and Aerospace technology
Who Should Invest in the Tech Fund?
You might consider investing in the FBR Technology Fund if:
· You are a long-term aggressive growth investors with a time horizon of three years or more.
· You are seeking to add a technology component to an existing well-rounded, diversified and balanced portfolio.
· You do not have the time or the resources to research and actively manage a portfolio of technology stocks.
· You are comfortable assuming a higher degree of risk and volatility within a component of your portfolio.
The indices are unmanaged and unlike the Technology Fund 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-Earnings Ratio – Market price per share divided by earnings per share.
2– Tangible Price-to-Book – Shareholder equity minus intangible assets and goodwill divided by shares outstanding.
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
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