Who Should Invest in the Fund?

Investors seeking protection from at least some of the income tax burden that takes away from both cap gains and dividends. This fund works well combined with single state investments as an income diversifiers.

Investment Objective:

The Fund provides a high level of total return with relative stability of principal and, secondarily, high current income exempt from federal income tax through investment in a portfolio consisting primarily of tax-free municipal obligations.

Investment Strategy:

Without investing a significant amount of money, it is difficult for most investors to create a fully diversified portfolio of individual bonds. By investing in a variety of different issues and regions, ISI Managed Municipal Fund provides diversification, which reduces exposure to risk. In addition, the Fund is managed by investment professionals who have the research capabilities and fixed-income expertise to selected and track portfolio holdings. The advisor uses only AA and AAA rated Munis that are rated on their own merit. No AMT bonds.

Fund Facts:

Gross Expense Ratio: .97%
Minimum Initial Investment: $5,000 for a regular account & $1,000 for an IRA.
Minimum Subsequent Investment: $250 for all accounts.
Fund Management: Al Medaugh - Portfolio Manager
                                    Ed Hyman - Senior Economic Advisor
Fund Inception Date: 02/26/90

A Word About Risk

Bond prices fluctuate based on changes in interest rates and bond prices can decline due to general market, political, regulatory and economic conditions. Fund shares are not guaranteed by the U.S. Government. An investor should consider the investment objectives, risk and charges and expenses of the fund carefully before investing. The Managed Municipal Fund prospectus and summary prospectus contains this and other information about the fund and should be read before investing.