Why has the Board recommended that I vote in favor of reducing the investment advisory fee that each Outlook Fund pays to Funds Management (Proposal 1)?
The Board recommends a vote in favor of reducing the investment advisory fee because upon the implementation of the proposed structural conversion of the Outlook Funds, there will be a shift of some of Funds Managements advisory responsibilities away from the stand-alone Outlook Funds to the underlying registered investment companies. This structural conversion will allow the Outlook Funds to pool their assets, and is expected to provide greater economies of scale and broader diversification for the Outlook Funds. In addition, a favorable vote leading to the implementation of the structural conversion will result in reduced net fund expenses for a period of time. Upon approval of the reduced investment advisory fee, the Funds will convert their structure and Funds Management will be responsible for allocating each Funds assets among various proprietary investment companies as opposed to directly managing a portfolio of securities for each Fund. Outlook Fund shareholders would indirectl
