Leuthold Undervalued and Unloved Fund

Performance Note: Performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal will fluctuate so that investors’ shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. For performance data current to the most recent month-end, please call Leuthold Funds’ Shareholder Services, toll-free: 1-800-273-6886.

• The Russell 3000 “Value” measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. (The Russell 3000 is composed of the 3,000 largest U.S. companies based on total market capitalization.)
• S&P 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy based on the changing aggregate market value of these 500 stocks.
• The Russell 3000 Value and S&P 500 are indexes only and cannot be invested in directly. Fund performance return figures are historical and reflect the change in share price, reinvested distributions, change in net asset value, and capital gains distributions, if any.

Expense Ratio Dislosure:
The annual expense ratio is capped at 1.50%. Per Prospectus dated 1/31/10, annual net operating expenses for UGLYX prior to reimbursement was 1.56%. The Advisor may recover reimbursements in subsequent years; however this recovery period is limited to three fiscal years, beginning on the date of first recovery.
Please refer to the Prospectus for a more detailed explanation of the expense ratios.

Jim Floyd and Eric Bjorgen discuss the Undervalued and Unloved (UGLYX) portfolio strategy. (running time: 13min 5sec)

Investment Objective
Leuthold Undervalued and Unloved Fund seeks long-term capital appreciation and dividend income.

Investment Strategy
The Leuthold Undervalued and Unloved Fund utilizes a disciplined, unemotional, quantitative investment approach that is based on the belief that in all market conditions there will exist some companies that are undervalued. The Fund will invest in “value” stocks of companies of all sizes and industries. Stocks are selected from a universe of common stocks that meet minimum market capitalization and trading volume levels. A quantitative screening process is used to identify those securities that appear to be out-of-favor or overlooked, securities with prices that are believed to be low in relation to their intrinsic value. A list of seven or more screening criteria are used in stock selection, including fundamental factors (such as price/earning ratios and dividend yield) and market factors (such as trading volume and market capitalization). The Fund may also invest in exchange-traded funds with similar objectives and characteristics to the Fund’s strategy.

Risk of Investing

As disclosed in the prospectus, the risks of investing in the Leuthold Undervalued & Unloved Fund include, but are not limited to, value investing risk, market risk, small/medium capitalization risk, foreign securities risk, and quantitative investment approach risk. Please read the prospectus carefully before you invest (1-800-273-6886).