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Investment
Objective
Investment Strategy
Who May
Want to Invest?
Performance
Update
Portfolio Manager
Sector
Weightings
Top
Ten Holdings
Miscellaneous
Investment
Objective
The Flex-funds Total Return Utilities Fund seeks current income and growth
of income by investing primarily in equity securities of domestic and
foreign utility companies. The Fund will not invest in electric utilities
that generate power from nuclear reactors. The Fund also seeks capital
appreciation, but only when consistent with its primary investment objective.
Investment
Strategy
For investors
seeking the potential for current income and real rates of return on their
investment, The Flex-Funds Total Return Utilities Fund offers the stability
of earnings typically found in utility stocks, with the potential for
long-term growth of capital typically found in the equity markets.
The investment strategy
employed by The Total Return Utilities Fund attempts to provide a real
rate of return by investing in fiscally sound companies across the broad
utilities market that have demonstrated a willingness to pay increasing
dividends to shareholders. The Fund evaluates these companies based on
fundamental criteria of financial strength, and seeks those which show
the best prospects for increasing dividend payments and future growth.
Research has shown that when companies steadily increase their dividends,
they also tend to incre
ase their share price. Therefore, investments in
The Total Return Utilities Fund have the opportunity to grow in two ways:
through increased rates of income; and through growth of capital.
The Fund also attempts
to reduce volatility by avoiding companies with exposure to the nuclear
power industry. The Fund also favors companies in utility-friendly states
with fewer regulations to constrain earnings growth. The Flex-funds Total
Return Utilities Fund is an ideal portfolio choice for investors seeking
current income with the additional benefit of capital appreciation.
Because The
Total Return Utilities Fund concentrates its investments in public utility
companies, the value of the Fund's shares may fluctuate more than if invested
in a greater number of industries. Changes in interest rates may also
affect the value of utility stocks, and rising interest rates can be expected
to reduce the Fund's net asset value.
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Who
May Want to Invest?
The Total Return Utilities Fund may be appropriate for you if:
- you are seeking
a more conservative, income-oriented equity investment or are looking
to suppplement your core equity holdings;
- you are seeking
a socially responsible investment.
The Total Return Utilities
Fund may not be appropriate for you if:
- you are investing
to meet short-term financial goals;
- you are seeking
an investment that is diversified over several market sectors;
- you are unwilling to accept an investment
that will go up and down in value.
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Performance
Update
Average
Annual Total Returns
as of December 31, 2005 |
| Three
Months |
-5.80% |
| One
Year |
16.80% |
| Five
Years |
-1.09% |
| Ten Years |
8.02% |
| Life
of Fund (Inception Date 6/21/95) |
9.04% |
| Annual
Returns |
| 2005 | 16.80% |
| 2004 |
18.01% |
| 2003 |
15.46% |
| 2002 |
-30.36% |
| 2001 |
-14.57% |
| 2000 |
20.03% |
| 1999 |
20.01% |
| 1998 |
8.77% |
| 1997 |
28.68% |
| 1996 |
13.33% |
Past
performance is not a guarantee of future
results.
Performance data indicates period and average
annual total returns as indicated and assumes reinvestment of all dividend
and capital gain distributions. The investment return and principal value
of an investment will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. Management fees
were waived and/or expenses were reimbursed in order to reduce the operating expenses of
The Total Return Utilities Fund during each period shown above. To obtain
a prospectus containing more complete information about the Fund,
including other fees and expenses that may apply to a continued investment
in the Fund, you may call The Flex-funds at 800-325-3539, or write P.O.
Box 7177, Dublin OH 43017. You may also download or request a
prospectus by mail. Please read the prospectus carefully before investing.
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Portfolio
Manager
Lowell
G. Miller
Lowell Miller is the founder and Chief Investment Officer of
Miller/Howard Investments, subadviser to The Total Return Utilities Fund
since inception in 1995. Mr. Miller has demonstrated expertise in the
field of utilities industry investing for over 25 years, and is often
quoted in the financial press on the subject of utilities and the investment
scene in general.
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Sector
Weightings as of December 31, 2005
Sector weightings
are subject to change.
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Top Ten
Holdings* as
of December 31, 2005
| |
Company |
%
of Portfolio |
| 1. |
Ultra Petroleum |
5.61% |
| 2. |
Sierra Pacific Res. |
5.18% |
| 3. |
Questar Corp. |
4.95% |
| 4. |
Pioneer Natural Res. Co. |
4.81% |
| 5. |
Equitable Res, Inc. |
4.26% |
| 6. |
Kinder Morgan Energy |
4.13% |
| 7. |
NiSource, Inc. |
3.59% |
| 8. |
Energy East Corp. |
3.56% |
| 9. |
AGL Resources, Inc. |
3.30% |
| 10. |
AT&T, Inc. |
3.20% |
| |
*
Portfolio holdings as subject to change.
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For the most recent month-end schedules of complete portfolio holdings for all funds, click here.
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Ticker
FLRUX
CUSIP
339370884
Inception Date
June 21, 1995
Distributions
|
Dividends |
Monthly |
| Capital
Gains |
Annually |
Minimum Initial
Investment
| Regular
Accounts |
$2500 |
| IRA
Accounts |
$500 |
| Subsequent
Investments |
$100 |
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