Editor’s Note: Muhlenkamp Fund shareholders and others often pose questions to us about the Fund and our investment philosophy. We will answer many of these questions in this forum.

How do I contact the Fund with questions about my account, for a prospectus, or applications?

What is the minimum for an initial investment in the Muhlenkamp Fund?

What type of accounts do you offer?

What is the minimum for a subsequent investment in the Muhlenkamp Fund?

What are your fees, expenses, and loads?

Can I query my account online?

What kind of a fund are you?

When does the Fund pay dividends?

Can I purchase shares over the telephone?

Can I check my account balance and last transaction over the telephone?

How do I redeem shares from my account?

How quickly can I receive the proceeds from my redemption request?

Where do I mail additional purchases, redemption requests, account applications, changes of address or other letters of instruction?

How can I wire money to my account?

What is the Fund’s Symbol?

What is the Cusip number?

Where are you listed in the newspaper?

Why are you not located in my local paper?

How long has the fund been in operation?

What is the portfolio turnover rate?

How often do you send out statements?

What is your current asset allocation?

What are your top ten holdings?

How will I know if my account will be charged a fee?

Must I be a Resident of the United States to own shares?

Is your investment style value-oriented or growth-oriented?

Have you changed your style over time?

Do you buy foreign securities?

To what extent do you use cash?

How do you conduct your research?

Why is ROE so important to you?

How do you minimize the impact of taxes?

Under what circumstances would you close the Fund to new investors?

How do I contact the Fund with questions about my account, for a prospectus, or applications? Back
You can reach us toll free at (800)860-3863.

What is the minimum for an initial investment in the Muhlenkamp Fund? Back

• $1,500 for all account types.
• $200 if you enroll in the Automatic Investment Plan.

What type of accounts do you offer? Back
Individual, Joint Tenant, UGMA/UTMA, Trust, Corporate, IRA, Spousal IRA, Roth IRA, SEP IRA, SIMPLE IRA, and Coverdell Education Savings Accounts.

What is the minimum for a subsequent investment in the Muhlenkamp Fund? Back
The minimum is $50 for all account types, and may be submitted at any time. This is the minimum subsequent investment whether you invest periodically using the Automatic Investment Plan, send a check in the mail, wire money, etc.

What are your fees, expenses, and loads? Back

• We are a 100% no-load mutual fund. We do not charge any front-end or back-end sales fees, nor do we charge any 12b-1 fees.
• As an investor, you pay certain fees and expenses in connection with the Fund, which are described in the table below and example that follows. In the table you will see the fees and expenses you would incur if you bought, held and sold shares of the Fund. Shareholder transaction fees are paid from your account. Annual Fund operating expenses are paid out of the Fund assets, so their effect is included in the Fund’s shareprice.
  
  

  SHAREHOLDER FEES* (expenses that are deducted from your account)
  Sales Charge (Load) Imposed on Purchases	NONE
  Sales Charge (Load) Imposed on Reinvested Dividends	NONE
  Deferred Sales Charge (Load)	NONE
  Redemption Fees (shares held longer than 30 days from purchase date)	NONE
  Redemption Fees (shares redeemed within 30 days of purchase date)	2.00%

  
  

  ANNUAL FUND OPERATING EXPENSES (Expenses that are deducted from Fund assets)
  Management Fees	1.00%**
  Distribution (12b-1) Fees	NONE
  Other Expenses	0.14%
  Total Annual Fund Operating Expenses	1.14%

  
  
  *Investors may be charged an annual account maintenance fee if their account falls below the established minimums. Investors may be charged a fee by their broker or agent if they effect transactions through a broker or agent. There are certain annual charges and other fees associated with retirement accounts offered by the Fund.
  
  **Effective January 1, 2005,the Adviser charges a management fee equal to 1% per annum of the average daily market value of the Fund’s net assets up to $1 billion, and 0.9% per annum on Fund assets in excess of $1 billion. The management fee reflected above is for the Fund’s prior fiscal year.
  
  Example:This example is intended to help you compare the cost o finvesting in the Fund with the cost of investing in other mutual funds. This example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The example also assumes that your investment has a 5% return each year, that you reinvest all dividends and distributions, and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
  
  

  1 Year	3 Years	5 Years	10 Years
  $116	$362	$628	$1,386

  
  
  
  

• Federal Wire Fee: $15 per wire.

• Traditional and Roth IRA annual maintenance fee per account $15.00 (not to exceed $30 per social security number).
• Transfer to successor trustee $25.00.
• Distribution to IRA participant (exclusive of systematic withdrawal plan) $25.00.
• Refund of excess contribution $25.00.
• Reconversion/Recharacterization $25.00.
• Investors may be charged an annual account maintenance fee if their account falls below the established minimums. By November 30th of each year, all accounts must have net investments (purchases less redemptions) totaling $1,500 or more, an account value greater than $1,500, or be enrolled in the Automatic Investment Program. Accounts that do not meet one of these three criterions will be charged a $15 fee, paid to the Fund to lower expenses. The Fund will check accounts and charge this fee annually.
• Investors may be charged a fee by their broker if they effect transactions through a broker or agent.

Can I query my account online? Back
We do not offer this service at this time.

What kind of a fund are you? Back
The Fund is a Total Return fund that has a Value orientation. The Fund attempts to maximize the total return to its shareholders, while limiting downside risk, and limiting and deferring taxes. This is achieved by primarily buying the common stock of highly profitable companies that are selling at value prices, and holding them for a period of 3-5 years on average. Fixed-income securities are used as stock substitutes when, and if, stocks are overpriced and are not likely to produce desired returns.

When does the Fund pay dividends? Back
The Fund last paid an Income Dividend Distribution in December 2006. The Fund last paid a Capital Gains Distribution in December 2000. Click here for the Fund's Distribution History.

Can I purchase shares over the telephone? Back
Yes, you must first enroll in the Electronic Funds Transfer (EFT) program. Upon receiving a telephone purchase request, the Fund will electronically transfer the assets from your bank account.

Can I check my account balance and last transaction over the telephone? Back
The Fund’s automated telephone system offers 24-hour access to account information, including balances and last transactions. The daily Net Asset Value (NAV) per share of the Fund is also posted on the system each business day by 6 p.m. EST.

How do I redeem shares from my account? Back

• You may sell all or some of your shares, by mail or telephone, on any day that the Fund is open for business. Your shares will be sold at the next calculated NAV after the Fund’s transfer agent accepts your order. You will generally receive the proceeds within a week. You may receive your payment by check,wire transfer, or EFT (if previously enrolled in this program). The Fund reserves the right to delay sending out redemption proceeds for up to seven calendar days. Before selling recently purchased shares, please note that if the Fund’s transfer agent has not yet collected payment for the shares you are selling, there may be a delay sending the proceeds until the payment is collected, which may take upto 12 calendar days from the purchase date. To protect the Fund and its shareholders, a signature guarantee is required in the following situations:
  
  • If the ownership is changed on your account;
  • When redemption proceeds are sent to a different address than that registered on the account;
  • If the proceeds are to be made payable to someone other than the account’s owner(s);
  • Any redemption transmitted by federal wire transfer to a bank other than the bank of record;
  • If a change of address request has been received by the Fund’s transfer agent within the last 15 days;
  • When adding a telephone redemption to an existing account;
  • When adding or changing federal wire or electronic funds transfer instructions on an account; and/or
  • For all redemptions of $50,000 or more from any account.

  Signature(s) on the redemption request must be guaranteed by an “eligible guarantor institution.” These include banks, broker-dealers, credit unions and savings institutions. A broker-dealer guaranteeing signatures must be a member of a clearing corporation or maintain net capital of at least $100,000. Credit unions must be authorized to issue signature guarantees. Signature guarantees will be accepted from anyeligible guarantor institution that participates in a signature guaranteeprogram. A notary public is not an acceptable guarantor.

• Redemption requests may be made by telephone by calling the Fund at (800) 860-3863.
• Written requests may be mailed to: Muhlenkamp Fund, U.S. Bancorp Fund Services, LLC, P. O. Box 701, Milwaukee WI 53201-0701. The letter should include the shareholder(s) original signature, the account number, Social Security # and either a dollar amount or share amount to be remitted.
• Shares are sold at the net asset value next determined after your request is received in good order by the Muhlenkamp Fund.
• There is no fee to redeem shares, unless you are redeeming shares from your IRA account and you are not using the System Withdrawal Plan, then there is a $25.00 fee for each redemption.

How quickly can I receive the proceeds from my redemption request? Back

• Shares are sold at the net asset value next determined after your request is received in good order by the Muhlenkamp Fund. Checks are generally mailed to your address of record within two business days of receiving your request.
• The Fund offers an address for express/overnight letters and will overnight the redemption check if requested. For this service we subtract $15 from the proceeds of redemption.
• If you are participating in the Electronic Funds Transfer (EFT) Program you may request that the redemption proceeds be sent electronically to your designated bank account.

Where do I mail additional purchases, redemption requests, account applications, changes of address or other letters of instruction? Back

How can I wire money to my account? Back
Provide your bank with money and the following information:

U.S. Bank, National Association
ABA# 075000022
For credit to account # 112-952-137
For further credit to shareholder account number.
Shareholder's name as it appears on the first line of the account registration.
Muhlenkamp Fund
Attn: Mutual Fund Services

What is the Fund’s Symbol? Back
MUHLX

What is the Cusip number? Back
9 6 2 0 9 6 1 0 3

Where are you listed in the newspaper? Back
In the mutual fund section, we are listed under Muhlenkamp (just before Munder Funds, and right after either Morgan Stanley or Mosaic). As we have only one fund, and are seldom placed in bold face type, you may need to look closely.

Why are you not located in my local paper? Back
If after searching in the Mutual Funds listing of your local paper you cannot locate us it is possible that we are not located in your paper. There are a few things we can recommend.

• You may call the business editor of your local paper and ask him/her to track the Muhlenkamp Fund.
• We are listed in many major publications including the Wall Street Journal, Investors Business Daily, NY Times, and USA Today.
• We post the NAV daily at 6:00 p.m. EST on our automated telephone answering system at (800) 860-3863.

How long has the fund been in operation? Back
The Fund’s inception date is November 1, 1988.

What is the portfolio turnover rate? Back
Historically, the turnover rate has averaged less than 30% annually. The turnover rate for 2003 was 9.15%. See the current annual report for the year-by-year figures.

How often do you send out statements? Back

• Every time there is activity in your account.
• Quarterly

What is your current asset allocation? Back
See Fund Snapshot

What are your top ten holdings? Back
See Fund Snapshot

How will I know if my account will be charged a fee? Back
On November 30th of each year, all accounts must have net investments (purchases less redemptions) totaling $1,500 or more; an account value greater than $1,500 or be enrolled in the Automatic Investment Program. (The balance requirement is reduced to $200 if you participate in the Automatic Investment Program.) Accounts that do not meet one of these criterions will be charged a $15 fee. Such fees will be used to lower Fund expenses. The Fund will check accounts and charge this fee annually.

Must I be a Resident of the United States to own shares? Back
Shares of our 100% no-load mutual fund are offered only for sale in the United States and the information on this web site is intended only for persons in the United States. While you may obtain prospectuses and other information about our Fund at this web site, our Fund is not registered for sale in any other country. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of our 100% no-load mutual fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Is your investment style value-oriented or growth-oriented? Back
Both. As Warren Buffet says, “Growth is part of the value calculation.”But we consider profitability (return on shareholder equity) more important than growth. We then try to get that profitability at a value price.

Have you changed your style over time? Back
No, our style hasn’t changed in thirty years. But we define style as good investments at good prices. At various times this has included bonds, foreign stocks, real estate and what some people call “growth”stocks. Some people may include size (i.e. market capitalization) in their definition of style. We think size is irrelevant.

Do you buy foreign securities? Back
We buy foreign securities, but only when they meet our criteria and they look better than their domestic counterparts.

To what extent do you use cash? Back
We use cash in two ways:

1. As a “parking place”between the sale of one position and the purchase of another.
2. As a portfolio hedge when we see risk in the marketplace.
   

In 1972, the group I was working with saw increasing inflation causing a major negative in the big picture (we would now call it a climate change) and went to 50% cash.

At various times, when we’ve seen the Fed raise interest rates to slow the economy (raising risks in the intermediate term), we’ve gone to 20-25% cash. The most recent occurrence of this was mid-1998.

When the big picture and intermediate picture look good, but we see psychology risk in the current market, we’ll hold 5-15% cash. This was true in January-July of 2002, so we held 6-10% cash.

How do you conduct your research? Back

We begin with various databases, looking for companies with good return on equity (ROE) and modest price-to-earnings (P/E) ratios. As a working definition, ROE is the rate of return of earnings based on the equity capital. It has averaged roughly 14% since WW II, so that becomes our starting point.

• If the numbers look good, we dig deeper by checking financial statements and annual reports. If satisfied, we call the company’s management. Our three favorite questions are:
  
• Are there analysts on Wall Street who do a good job covering your company? (That saves us time because we can work off their efforts.)
  
• What metrics do you use to judge your company’s performance? (Some use ROE, some use Discounted Cash Flow, others use Economic Value Added, and so forth; all those are valid, but we want to know what they use.)
  
• At what point on that metric do your executives or employees start earning a bonus? We want to know what they’re trying to accomplish with shareholder money. (Sometimes they set their hurdles too low, in which case we’re not interested. Our job is to figure out whether the company will reach its goals and figure out what we’re willing to pay for that.)

A program of regular investing cannot assure a profit or protect against a loss in a declining market.