Theodore J. Tyson
Douglas R. Allen
Mastholm Asset Management
10500 N.E. 8th Street
Suite 660
Bellevue, WA 98004

Ted Tyson is the Chief Investment Officer and a Portfolio Manager of Mastholm Asset Management, LLC (“Mastholm”). Prior to forming Mastholm in 1997, Tyson was the founder and head of international equity at American Century Investment Management, which he joined in 1988. He has been in the investment business since 1984. The Mastholm portfolio is managed by a team of portfolio managers led by Ted Tyson and Doug Allen. Tyson and Allen worked together at American Century. Mastholm has been an investment manager to Masters’ Select International Fund since October 1999.

Approximately 18% of the Fund’s assets are managed by the Mastholm team. Mastholm’s investment approach is bottom-up all capitalization growth, primarily in developed markets.

Mastholm screens a universe of 28,000 companies on a daily basis to identify stocks with accelerating earnings or positive news impacting current or future earnings. Companies that pass their initial screens are reviewed to identify purchase candidates with the following characteristics:

• Clarity of accounting and confirmation of real earnings growth
• Operating results significantly higher than analysts expectations
• Wide divergence of analyst expectations
• Stock price below historical average range
• Trading liquidity that meets guidelines

Candidates with these characteristics become the highest priorities for fundamental analysis by the team. Fundamental research is allocated among the portfolio managers based on country or industry expertise.

The fundamental analysis process is designed to uncover catalysts that drive earnings not fully recognized by the market. Industry analysts are interviewed to understand the assumptions that led to their original earnings forecast, companies are contacted to discuss how their explanation differs from that of industry analysts and to identify trends not recognized or fully discounted by the market. Competitors, suppliers and vendors are questioned to cross-reference the information garnered from analysts and companies. The portfolio managers spend a significant amount of time visiting with companies abroad that are in the portfolio or under consideration.

Investments are primarily concentrated in developed markets. Mastholm tends to remain fully invested in stocks at all times, and does not hedge currencies except under rare circumstances.

References to other mutual funds should not be deemed an offer to sell or solicitation of an offer to buy shares of such funds.