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Introducing Motley Fool Epic Voyage Fund

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Introducing... Motley Fool
Epic Voyage Fund!

Three years ago, we launched the Foolish fund you requested. Now we're launching the fund we're convinced you need. Address what one financial titan considers your #1 portfolio problem with Motley Fool Epic Voyage Fund!

Dear International Investor,

Tim Hanson wasn't surprised people were staring. He knew most of the locals had never seen a blond American in a business suit. This wasn't his first trip to a rural Chinese village.

But something had changed...

The farmers had tractors. And their shacks were equipped with satellite dishes. Soft drinks and snacks were selling briskly at the roadside stand.

Returning to the States, Tim combed through the official data one more time. He knew rural China was growing at a much faster rate than cities like Beijing and Shanghai. Still, even he was surprised to find out just how much faster.

What's more, companies focusing on rural China were underpriced — wildly underpriced — relative to that growth. Especially companies selling consumer goods to those farmers. He was on the trail of some of the best investments of his career...

And I know exactly how he felt. I've traveled with Tim to China. And to India and Brazil and Vietnam and Indonesia. We've spent countless hours on the ground, investigating the power of consumer growth in developing countries...

Which I assure you is tremendous. And one of the foremost reasons we're now launching a brand new fund for individual investors...

Announcing... Motley Fool Epic Voyage Fund!

Motley Fool Independence Fund Performance and Fees
as of December 31, 2012

Annualized Total Return Since Inception
Fund: 14.91%
MSCI World Index: 12.77%

1-Year Total Return
Fund: 13.15%
MSCI World Index: 16.54%

Expense Ratio
Gross (as stated in the prospectus 2/29/2012): 1.58%*
Net (11/01/2011-05/31/2012): 1.42%*,2

The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. For performance current to the most recent month-end, please visit www.foolfunds.com/
funds/independence/summary. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost.
 

A redemption fee of 2.00% of the then-current value of shares redeemed is imposed on redemptions of shares made within 90 days of purchase, subject to certain exceptions.

Unlike a mutual fund, the performance of a market index is not affected by fees, expenses, and taxes.

*The Fund's net expense ratios reflect fee waivers and expense reimbursements by the investment advisor. The Adviser has contractually agreed to pay, waive or absorb a portion of the Independence Fund's expenses through the end of February 2013, or such later date as may be determined by the Independence Fund and the Adviser. The Fund's performance would have been lower if the waivers/reimbursements had not been in effect.

2 The Independence Fund Net Expense Ratio includes a Monthly Performance Adjustment of .07% (as January 1, 2013).

My name is Bill Mann and I'm the Portfolio Manager of Motley Fool Funds.

You may recall how we launched our first fund, Motley Fool Independence Fund, back in June 2009. Not exactly the best time to be asking investors to place their money and trust in the stock market!

Yet in little more than a year, thousands of investors entrusted us with more than $100 million.

And we imagine they're glad they did too...

Motley Fool Independence Fund has achieved annualized returns of 14% since inception, beating its benchmark, the MSCI World Index, by more than 4% annualized.

And while we can't guarantee that our new fund will perform as well, when you invest with us in Motley Fool Epic Voyage Fund, you can know you're tapping a particular strength.

Our investing team has extensive and deep experience in discovering "hidden gem" and undervalued international stocks (which has in part driven our Independence Fund returns).

We've also added a new team member, Tim Hanson, whom you may know as the former lead advisor of Motley Fool Global Gains, The Motley Fool's international equities newsletter. (Read on for more about Tim's background and how we came to be working together.)

It's the international investing team you've been waiting for. And that you need!

Yes, we are convinced you "need" Motley Fool Epic Voyage Fund or you may miss what we think will be one of the great wealth-building opportunities of your lifetime.

Let me explain...

Addressing your #1
portfolio problem

Countless studies show, and our investing team firmly believes, that American investors like you are severely under-allocated in foreign equities.

Legendary Wharton business school professor Jeremy Siegel believes American investors should have a 40% allocation in foreign equities.

Mohamed El-Erian, CEO of PIMCO and former manager of Harvard's endowment, recommends a 30%-plus allocation in international securities. In fact, El-Erian has said that under-allocation in international securities is the #1 portfolio problem facing investors like you.

Why? Countries other than the U.S. make up nearly 70% of the world's market cap and account for a stunning 95% of the world's population.

Around the globe, hundreds of millions of people are on the verge of attaining middle-class status. According to the World Bank's projections, the global middle class will rise from 400 million in 2000 to 1.2 billion by 2030, with most of this population living just in China and India.

It's the rise of the global consumer. One of the great investing opportunities of your lifetime.

As Tim's experience in rural China points out, consumer spending in the emerging world is already a growing source of corporate profits. We believe it can be a meaningful source of returns for your portfolio, too.

Keep in mind that emerging market economies as a whole are growing much, much faster than their developed market peers. India, for example, is experiencing near double-digit GDP growth.

Plus, many emerging market countries also have lower debt burdens than those in the U.S. and European Union. This means that these developing countries have significantly longer runways ahead of them...

Getting the RIGHT KIND of global exposure

Travel Snapshots

The unfortunate reality is the average American has allocated just a tiny fraction of his or her total portfolio to foreign equities. Far less than the 40% Siegel recommends.

Even worse... some of the most popular overseas investment funds are deeply problematic.

For instance, a number of investors like you have opted to use exchange-traded funds to buy emerging markets. It's true that ETFs are easy to buy and trade like stocks, and they also offer diversification.

But we believe these ETF investments could end badly for you.

That's because most ETFs are weighted by market cap, so their holdings are actually focused on the least promising industries, such as manufacturing, outsourcing, and commodities.

We believe those sectors are where emerging markets have been, not where they're going. We'd also argue — and we imagine you agree — that a company's market cap isn't the best way to determine its weighting in your portfolio.

Most importantly, we believe these ETFs are far too overexposed to troubled banks.

For individual investors like you, it's a double whammy. You may be under-allocated in foreign equities and yet, if you're trying to get exposure through ETFs, you may be taking on unknown and unnecessary risk.

If this concerns you — and we frankly believe that it should — Motley Fool Epic Voyage Fund may be the solution you've been looking for.

Investing overseas with a friend you trust

Travel Snapshots 2

Another reason you should
get invested today!

When you invest with us at Motley Fool Epic Voyage Fund, we won't dump your money into the index's holdings. Though our benchmark is the Russell Global Ex-U.S. index, we will make no attempt to match its holdings.

Instead, we'll scour the globe for what we believe are the very best value opportunities. We'll bring you access to hard-to-reach markets and to companies that don't list on American exchanges (companies you simply can't buy on your own).

We'll look for consumer plays, making every attempt to ensure that you are positioned to benefit from the world's burgeoning middle class. We'll also carefully manage currency and macro risks.

And, just as we do when investing domestically, we'll seek out companies with what we believe to be strong management and great business models.

Because we invest Foolishly, your investing team looks at the long term, not at month-to-month or quarterly performance. That means we can choose what we believe to be the best investments for your future... helping you to get securely on the road to your financial goals.

Introducing our newest
team member

Tim Hanson

Tim Hanson
Senior Portfolio Analyst,
Motley Fool Funds

I first met Tim Hanson in 2005, when he joined The Motley Fool as a researcher. (Before that, Tim worked at the White House, crafting messages about national security, and environmental and economic policy.)

Inside Fool HQ, our desks were back to back to each other, so we talked stocks all day long.

When I decided I needed to bring along some more analytical muscle on a research trip to Asia, I was happy to invite Tim along. On that trip, I was impressed by his intellectual curiosity and unerring ability to ask the right questions. It was clear he had the instinct for foreign investing.

Soon enough, Tim was spotting great opportunities all around the world on his own.

Today, Tim is a recognized expert in international equities and emerging markets—as well as a proud member of your Motley Fool Funds investing team. You should know he comes with my highest recommendation.

Most importantly, did we mention that...

If we don't outperform our benchmark, we make less. That's because we've opted for an unusual compensation model that allows our management fees to increase or decrease depending on the fund's performance.

In the industry, this is called a 'fulcrum fee' structure. You can learn more about how it works by reading the fund prospectus. (To see other fees associated with the fund, you may also consult the fund prospectus.)

This unusual component of our fee structure gives us the incentive to earn the highest possible return relative to the market, not merely pump up the fund's assets the way we believe some funds do.

What's more, Motley Fool Epic Voyage Fund is a no-load fund. That means you never pay an upfront sales charge or commission to invest with us. You aren't made to pay so-called 12b-1 fees to help us market the fund, either.

Just as important, I'm investing right alongside you. I've put some of my own money into the fund. And here's something else: The Motley Fool has $1 million of its own money invested in Motley Fool Epic Voyage Fund.

So you see, our interests really are aligned with yours, in more ways than one.

Your complete Fool Funds experience

Here are a few more features and benefits you can always count on receiving from Motley Fool Funds...

Unwavering temperament: Because investing for your future is a marathon, not a sprint, we don't try to time the ups and downs of the market. We don't get rattled in rocky waters... or chase the latest Wall Street fad.

We invest your money with confidence — comfortable in the knowledge that if we've done our homework and bought great companies at good prices, the market may eventually see it our way.

Frank, friendly communications: We don't hide from you if things get tough. We'll talk to you frankly, in plain English, like a trusted partner.

At Motley Fool Funds, we hope you'll look forward to hearing from us — as we will certainly look forward to hearing from you.

Fair, performance-based fees: At Motley Fool Funds, we have a financial incentive to help you do better than the market. We've chosen a compensation model that allows our management fees to increase or decrease depending on the performance of the fund.

In other words, our interests are aligned with yours. For more on our unusual performance-based 'fulcrum fee' structure, please read the fund prospectus.

21st-century convenience: The Motley Fool is an Internet success story, after all. Now, thanks to our secure, interactive website, FoolFunds.com, getting invested and managing your account has never been easier or more convenient.

A word about risk...

Of course, all investments come with risks. We don't promise that you'll make money with the fund. Over any given time period, no matter how hard or how long the fund's investment advisor works, the value of the fund could go down, and you could lose money, including principal.

We endeavor to find companies that are both great businesses and great investments, but there can be no guarantee that we will succeed. If our assessment of a company's value or its prospects for exceeding earnings expectations or market conditions is inaccurate, the Fund could suffer poor performance. Keep in mind that Motley Fool Epic Voyage Fund is new, without a long-term track record.

Foreign securities present special risks. Fluctuations in currency exchange rates can cause losses when investing in foreign companies, with emerging markets presenting additional risks of illiquidity, political instability, and lax regulation. And because the fund is free to invest in companies of any size around the world, at times we may be heavily invested in small-cap stocks, which tend to be more volatile and less liquid than their large-cap counterparts. We strongly encourage you to read more about the fund's strategies and risks in the prospectus.

No one can guarantee that the recent economic performance and trends of emerging market countries such as China and India will continue. There is always the possibility that structural global and national conditions may emerge that could disrupt or delay the growth of mass consumer demand in the developing world.

Motley Fool Epic Voyage Fund seeks to achieve long-term capital appreciation by investing primarily in common stocks and equity-related securities. The fund is not for everyone. "Value stocks" can continue to be undervalued by the market for long periods of time. If you're seeking something other than long-term capital appreciation — for example, current income to live on — or if you're not comfortable with the risks, or if you expect to need your money back soon, this is not the fund for you.

(Please keep in mind that Motley Fool Epic Voyage Fund is open to U.S. investors only.)

Are you ready to invest?
Hold on! Don't send us a penny unless...

As a member of The Motley Fool community, you know the routine. At Motley Fool Epic Voyage Fund, we're looking for patient, long-term investors. Shareholders whose investing temperament matches our own.

Frankly, we'd rather not take on investors who are tempted to pull out when stocks temporarily go on sale — in other words, precisely when WE are most eager to go shopping for bargains.

Plus, unlike what we believe many other mutual funds are doing, we intend to be long-term, buy-and-hold investors.

We firmly believe — and the vast preponderance of evidence shows — that attempts at market timing put YOU at a grave disadvantage and greatly reduce your chance of outperforming the market over the long term. For this reason, and to keep the fund's expenses low, we discourage small accounts and short-term trading.

Join us on the Epic Voyage!

If you ARE a patient, long-term investor, looking to increase your global exposure and build your wealth over time... Motley Fool Epic Voyage Fund may be just the thing for you.

We'd be happy to have you with us on this exciting, lifelong journey...

Your next step is just as easy.

Get invested in Motley Fool Epic Voyage Fund now. Simply click the link to get started. You'll have the chance to look over the fund prospectus. You'll also have the chance to purchase shares.

Click the link to get started! Join us on the Epic Voyage!

Click Here to Get Invested!

Good Investing!

Bill Mann

Bill Mann
Portfolio Manager, Motley Fool Epic Voyage Fund

A redemption fee of 2.00% of the then-current value of shares redeemed is imposed on redemptions of shares made within 90 days of purchase (i.e., the redemption is effective on or before the 90th day following the date of purchase), subject to certain exceptions.

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