Small Cap Opportunities Fund|VLEOX

Formerly the Emerging Opportunities Fund.

Daily Price Change as of 07/21/14

NAV 47.09
Change ($/%) -0.17 / -0.36

Fund Details as of 05/31/14

Manager Stephen Grant
Inception Date June 23, 1993
Net Assets $349M
No Load

Morningstar as of 05/31/14

Category Mid-Cap Growth Funds
3 Year
of 631 Funds
5 Year
of 564 Funds
10 Year
of 412 Funds
Overall
of 631 Funds

Portfolio Statistics (3 Yr.)
as of 05/31/14

Beta 0.72
Alpha 5.81
R-Squared 0.92
Standard Deviation 12.81
Sharpe ratio 1.09
Information ratio 0.46
Tracking Error 5.92

Valuation as of 05/31/14

Price/Earnings 21.40x
Price/Book 3.27x
Price/Sales 1.80x
Price/Cash Flow 14.47x
Dividend Yield 1.19

Fees & Expenses as of 03/31/14

Redemption Fee N/A
12b-1 Fee 0.25%
Max Mgmt Fee 0.75%
Expense Ratio Before Waivers 1.26%
Expense Ratio After Waivers 1.26%
Turnover 15%
Minimum Initial Investment $1,000
Minimum Subsequent Investment $100
Best 3 Mo. Period
(last 10 years)
Apr-June 2009
16.67%
Worst 3 Mo. Period
(last 10 years)
Oct-Dec 2008
-25.60%

Portfolio Composition as of 03/31/14

Investment Objective and Strategy (Condensed)

The Fund’s investment objective is long-term growth of capital.

To achieve the Fund’s investment objective the Advisor normally invests at least 80% of the market value of the Fund’s total assets in U.S. common stocks of small capitalization (including micro capitalization) companies, as measured at the time of purchase. A portion of the Fund’s assets may be invested in mid-capitalization companies. The Adviser uses Lipper Inc.‘s definition which considers a company to have a small market capitalization if its market capitalization is below the 85th percentile of the aggregate capitalization of all the companies in the Russell 3000 Index. Both the market capitalizations of the companies in the index and the composition of the index change with market conditions.

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Fund Literature

Fact Sheet Annual Report Semi-Annual Report Summary Prospectus Prospectus SAI

Average Annual Returns as of 05/31/14

transparentSmall Cap Opportunities Fund -1.04% 16.96% 14.83% 19.96% 9.27%
transparentRussell 2000 Index -2.02% 16.79% 11.72% 19.31% 8.58%
transparentLipper Small-Cap Core Funds -5.28% 15.77% 9.90% 19.27% 8.22%
transparentLipper Ranking as of 05/31/14
transparentPercentile
- 403/745
55th
56/660
9th
194/588
33rd
136/359
38th

transparentGross Expense Ratio:1.26% (as of 03/31/14)

Calendar Year Returns (10 Yrs) as of 05/31/14

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 05/14
Small Cap Opportunities Fund 16.67 8.04 11.95 12.38 -38.24 24.63 21.15 7.45 16.94 36.10 -1.04%
Russell 2000 Index 18.33 4.55 18.37 -1.57 -33.79 27.17 26.85 -4.18 16.35 38.82 -2.02%
Difference -1.66 3.49 -6.42 13.95 -4.45 -2.54 -5.70 11.63 0.59 -2.72 0.98%

Top Ten Holdings as of 03/31/14

Company Name Market Value Weight (%) Sector
Middleby Corp. (The) $10,304,190 2.88 Industrials
Acuity Brands, Inc. $8,245,854 2.31 Industrials
Lennox International, Inc. $8,236,446 2.30 Industrials
HEICO Corp. $6,903,059 1.93 Industrials
Stifel Financial Corp. $6,742,480 1.89 Financials
Esterline Technologies Corp. $6,733,328 1.88 Industrials
NewMarket Corp. $6,643,260 1.86 Materials
Lincoln Electric Holdings, Inc. $6,394,488 1.79 Industrials
AptarGroup, Inc. $6,292,720 1.76 Materials
Waste Connections, Inc. $6,250,050 1.75 Industrials

Sector Distribution as of 03/31/14

2013 Year-End Distributions (Finalized)

Ordinary
Income
Short Term Long Term Total
Per Share
Ex. Date Pay Date
$4.22514 $4.22514 12/24 12/24
Standard Deviation
Statistical measure that shows the likelihood of an investment to yield above- or below-average returns over a period of time. For example, if hypothetical XYZ Fund has an average annual total return of 11% and a standard deviation of 6.00, that means XYZ Fund's performance is likely to vary from a low of 5% to a high of 17%.
Beta Equation (Stocks)
Beta of a portfolio is a number describing the correlated volatility of the portfolio in relation to the volatility of the benchmark. A positive beta means that the portfolio generally follows the benchmark. A negative beta means that the portfolio generally moves opposite the benchmark.
R Squared
The measure of diversification that determines how closely a particular fund's performance parallels an appropriate market benchmark over a period. The market is understood to have an R Squared of 100%. Therefore, a fund with an R Squared of 95% contains 95% of the market's diversification and risk. The remaining 5% is unique to the fund manager's actions.
Sharpe Ratio
A statistical expression calculated by dividing a fund's excess return by the standard deviation of those returns that measures the relative reward of holding onto risky investments. The higher the ratio, the greater the potential for return for the same amount of risk. The lower the ratio, the worse the fund's historical risk-adjusted performance.
Alpha Equation
A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha
Information Ratio
A ratio of portfolio returns above the returns of a benchmark to the volatility of those returns. The information ratio measures a portfolio manager's ability to generate excess returns relative to a benchmark, but also attempts to identify the consistency of the investor.
Tracking Error
A divergence between the price behavior of the portfolio and the price behavior of a benchmark, reported as a "standard deviation percentage" difference. This measure reports the difference between the return an investor receives and that of the benchmark he or she was attempting to imitate.

The Morningstar Rating™ for funds methodology rates funds based on an enhanced Morningstar Risk-Adjusted Return measure, which also accounts for the effects of all sales charges, loads, or redemption fees. Funds are ranked by their Morningstar Risk-Adjusted Return scores and stars are assigned using the following scale: 5 stars for top 10%; 4 stars next 22.5%; 3 stars next 35%; 2 stars next 22.5%; 1 star for bottom 10%. Funds are rated for up to three periods: the trailing three-, five-, and 10-years. For a fund that does not change categories during the evaluation period, the overall rating is calculated using the following weights: At least 3 years, but less than 5 years uses 100% three-year rating. At least 5 years but less than 10 years uses 60% five-year rating / 40% three-year rating. At least 10 years uses 50% ten-year rating / 30% five-year rating / 20% three-year rating.

There are risks associated with investing in small and mid cap stocks, which tend to be more volatile and less liquid than stocks of large companies, including the risk of price fluctuations.

The performance data quoted herein represents past performance and does not guarantee future results. Market volatility can dramatically impact the fund's short term performance. Current performance may be lower or higher than figures shown. The investment return and principal value will fluctuate so that an investor's shares, when redeemed may be worth more or less than their original cost. Past performance data through the most recent month end is available at vlfunds.com or by calling 1-800-243-2729.

Portfolio holdings are subject to change and should not be considered a recommendation to buy or sell securities. Current and future portfolio holdings are subject to risk.

The average annual returns shown above are historical and reflect changes in share price, reinvested dividends and are net of expenses. Investment results and the principal value of an investment will vary.