Strategy. The Fund is a flexible fund, meaning that it allocates its investments among: ? Common stocks and other equity securities (including common stocks, preferred stocks, convertible preferred stocks, warrants, options, and American Depositary Receipts, and short sales of equity securities); ? Bonds and other debt securities (including U.S. and some developed and emerging foreign government-related securities (including those issued by sovereign and local governments and their sponsored entities), U.S. and some foreign corporate securities, and securitized debts, both above and below investment grade, s peculative investments also known as junk bonds ); ? Real estate investment trusts; ? Commodities (including both physical commodities and commodity-based exchange-traded funds); and ? Money market instruments; in proportions which reflect the judgment of Leuthold … Show more… The Fund is a flexible fund, meaning that it allocates its investments among: ? Common stocks and other equity securities (including common stocks, preferred stocks, convertible preferred stocks, warrants, options, and American Depositary Receipts, and short sales of equity securities); ? Bonds and other debt securities (including U.S. and some developed and emerging foreign government-related securities (including those issued by sovereign and local governments and their sponsored entities), U.S. and some foreign corporate securities, and securitized debts, both above and below investment grade, s peculative investments also known as junk bonds ); ? Real estate investment trusts; ? Commodities (including both physical commodities and commodity-based exchange-traded funds); and ? Money market instruments; in proportions which reflect the judgment of Leuthold Weeden Capital Management (referred to as the Adviser) of the potential returns and risks of each asset class. The Adviser considers a number of factors when making these allocations, including economic conditions and monetary factors, inflation and interest rate levels and trends, investor confidence, and technical stock market measures. The Adviser analyzes the factors listed as a whole and does not rely on any one factor to make allocation decisions. The Adviser's Major Trend Index is designed to recognize the stock markets overall underlying health in terms of its longer-term path. This analysis of the investment environment guides the Adviser's decision about how much risk is prudent to take within the Funds equity allocation. The Fund expects that, under normal market conditions, the Funds net assets will be invested approximately: ? 30% to 70% in common stocks and other equity securities; ? 10% to 70% in bonds and other debt securities (other than money market instruments); and ? 0% to 20% in cash or cash equivalent investments, including money market instruments. The Adviser may, in its judgment of the potential returns and risks of each asset class, elect to invest outside of these typical ranges. The Funds investments in common stocks and other equity securities may consist of: ? Large , mid, or small capitalization common stocks; ? Growth stocks, value stocks, or cyclical stocks; ? Aggressive stocks or defensive stocks; ? Stocks in any industry or sector; ? Equity mutual funds and exchange-traded funds; ? Stocks in emerging and less developed markets; ? Common stocks of foreign issuers; and ? Options. In investing in equity securities and debt securities, the Fund uses a disciplined, unemotional, quantitative investment approach that is based on the belief investors can achieve superior investment performance through group selection (Select Industries Strategy). Pursuant to the Select Industries Strategy, the Adviser believes that as shifts among industry groups in the equity market have become more dramatic, group selection has become as important as individual stock selection in determining investment performance. The Adviser considers a group to be a collection of stocks whose investment performance tends to be similarly influenced by a variety of factors. The Adviser currently monitors about 120 groups. The major types of sectors the Adviser monitors as part of the Select Industries Strategy are specific groups within each industry sector comprised of narrower themes, such as Airlines, Health Care Facilities and Semiconductors. In implementing the Select Industries Strategy, the Adviser uses a proprietary model that evaluates sectors, groups and individual securities using a number of factors. Factors evaluated under the model include: ? Technical : measures of equity performance that differentiate groups that have outperformed versus underperformed ? Relative Value : finding undervalued industries and groups relative to their fundamentals, such as earnings, sales, cash flow book value ? Growth : industry groups with the ability to persistently grow earnings and revenues ? Profitability : industries that generate a high degree of consistent profitability ? Very Long Momentum : identify through securities price action industries that are overbought or oversold ? Capital Discipline : companies that have favorable debt to equity ratios The Adviser constructs the Select Industries Strategy portfolio by first evaluating industry sectors and industry groups to help determine attractive segments of the market, evaluating factors related to each sector and group. Each factor is assigned a potential weight determined by the Adviser based on its experience with equity group analysis. Industries that exhibit particularly strong leadership and/or appear poised to gain momentum in the existing market environment are chosen for possible inclusion in the portfolio. Following the selection of attractive groups, individual securities are chosen by the Adviser using the Adviser's selection model. Securities scoring in the upper tiers by the selection model are typically considered for investment. Equity portfolio weightings are determined in part by market capitalization, stock score, and trading volume. The Adviser continuously updates its investment discipline and adjusts the Funds portfolio as necessary to keep the Fund invested in stocks in those groups which the Adviser believes are the most attractive. Such adjustments may often result in high portfolio turnover. The Fund may invest in U.S. and some foreign (developed and emerging) government-related securities, including those issued by sovereign and local governments and their sponsored entities, U.S. and some foreign corporate securities, and securitized debts. The Fund may invest in both above and below investment grade securities or mutual funds and exchange-traded funds that invest in these securities. The Fund may engage in short sales of index-related and other equity securities to reduce its equity exposure or to profit from an anticipated decline in the price of the security sold short. The Funds investments are allocated among common stocks, corporate bonds, government bonds, real estate investment trusts, commodities (including both physical commodities and commodity-based exchange-traded funds), and cash equivalents. Portfolio weightings in these asset classes are driven by models that (1) determine the relative appeal of each asset class in relation to the others, and (2) the return potential of each asset class on an absolute, or stand-alone, basis. In addition to investing directly in securities, the Fund may gain long or short exposure indirectly by investing in in mutual funds, exchange-traded funds, unit investment trusts, or closed-end investment companies which invest in a specific category of assets. Show less