Special Equity Fund

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The Fund employs multiple portfolio managers who specialize in distinct investment approaches. This “intelligence diversification” not only serves to manage risk, but also helps us tap the markets’ full potential by focusing different analytical insights on each class of investment. Fund management strives to achieve this performance and diversification while ensuring that the Fund operates within the framework of its investment objective and principal investment strategies.

The Managers Special Equity Fund’s assets currently are allocated between six asset managers: Federated MDTA LLC ("MDT"), Lord, Abbett & Co, LLC (“Lord Abbett”), Skyline Asset Management, L.P. (“Skyline”), Smith Asset Management Group, L.P. (“Smith Group”), Ranger Investment Management, L.P. ("Ranger"), and Westport Asset Management, Inc (“Westport”), each acting independently of the other and using proprietary methodology to select portfolio investments. The managers were selected due to their complementary nature and use investment approaches ranging from deep value to aggressive growth.

Federated MDTA LLC
Lord, Abbett & Co, LLC
Ranger Investment Management, L.P.
Skyline Asset Management, L.P.
Smith Asset Management Group, L.P.
Westport Asset Management, Inc.

Federated MDTA LLC

Federated MDTA LLC ("MDT") has managed a portion of the Fund since September 2008. MDT, located at 125 High Street, 21st Floor, Boston, Massachusetts 02110, was founded in 1988.

Portfolio Managers

Daniel J. Mahr, CFA and David M. Goldsmith, Ph.D. are the lead portfolio managers jointly and primarily responsible for the day-to-day management of the portion of the Special Equity Fund managed by MDT. Mr. Mahr and Mr. Goldsmith are assisted by Frederick L. Konopka, CFA, Brian M. Greenberg and Douglas K. Thunen, each of whom also serves as a portfolio manager for the Fund. In managing their portion of the Fund, the portfolio managers employ the Optimum Q Process computer model, a proprietary, quantitative computer model that drives investment selection and is designed, developed, enhanced and implemented by the portfolio managers (the "Investment Team").

Daniel J. Mahr
Lead Portfolio Manager
Daniel J. Mahr joined the Investment Team in 2002. He is responsible for managing the investment team as it relates to the ongoing design, development, periodic enhancement and implementation of the Optimum Q Process. Mr. Mahr received his A.B. in Computer Science from Harvard College and his S.M. in Computer Science from Harvard University.

David M. Goldsmith
Lead Portfolio Manager
David M. Goldsmith joined the Investment Team in 1990. Dr. Goldsmith received an A.B., Summa Cum Laude, in Economics from Princeton University, and a Ph.D. in Economics with a concentration in Finance from Harvard University. Dr. Goldsmith functions as a transitional manager of the investment team in anticipation of his retirement on December 31, 2008.

Frederick L. Konopka
Portfolio Manager
Frederick L. Konopka joined the Investment Team in 1997. As a Group Leader, he is responsible for ongoing evaluation and improvement of the research processes and software development for the Optimum Q Process focused on trading impact evaluation and implementation. Mr. Konopka received his A.B. in Mathematics from Dartmouth College and his M.S., with a Concentration in Information Technology and Finance, from MIT Sloan School of Management.

Brian M. Greenberg
Portfolio Manager
Brian M. Greenberg joined the Investment Team in 2004. As a Group Leader, he is jointly responsible for ongoing evaluation and periodic enhancement of the research processes and software development for the Optimum Q Process, including design and code reviews. Prior to joining MDT and the Investment Team, he received his A.B. in Computer Science from Harvard College and his S.M. in Computer Science from Harvard University.

Douglas K. Thunen
Portfolio Manager
Douglas K. Thunen joined the Investment Team in 2004. As a Group Leader, he is jointly responsible for the ongoing evaluation and periodic enhancement of research processes and software development for the Optimum Q Process, including design and code reviews. Prior to joining MDT and the Investment Team, he earned his B.A., Magna Cum Laude, in Computer Science from Williams College and his M.Eng. in Computer Science from Princeton University.

Lord, Abbett & Co, LLC

Lord, Abbett & Co, LLC (“Lord Abbett”) is the subadvisor for a portion of the Managers Special Equity Fund. Lord Abbett has managed a portion of the Fund since December, 2007. Lord Abbett, one of the nation’s oldest asset management firms, was founded in 1929 and is located in Jersey City, New Jersey. Lord Abbett is privately owned by 48 partners with the partnership widespread amongst all the business functions of the firm.

Portfolio Managers

The five member team is led by Tom O'Halloran who is joined by co-PM Tony Hipple along with three analysts. The team also has access to the other 60-plus research analysts and PM's that work on equity strategies at Lord Abbett and are free to utilize their research as often as the team deems appropriate.

F. Thomas O'Halloran, CFA
Partner and Portfolio Manager
Mr. O’Halloran joined Lord Abbett in 2001 from Dillon Read/UBS Warburg where he served as Executive Director/Senior Research Analyst. Prior to that, he was a trial attorney. Mr. O’Halloran received an AB from Bowdoin College, a JD from Boston College Law School, and an MBA from Columbia University Business School. He is the holder of a Chartered Financial Analyst designation and has been in the investment business since 1987.

Anthony W. Hipple, CFA
Portfolio Manager
Mr. Hipple joined Lord Abbett in 2002 from Piper Jaffray Asset Management where he was a Senior Analyst. His previous experience includes Senior Analyst at Lutheran Brotherhood. Mr. Hipple earned a BBA from the University of Northern Iowa and an MBA from the University of Iowa. He is the holder of a Chartered Financial Analyst designation and has been in the investment business since 1995.

Ranger Investment Management, L.P.

Ranger Investment Management, L.P. ("Ranger") is the subadvisor for a portion of the Managers Special Equity Fund. Ranger has managed a portion of the Fund since September 2008. Ranger is located at 300 Crescent Court, Suite 1100, Dallas, Texas 75201.

Portfolio Manager

Skyline Asset Management, L.P.

Skyline Asset Management, L.P. is the subadvisor for a portion of the Managers Special Equity Fund. Skyline has managed a portion of the Fund since December 2000. Skyline, located at 311 South Wacker Drive, Suite 4500, Chicago, Illinois, was formed in 1995 and is organized as a limited partnership. The general partner of Skyline is Affiliated Managers Group, Inc.

Portfolio Managers

William Fiedler, Michael Maloney and Mike Odegard manage the portion of the Fund subadvised by Skyline Asset Management, L.P.

William F. Fiedler
Portfolio Manager and Partner
William F. Fiedler is a portfolio manager and a partner of Skyline. Prior to the establishment of Skyline in 1995, William was employed in the Asset Management Division of Mesirow Financial as a securities analyst. William holds a BA degree from Ripon College and an MBA degree in Finance from the University of Wisconsin-Madison.

Michael Maloney
Portfolio Manager and Partner
Michael Maloney is a portfolio manager and a partner of Skyline. Prior to the establishment of Skyline, Michael was employed in the Asset Management division of Mesirow Financial as a securities analyst. Previously, Michael was a vice president and investment analyst at Baker, Fentress & Company. Michael earned his BA from DePaul University and his MBA degree in Finance from the University of Wisconsin-Madison.

Mark N. Odegard
Portfolio Manager and Partner
Mark N. Odegard is a portfolio manager and a partner of Skyline, joining the adviser in 1995. He was previously employed by First Chicago Investment Management as an equity research analyst. Mark was also formerly employed as a senior financial analyst at Arthur Andersen and Co. Mark received his Bachelor of Science and MBA degrees from DePaul University. He is a Certified Public Accountant and Chartered Financial Analyst.

Smith Asset Management Group, L.P.

Smith Group has been subadvisor for a portion of the Managers Special Equity Fund since May 2006. Founded in 1995, Smith Group is located at 100 Crescent Court, Suite 1150, Dallas, Texas. The majority employee-owned firm is a growth-oriented investment adviser specializing in seeking out attractively valued companies that will report a succession of positive earnings surprises.

Portfolio Manager

Stephen S. Smith manages the portion of the Fund subadvised by Smith Group.

Stephen S. Smith, CFA
CEO and Chief Investment Officer
Stephen S. Smith is the founder of Smith Group. Since the firm's founding in 1995, he has served as both Chief Executive Officer and Chief Investment Officer. Stephen began his investment management career as a portfolio manager with Wachovia Bank in 1976; in 1983 he joined the predecessor to Bank of America, where he held a variety of senior investment management positions. Stephen earned his M.B.A. from the University of Alabama, after receiving his B.S. in honors in Industrial Engineering from the same institution.

Westport Asset Management, Inc

Portfolio Managers

Andy Knuth and Edmund Nicklin manage the portion of the Fund subadvised by Westport Asset Management Inc.

Andy Knuth
Portfolio Manager
Prior to founding Westport Asset Management, Inc. in 1983, Andy Knuth spent more than twenty years in security analysis and portfolio management. Andy was an organizing member of the institutional equities group at Lazard Freres & Co. and spent two years with them specializing in investment research for institutional clients. From 1969 to 1981 Andy was Director of Research for Lieber & Co., members of the New York Stock Exchange. During this period, Andy was one of the two people responsible for stock selection and management of the Evergreen Fund. From 1966 to 1969 Andy was a securities analyst for Vanden Broeck, Lieber & Co., and from 1962 to 1966 he was involved in equity and debt research and portfolio management with the Mutual Benefit Life Insurance Company. Andy holds a Bachelor's Degree in Economics from Dickinson College and a Master's Degree in Business Administration from New York University. He is a Chartered Financial Analyst.

Edmund H. Nicklin, Jr.
Portfolio Manager
Edmund Nicklin joined Westport Asset Management Inc. in August 1997. Prior to joining Westport, Edmund served as the portfolio manager of the Evergreen Growth and Income Fund (formerly the Evergreen Value Timing Fund) from its inception on October 15, 1986 through August 22, 1997, when that Fund had $1.47 billion in net assets. Edmund began his career as an associate in the Corporate Planning Department of General Foods Corporation where he was employed from 1974 through 1980. Edmund was a research associate and investment representative at Alex Brown and Sons, Inc. from 1980 through 1982 and joined the Evergreen Funds as a security analyst in 1982. Edmund holds a Bachelor of Science in Electrical Engineering, a Masters of Science in Management and a Ph.D. in Operations Research and Statistics from Rensselaer Polytechnic Institute. He is a Chartered Financial Analyst.

Disclosure
Investors should carefully consider the fund's investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus. Read it carefully before investing or sending money.

The performance shown represents past performance and is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. From time to time the advisor has waived fees or reimbursed expenses, which may have resulted in higher returns. The listed returns and yields on the Fund are net of expenses and the returns and yields on the indices exclude expenses. Current performance of the Fund may be lower or higher than the performance quoted.