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Investment Opportunity

The fund is diversified across U.S. equity (20%-51%), non-U.S. equity (6%-32.5%), and bonds (35%-60%), allocating within the stated ranges, with no more than 65% and no less than 40% of the total portfolio in equities. It may also allocate up to 25% to cash. The fund seeks to generate a combination of capital appreciation and income. The U.S. equity allocation emphasizes companies with a competitive advantage, strong management, and low financial risk that are able to grow over market cycles, despite their discounted valuations. The non-U.S. equity allocation employs bottom-up fundamental analysis with a cash flow return on capital approach to valuation to identify the best investment opportunities. The fixed income manager employs a time tested approach of active sector rotation, extensive credit research, and disciplined risk management designed to capitalize on opportunities across undervalued areas of the fixed income markets.

Effective September 7, 2016, Kayne Anderson Rudnick became the subadviser to the domestic equity portion of the Fund. Performance and characteristics of the domestic equity portion prior to that date were attained by the previous manager. Concurrently, the subadviser of the international equity portion of the Fund transitioned to Duff & Phelps Investment Management Co. There was no change to the portfolio manager or the investment approach.

Fund Risks

Equity Securities: The market price of equity securities may be adversely affected by financial market, industry, or issuer-specific events. Focus on a particular style or on small or medium-sized companies may enhance that risk.

Credit & Interest: Debt securities are subject to various risks, the most prominent of which are credit and interest rate risk. The issuer of a debt security may fail to make interest and/or principal payments. Values of debt securities may rise or fall in response to changes in interest rates, and this risk may be enhanced with longer-term maturities.

Foreign & Emerging Markets: Investing internationally, especially in emerging markets, involves additional risks such as currency, political, accounting, economic, and market risk.

Allocation: The fund's exposure to different asset classes may not be optimal for market conditions at a given time. Asset allocation does not guarantee a profit or protect against a loss in declining markets.

High Yield-High Risk Fixed Income Securities: There is a greater level of credit risk and price volatility involved with high yield securities than investment grade securities.

Prospectus: For additional information on risks, please see the fund's prospectus.

Key Stats (as of 4/28/2017)

Inception: 9/6/1940
Ticker: NAINX
CUSIP: 92828N791
Fund No: 552
Net Assets by Fund: $143,678,286
Net Assets by Class: $139,371,468

Management Team

Douglas S. Foreman, CFA
Douglas S. Foreman, CFA Kayne Anderson Rudnick Investment Management, LLC

Industry start date: 1989

Start date with Fund: 2016

Frederick A. Brimberg
Frederick A. Brimberg Duff & Phelps Investment Management Co.

Industry start date: 1979

Start date with Fund: 2012

David L. Albrycht, CFA
David L. Albrycht, CFA Newfleet Asset Management, LLC

Industry start date: 1985

Start date with Fund: 2011

Kayne Anderson Rudnick Investment Management, LLC

Kayne Anderson Rudnick (domestic equity) invests in a select group of large-cap growth companies believed to be undervalued relative to their future growth potential.

Duff & Phelps Investment Management Co.

Duff & Phelps (international equity) manages a high-conviction core portfolio where stock selection is informed by a forward looking analysis of cash flow return on invested capital.

Newfleet Asset Management, LLC

Newfleet Asset Management leverages the knowledge and skill of a team of investment professionals with expertise in every sector of the bond market, including evolving, specialized, and out-of-favor sectors.

Morningstar Ratings

Overall Rating

As of 3/31/2017 the Fund was rated 1 stars out of 721 funds, 2 stars out of 616 funds and 3 stars out of 424 funds within the Allocation--50% to 70% Equity category for the 3-, 5- and 10 year periods, respectively.

Strong ratings are not indicative of positive fund performance.

Average Annual Total Returns

Monthly Performance (%) (as of 4/28/2017)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 5.38 8.73 10.51 2.37 5.86 4.56 9.13
POP -0.68 2.48 4.16 0.37 4.61 3.94 9.05
Quarterly Performance (%) (as of 3/31/2017)
  3 Mon. YTD 1YR 3YR 5YR 10YR Since Inception
NAV 6.43 6.43 9.20 1.58 5.39 4.55 9.11
POP 0.31 0.31 2.92 -0.41 4.14 3.94 9.03
Index 5.38 5.38 9.19 6.82 7.97 6.27 NA

Performance data quoted represents past results. Past performance is no guarantee of future results and current performance may be higher or lower than the performance shown. Investment return and principal value will fluctuate, so your shares, when redeemed, may be worth more or less than their original cost.

Sales Charge and Expenses

POP (Public Offering Price) performance reflects the deduction of the maximum sales charge of 5.75%. A contingent deferred sales charge of 1% may be imposed on certain redemptions within 18 months on purchases on which a finder’s fee has been paid.

The fund class gross expense ratio is 1.34% and reflects the direct and indirect expenses paid by the Fund.

The gross expense ratio minus the indirect expenses incurred by the underlying funds in which the Fund invests is 1.33%.

Index: Tactical Allocation Fund Linked Benchmark
The Tactical Allocation Fund Linked Benchmark consists of 45% Russell 1000® Growth Index (a market capitalization-weighted index of growth-oriented stocks of the 1,000 largest companies in the Russell Universe, which comprises the 3,000 largest U.S. companies, calculated on a total return basis with dividends reinvested), 15% MSCI EAFE® Index (a free float-adjusted market capitalization-weighted index that measures developed foreign market equity performance, excluding the U.S. and Canada, calculated on a total return basis with net dividends reinvested), and 40% Bloomberg Barclays U.S. Aggregate Bond Index (an index that measures the U.S. investment grade fixed rate bond market, calculated on a total return basis). The index is unmanaged, its returns do not reflect any fees, expenses, or sales charges, and is not available for direct investment. Performance of the Tactical Allocation Fund Linked Benchmark prior to 9/7/2016 represents an allocation consisting of 50% S&P 500® Index and 50% Bloomberg Barclays U.S. Aggregate Bond Index.

Risk Statistics3 (as of 3/31/2017)

  Fund Index
R2 0.86 1.00
Beta 1.36 1.00
Alpha -7.27 0.00
Std Dev 7.91 5.38
Index: Tactical Allocation Fund Linked Benchmark

Daily Price (as of 4/28/2017)

NAV Change ($)
8.51 0.01
POP Change ($)
9.03 0.01

Distribution History2 (March 2017)

Ex-Date 03/23/2017
Income $0.035000
STCG $0.000000
LTCG $0.000000
Reinvest NAV $8.25

Top Holdings (% Fund)
(as of 3/31/2017)

Facebook, Inc. Class A 4.66
Alibaba Group Holding Ltd. Sponsored ADR 2.05
Amazon.com, Inc. 1.99
Visa Inc. Class A 1.70
Starbucks Corporation 1.63
Priceline Group Inc 1.61
Celgene Corporation 1.59
Monster Beverage Corporation 1.56
Las Vegas Sands Corp. 1.37
Amphenol Corporation Class A 1.35

Top Sectors (% Equity)
(as of 3/31/2017)

Information Technology 29.76
Consumer Discretionary 23.35
Financials 10.90
Health Care 9.90
Consumer Staples 8.33

Characteristics4
(as of 3/31/2017)

Avg Weighted Market Cap (bn) $118.16
Median Market Cap (bn) $37.50
Trailing P/E 22.47x
Price-to-Cash Flow 21.28
Price-to-Book Value 4.83
3-Year EPS Growth Rate 20.44

Morningstar Ratings

Overall Rating

As of 3/31/2017 the Fund was rated 1 stars out of 721 funds, 2 stars out of 616 funds and 3 stars out of 424 funds within the Allocation--50% to 70% Equity category for the 3-, 5- and 10 year periods, respectively.

Strong ratings are not indicative of positive fund performance.