A Letter to Our Investors

Dear Investor:

Thank you for your interest in the Perkins Discovery Fund, managed by Perkins Capital Management, Inc. (PCM). We are excited about the investment opportunities presented by the marketplace.

After many years in the investment management business, we have had the opportunity to be involved with many types of companies. At Perkins Capital Management, Inc., we seek to find investment opportunities primarily by searching for companies that we believe are in the process of undergoing some positive fundamental change.

Stocks are purchased when it is believed that change will result in higher earnings and/or a higher price/earnings ratio, and thus a higher share price when the change is recognized by others. Companies undergoing change may have new products, processes, strategies, management, or may be subjected to change by external forces. Perkins Capital Management uses a combination of both fundamental and technical analysis in its quest to uncover investment opportunities. We want to have a good understanding of what companies do and to know who’s running them. This investment style can best be described as “bottom-up” investing, as opposed to the “top-down” style of following general market trends.

The Perkins Discovery Fund uses this approach to focus on micro-cap companies, under $1 billion in market capitalization at the time of investment. While investing in smaller companies may involve greater risks, we believe companies fitting this criteria present an opportunity to achieve superior returns because they are not well known to the investing public and have less investor following.

Our Fund provides you with an investment advisor team averaging over 36 years of investment experience.

Please read the Perkins Discovery Fund Prospectus or Summary Prospectus carefully, not only as a disclosure document, but also as your invitation to join us in the adventure of pursuing investment success through micro-cap investing.

Sincerely,

Richard C Perkins
President and Portfolio Manager
Perkins Capital Management, Inc.

Daniel S. Perkins
Chief Operating Officer and Portfolio Manager
Perkins Capital Management, Inc.

The Price to Earnings (P/E) Ratio is the most common measure for how expensive a stock is, and it is calculated by dividing current price of the stock by the company’s trailing 12 months’ earnings per share

Get Updates

For important updates on the Perkins Discovery Fund, including our quarterly fact sheet and media coverage, please enter your e-mail address. You do not have to be a shareholder to participate. We will not share your e-mail address.

For more information about the Perkins Discovery Fund, please call:

1-800-998-3190

For Shareholder Services
please call Commonwealth
Fund Services, Inc. at:

1-800-673-0550

Important Disclosures, Please Read

Investors should consider the investment objectives, potential risks, management fees and charges and expenses carefully before investing. This and other information is contained in the Fund's prospectus, which may be obtained by calling 1-800-673-0550. Please read and carefully consider the prospectus before investing. Distributed by Foreside Fund Services, LLC.

Past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Performance data current to the most recent month end may be obtained by calling 1-800-673-0550.

The information provided is subject to change daily. It is provided for informational purposes only does not constitute an offer to sell, or the solicitation of an offer to buy any securities and must not be relied upon in connection with any investment decision.

Important Risk Disclosure

There is a risk that you could lose all or a portion of your investment in the Fund. The following principal risks associated with the fund can affect the value of your investment: General Market Risk: The market price of a security may fluctuate, sometimes rapidly and unpredictably. These fluctuations may cause a security to be worth less than its cost when originally purchased or less than it was worth at an earlier time. Equity Risk: Since the Fund purchases equity securities, it is subject to the risk that stock prices will fall over short or extended periods of time. Historically, the equity markets have moved in cycles, and the value of the Fund's equity securities may fluctuate drastically from day to day. Individual companies may report poor results or be negatively affected by industry and/or economic trends and developments. The prices of securities issued by such companies may suffer a decline in response. These factors contribute to price volatility. Management Risk: The Adviser may fail to implement the Fund's investment strategies and meet its investment objective. Smaller Companies Risk: Investing in securities of smaller companies including micro-cap, smallcap, medium-cap and less seasoned companies often involve greater volatility than investing in larger, more established companies and these securities may be less liquid than other securities. Small Portfolio Risk: Although the Fund is diversified, from time to time, it holds a relatively small number of securities (i.e., under 40). As a result, an increase or decrease in the value of a single security held by the Fund may have a greater impact on the Fund's net asset value and total return. Each of the preceding risks are discussed in the prospectus. Please see the prospectus for more complete information regarding these and other risks associated with the fund.