Affiliated Mutual Fund

Advisor Resources

Equity Income

The Eagle Equity Income program offers clients the opportunity not only to take advantage of the security of steady income but also the opportunity to participate in the market's long-term growth potential. The portfolio is diversified among common stocks, convertible bonds, convertible preferred stocks and real estate investment trusts (REITs).

Investment Process
Investment
Team
Performance
Literature

Portfolio Characteristics

Typical Market Capitalization Benchmark Account Minimum Typical Turnover Typical Number
of Holdings
$5 billion or greater S&P 500 Index $100,000 Less than 50% 30 to 40

Quarterly Performance1 (as of December 30, 2011)

  1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Annual S&P 500
  Gross Net Gross Net Gross Net Gross Net Gross Net Index
2000 -1.02% -1.49% 1.91% 1.45% 5.44% 4.95% 5.98% 5.48% 12.72% 10.63% -9.12%
2001 -3.99% -4.45% 4.53% 4.03% -4.99% -5.44% 2.84% 2.34% -1.94% -3.81% -11.88%
2002 4.42% 3.94% -7.29% -7.75% -12.23% -12.71% 5.03% 4.52% -10.76% -12.52% -22.12%
2003 -2.45% -2.93% 11.08% 10.58% 1.86% 1.36% 10.30% 9.78% 21.75% 19.45% 28.69%
2004 2.95% 2.46% -0.05% -0.52% 1.52% 1.04% 7.75% 7.23% 12.56% 10.43% 10.87%
2005 -0.13% -0.61% 1.89% 1.39% 3.98% 3.48% 0.55% 0.06% 6.39% 4.34% 4.89%
2006 6.61% 6.13% 1.10% 0.63% 5.47% 4.99% 7.28% 6.78% 21.95% 19.73% 15.80%
2007 1.43% 0.97% 4.62% 4.13% 2.95% 2.45% -3.04% -3.52% 5.93% 3.92% 5.49%
2008 -6.24% -6.68% -5.99% -6.42% 0.43% -0.05% -18.54% -18.98% -27.89% -29.28% -37.00%
2009 -13.43% -13.86% 11.71% 11.23% 13.00% 12.49% 7.80% 7.25% 17.80% 15.59% 26.46%
2010 5.41% 4.88% -9.01% -9.44% 12.65% 12.10% 7.52% 6.99% 16.17% 13.91% 15.06%
2011 6.12% 5.62% 1.75% 1.28% -11.53% -11.97% 11.94% 11.44% 6.93% 4.94% 2.12%

Compounded, Annualized Rates of Return Net of Fees (as of December 30, 2011)

Year Percentage $100,000 Compounded
1 4.94% $104,938
3 11.38% $138,181
5 0.31% $101,558
10 3.89% $146,414
15 4.98% $207,257
Since Inception (July 1, 1981) 8.50% $1,207,701


Risk Information

The risks associated with Equity Income investing are based upon the identification of companies which possess both moderate growth rates as well as higher-than-average and consistent dividend distributions. Historically, dividend yields have been relatively constant and therefore have created a cushion for investors when stock prices have declined. However, as with all equity investing, there is the risk that a company will not achieve its expected earnings results, or that an unexpected change in the market or within the company will occur, both of which may adversely affect investment results. The biggest risk of equity investing is that returns can fluctuate and investors can lose money.

Not every investment opportunity will meet all of the stringent investment criteria mentioned to the same degree. Trade-offs must be made, which is where experience and judgment play a key role. Accounts are invested at the discretion of the portfolio manager and may take up to 60 days to become fully invested.

Disclosures

(1) The calculation of the performance data includes reinvestment of all income and gains and is depicted on a time-weighted and size-weighted average for the entire period. Calculations include reinvestment of all income and gains. Performance is shown before (gross) and after (net) the deduction of both management fees and transaction costs. Performance figures include all of Eagle’s retail managed accounts. All composite performance data through 2010 have been verified by an internationally recognized accounting firm. Performance data for the current year have not been audited and are subject to revision. No inference should be drawn by present or prospective clients that managed accounts will achieve similar investment performance in the future. Because accounts are individually managed, returns for separate accounts may be higher or lower than the average performance stated above.

Investing in equities may result in a loss of capital.