Emerging Markets Opportunities Fund (HEMAX, HEMCX, HEMIX)

Performance

Relative performance as of 3/31/12

Inception date 12/31/10.

Lipper Inc. is an independent mutual fund rating service that ranks funds in various fund categories by making comparative calculations using total returns.

Lipper returns do not take into effect sales charges. Rankings are for Class A shares only. Other share classes may vary.

Expense ratios are not guaranteed numbers and may fluctuate. Gross and net expense ratios are presented as a percentage of average net assets. The gross expense ratio is stated in the current prospectus and is based on the Fund's then most recent previous fiscal year. The net expense ratio is unaudited and is based on annualized fiscal year-to-date results from 8/01/11 to 3/31/12. This ratio may differ from that presented in the Fund's prospectus.

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Performance results with sales charges reflect the deduction of the maximum front end sales charge and/or the deduction of the applicable contingent deferred sales charge (CDSC). Class A shares are subject to a maximum front end sales charge of 5.75%. Class C shares may be subject to a CDSC of up to 1% on certain redemptions made within 12 months of purchase. Performance presented at NAV which does not include these sales charges would be lower if these charges were reflected. The Fund's annual operating expenses will likely vary from year to year. It is important for you to understand that a decline in the Fund's average net assets during the current fiscal year due to recent market volatility or other factors could cause the Fund's expense ratios for the Fund's current fiscal year to be higher than the expense information presented. Returns greater than one year are annualized. Index returns provided by Lipper, Inc. Net Asset Value (NAV) is the value of one share of the Fund excluding any sales charge.

Returns included the reinvestment of dividends and capital gains. Performance results reflect expense subsidies and waivers in effect during the periods shown. Absent these waivers, results would have been less favorable for certain periods.

Forward 12-month P/E ratio is calculated using the closing price of portfolio holdings divided by the sum of the 12-month forward earnings per share. P/B ratio is calculated using the closing price of portfolio holdings divided by the most recent fiscal year end book value. Both calculations take into account the respective weightings of portfolio holdings. Beta is a quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. It is not possible to invest directly in any index or average.

Fund overview

This Fund seeks to achieve long-term capital appreciation primarily through investment in equities of emerging market economies. Stock selection is based on a bottom-up approach, with asset allocation decisions driven by the stock selection process. The Fund utilizes a multi-manager approach with three portfolio management teams focused on specific areas of geographical expertise. With exposure to attractive emerging markets investment opportunities, the Fund employs a fundamental selection approach representing each management team's "best ideas". Bill McQuaker serves as the Fund 

Quarterly update

Emerging markets equities have had a very strong start to the year as the landscape changed dramatically from last year. There is far less pessimism in the eyes of the investors and as such equity markets rebounded as risk assets returned to favor. The US economy continued to strengthen and the European Central Bank’s Long Term Refinancing Operation (LTRO) helped to ease conditions in the European banking system.

Within Asia, easing inflation has raised expectations for a more pro-growth stance from policymakers across the region although economic data and company earnings have generally been mixed at best. In Latin American equities declined towards the end of the period as fears over Chinese growth prospects impacted on commodity-related stocks in the region. Brazil was the weakest market and this was compounded by a sharp drop in the Brazilian real as the government stepped up their intervention efforts in the currency market and the central bank cut interest rates down to 9% from 9.75%. Mexican equities outperformed as earnings results came in ahead of expectations.

Fund performance

Over the period the Fund strongly outperformed the MSCI Emerging Markets Index. All three sub-portfolios outperformed their regional indices, but standout performance over the quarter was led by holdings in the EMEA sub-portfolio which rebounded sharply as risk appetite returned to global equity markets; including: African Petroleum and Gulf Keystone. In Latin America and Asia notable performances came from Tata Motors, Jubilant Foodworks and Femsa.

Investment activity

Over the period the Fund made a small allocation change by taking some recent profits from the EMEA sub-portfolio to the Latin America sub-portfolio as the managers are seeking to decrease the risk profile of the portfolio.

In Latin America, the Fund added Tenaris, a manufacturer of steel pipe products. The secular trend towards more deepwater wells and unconventional drilling in the oil and gas industry is increasing demand for high-end tubing.

In Asia, a new position was added in Esprit, Chinese cement company, Anhui Conch, and Hyundai Green Food, the Korean catering and food distribution services company as it is well placed to lead the consolidation of a highly fragmented food services market in Korea as well as capture both domestic and overseas growth opportunities. Position sales included CITIC Pacific, as it became apparent that the economics of its new iron ore project were considerably less attractive than expected, and Seegene, as its share price reached full value with progress on new distribution agreements being delayed.

Outlook

Our view remains that the global economy should grow over 2012, but significant risks remain. In Europe, the European Central Bank’s LTRO has lessened the risk of default in the financial sector but has not altered the poor outlook for the region’s economy. China’s economic data has continued to worsen, but the authorities’ desire to ease policy may be hampered by persistent inflation. Finally, although the oil price has stabilized in recent days, it has stayed at elevated levels despite many countries suggesting they would use strategic reserves to ease supply issues; the pressure of higher fuel costs could yet derail weak economies.

Prospectus/SAI

Emerging Markets Opportunities Fund