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Focused on Fundamentals

Valuation Sets the Stage

Using classic valuation criteria, ICON calculates intrinsic value for approximately 2,000 U.S. stocks in addition to approximately 2,300 foreign securities from more than 30 overseas countries. Fundamentally, ICON projects earnings growing into the future and then discounts these projections back to their present value according to risk and interest rates (opportunity cost).

Value is then divided by the market price to calculate a value-to-price ratio (V/P), which is used to determine whether an individual security is under- or overpriced relative to our estimate of intrinsic value. By computing equal-weighted averages for all stocks across the 154* industries comprising the Standard & Poor's Composite 1500 Index, ICON determines a V/P ratio for each of 154* industries.

Industry Emphasis
We believe markets have themes in which certain industries assume leadership roles generally for a period of one to two years. Industry V/P ratios are used to identify those industries that are under- or overpriced relative to our estimate of intrinsic value.

This approach is based on our belief that random risk is highest at the individual stock level. By stressing industry exposure and holding a selected number of stocks within an industry, we hope to reduce the random risk associated with individual securities. Moreover, although we tilt our portfolios toward favored industries, we tend to limit the portfolios exposure to any one stock.

Relative Strength
Since value analysis may lead us to buy stocks and industries before they are ready to move, we also employ a relative strength calculation. By comparing company, industry and sector performance to the broad market, we attempt to identify underpriced issues that are demonstrating leadership and therefore are favorably positioned to outperform the market.

Above-average performance, however, should not be confused with weekly or monthly moves. Given that relative strength is continuously computed using the trailing 26-week period, this reading is generally insulated from short-term dips or surges.


* As of December 31, 2009. This number may vary over time.

There are risks involved with mutual fund investing, including the risk of loss of principal. There is no assurance that the investment process will consistently lead to successful results. An investment concentrated in sectors and industries may involve greater risk and volatility than a more diversified investment, and the Technology sector has been among the most volatile sectors in the market. Investments in international securities may entail unique risks, including political, market, regulatory and currency risks. Financial statements of foreign companies are governed by different accounting, auditing, and financial standards than U.S. companies and may be less transparent and uniform than in the United States. Many corporate governance standards, which help ensure the integrity of public information in the United States, do not exist in foreign countries. In general, there is less governmental supervision of foreign stock exchanges and securities brokers and issuers.

ICON’s value-to-price ratio is a ratio of the intrinsic value, as calculated using ICON’s proprietary valuation methodology, of a broad range of domestic and international securities within ICON’s system as compared to the current market price of those securities. To analyze intrinsic value, the ICON valuation methodology relies on the integrity of publicly released financial statements.

ICON’s “relative strength” estimate reflects ICON’s calculation of how an individual stock has performed compared to the broad stock market over a six-month period.

ICON’s value-based investing model is an analytical, quantitative approach to investing that employs various factors, including projected earnings growth estimates and bond yields, in an effort to determine whether securities are over- or underpriced relative to ICON’s estimates of their intrinsic value. ICON’s value approach involves forward-looking statements and assumptions based on judgments and projections that are neither predictive nor guarantees of future results. Value readings are contingent on several variables including, without limitation, earnings, growth estimates, interest rates and overall market conditions. Although valuation readings serve as guidelines for our investment decisions, we retain the discretion to buy and sell securities that fall beyond these guidelines as needed. Value investing involves risks and uncertainties and does not guarantee better performance or lower costs than other investment methodologies.

Consider the investment objectives, risks, charges, expenses, and share classes of each ICON Fund carefully before investing. The prospectus, summary prospectus and the statement of additional information contain this and other information about the Funds; please read the prospectus, summary prospectus and the statement of additional information carefully before investing. ICON DistributorsSM, Distributor


ICON Funds are offered only to U.S. citizens or residents of the U.S., and the information on this Website is intended only for such persons. Nothing on this Website should be considered a solicitation to buy or an offer to sell shares of any ICON Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.