Pursuant to the Plan of Liquidation and Dissolution adopted by the Board of Trustees of Ned
Davis Research Funds for The Ned Davis Research Asset Allocation Fund, the Fund announced
final liquidating distributions to shareholders of record on February 9, 2006, payable on
February 10, 2006 as follows:
|The Ned Davis Research Asset Allocation Fund
||Amount Per Share
| Class AAA (NDRAX)
| Class A (NDRQX)
| Class B (NDRBX)
| Class C (NDRCX)
| Class I (NDRIX)
The Ned Davis Research Asset Allocation Fund began operations on March 31, 2003. Original
investors in the Class AAA Shares have enjoyed a 9.69% average annual return since inception.
A $10,000 investment would be worth $13,038 including reinvestment of distributions as of
February 10, 2006.
A "U.S. shareholder" (as defined in the Internal Revenue Code of 1986) who receives a liquidating
distribution will be treated as having received the liquidating distribution in exchange for
its shares of the Fund. Liquidating distributions will first be a tax-free recovery and reduction
of adjusted basis of a U.S. shareholder's shares to the extent thereof and any excess will be
treated as gain. If a U.S. shareholder does not recover its entire adjusted basis, such U.S.
shareholder will recognize a loss. If a U.S. shareholder holds shares as capital assets, the
gain or loss will be characterized as capital gain or loss. If the shares have been held for
more than one year, any such gain will be treated as long-term capital gain, taxable to individual
U.S. shareholder's at preferential rates, and any such loss will be treated as long-term capital
loss and subject to limitations.
Shareholders are urged to consult their own tax advisors about the tax consequences of the
liquidation of the Fund.
Gabelli Funds, LLC is a wholly owned subsidiary of GAMCO Investors, Inc. (NYSE:GBL) which
manages, through its subsidiaries, approximately $26.8 billion.