Your #1 portfolio problem, and a new strategy

www.foolfunds.com You're Still Facing America's #1 Portfolio Problem We're proud to announce Motley Fools' strategy for what one financial titan calls the #1 problem with American investor portfolios... Dear Opportunistic Investor, Fool Funds senior portfolio analyst Tim Hanson says it doesn't seem like too long ago when he first realized things had really changed in China... He'd been there before. And sure — In the rural districts, people still stared at him... Since most of them had never seen a blond American in a business suit. But something was different. The farmers had tractors. And their shacks were equipped with satellite dishes. Soft drinks and snacks were selling briskly at the roadside stand. When he returned to the States after that trip, Tim combed through the data one more time. You see, he was certain rural China was growing at a faster rate than cities like Beijing and Shanghai. But even he was surprised to find out just how much faster. And what's more was that companies focusing on rural China were underpriced — wildly underpriced — relative to their growth. Especially companies selling consumer goods to those farmers. In fact, given what Tim had seen... He believed he was on the trail of some of the best investments of his career... And I know exactly how he felt. You see, I've traveled with Tim to China. And to India, and Brazil, and Vietnam, and Indonesia. We've spent countless hours on the ground together, investigating the power of consumer growth in developing countries... Which I assure you (despite the media's gloomy predictions) is STILL tremendous... Welcome To Motley Fool Epic Voyage Fund! My name is Bill Mann and I'm the Portfolio Manager of Motley Fool Funds. And I can guarantee that when you invest with us in the Motley Fool Epic Voyage Fund, you're putting your money in the care of a four-man globe-trotting team with a combined 71 years of international investing experience. Our Epic Voyage Fund analysts scan the globe for undervalued international stocks, as well as "hidden gems" that the markets aren't paying enough attention to. And this is a strategy we'll use with the money you put into the Motley Fool Epic Voyage Fund... so we can invest together in what we judge to be...one of the great wealth-building opportunities of your lifetime. Let me explain... Addressing your #1 portfolio problem Countless studies show, and our investing team firmly believes, that American investors like you are severely under-allocated in foreign equities. Legendary Wharton business school professor Jeremy Siegel believes American investors should have a 40% allocation in foreign equities. And Mohamed El-Erian, CEO of PIMCO and former manager of Harvard's endowment, recommends a 30%-plus allocation in international securities. In fact, El-Erian has said that under-allocation in international securities is the #1 portfolio problem facing investors like us. Why? Because countries outside the U.S. make up nearly 70% of the world's market cap. And they account for a stunning 95% of the world's population. All around the globe, hundreds of millions of people are on the verge of attaining middle-class status. According to the World Bank's projections, the global middle class will rise from 400 million in 2000 to 1.2 billion by 2030, with most of this population living just in China and India. It's the rise of the global consumer. One of the great investing opportunities of your lifetime. As Tim's experience in rural China points out, consumer spending in the emerging world is already a growing source of corporate profits... despite what the media may be saying about "global economic downturns." So we believe it should be a meaningful source of returns for your portfolio, too. Keep in mind that emerging market economies as a whole are growing much, much faster than their developed market peers. India, for example, has experienced near double-digit GDP growth. Plus, many emerging market countries also have lower debt burdens than those in the developed world. U.S. debt-to-GDP ratio has ballooned to over 107%, according to the International Monetary Fund. The U.K. is slightly lower at 89%, Germany and France are at 83% and 90%, respectively, and Japan has an eye-opening 237% ratio. Now compare some key emerging economies... China's debt-to-GDP ratio is only 22%. Nigeria checks in at 15%, and Russia and Chile at just 11%. Having a low debt burden positions emerging economies for sustainable growth... which gives Americans who know how to invest in those emerging economies a good chance for sustainable portfolio growth. Investing overseas with a friend you trust When you invest with us at Motley Fool Epic Voyage Fund, we won't dump your money into an index. Though our benchmark is the Russell Global Ex-U.S. index, we will make no attempt to match its holdings. Instead, we'll scour the globe for what we believe are the very best value opportunities. We'll bring you access to hard-to-reach markets and to companies that don't list on American exchanges (companies you simply can't buy on your own). We'll look for consumer plays, making every attempt to ensure that you are positioned to benefit from the world's burgeoning middle class. We'll also carefully manage currency and macro risks. And, just as we do when investing domestically, we'll seek out companies with what we believe to be strong management and great business models. Because we invest Foolishly, your investing team looks at the long term, not at month-to-month or quarterly performance. That means we can choose what we believe to be the best investments for your future... helping you to get securely on the road to your financial goals. Introducing our newest team member Tim Hanson Senior portfolio Analyst Motley Fool Funds I first met Tim Hanson in 2005, when he joined The Motley Fool as a researcher. (Before that, Tim worked at the White House, crafting messages about national security and economic policy.) Inside Fool HQ, our desks were back to back to each other, so we talked stocks all day long. When I decided I needed to bring along some more analytical muscle on a research trip to Asia, I was happy to invite Tim along. On that trip, I was impressed by his intellectual curiosity and his unerring ability to ask the right questions. It was clear he had the instinct for foreign investing. Soon enough, Tim was spotting great opportunities all around the world on his own. Today, Tim is a recognized expert in international equities and emerging markets. And all of us here at Motley Fool Funds have been thrilled to welcome Tim to the team. And you should know that he comes with my highest recommendation. Most importantly, did we mention that... If we underperform our benchmark index, we make less money. That's because we've opted for an unusual compensation model that allows our management fees to increase or decrease depending on the fund's performance. In the industry, this is called a "fulcrum fee" structure. You can learn more about how it works by reading the fund prospectus. (To see other fees associated with the fund, you should also consult the fund prospectus.) This unusual aspect of our fee structure gives us the incentive to earn the highest possible return relative to the market, not merely to pump up the fund's assets the way we believe some funds do. What's more, Motley Fool Epic Voyage Fund is a no-load fund. That means you never pay an upfront sales charge or commission to invest with us. You aren't made to pay so-called 12b-1 fees to help us market the fund, either. Just as important, I'm investing right alongside you. I've put some of my own money into the fund. And so have Tim and the other analysts. So you see, our interests really are aligned with yours, in more ways than one. Your complete Fool Funds experience Here are a few more features and benefits you can always count on receiving from Motley Fool Funds... Unwavering temperament: Because investing for your future is a marathon, not a sprint, we don't try to time the ups and downs of the market. We don't get rattled in rocky waters... or chase the latest Wall Street fad. We invest your money with confidence — comfortable in the knowledge that if we've done our homework and bought great companies at great prices, the market may eventually see it our way. Frank, friendly communications: We don't hide from you if things get tough. We'll talk to you frankly, in plain English, like a trusted partner. So at Motley Fool Funds, we hope you'll look forward to hearing from us — as we will certainly look forward to hearing from you. Fair, performance-based fees: At Motley Fool Funds, we have a financial incentive to help you do better than the market. We've chosen a compensation model that allows our management fees to increase or decrease depending on the performance of the fund. In other words, our interests are aligned with yours. For more on our unusual performance-based 'fulcrum fee' structure, please read the fund prospectus. 21st-century convenience: The Motley Fool started as an Internet success story, after all. Now, thanks to our secure, interactive website, FoolFunds.com, getting invested and managing your account has never been easier or more convenient. A word about risk... Of course, all investments come with risks. We don't promise that you'll make money with the fund. Over any given time period, no matter how hard or how long the fund's investment advisor works, the value of the fund could go down, and you could lose money, including principal. We endeavor to find companies that are both strong businesses and strong investments, but there can be no guarantee that we will succeed. If our assessment of a company's value or its prospects for exceeding earnings expectations or market conditions is inaccurate, the Fund could suffer poor performance. Keep in mind that Motley Fool Epic Voyage Fund is new, without a long-term track record. You should also know that foreign securities present special risks. Fluctuations in currency exchange rates can cause losses when investing in foreign companies, with emerging markets presenting additional risks of illiquidity, political instability, and lax regulation. And because the fund is free to invest in companies of any size around the world, at times we may be heavily invested in small-cap stocks, which tend to be more volatile and less liquid than their large-cap counterparts. We strongly encourage you to read more about the fund's strategies and risks in the prospectus. There is always the possibility that structural global and national conditions may emerge that could disrupt or delay the growth of mass consumer demand in the developing world. Motley Fool Epic Voyage Fund seeks to achieve long-term capital appreciation by investing primarily in common stocks and equity-related securities. The fund is not for everyone. "Value stocks" can continue to be undervalued by the market for long periods of time. If you're seeking something other than long-term capital appreciation — for example, current income to live on — or if you're not comfortable with the risks, or if you expect to need your money back soon, this is not the fund for you. (And please keep in mind that Motley Fool Epic Voyage Fund is open to U.S. investors only.) Are you ready to invest? Hold on! Don't send us a penny unless... As a member of The Motley Fool community, you know the routine. At Motley Fool Epic Voyage Fund, we're looking for patient, long-term investors. Shareholders whose investing temperament matches our own. And unlike what we believe many other mutual funds are doing, we intend to be long-term, buy-and-hold investors. We firmly believe — and the vast preponderance of evidence shows — that attempts at market timing put YOU at a grave disadvantage and greatly reduce your chance of outperforming the market over the long term. For this reason, and to keep the fund's expenses low, we discourage small accounts and short-term trading. Join us on the Epic Voyage! If you ARE a patient, long-term investor, looking to increase your global exposure and build your wealth over time... Motley Fool Epic Voyage Fund may be just the thing for you. We'd be happy to have you with us on this exciting, lifelong journey... Your next step is just as easy. Get invested in Motley Fool Epic Voyage Fund now. Simply click the link below to get started. You'll have the chance to look over the fund prospectus. You'll also have the chance to purchase shares. Click the link to get started investing! Bon Voyage, Bill Mann Portfolio Manager Motley Fool Epic Voyage Fund P.S. You can now invest in Motley Fool Epic Voyage Fund directly through your broker! Including Charles Schwab, Fidelity, TD Ameritrade, Scottrade, Merrill Lynch, USAA, Vanguard, E*Trade, Pershing, OptionsXpress, and others — making it even easier to take the first step toward achieving your financial goals. Please contact your brokerage firm to find out if they offer Motley Fool Epic Voyage Fund. Please consider the charges, risks, expenses and investment objectives carefully before you invest. Please click here to to see a prospectus containing this and other information. Read it carefully before you invest or send money. The investment adviser for Motley Fool Epic Voyage Fund is Motley Fool Asset Management, LLC, a wholly owned subsidiary of The Motley Fool Holdings, Inc., which is a multimedia financial-services holding company. Shares of the fund are distributed by Foreside Funds Distributors LLC, Berwyn, PA, a registered broker-dealer not affiliated with The Motley Fool. A redemption fee of 2.00% of the then-current value of shares redeemed is imposed on redemptions of shares made within 90 days of purchase (i.e., the redemption is effective on or before the 90th day following the date of purchase), subject to certain exceptions. The performance data quoted represents past performance and does not guarantee future results. Current performance may be lower or higher. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. *The Fund's net expense ratios reflect fee waivers and expense reimbursements by the investment adviser. The Adviser has contractually agreed to pay, waive or absorb a portion of the Funds' expenses through the end of February 2014, or such later date as may be determined by the Funds and the Adviser. The Funds' performance would have been lower if the waivers/ reimbursements had not been in effect. 1 The Epic Voyage Fund Net Expense Ratio includes a Monthly Performance Adjustment of 0.01% (as of September 1, 2013). See Epic Voyage Fund Prospectus for additional information. 2 Gross ratio as stated in the prospectus 2/28/2013. 3 The Epic Voyage Fund Net Expense Ratio includes a Monthly Performance Adjustment of 0.00% (as of July 1, 2013). See Epic Voyage Fund Prospectus for additional information. Unlike a mutual fund, the performance of a market index is not affected by fees, expenses, and taxes. This is a promotional message from Motley Fool Asset Management, LLC 2000 Duke St. | Suite 175 | Alexandria, VA 22314. If you no longer wish to receive this email, please unsubscribe now. 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