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CAPITAL ONE CAPITAL APPRECIATION FUND

RETAIL CLASS A AND B SHARES                                                       3...
CAPITAL ONE CAPITAL APPRECIATION FUND                                                                                     ...
CAPITAL ONE LOUISIANA MUNICIPAL
                 INCOME FUND

RETAIL CLASS A AND B SHARES                                 ...
OBJECTIVE
          CAPITAL ONE LOUISIANA MUNICIPAL                                                                       ...
CAPITAL ONE MID CAP EQUITY FUND

RETAIL CLASS A AND B SHARES                                                      3RD QUAR...
OBJECTIVE
        CAPITAL ONE MID CAP EQUITY FUND                                                                         ...
CAPITAL ONE TOTAL RETURN BOND FUND

RETAIL SHARES                                                                   3RD QU...
CAPITAL ONE TOTAL RETURN BOND FUND                                                                             OBJECTIVE
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CAPITAL ONE U.S. GOVERNMENT INCOME FUND

RETAIL SHARES                                                                   3...
CAPITAL ONE U.S. GOVERNMENT INCOME FUND                                                               OBJECTIVE
          ...
CAPITAL ONE MONEY MARKET FUNDS

RETAIL SHARES                                                                           3R...
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CAPITAL ONE CAPITAL APPRECIATION FUND

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Transcript of "CAPITAL ONE CAPITAL APPRECIATION FUND"

  1. 1. CAPITAL ONE CAPITAL APPRECIATION FUND RETAIL CLASS A AND B SHARES 3RD QUARTER 2008 ABOUT THE INVESTMENT MANAGER SECTOR ALLOCATION as of 9/30/08 (subject to change) Financial 15.7% The Capital One Funds are managed by Technology 16.3% experienced investment professionals Health 11.6% at Capital One Asset Management, Industrial 13.7% LLC, who have been helping people Discretionary 8.9% pursue their financial goals for more Energy 13.2% than 70 years. Today, Capital One Asset Staples 9.1% Management, LLC investment decision Utility 4.0% making is at work for $3.5 billion in Telecommunications 3.0% client assets. Investors have entrusted Materials 4.5% approximately $628 million to the 0% 5% 10% 15% 20% Capital One Funds, which are managed As part of Capital One Asset Management’s risk controlled process, the Fund targets through prudent, disciplined decision- sector neutrality in regards to the benchmark. making by local, accessible portfolio TOP TEN HOLDINGS as of 9/30/08 (subject to change) managers. COMPANY % of portfolio PORTFOLIO MANAGER Johnson & Johnson 3.3 MARTIN SIRERA Exxon Mobil Corp. 3.2 Chubb Corp. 2.9 Equity Strategist Coca-Cola Co. 2.8 Colgate-Palmolive Co. 2.7 Martin is Vice President and Senior Apple Computer, Inc. 2.6 Equity Portfolio Manager with more Honeywell International, Inc. 2.6 Lockheed Martin Corp. 2.5 than 13 years investment experience. McKesson Corp. 2.5 He manages the Capital One Mid W.W. Grainger, Inc. 2.4 Cap Equity Fund, Capital One Capital Appreciation Fund, as well as CAPITAL ONE MUTUAL FUND FAMILY portfolios of high net worth individuals HIGHER • Capital One Mid Cap Equity Fund and institutions. Martin is a CFA® The Capital One Funds give you a wide range of investment • Capital One Capital Appreciation Fund Charterholder and holds a B.S. degree choices—from conservative to • Capital One Total Return Bond Fund Potential Risk/Return in Finance from the University of New aggressive. • Capital One Louisiana Municipal Income Fund Orleans. Martin has served as President Special Features: • Capital One U.S. Government of the Financial Analysts of New Orleans, Systematic Investment Program† Income Fund is a member of the CFA Institute®, Systematic Exchange Program • Capital One Cash Reserve Fund Systematic Withdrawal Program • Capital One U.S. Treasury and has served as a grader for CFA Available for IRAs Money Market Fund Institute’s® Chartered Financial Analyst LOWER Exams. He was previously employed † Systematic investing does not guarantee profit or protect against loss in down markets. as a portfolio manager at a major The percentages are based on net assets at the close of business on September 30, 2008 and may not necessarily reflect adjustments that are routinely made when presenting net assets southeastern financial institution and at for formal financial statement purposes. a major Louisiana bank. This material must be preceded or accompanied by a prospectus. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Funds can be found in the Fund’s prospectus. To obtain more information, please call 1-800-999-0426. Please read the prospectus carefully before investing.
  2. 2. CAPITAL ONE CAPITAL APPRECIATION FUND OBJECTIVE Growth of capital and income THIS FUND MAY BE RIGHT FOR YOU IF . . . RETAIL CLASS A AND B SHARES 3RD QUARTER 2008 • You have long-term financial goals • You want your money to grow over FUND PERFORMANCE RECORD as of 9/30/08 time Assumes a $10,000 investment in the Class A Shares at NAV* • You are comfortable with a moderately aggressive approach to $30,000 investing $25,000 PORTFOLIO FOCUS Stocks issued by high-quality U.S. $20,000 companies across the business and industrial sectors that make up the $15,000 $13,824 Standard & Poor’s 500.1 $10,000 STRATEGY The Fund’s management is based on $5,000 09/98 12/98 12/99 12/00 12/01 12/02 12/03 12/04 12/05 12/06 12/07 09/08 our core belief that fundamentals drive stock prices over the long term, but Performance data quoted represents past performance which is no guarantee of future results. short-term divergences can lead to The above graph assumes an initial hypothetical investment of $10,000 from 9/30/98 to 9/30/08 opportunities. Our research focuses and includes changes in share price, reinvestment of dividends and capital gains. The calculation on quantifiable factors, such as value, does not assume the 4.5% maximum sales charge applicable to Class A Shares. Performance has growth, momentum and quality not been adjusted to reflect any applicable sales charges. If sales charges had been included, measures that that are indicative performance would have been lower. of future out-performance. The resulting portfolio with favorable PERFORMANCE as of 9/30/08 characteristics is poised to out-perform its benchmarks. AGGREGATE AVERAGE ANNUAL TOTAL RETURN 3-Month YTD 1-Year 3-Year 5-Year 10-Year DIVIDENDS/CAPITAL GAINS Class A (Inception 10/14/88) Dividends are declared and paid NAV* -10.84% -21.54% -19.90% 0.29% 5.08% 3.29% quarterly; capital gains, if any, are paid Load (4.5% Max) -14.85% -25.05% -23.50% -1.24% 4.12% 2.82% at least annually. Class B (Inception 12/2/96) Without CDSC -11.06% -21.98% -20.51% -0.46% 4.29% 2.66% MINIMUM INVESTMENT With Max CDSC** (5.5%) -15.95% -26.26% -24.63% -1.30% 4.06% 2.66% The minimum initial investment is just $1,000. Additional investments can be Gross Expense Ratio Class A 1.23% made in amounts of $100 or more. Class B 1.98% TWO PURCHASE OPTIONS Past performance does not guarantee future results. The performance data quoted Class A Shares represents past performance and current returns may be lower or higher. The investment • 4.5% up-front sales charge return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, and after-tax returns call 1-800-999-0426. Class B Shares *NAV (Net Asset Value) has not been adjusted to reflect any applicable sales charges. • No up-front sales charge; contingent deferred sales charge of 5.5%, **CDSC (contingent deferred sales charge) maximum of 5.5% is reflected in the returns presented for periods of one year or less. reduces on a sliding scale to zero if you remain invested for more than six years. FUND INFORMATION ASSETS INVESTMENT CONCERNS Cusip Number: Class A 14041W101 Class A $107.6 million Equity securities (stocks) are more Class B 14041W200 Class B $2.4 million volatile and carry more risk than Ticker Symbol: Class A CWRSX other forms of investments, including Class B COCAX investments in high grade fixed income Newspaper Symbol: Class A CapAp securities. The net asset value per Class B CapApB share of this Fund will fluctuate as the value of the securities in the portfolio Important Update: On October 21, 2008, shareholders of the Capital One Funds approved an Agreement and Plan of Reorganization (the “Reorganization”) between the Capital One Funds and changes. certain registered investment companies advised by Fidelity Management & Research Company (“Fidelity”). The Reorganization is expected to occur on or about November 21, 2008 at which time the assets of the Capital One Capital Appreciation Fund (the “Capital One Fund”) will be transferred to a corresponding Fidelity portfolio. If you are a Capital One Fund shareholder at the time of the 1 The S&P 500 Index is an unmanaged index Reorganization, you will receive shares of the corresponding Fidelity portfolio as described in the of common stocks. Investments cannot be combined proxy statement/prospectus dated September 7, 2008. The Capital One Fund is currently made in an index. closed to new shareholders. For more information, please call 1-800-999-0426. Capital One Asset Management, LLC is the investment adviser and Capital One, N.A. is the custodian to the Capital One Funds and receives compensation for these services. Foreside Distrbution Services, L.P is the distributor of the Capital One Funds. . Investments: • Not FDIC Insured • No Bank Guarantee • May Lose Value G02564-02 (9/08)
  3. 3. CAPITAL ONE LOUISIANA MUNICIPAL INCOME FUND RETAIL CLASS A AND B SHARES 3RD QUARTER 2008 ABOUT THE INVESTMENT MANAGER PORTFOLIO QUALITY RATINGS§ as of 9/30/08 (subject to change) Agencies (20.0%) The Capital One Funds are managed by experienced investment professionals at Capital One Asset Management, LLC, who have been helping people pursue their financial goals for more than 70 years. Today, Capital One Asset Management, LLC investment decision making is at work for $3.5 billion in AAA Bonds (80.0%) client assets. Investors have entrusted approximately $628 million to the PORTFOLIO COMPOSITION as of 9/30/08 (subject to change) Capital One Funds, which are managed % of portfolio through prudent, disciplined decision- making by local, accessible portfolio Cash 33.0 managers. Federal Home Loan Bank 27.0 Freddie Mac 27.0 Fannie Mae 13.0 PORTFOLIO MANAGERS Craig Kercho, Vice President and Portfolio Manager, has been actively CAPITAL ONE MUTUAL FUND FAMILY involved in investment management The Capital One Funds give you HIGHER and securities trading for more a wide range of investment • Capital One Mid Cap Equity Fund than 25 years. Mr. Kercho is a CFA® Potential Risk/Return choices—from conservative to • Capital One Capital Appreciation Fund charterholder and received his B.B.A. aggressive. • Capital One Total Return Bond Fund • Capital One Louisiana Municipal degree from The University of Texas at Special Features: Income Fund Austin. Systematic Investment Program† • Capital One U.S. Government Systematic Exchange Program Income Fund Systematic Withdrawal Program • Capital One Cash Reserve Fund Paul Teten, Vice President and Chief Available for IRAs • Capital One U.S. Treasury LOWER Fixed Income Strategist, has more than Money Market Fund 25 years of investment management § Portfolio quality ratings are based on Standard and Poor’s ratings. † Systematic investing does not guarantee profit or protect against loss in down markets. experience. Mr. Teten is a CFA® The percentages are based on net assets at the close of business on September 30, 2008 and charterholder and received his B.B.A. may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes. and M.B.A. from The University of Texas This material must be preceded or accompanied by a prospectus. An investor should consider at Austin. the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Funds can be found in the Fund’s prospectus. To obtain more information, please call 1-800-999-0426. Please read the prospectus carefully before investing.
  4. 4. OBJECTIVE CAPITAL ONE LOUISIANA MUNICIPAL Current income, generally exempt from federal regular and Louisiana personal INCOME FUND income taxes† THIS FUND MAY BE RIGHT FOR YOU IF . . . RETAIL CLASS A AND B SHARES 3RD QUARTER 2008 • You are a tax-sensitive Louisiana resident FUND PERFORMANCE RECORD as of 9/30/08 • You want a high-quality investment Assumes a $10,000 investment in the Class A Shares at NAV* PORTFOLIO FOCUS $20,000 Bonds issued by Louisiana municipalities. $17,000 STRATEGY $15,069 Quality is a major element of the Fund’s $14,000 strategy. The Fund’s management focuses on bonds rated in the highest category $11,000 (AAA by Standard & Poor’s Rating Group or Aaa by Moody’s Investors Service), $8,000 although the Fund may invest in bonds rated BBB/Baa.1 Further quality is provided $5,000 09/98 12/98 12/99 12/00 12/08 12/08 12/08 12/08 12/08 12/08 12/08 09/08 by municipal bonds insured to cover the timely payment of principal and interest, or Performance data quoted represents past performance which is no guarantee of future results. municipal bonds collateralized, or backed, The above graph assumes an initial hypothetical investment of $10,000 from 9/30/98 to 9/30/08 by U.S. Treasury or government obligations.2 and includes changes in share price, reinvestment of dividends and capital gains. The calculation does not assume the 3.0% maximum sales charge applicable to Class A Shares. Performance has DIVIDENDS/CAPITAL GAINS not been adjusted to reflect any applicable sales charges. If sales charges had been included, Dividends are declared and paid monthly; performance would have been lower. capital gains, if any, are paid at least annually. PERFORMANCE as of 9/30/08 MINIMUM INVESTMENT AGGREGATE AVERAGE ANNUAL TOTAL RETURN The minimum initial investment is just Since $1,000. Additional investments can be 3-Month YTD 1-Year 3-Year 5-Year 10-Year Inception made in amounts of $100 or more. Class A (Inception 10/14/88) NAV* 1.71% 2.08% 3.64% 3.44% 3.26% 4.19% 5.87% TWO PURCHASE OPTIONS Load (3.0% Max) -1.36% -0.97% 0.54% 2.40% 2.64% 3.87% 5.71% Class A Shares Class B (Inception 11/14/01) • 3.0% up-front sales charge Without CDSC 1.44% 1.49% 2.80% 2.54% 2.39% — 2.98% Class B Shares With Max CDSC** (5.5%) -4.00% -3.89% -2.59% 1.34% 2.06% — 2.98% • No up-front sales charge; contingent Gross Expense Ratio Class A 1.10% deferred sales charge of 5.5%, reduces Class B 1.85% on a sliding scale to zero if you remain 30-Day SEC Yield3 Taxable Yield Equivalent4 invested for more than six years. Class A Offer 1.71% Class A Offer 2.59% INVESTMENT CONCERNS Class B NAV 0.92% Class B NAV 1.39% The geographical concentration of Past performance does not guarantee future results. The performance data quoted portfolio holdings in this Fund may involve represents past performance and current returns may be lower or higher. The investment increased risk. The Fund’s income may be return and principal value will fluctuate so that an investor’s shares, when redeemed may subject to certain state and local taxes be worth more or less than the original cost. To obtain performance information current to and, depending on your tax status, the the most recent month end, and after-tax returns call 1-800-999-0426. Investment performance reflects voluntary fee waivers in effect from December 14, 2007, which federal alternative minimum tax. Bonds may be discontinued at any time. The net expense ratio for Class A is 0.78% and Class B is offer a relatively stable level of income, 1.63%. although bond prices will fluctuate *NAV (Net Asset Value) has not been adjusted to reflect any applicable sales charges. providing the potential for principal **CDSC (contingent deferred sales charge) of 5.5% is reflected in the returns presented for periods gain or loss. Intermediate-term, higher- of one year or less. quality bonds generally offer less risk than 3 The unsubsidized 30-Day SEC yield would have been 1.37% at Offer for Class A and 0.57% at NAV longer-term bonds and a lower rate of for Class B. return. The Fund is subject to the risk that 4 Based on 34% combined federal & Louisiana state tax bracket. principal value reacts in opposition to the movement of interests rates and that a FUND INFORMATION ASSETS rising interest rate environment increases the risk of loss of principal. Cusip Number: Class A 14041W507 Class A $36.0 million Class B 14041W606 Class B $1.5 million 1 Ratings only pertain to the securities in the portfolio and Ticker Symbol: Class A CLMIX do not protect against market risk of the Fund shares. Class B CLAMX AVERAGE MATURITY Newspaper Symbol: Class A LA Mun 0.00 Years 2 Insurance and government guarantees pertain only to the timely payment of principal and Class B LA MunB interest of the securities in the portfolio and do Important Update: On August 25, 2008 the shareholders of the Capital One Louisiana Municipal Income not protect against market loss. No assurance is made as to any insurer’s ability to meet its Fund approved a Plan of Liquidation. The fund was subsequently liquidated on October 17, 2008. For commitments. Please see the prospectus, which more information, please call 1-800-999-0426. more fully describes the terms of insurance. Capital One Asset Management, LLC is the investment adviser and Capital One, N.A. is the custodian to the Capital One Funds and receives compensation for these services. Foreside Distrbution Services, L.P is the distributor of the Capital One Funds. . Investments: • Not FDIC Insured • No Bank Guarantee • May Lose Value G02564-04 (9/08)
  5. 5. CAPITAL ONE MID CAP EQUITY FUND RETAIL CLASS A AND B SHARES 3RD QUARTER 2008 ABOUT THE INVESTMENT MANAGER SECTOR ALLOCATION as of 9/30/08 (subject to change) Financial 16.7% The Capital One Funds are managed by Technology 13.4% experienced investment professionals Health 12.1% at Capital One Asset Management, Industrial 19.4% LLC, who have been helping people Discretionary 11.9% pursue their financial goals for more Energy 8.6% than 70 years. Today, Capital One Asset Staples 3.7% Management, LLC investment decision Utility 7.9% making is at work for $3.5 billion in Telecommunications 0.5% client assets. Investors have entrusted Materials 5.8% approximately $628 million to the 0% 5% 10% 15% 20% Capital One Funds, which are managed As part of Capital One Asset Management’s risk controlled process, the Fund targets through prudent, disciplined decision- sector neutrality in regards to the benchmark. making by local, accessible portfolio TOP TEN HOLDINGS as of 9/30/08 (subject to change) managers. COMPANY % of portfolio PORTFOLIO MANAGER Sybase, Inc. 3.2 MARTIN SIRERA Ross Stores, Inc. 3.1 Cummins, Inc. 2.9 Equity Strategist Cabot Oil & Gas Corp. 2.9 Tidewater, Inc. 2.9 Martin is Vice President and Senior First Niagara Financial Group 2.8 Equity Portfolio Manager with a total MDU Resources Group, Inc. 2.7 Joy Global, Inc. 2.7 of 13 years investment experience. Applera Corp. - Applied Biosystems, Inc. 2.6 He manages the Capital One Mid Techne Corp. 2.4 Cap Equity Fund, Capital One Capital Appreciation Fund, as well as CAPITAL ONE MUTUAL FUND FAMILY portfolios of high net worth individuals The Capital One Funds give you HIGHER • Capital One Mid Cap Equity Fund and institutions. Martin is a CFA® a wide range of investment • Capital One Capital Appreciation Fund charterholder and holds a B.S. degree choices—from conservative to • Capital One Total Return Bond Fund Potential Risk/Return in Finance from the University of New aggressive. • Capital One Louisiana Municipal Income Fund Orleans. Martin has served as President Special Features: • Capital One U.S. Government of the Financial Analysts of New Orleans, Systematic Investment Program† Income Fund Systematic Exchange Program • Capital One Cash Reserve Fund is a member of the CFA Institute®, Systematic Withdrawal Program • Capital One U.S. Treasury and has served as a grader for CFA Available for IRAs Money Market Fund Institute’s® Chartered Financial Analyst LOWER Exams. He was previously employed † Systematic investing does not guarantee profit or protect against loss in down markets. as a portfolio manager at a major The percentages are based on net assets at the close of business on September 30, 2008 and may not necessarily reflect adjustments that are routinely made when presenting net assets southeastern financial institution and at for formal financial statement purposes. a major Louisiana bank. This material must be preceded or accompanied by a prospectus. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Funds can be found in the Fund’s prospectus. To obtain more information, please call 1-800-999-0426. Please read the prospectus carefully before investing.
  6. 6. OBJECTIVE CAPITAL ONE MID CAP EQUITY FUND Total return THIS FUND MAY BE RIGHT FOR YOU IF . . . • You have long-term financial goals RETAIL CLASS A AND B SHARES 3RD QUARTER 2008 • You want to diversify your stock FUND PERFORMANCE RECORD as of 9/30/08 holdings beyond large companies Assumes a $10,000 investment in the Class A Shares at NAV* • You’re comfortable with a relatively $40,000 aggressive approach to investing $35,000 PORTFOLIO FOCUS $30,000 Stocks issued by mid-size companies with $25,000 market capitalizations (total stock value) $20,000 $21,797 of between $500 million and $10 billion. $15,000 STRATEGY $10,000 The Fund’s management is based on our $5,000 core belief that fundamentals drive stock 09/98 12/98 12/99 12/00 12/08 12/08 12/08 12/08 12/08 12/08 12/08 09/08 prices over the long term, but short-term Performance data quoted represents past performance which is no guarantee of future results. divergences can lead to opportunities. The above graph assumes an initial hypothetical investment of $10,000 from 9/30/98 to 9/30/08 Our research focuses on quantifiable and includes changes in share price, reinvestment of dividends and capital gains. The calculation factors, such as value, growth, does not assume the 4.5% maximum sales charge applicable to Class A Shares. Performance has momentum and quality measures not been adjusted to reflect any applicable sales charges. If sales charges had been included, performance would have been lower. that that are indicative of future out- performance. The resulting portfolio with PERFORMANCE as of 9/30/08 favorable characteristics is poised to out- AGGREGATE AVERAGE ANNUAL TOTAL RETURN perform its benchmarks. Since 3-Month YTD 1-Year 3-Year 5-Year 10-Year Inception DIVIDENDS/CAPITAL GAINS Class A (Inception 5/1/86) Dividends are declared and paid NAV* -14.27% -18.73% -22.99% -2.38% 6.64% 8.10% 10.64% quarterly; capital gains, if any, are paid at Load (4.5% Max) -18.10% -22.38% -26.46% -3.86% 5.66% 7.60% 10.42% Class B (Inception 7/13/98) least annually. Without CDSC -14.48% -19.17% -23.58% -3.12% 5.84% 7.49% 6.04% With Max CDSC** (5.5%) -19.18% -23.62% -27.23% -4.08% 5.54% 7.49% 6.04% MINIMUM INVESTMENT The minimum initial investment is just Gross Expense Ratio Class A 1.26% $1,000. Additional investments can be Class B 2.01% made in amounts of $100 or more. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may TWO PURCHASE OPTIONS be worth more or less than the original cost. To obtain performance information current to Class A Shares the most recent month end, and after-tax returns call 1-800-999-0426. • 4.5% up-front sales charge The Capital One Mid Cap Equity Fund is the successor to a collective trust fund. The performance quoted includes the performance of the collective trust fund for periods before the Fund’s Class B Shares registration statement became effective on June 8, 1998. Performance has been adjusted to reflect the Funds’ estimated expenses. The collective trust fund was not registered under the Investment • No up-front sales charge; contingent Company Act of 1940 (“1940 Act”) and, therefore, was not subject to certain investment restrictions deferred sales charge of 5.5%, reduces imposed by the 1940 Act. If the collective trust fund had been registered under the 1940 Act, the on a sliding scale to zero if you remain performance may have been adversely affected. invested for more than six years. *NAV (Net Asset Value) has not been adjusted to reflect any applicable sales charges. **CDSC (contingent deferred sales charge) of 5.5% is reflected in the returns presented for periods INVESTMENT CONCERNS of one year or less. Mid capitalization funds typically carry FUND INFORMATION ASSETS additional risks since smaller companies Cusip Number: Class A 14041W705 Class A $73.8 million generally have a higher risk of failure. Class B 14041W804 Class B $1.2 million Equity securities (stocks) are more volatile Ticker Symbol: Class A CMCEX and carry more risk than other forms of Class B CMCPX investments, including investments in Newspaper Symbol: Class A MidCap high-grade fixed income securities. The Class B MidCapB net asset value per share of this Fund will Important Update: On October 21, 2008, shareholders of the Capital One Funds approved an fluctuate as the value of the securities in Agreement and Plan of Reorganization (the “Reorganization”) between the Capital One Funds and certain registered investment companies advised by Fidelity Management & Research Company the portfolio changes. Common stocks, (“Fidelity”). The Reorganization is expected to occur on or about November 21, 2008 at which time and funds investing in common stocks, the assets of the Capital One Mid Cap Equity Fund (the “Capital One Fund”) will be transferred to generally provide greater return potential a corresponding Fidelity portfolio. If you are a Capital One Fund shareholder at the time of the when compared with other types of Reorganization, you will receive shares of the corresponding Fidelity portfolio as described in the investments. combined proxy statement/prospectus dated September 7, 2008. The Capital One Fund is currently closed to new shareholders. For more information, please call 1-800-999-0426. Capital One Asset Management, LLC is the investment adviser and Capital One, N.A. is the custodian to the Capital One Funds and receives compensation for these services. Foreside Distrbution Services, L.P is the distributor of the Capital One Funds. . Investments: • Not FDIC Insured • No Bank Guarantee • May Lose Value G02564-01 (9/08)
  7. 7. CAPITAL ONE TOTAL RETURN BOND FUND RETAIL SHARES 3RD QUARTER 2008 ABOUT THE INVESTMENT MANAGER PORTFOLIO QUALITY RATINGS§ as of 9/30/08 (subject to change) BBB Bonds (0.8%) A Bonds (12.8%) The Capital One Funds are managed by experienced investment professionals AA Bonds (4.0%) at Capital One Asset Management, AAA Bonds (3.7%) LLC, who have been helping people pursue their financial goals for more Government (13.6%) than 70 years. Today, Capital One Asset Management, LLC investment decision Agencies (65.1%) making is at work for $3.5 billion in client assets. Investors have entrusted approximately $628 million to the Capital One Funds, which are managed PORTFOLIO COMPOSITION as of 9/30/08 (subject to change) through prudent, disciplined decision- % of portfolio making by local, accessible portfolio managers. Residential Mortgage-Backed Securities 43.0 Corporate Bonds 19.6 U.S. Government Agency Securities 22.0 PORTFOLIO MANAGERS U.S. Treasury Securities 11.7 Craig Kercho, Vice President and Commercial Mortgage-Backed Securities 1.8 Portfolio Manager, has been actively Cash 1.9 involved in investment management and securities trading for more than 25 years. Mr. Kercho is a CFA® CAPITAL ONE MUTUAL FUND FAMILY charterholder and received his B.B.A. The Capital One Funds give you HIGHER • Capital One Mid Cap Equity Fund degree from The University of Texas at a wide range of investment • Capital One Capital Appreciation Fund Austin. choices—from conservative to • Capital One Total Return Bond Fund Potential Risk/Return aggressive. • Capital One Louisiana Municipal Income Fund Paul Teten, Vice President and Chief Special Features: • Capital One U.S. Government Fixed Income Strategist, has more than Systematic Investment Program† Income Fund Systematic Exchange Program • Capital One Cash Reserve Fund 25 years of investment management Systematic Withdrawal Program • Capital One U.S. Treasury experience. Mr. Teten is a CFA® Available for IRAs Money Market Fund charterholder and received his B.B.A. LOWER and M.B.A. from The University of Texas § Portfolio quality ratings are based on Standard and Poor’s ratings. at Austin. † Systematic investing does not guarantee profit or protect against loss in down markets. The percentages are based on net assets at the close of business on September 30, 2008 and may not necessarily reflect adjustments that are routinely made when presenting net assets Dina Mabasa, Vice President and for formal financial statement purposes. Portfolio Manager, has been in the This material must be preceded or accompanied by a prospectus. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing investment management business or sending money. This and other important information about the Funds can be found in the for more than 20 years. Ms. Mabasa Fund’s prospectus. To obtain more information, please call 1-800-999-0426. Please read the received her B.B.A. from The University prospectus carefully before investing. of Houston. Gilbert Braunig, Assistant Vice President and Fixed Income Analyst, is a CFA® charterholder and received his B.S. degree in Business Administration from Babson College.
  8. 8. CAPITAL ONE TOTAL RETURN BOND FUND OBJECTIVE Maximize total return; total return consists of both income and capital appreciation RETAIL SHARES 3RD QUARTER 2008 THIS FUND MAY BE RIGHT FOR YOU IF . . . FUND PERFORMANCE RECORD as of 9/30/08 • You are a moderate-risk investor Assumes a $10,000 investment in the Fund Shares at NAV* who seeks income • You are comfortable with a more $20,000 aggressive approach to income • You prefer an investment focus on $17,000 bonds $14,842 $14,000 PORTFOLIO FOCUS Bonds issued by the U.S. government $11,000 and U.S. government agencies, and asset-backed securities and bonds $8,000 issued by U.S. corporations rated BBB/ $5,000 Baa or better by Standard & Poor’s 09/98 12/98 12/99 12/00 12/08 12/08 12/08 12/08 12/08 12/08 12/08 09/08 Rating Group/Moody’s Investors Service.2 Performance data quoted represents past performance which is no guarantee of future results. The above graph assumes an initial hypothetical investment of $10,000 from 9/30/98 STRATEGY to 9/30/08 and includes changes in share price, reinvestment of dividends and capital gains. The Based on an outlook of the economy calculation does not assume the 3.0% maximum sales charge applicable to the Fund’s Shares. and interest rates, the portfolio Performance has not been adjusted to reflect any applicable sales charges. If sales charges had manager adjusts the portfolio’s mix been included, performance would have been lower. of U.S. government and corporate securities and its average maturity. PERFORMANCE as of 9/30/08 The portfolio reflects the mix of AGGREGATE AVERAGE ANNUAL TOTAL RETURN securities that the manager believes 3-Month YTD 1-Year 3-Year 5-Year 10-Year offers an excellent combination of quality, yield potential and value. Fund (Inception 11/2/92) NAV* 0.18% 0.95% 3.86% 3.51% 2.87% 4.03% DIVIDENDS/CAPITAL GAINS Load (3.0% Max) -2.81% -2.04% 0.74% 2.45% 2.25% 3.71% Dividends are declared and paid monthly; capital gains, if any, are Gross Expense Ratio 1.20% paid at least annually. 30-Day SEC Yield (Offer)1 4.05% Past performance does not guarantee future results. The performance data quoted MINIMUM INVESTMENT represents past performance and current returns may be lower or higher. The investment The minimum initial investment is return and principal value will fluctuate so that an investor’s shares, when redeemed may just $1,000. Additional investments be worth more or less than the original cost. To obtain performance information current to can be made in amounts of $100 or the most recent month end, and after-tax returns call 1-800-999-0426. more. Investment performance reflects voluntary fee waivers in effect from December 14, 2007, which may be discontinued at any time. The net expense ratio is 0.80%. INVESTMENT CONCERNS Performance quoted is pre-tax. For after-tax returns, please call 1-800-999-0426. Bonds offer a relatively stable level *NAV (Net Asset Value) has not been adjusted to reflect any applicable sales charges. of income, although bond prices will 1 The unsubsidized 30-Day SEC yield would have been 3.63% at Offer. fluctuate providing the potential for principal gain or loss. Intermediate- FUND INFORMATION ASSETS term, higher-quality bonds generally offer less risk than longer-term bonds Cusip Number: 14041W887 $43.7 million and a lower rate of return. The Fund CTRBX AVERAGE MATURITY is subject to the risk that principal Ticker Symbol: value reacts in opposition to the Newspaper Symbol: TotalRet 6.60 Years movement of interests rates and that a rising interest rate environment Important Update: On October 21, 2008, shareholders of the Capital One Funds approved an increases the risk of loss of principal. Agreement and Plan of Reorganization (the “Reorganization”) between the Capital One Funds and certain registered investment companies advised by Fidelity Management & Research Company (“Fidelity”). The Reorganization is expected to occur on or about November 21, 2008 at which time 2 Credit ratings pertain only to the securities the assets of the Capital One Total Return Bond Fund (the “Capital One Fund”) will be transferred in the portfolio and do not protect fund to a corresponding Fidelity portfolio. If you are a Capital One Fund shareholder at the time of the shares against market risk. Reorganization, you will receive shares of the corresponding Fidelity portfolio as described in the combined proxy statement/prospectus dated September 7, 2008. The Capital One Fund is currently closed to new shareholders. For more information, please call 1-800-999-0426. Capital One Asset Management, LLC is the investment adviser and Capital One, N.A. is the custodian to the Capital One Funds and receives compensation for these services. Foreside Distrbution Services, L.P is the distributor of the Capital One Funds. . Investments: • Not FDIC Insured • No Bank Guarantee • May Lose Value G02564-03 (9/08)
  9. 9. CAPITAL ONE U.S. GOVERNMENT INCOME FUND RETAIL SHARES 3RD QUARTER 2008 ABOUT THE INVESTMENT MANAGER PORTFOLIO COMPOSITION as of 9/30/08 (subject to change) Cash Equivalents (3.6%) The Capital One Funds are managed by Corporate Bonds (5.6%) experienced investment professionals Mortgage Backed at Capital One Asset Management, Securities (16.9%) LLC, who have been helping people U.S. Government Agencies (47.4%) pursue their financial goals for more than 70 years. Today, Capital One Asset Management, LLC investment decision making is at work for $3.5 billion in U.S. Treasury Notes (26.5%) client assets. Investors have entrusted approximately $628 million to the Capital One Funds, which are managed TOP FIVE HOLDINGS as of 9/30/08 (subject to change) through prudent, disciplined decision- STATED making by local, accessible portfolio SECURITY COUPON MATURITY % OF PORTFOLIO managers. U.S. T-Notes 4.75% 5/15/2014 5.8 U.S. T-Notes 5.13% 5/15/2016 5.1 PORTFOLIO MANAGERS Fannie Mae 6.0% Semiannual 6.00% 5/15/2011 3.0 Dina Mabasa, Vice President and FNMA 5.38% 6/12/2017 2.8 Portfolio Manager, has been in the FNMA 5.00% 10/15/2011 2.8 investment management business for more than 20 years. Ms. Mabasa received her B.B.A. from The University CAPITAL ONE MUTUAL FUND FAMILY of Houston. The Capital One Funds give you HIGHER • Capital One Mid Cap Equity Fund a wide range of investment • Capital One Capital Appreciation Fund Paul Teten, Vice President and Chief choices—from conservative to • Capital One Total Return Bond Fund Potential Risk/Return aggressive. • Capital One Louisiana Municipal Fixed Income Strategist, has more than Income Fund 25 years of investment management Special Features: • Capital One U.S. Government experience. Mr. Teten is a CFA® Systematic Investment Program† Income Fund Systematic Exchange Program • Capital One Cash Reserve Fund charterholder and received his B.B.A. Systematic Withdrawal Program • Capital One U.S. Treasury and M.B.A. from The University of Texas Available for IRAs Money Market Fund at Austin. LOWER † Systematic investing does not guarantee profit or protect against loss in down markets. Craig Kercho, Vice President and The percentages are based on net assets at the close of business on September 30, 2008 and Portfolio Manager, has been actively may not necessarily reflect adjustments that are routinely made when presenting net assets for formal financial statement purposes. involved in investment management This material must be preceded or accompanied by a prospectus. An investor should consider and securities trading for more the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the Funds can be found in the than 25 years. Mr. Kercho is a CFA® Fund’s prospectus. To obtain more information, please call 1-800-999-0426. Please read the charterholder and received his B.B.A. prospectus carefully before investing. degree from The University of Texas at U.S. Government guarantees apply only to the underlying securities of the Fund’s portfolio and not the Fund’s shares. Austin. Gilbert Braunig, Assistant Vice President and Fixed Income Analyst, is a CFA® charterholder and received his B.S. degree in Business Administration from Babson College.
  10. 10. CAPITAL ONE U.S. GOVERNMENT INCOME FUND OBJECTIVE Current income THIS FUND MAY BE RETAIL SHARES 3RD QUARTER 2008 RIGHT FOR YOU IF . . . • You are a moderately conservative FUND PERFORMANCE RECORD as of 9/30/08 investor Assumes a $10,000 investment in the Fund Shares at NAV* • You prefer an investment focus on $20,000 income-producing U.S. government securities $17,000 $15,437 PORTFOLIO FOCUS $14,000 Primarily bonds issued by the U.S. government or its agencies and $11,000 instrumentalities. The payment of principal and interest on these $8,000 securities is guaranteed by the U.S. government or issuing agency. $5,000 09/98 12/98 12/99 12/00 12/08 12/08 12/08 12/08 12/08 12/08 12/08 09/08 STRATEGY Based on an outlook of the economy Performance data quoted represents past performance which is no guarantee of future results. The above graph assumes an initial hypothetical investment of $10,000 from 9/30/98 and interest rates, the portfolio to 9/30/08 and includes changes in share price, reinvestment of dividends and capital gains. The manager adjusts the portfolio’s mix calculation does not assume the 3.0% maximum sales charge applicable to the Fund’s Shares. of U.S. Government, Agency and Performance has not been adjusted to reflect any applicable sales charges. If sales charges had been included, performance would have been lower. Mortgage-backed securities and its average duration. The portfolio PERFORMANCE as of 9/30/08 reflects the mix of securities that AGGREGATE AVERAGE ANNUAL TOTAL RETURN the manager believes offers an 3-Month YTD 1-Year 3-Year 5-Year 10-Year excellent combination of quality, yield Fund (Inception 10/14/88) potential and value. NAV* 0.30% 1.73% 4.73% 4.35% 3.33% 4.44% Load (3.0% Max) -2.72% -1.32% 1.55% 3.29% 2.71% 4.12% DIVIDENDS/CAPITAL GAINS Dividends are declared and paid Gross Expense Ratio 0.96% monthly; capital gains, if any, are 30-Day SEC Yield (Offer)1 3.81% paid at least annually. Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. The investment MINIMUM INVESTMENT return and principal value will fluctuate so that an investor’s shares, when redeemed may The minimum initial investment is be worth more or less than the original cost. To obtain performance information current to just $1,000. Additional investments the most recent month end, and after-tax returns call 1-800-999-0426. Investment performance reflects voluntary fee waivers in effect from December 14, 2007, which can be made in amounts of $100 or may be discontinued at any time. The net expense ratio is 0.62%. more. Performance quoted is pre-tax. For after-tax returns, please call 1-800-999-0426. *NAV (Net Asset Value) has not been adjusted to reflect any applicable sales charges. INVESTMENT CONCERNS 1 The unsubsidized 30-Day SEC yield would have been 3.47% at Offer. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for FUND INFORMATION ASSETS principal gain or loss. Intermediate- Cusip Number: 14041W879 $76.5 million term, higher-quality bonds generally offer less risk than longer-term bonds Ticker Symbol: CWRGX AVERAGE MATURITY and a lower rate of return. The Fund Newspaper Symbol: US Gv 7.02 Years is subject to the risk that principal value reacts in opposition to the Important Update: On October 21, 2008, shareholders of the Capital One Funds approved an movement of interests rates and that Agreement and Plan of Reorganization (the “Reorganization”) between the Capital One Funds and a rising interest rate environment certain registered investment companies advised by Fidelity Management & Research Company increases the risk of loss of principal. (“Fidelity”). The Reorganization is expected to occur on or about November 21, 2008 at which time the assets of the Capital One U.S. Government Income Fund (the “Capital One Fund”) will be transferred to a corresponding Fidelity portfolio. If you are a Capital One Fund shareholder at the time of the Reorganization, you will receive shares of the corresponding Fidelity portfolio as described in the combined proxy statement/prospectus dated September 7, 2008. The Capital One Fund is currently closed to new shareholders. For more information, please call 1-800-999-0426. Capital One Asset Management, LLC is the investment adviser and Capital One, N.A. is the custodian to the Capital One Funds and receives compensation for these services. Foreside Distrbution Services, L.P is the distributor of the Capital One Funds. . Investments: • Not FDIC Insured • No Bank Guarantee • May Lose Value G02564-05 (9/08)
  11. 11. CAPITAL ONE MONEY MARKET FUNDS RETAIL SHARES 3RD QUARTER 2008 CAPITAL ONE CAPITAL ONE CASH RESERVE FUND U.S. TREASURY ABOUT THE INVESTMENT MANAGER MONEY MARKET FUND PORTFOLIO COMPOSITION PORTFOLIO COMPOSITION as of 9/30/08 (subject to change) as of 9/30/08 (subject to change) The Capital One Funds are managed by experienced investment professionals U.S. Treasury Bills (4.0%) Cash Equivalents (3.8%) Repurchase at Capital One Asset Management, Mortgage- Agreements (43.5%) Cash Equivalents (1.8%) LLC, who have been helping people Backed (6.2%) pursue their financial goals for more than 70 years. Today, Capital One Asset Management, LLC investment decision making is at work for $3.5 billion in client assets. Investors have entrusted Commercial Paper (46.5%) Repurchase approximately $628 million to the Agreements (94.2%) Capital One Funds, which are managed through prudent, disciplined decision- FUND INFORMATION making by local, accessible portfolio Newspaper managers. Cusip Number Ticker Symbol Symbol Assets Cash Reserve PORTFOLIO MANAGERS Fund—Class A 14041W309 CORXX CapOneCshA $160.4 million Dina Mabasa, Vice President and U.S. Treasury Portfolio Manager, has been in the Money Market investment management business Fund 14041W861 CTRXX CapOneUSTr $124.6 million for more than 20 years. Ms. Mabasa received her B.B.A. from The University CAPITAL ONE MUTUAL FUND FAMILY of Houston. HIGHER The Capital One Funds give you • Capital One Mid Cap Equity Fund Paul Teten, Vice President and Chief a wide range of investment • Capital One Capital Appreciation Fund Fixed Income Strategist, has more than Potential Risk/Return choices—from conservative to • Capital One Total Return Bond Fund aggressive. • Capital One Louisiana Municipal 25 years of investment management Income Fund experience. Mr. Teten is a CFA® Special Features: • Capital One U.S. Government charterholder and received his B.B.A. Systematic Investment Program† Income Fund and M.B.A. from The University of Texas Systematic Exchange Program • Capital One Cash Reserve Fund at Austin. Systematic Withdrawal Program • Capital One U.S. Treasury Available for IRAs Money Market Fund Craig Kercho, Vice President and LOWER Portfolio Manager, has been actively involved in investment management † Systematic investing does not guarantee profit or protect against loss in down markets. and securities trading for more The percentages are based on net assets at the close of business on September 30, 2008 and may not necessarily reflect adjustments that are routinely made when presenting net assets than 25 years. Mr. Kercho is a CFA® for formal financial statement purposes. charterholder and received his B.B.A. This material must be preceded or accompanied by a prospectus. An investor should consider degree from The University of Texas at the Fund’s investment objectives, risks, and charges and expenses carefully before investing Austin. or sending money. This and other important information about the Funds can be found in the Fund’s prospectus. To obtain more information, please call 1-800-999-0426. Please read the prospectus carefully before investing. Gilbert Braunig, Assistant Vice Important Update: On October 21, 2008, shareholders of the Capital One Funds approved an President and Fixed Income Analyst, Agreement and Plan of Reorganization (the “Reorganization”) between the Capital One Funds is a CFA® charterholder and received his and certain registered investment companies advised by Fidelity Management & Research B.S. degree in Business Administration Company (“Fidelity”). The Reorganization is expected to occur on or about November 21, from Babson College. 2008 at which time the assets of the Capital One Cash Reserve Fund and U.S Treasury Money Market Fund (the “Capital One Fund”) will be transferred to a corresponding Fidelity portfolio. INVESTMENT CONCERNS If you are a Capital One Fund shareholder at the time of the Reorganization, you will receive shares of the corresponding Fidelity portfolio as described in the combined proxy statement/ An investment in the Fund is not insured prospectus dated September 7, 2008. For more information, please call 1-800-999-0426. For or guaranteed by the FDIC or any other more information, please call 1-800-999-0426. government agency. Although the Fund Foreside Distrbution Services, L.P is the distributor of the Capital One Funds. . seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. G02564-06 (9/08)

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