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Seeks long-term capital growth by investing primarily in equity securities of small-capitalization companies which are companies with market capitalizations within the range of companies included in the Russell 2000® Index.  
Class A B^ C R
Ticker VSCVX MBVSX MCVSX MRVSX
CUSIP 626127484 626127542 626127534 626127518
Fund Code 230 330 430 830
Minimum Initial Investment: $2,500; $50 subsequent/automatic
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About the Sub-Advisor, Integrity Asset Management
Founded in 2003, Integrity Asset Management, LLC is an Ohio-based investment firm that specializes in managing value-oriented equity strategies primarily for institutional clients. As of December 31, 2010, Integrity Asset Management became an independently operated, wholly owned subsidiary of Munder Capital Management.

Integrity manages approximately $2.6 billion as of 9.30.11 and provides investment management services to a diverse group of corporate, public, endowment, foundation, Taft-Hartley, and sub-advisory clients. The firm has demonstrated its investment expertise by providing clients with consistently strong risk-adjusted returns in a variety of market environments, leading it to be named in recent years, as one of "The Best Managers You Never Heard Of" by PLANSPONSOR magazine.

MORE FUND INFORMATION
Download the Prospectus | Annual Report | Commentary
     
 
 
Munder Veracity Small-Cap Value
Daily NAV's as of 02/03/12
Class A Class B^ Class C Class R
NAV 21.30 19.94 19.86 21.10
Chg. $ 0.43 0.41 0.40 0.43
Chg. % 2.06 2.10 2.06 2.08
POP 22.54 19.94 19.86 21.10
YTD Return % * 10.19
*Includes historical Veracity Small Cap Value Fund NAVs from 1/1/2011 through 5/13/2011.

     
Munder Veracity Small-Cap Value Fund Total Returns (%) as of 01/31/12    Risks
- - - - - Cumulative - - - - -
- - - - - Annualized - - - - -
Class 1 month 3 month YTD 1 year 3 year 5 year SI Inception Date
A With load -0.29 2.36 -0.29 -3.02 23.30 1.31 5.90 03/30/04
A Without load 5.54 8.34 5.54 2.62 25.65 2.46 6.68 03/30/04
B^ With load 0.47 3.15 0.47 -3.26 24.21 1.32 4.54 07/07/05
B^ Without load 5.47 8.15 5.47 1.84 24.85 1.70 4.69 07/07/05
C With load 4.49 7.19 4.49 0.84 24.85 1.70 4.69 07/07/05
C Without load 5.49 8.19 5.49 1.84 24.85 1.70 4.69 07/07/05
R Without load 5.48 8.31 5.48 2.34 25.42 2.20 5.21 07/07/05
 

On May 13, 2011, the Fund acquired the assets and liabilities of the Veracity Small Cap Value Fund (“Veracity Fund”) (“Reorganization”). The Veracity Fund was the accounting survivor of the Reorganization and the Veracity Fund’s performance and financial history have been adopted by the Fund. As a result, the performance information and financial history for the periods prior to May 14, 2011 are that of the Veracity Fund. The Veracity Fund offered Class R and Class I shares, which were similar to the Fund’s Class A and Class Y shares, respectively.  The performance for Class A shares for periods prior to May 14, 2011 is the performance of the Veracity Fund’s Class R shares. The performance for Class B, Class C and Class R shares for periods prior to May 14, 2011 is the performance of the Veracity Fund’s Class I shares adjusted for differences in the applicable sales loads and Rule 12b-1 fees of each respective class.

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 will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost.

The recent growth rate in the stock market has helped produce short-term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, Fund performance may be subject to substantial short-term changes.

As identified in the current Fund prospectus, the Class A, B, C, and R gross expense ratios were expected to be 1.81%, 2.56%, 2.56% and 2.06% and the Class A, B, C, and R net expense ratios were expected to be 1.51%, 2.26%, 2.26% and 1.76%. In periods of market volatility, Fund assets may decline significantly, causing a Fund’s gross expense ratio to become higher than the gross expense ratio shown in the current prospectus. The Fund publishes Semi-Annual and Annual Reports each February and August, which contain updated expense ratio information. The Advisor has limited certain expenses of the Fund since May 14, 2011 and has contractually agreed to do so through at least October 31, 2012. Total returns would have been lower if the Advisor had not limited expenses or made a capital contribution during those periods. “Without load” does not reflect the deduction of the maximum 5.50% sales fee (load), which reduces the performance quoted.

 

Class A Shares have a maximum sales charge of 5.5% on Equity Funds (excluding the Index 500 Fund), 2.5% on the Index 500 Fund, and 4% on the Bond Fund.

Class B Shares of all Funds except the Index 500 Fund have a Contingent Deferred Sales Charge (CDSC) on redemptions made within six years of purchase as follows: Year 1 = 5.0%, Year 2 = 4.0%, Year 3 = 3.0%, Year 4 = 3.0%, Year 5 = 2.0%, Year 6 = 1.0%. Class B Shares of the Index 500 Fund have a CDSC on redemptions made within six years of purchase as follows: Year 1 = 3.0%, Year 2 = 2.50%, Year 3 = 2.0%, Year 4 = 1.5%, Year 5 = 1.0%, Year 6 = 0.5%.

Class C Shares of all Funds have a 1.0% Contingent Deferred Sales Charge (CDSC) on redemptions made within one year of purchase.

Class R Shares are not subject to sales charges. Class R Shares are only available for purchase by limited types of investors, as outlined in the Fund’s prospectus.

Different sales charges affect performance and yields.

     
Munder Veracity Small-Cap Value Fund Total Returns (%) as of 12/31/11    Risks
- - - - - Cumulative - - - - -
- - - - - Annualized - - - - -
Class 1 month 3 month YTD 1 year 3 year 5 year SI Inception Date
A With load -4.97 12.25 -8.25 -8.25 16.63 0.26 5.23 03/30/04
A Without load 0.57 18.81 -2.91 -2.91 18.85 1.40 6.01 03/30/04
B^ With load -4.50 13.60 -8.41 -8.41 17.35 0.27 3.76 07/07/05
B^ Without load 0.50 18.60 -3.59 -3.59 18.07 0.66 3.91 07/07/05
C With load -0.44 17.61 -4.55 -4.55 18.07 0.66 3.91 07/07/05
C Without load 0.56 18.61 -3.59 -3.59 18.07 0.66 3.91 07/07/05
R Without load 0.58 18.78 -3.09 -3.09 18.62 1.17 4.42 07/07/05
 

On May 13, 2011, the Fund acquired the assets and liabilities of the Veracity Small Cap Value Fund (“Veracity Fund”) (“Reorganization”). The Veracity Fund was the accounting survivor of the Reorganization and the Veracity Fund’s performance and financial history have been adopted by the Fund. As a result, the performance information and financial history for the periods prior to May 14, 2011 are that of the Veracity Fund. The Veracity Fund offered Class R and Class I shares, which were similar to the Fund’s Class A and Class Y shares, respectively.  The performance for Class A shares for periods prior to May 14, 2011 is the performance of the Veracity Fund’s Class R shares. The performance for Class B, Class C and Class R shares for periods prior to May 14, 2011 is the performance of the Veracity Fund’s Class I shares adjusted for differences in the applicable sales loads and Rule 12b-1 fees of each respective class.

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 will fluctuate so that an investor's shares, when redeemed may be worth more or less than the original cost.

The recent growth rate in the stock market has helped produce short-term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, Fund performance may be subject to substantial short-term changes.

As identified in the current Fund prospectus, the Class A, B, C, and R gross expense ratios were expected to be 1.81%, 2.56%, 2.56% and 2.06% and the Class A, B, C, and R net expense ratios were expected to be 1.51%, 2.26%, 2.26% and 1.76%. In periods of market volatility, Fund assets may decline significantly, causing a Fund’s gross expense ratio to become higher than the gross expense ratio shown in the current prospectus. The Fund publishes Semi-Annual and Annual Reports each February and August, which contain updated expense ratio information. The Advisor has limited certain expenses of the Fund since May 14, 2011 and has contractually agreed to do so through at least October 31, 2012. Total returns would have been lower if the Advisor had not limited expenses or made a capital contribution during those periods. “Without load” does not reflect the deduction of the maximum 5.50% sales fee (load), which reduces the performance quoted.

 

Class A Shares have a maximum sales charge of 5.5% on Equity Funds (excluding the Index 500 Fund), 2.5% on the Index 500 Fund, and 4% on the Bond Fund.

Class B Shares of all Funds except the Index 500 Fund have a Contingent Deferred Sales Charge (CDSC) on redemptions made within six years of purchase as follows: Year 1 = 5.0%, Year 2 = 4.0%, Year 3 = 3.0%, Year 4 = 3.0%, Year 5 = 2.0%, Year 6 = 1.0%. Class B Shares of the Index 500 Fund have a CDSC on redemptions made within six years of purchase as follows: Year 1 = 3.0%, Year 2 = 2.50%, Year 3 = 2.0%, Year 4 = 1.5%, Year 5 = 1.0%, Year 6 = 0.5%.

Class C Shares of all Funds have a 1.0% Contingent Deferred Sales Charge (CDSC) on redemptions made within one year of purchase.

Class R Shares are not subject to sales charges. Class R Shares are only available for purchase by limited types of investors, as outlined in the Fund’s prospectus.

Different sales charges affect performance and yields.

An investor should consider the Fund's investment objectives, risks, and charges and expenses carefully before sending money. The prospectus and summary prospectus contain this and other important information about the investment company. To obtain a prospectus and summary prospectus, please click here. Please read the prospectus and summary prospectuses carefully before investing.

RISKS
Smaller and medium-sized company stocks are more volatile and less liquid than larger more established company securities. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. The Fund may invest a substantial portion of its assets in the financials sector and the real estate investment trust (REIT) industry. When the Fund’s investments are concentrated in one or more sectors, market or economic factors affecting those sectors could have a significant effect on the Fund’s value. REIT investments are subject to many of the risks of investing directly in real estate, such as declining real estate values, changing economic conditions and increasing interest rates. The Fund may invest up to 25% of its assets in foreign securities, which involve additional risks due to currency fluctuations, economic and political conditions, and differences in financial reporting standards. Performance and after-tax returns can be significantly impacted by the Fund's investments in Initial Public Offerings (IPOs), which may involve short-term trading. We cannot, however, ensure that the Fund will obtain IPOs
.

Portfolio holdings will change, and should not be considered purchase recommendations. There is no assurance that the securities mentioned remain in the Fund's portfolio or that securities sold have not been repurchased.

Portfolio characteristics are derived from a data source that may not provide information on every security in the portfolio. Such securities are excluded from the characteristics calculations and may affect the figures presented.

*Total net asset figures do not reflect adjustments, if any, made for financial reporting purposes. Percentages shown for Asset Allocation, Top Ten Holdings and Sector Diversification represent the breakdown of investments and are not based on net assets. Portfolio holdings will change and should not be considered purchase recommendations. Top holdings do not reflect cash, money markets or options/futures contracts holdings.

Fund shares are not guaranteed or insured by any bank, the FDIC or any government agency, and may lose value.

The percentages shown are rounded to the nearest tenth of one percent.

N/A - Fund class was not in operation for that time period.

^Closed to all investors.



Munder Funds distributed by Funds Distributor, LLC.

E-mail us at feedback@munder.com
Please read the Terms of Use and Privacy Policy
Munder®, Munder Capital®, Munder Capital Management®, and The Munder Funds® are
registered trademarks of Munder Capital Management®.

  ©Copyright 2010 Munder Capital Management. All Rights Reserved.
 
 
Munder Veracity Small-Cap Value
Quarterly Commentary as of December 31, 2011
previous commentary Print or Download
Small cap stocks rebounded strongly in the fourth quarter, posting their seventh best quarter ever after producing their second worst quarter in the prior quarter. Strong corporate profits, better than expected domestic economic data and hopes that Europe is closer to resolving its issues led to the powerful rally. Cyclical industries, such as industrials and consumer discretionary, were the leading sectors, while more stable areas, such as consumer staples and utilities, lagged.

The Munder Veracity Small Cap Value Fund was well positioned for the rally and it significantly outperformed its benchmark, the Russell 2000® Value Index. Stock selection in the energy, industrials and financials sectors was the biggest contributor to relative strength, while stock selection in health care was the largest detractor. A higher beta compared to the Fund’s benchmark also helped relative performance.

In energy, the Fund had a number of holdings that benefited from a rise in oil prices and renewed mergers and acquisition activity. Complete Production Services, Inc. (0.7% of the Fund), an oil services company, accepted an acquisition bid for a sizeable premium. A pair of our energy exploration firms, Kodiak Oil & Gas Corp. (1.2%) and Petroleum Development Corp. (0.9%), each advanced by approximately 80%, highlighting the value of their energy assets. Within industrials, The Greenbrier Companies, Inc. (1.0%) was up over 100% as the manufacturer of rail cars continued to see strong demand and looks to capture increased market share. Wabash National Corp. (0.7%), a maker of truck trailers, rose sharply as order trends remain healthy as operators continue to replace their aging fleet.

In financials, it was the Fund’s bank and real estate investment trust (REIT) holdings that posted some of the best absolute returns. Solid earnings, low expectations and very attractive valuations propelled the performance of many of the Fund’s banks, led by Susquehanna Bancshares, Inc. (1.1%) and FirstMerit Corp. (1.3%). In REITs, subsiding economic fears helped the Fund’s more cyclical hotel REITs, DiamondRock Hospitality Co. (1.1%) and Sunstone Hotel Investors, Inc. (0.9%).

Performance in the health care sector detracted from relative strength during the quarter as Medicis Pharmaceutical Corp. (1.0%) announced a change in sales strategy for a key drug that could increase volumes, but at the cost of reduced pricing. Invacare Corp. (0.4%), a maker of home and long-term care medical products, fell as it was forced to suspend manufacturing at a facility until it could make the plant compliant with FDA standards.

For 2011 as a whole, stock selection in the industrials, energy and financials sectors keyed the Fund’s outperformance. In contrast, stock selection in consumer discretionary and information technology hurt performance. Sector weightings were a neutral, with the positive impact of an overweight in health care, the second best performing sector of the Russell 2000® Value Index for the year, offset by an underweight in utilities, the best performing sector.

Two of the Fund’s largest contributors to relative performance for the year were domestically focused industrials, Old Dominion Freight Line, Inc. (1.1%) and Dycom Industries, Inc. (1.1%). Dycom benefited from healthy demand for its construction and maintenance services from telecom, cable and utility customers. Better than expected trucking volumes and pricing helped fundamentals at Old Dominion. Kodiak Oil & Gas Corp. and Complete Production Services, Inc. were the Fund’s two best energy stocks. Investors gravitated to shares of Kodiak for its growth opportunity and attractive assets, while Complete Production Services was acquired.

In financials, RLI Corp. (1.1%) and World Acceptance Corp. (1.0%) led the way. Improved rate pricing and solid sales momentum helped RLI, an insurance company. World Acceptance is a small loan consumer finance company that has benefited from an improved regulatory outlook and strong operating results as consumers seek alternatives to meet their short-term financing needs.

OfficeMax, Inc., an office products company, and Avid Technology, Inc., a digital software company, were the largest detractors within the consumer discretionary and information technology sectors, respectively. OfficeMax struggled with tepid employment growth and secular challenges that include market share losses in technology sales (Apple’s increased share), disintermediation by the Internet (Amazon) and lower sales of high margin paper and printer accessories. Avid Technology has suffered from a challenging demand environment for its products. Both stocks have been eliminated from the Fund.

The Fund’s positioning toward larger market cap stocks relative to its Russell 2000® Value benchmark was beneficial, as this segment of the market outperformed the smallest market cap companies. A higher beta hurt the Fund’s relative performance, as investors rotated toward the safety of more stable companies during the summer as fears regarding the economic and financial environment escalated.

 

Past performance does not guarantee future results. There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including potential loss of principal. The Fund's investment objectives, risks, charges and expenses must be considered carefully before investing.  The prospectus and summary prospectus contain this and other important information about the Fund. To obtain a prospectus and summary prospectus,  click here.  Read the prospectus and summary prospectuses carefully before investing.

This fund is a result of a merger of the Munder Small-Cap Value Fund and the Veracity Small Cap Value Fund.

RISKS: The Fund invests in smaller company stocks, which are more volatile and less liquid than larger, more established company securities. Further, value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. A substantial portion of the Fund's assets may be invested in one or more economic sectors, especially the financials sector. Economic downturns and changes in government regulation and interest rates could have a significant effect on the value of the Fund's investments.  In addition, a substantial portion of the Fund’s assets is invested in real estate related securities, which are subject to special risks related to property tax rates, property values and borrower defaults. The Fund may invest up to 25% of its assets in foreign securities, which involve additional risks due to currency fluctuations, economic and political conditions, and differences in financial reporting standards. Performance and after-tax returns can be significantly impacted by the Fund's investments in Initial Public Offerings (IPOs), which may involve short-term trading. We cannot, however, ensure that the Fund will obtain IPOs.

Fund holdings mentioned in the Quarterly Commentary are as of 12.31.11 and the percentages shown are based on net assets as of that date. Fund holdings are subject to change and should not be considered purchase recommendations. There is no assurance that the securities mentioned remain in the Fund’s portfolio or that securities sold have not been repurchased. The most currently available data regarding portfolio holdings can be found on our website, www.munder.com.

The Russell 2000® Value Index is a capitalization-weighted index that measures the performance of those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth rates. The Russell 2000® Index is a capitalization-weighted index that measures the performance of the smallest 2,000 companies in the Russell 3000® Index, an index representing approximately 98% of the investable U.S. equity market. You cannot invest directly in an index, securities in the Fund will not match those in the index, and performance of the Fund will differ. Although reinvestment of dividend and interest payments is assumed, no expenses are netted against an index’s returns.

Munder Funds are distributed by Funds Distributor, LLC 01.12


 
Investment Team

Munder Funds distributed by Funds Distributor, LLC.

 

Munder Veracity Small-Cap Value
Portfolio Data as of 12/31/2011
Total Net Assets* $294,492,425
Number of Holdings 123
Weighted Average Market Cap $1,450 MM
P/E Ratio - Last 12 Mos 16.72
Earnings Growth - Last 5 Yrs 1.6%
Earnings Growth - Last 12 Mos. 18.3%
Beta 0.98
Turnover - as of 12/31/2011 91.4%

Asset Allocation as of 12/31/2011
Cash & Equivalents 3.1 %
Equity 96.9 %
Total 100.0 %
 
 
 
Top Holdings as of 12/31/2011
Symbol Company Name
ATU Actuant Corp.
CR Crane Co.
CW Curtiss-Wright Corp.
DRH Diamondrock Hospitality Co.
DY Dycom Industries Inc.
FMER FirstMerit Corp.
MGLN Magellan Health Services, Inc.
ODFL Old Dominion Freight Line, Inc.
PNM PNM Resources Inc.
RBN Robbins & Myers Inc.
  Total Percentage of Top Holdings: 12.5
  Link to All Holdings as of 12/31/2011
  Historical All Holdings
 
Sector Diversification as of 12/31/2011
Sector % of Holdings
Consumer Discretionary 9.6
Consumer Staples 4.4
Energy 5.5
Financials 31.8
Health Care 8.0
Industrials 16.1
Information Technology 10.8
Materials 4.1
Utilities 6.6
Cash & Equivalents 3.1
Total 100.0
 

An investor should consider the Fund's investment objectives, risks, and charges and expenses carefully before sending money. The prospectus and summary prospectus contain this and other important information about the investment company. To obtain a prospectus and summary prospectus, please click here. Please read the prospectus and summary prospectuses carefully before investing.

RISKS
Smaller and medium-sized company stocks are more volatile and less liquid than larger more established company securities. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. The Fund may invest a substantial portion of its assets in the financials sector and the real estate investment trust (REIT) industry. When the Fund’s investments are concentrated in one or more sectors, market or economic factors affecting those sectors could have a significant effect on the Fund’s value. REIT investments are subject to many of the risks of investing directly in real estate, such as declining real estate values, changing economic conditions and increasing interest rates. The Fund may invest up to 25% of its assets in foreign securities, which involve additional risks due to currency fluctuations, economic and political conditions, and differences in financial reporting standards. Performance and after-tax returns can be significantly impacted by the Fund's investments in Initial Public Offerings (IPOs), which may involve short-term trading. We cannot, however, ensure that the Fund will obtain IPOs
.

Portfolio holdings will change, and should not be considered purchase recommendations. There is no assurance that the securities mentioned remain in the Fund's portfolio or that securities sold have not been repurchased.

Portfolio characteristics are derived from a data source that may not provide information on every security in the portfolio. Such securities are excluded from the characteristics calculations and may affect the figures presented.

*Total net asset figures do not reflect adjustments, if any, made for financial reporting purposes. Percentages shown for Asset Allocation, Top Ten Holdings and Sector Diversification represent the breakdown of investments and are not based on net assets. Portfolio holdings will change and should not be considered purchase recommendations. Top holdings do not reflect cash, money markets or options/futures contracts holdings.

Fund shares are not guaranteed or insured by any bank, the FDIC or any government agency, and may lose value.

The percentages shown are rounded to the nearest tenth of one percent.

N/A - Fund class was not in operation for that time period.

^Closed to all investors.



Munder Funds distributed by Funds Distributor, LLC.

E-mail us at feedback@munder.com
Please read the Terms of Use and Privacy Policy
Munder®, Munder Capital®, Munder Capital Management®, and The Munder Funds® are
registered trademarks of Munder Capital Management®.

  ©Copyright 2010 Munder Capital Management. All Rights Reserved.