As with all mutual funds, the value of an investment in the Fund could decline, so you could lose money. Bond funds are subject to interest rate risk, credit risk and prepayment risk. When interest rates rise, bond prices generally fall, and when interest rates fall, bond prices generally rise. Currently, interest rates are at relatively low levels. In this kind of environment the risk that bond prices may fall is potentially greater. High yield bond investing includes special risks. Investments in lower rated and unrated debt securities are subject to a greater loss of principal and interest than investments in higher rated securities. The value of mortgage-backed securities depends on the credit quality and adequacy of the underlying assets or collateral and may be highly volatile. Derivative transactions can create leverage and may be highly volatile. International investing involves special risks, which include changes in currency rates, foreign taxation and differences in auditing standards and securities regulations, political uncertainty and greater volatility.

1 RS Investments has contractually agreed through April 30, 2011, to waive all of its management fees with respect to the Fund.

2 "Other Expenses" are based on estimated amounts for the Fund's full current fiscal year. Non-recurring offering costs will be fully amortized in the Fund’s current fiscal year.

3 All expenses were waived for the period ended December 31, 2009. An expense limitation determined after taking into account any other expense limitations or fee waivers, including without limitation any reduction of management fees, with respect to the Fund's Total Annual Fund Operating Expenses (excluding interest, taxes, organizational and extraordinary expenses) is imposed pursuant to a written agreement in effect through April 30, 2011. The effect of this limitation is reflected under the caption "Fee Waiver/Expense Limitation." "Net Expenses" reflect the effect of this expense limitation on Total Annual Fund Operating Expenses. This expense limitation will continue through April 30, 2011, at which time RS Investments will determine whether or not to renew or revise it.

Total Annual Fund Operating Expenses are based on amounts incurred during the Fund's most recent fiscal year, expressed as a percentage of average net assets during the fiscal year. The decline in the Fund's average net assets over the past year or more due to market volatility and other factors will cause the Fund's expense ratios for the Fund's current fiscal year to be higher than the expense information presented, but not to exceed the expense limitation shown.