Aberdeen Funds (Form: 485BPOS, Received: 02/27/2015 15:32:46)

As filed with the Securities and Exchange Commission on February 27, 2015

File No. 333-146680

File No. 811-22132

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-1A

	REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933	x

	Pre-Effective Amendment No.	o
	Post-Effective Amendment No. 63	x

	and/or

	REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940	x

	Amendment No. 65	x

(Check appropriate box or boxes)

ABERDEEN FUNDS

(Exact Name of Registrant as Specified in Charter)

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

(Address of Principal Executive Office) (Zip Code)

Registrant’s Telephone Number, including Area Code: 866-667-9231

Lucia Sitar, Esq.

c/o Aberdeen Asset Management Inc.

1735 Market Street, 32nd Floor

Philadelphia, PA 19103

(Name and Address of Agent for Service)

Copy to:

Rose F. DiMartino, Esq.

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019-6099

Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check appropriate box):

x immediately upon filing pursuant to paragraph (b)

o on (date) pursuant to paragraph (b)

o 60 days after filing pursuant to paragraph (a)(1)

o on (date) pursuant to paragraph (a)(1)

o 75 days after filing pursuant to paragraph (a)(2)

o on (date) pursuant to paragraph (a)(2) of Rule 485

If appropriate, check the following box:

o This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

ABERDEEN FUNDS

PROSPECTUS

February 27, 2015

Aberdeen Equity Long-Short Fund

Class A — MLSAX · Class C — MLSCX · Class R — GLSRX · Institutional Class — GGUIX · Institutional Service Class — AELSX

Aberdeen Global Natural Resources Fund

Class A — GGNAX · Class C — GGNCX · Class R — GGNRX · Institutional Class — GGNIX · Institutional Service Class — GGNSX

Aberdeen Small Cap Fund

Class A — GSXAX · Class C — GSXCX · Class R — GNSRX · Institutional Class — GSCIX · Institutional Service Class — GSXIX

Aberdeen China Opportunities Fund

Class A — GOPAX · Class C — GOPCX · Class R — GOPRX · Institutional Class — GOPIX · Institutional Service Class — GOPSX

Aberdeen International Equity Fund

Class A — GIGAX · Class C — GIGCX · Class R — GIRRX · Institutional Class — GIGIX · Institutional Service Class — GIGSX

Aberdeen Global Equity Fund

Class A — GLLAX · Class C — GLLCX · Class R — GWLRX · Institutional Class — GWLIX · Institutional Service Class — GLLSX

Aberdeen Diversified Income Fund

Class A — GMAAX · Class C — GMACX · Class R — GMRRX · Institutional Class — GMAIX · Institutional Service Class — GAMSX

Aberdeen Dynamic Allocation Fund

Class A — GMMAX · Class C — GMMCX · Class R — GAGRX · Institutional Class — GMMIX · Institutional Service Class — GAASX

Aberdeen Diversified Alternatives Fund

Class A — GASAX · Class C — GAMCX · Class R — GASRX · Institutional Class — GASIX · Institutional Service Class — GAISX

Aberdeen Asia Bond Fund

Class A — AEEAX · Class C — AEECX · Class R — AEERX · Institutional Class — CSABX · Institutional Service Class — ABISX

Aberdeen Asia-Pacific (ex-Japan) Equity Fund

Class A — APJAX · Class C — APJCX · Class R — APJRX · Institutional Class — AAPIX · Institutional Service Class — AAPEX

Aberdeen Asia-Pacific Smaller Companies Fund

Class A — APCAX · Class C — APCCX · Class R — APCRX · Institutional Class — APCIX · Institutional Service Class — APCSX

Aberdeen Emerging Markets Fund

Class A — GEGAX · Class C — GEGCX · Class R — GEMRX · Institutional Class — ABEMX · Institutional Service Class — AEMSX

Aberdeen Emerging Markets Debt Fund

Class A — AKFAX · Class C — AKFCX · Class R — AKFRX · Institutional Class — AKFIX · Institutional Service Class — AKFSX

Aberdeen Emerging Markets Debt Local Currency Fund

Class A — ADLAX · Class C — ADLCX · Class R — AECRX · Institutional Class — AEDSX · Institutional Service Class — AEDIX

Aberdeen Global Fixed Income Fund

Class A — CUGAX · Class C — CGBCX · Class R — AGCRX · Institutional Class — AGCIX · Institutional

Service Class — CGFIX

Aberdeen Global Small Cap Fund

Class A — WVCCX · Class C — CPVCX · Class R — WPVAX · Institutional Class — ABNIX · Institutional Service Class — AGISX

Aberdeen Tax-Free Income Fund

Class A — NTFAX · Class C — GTICX · Class R — ABERX · Institutional Class — ABEIX · Institutional Service Class — ABESX

Aberdeen Ultra-Short Duration Bond Fund

Class A — AUDAX · Class C — AUSCX · Class R — AUSRX · Institutional Class — AUDIX · Institutional Service Class — AUSIX

Aberdeen High Yield Fund

Class A — AUYAX · Class C — AUYCX · Class R — AUYRX · Institutional Class — AUYIX · Institutional Service Class — AUYSX

Aberdeen U.S. Equity Fund

Class A — GXXAX · Class C — GXXCX · Class R — GGLRX · Institutional Class — GGLIX · Institutional Service Class — GXXIX

Aberdeen European Equity Fund

Class A — AEUAX · Class C — AEUCX · Class R — AERUX · Institutional Class — AEUIX · Institutional Service Class — AEUSX

Aberdeen Latin American Equity Fund

Class A — ALEAX · Class C — ALECX · Class R — ALREX · Institutional Class — ALIEX · Institutional Service Class — ALESX

As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved these Funds’ shares or determined whether this prospectus is complete or accurate. To state otherwise is a crime.

Summary		Page

Aberdeen Equity Long-Short Fund		1
Aberdeen Global Natural Resources Fund		6
Aberdeen Small Cap Fund		11
Aberdeen China Opportunities Fund		15
Aberdeen International Equity Fund		20
Aberdeen Global Equity Fund		25
Aberdeen Diversified Income Fund		30
Aberdeen Dynamic Allocation Fund		37
Aberdeen Diversified Alternatives Fund		44
Aberdeen Asia Bond Fund		51
Aberdeen Asia-Pacific (ex-Japan) Equity Fund		58
Aberdeen Asia-Pacific Smaller Companies Fund		63
Aberdeen Emerging Markets Fund		68
Aberdeen Emerging Markets Debt Fund		73
Aberdeen Emerging Markets Debt Local Currency Fund		79
Aberdeen Global Fixed Income Fund		85
Aberdeen Global Small Cap Fund		92
Aberdeen Tax-Free Income Fund		97
Aberdeen Ultra-Short Duration Bond Fund		103
Aberdeen High Yield Fund		108
Aberdeen U.S. Equity Fund		114
Aberdeen European Equity Fund		119
Aberdeen Latin American Equity Fund		124

Fund Details

Additional Information about Principal Strategies		129
Additional Information about Investments, Investment Techniques and Risks		131

Fund Management

Investment Adviser		165
Subadvisers		165
Management Fees		165
Portfolio Management		168
Multi-Manager Structure		182

Investing with Aberdeen Funds

Share Classes		183
Sales Charges and Fees		189
Contacting Aberdeen Funds		191
Buying, Exchanging and Selling Shares		193

Distributions and Taxes

Income and Capital Gain Distributions		199
Tax Considerations		199
Selling and Exchanging Shares		200
Tax Status for Retirement Plans and Other Tax-Deferred Accounts		200
Backup Withholding		200
Other		200

Financial Highlights		202

Summary — Aberdeen Equity Long-Short Fund

Aberdeen Equity Long-Short Fund

Objective

The Aberdeen Equity Long-Short Fund (the “Long-Short Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Long-Short Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	1.15	%	1.15	%	1.15	%	1.15	%	1.15	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses
Expenses Related to Short Selling (Dividend Expense and Brokerage Fees)	1.13	%	1.13	%	1.13	%	1.13	%	1.13	%
All Other Expenses	0.32	%	0.25	%	0.49	%	0.25	%	0.50	%
Total Other Expenses	1.45	%	1.38	%	1.62	%	1.38	%	1.63	%
Total Annual Fund Operating Expenses (2)	2.85	%	3.53	%	3.27	%	2.53	%	2.78	%
Less: Amount of Fee Limitations/Expense Reimbursements(3)	0.15	%	0.15	%	0.15	%	0.15	%	0.15	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements (2)	2.70	%	3.38	%	3.12	%	2.38	%	2.63	%

(1) Unless you are otherwise eligible to purchase Class A shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 1.00% will be charged on Class A shares redeemed within 18 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid.

(2) The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements do not correlate to the Fund’s Ratio of Expenses (Prior to Reimbursements) to Average Net Assets and Ratio of Expenses to Average Net Assets, respectively, included in the Fund’s Financial Highlights in the Fund’s complete Prospectus, as those ratios do not reflect indirect expenses, such as Acquired Fund Fees and Expenses or dividend expenses for short sales.

(3) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.40% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

The Adviser has also entered into a written contract to reimburse the Fund for short-sale brokerage expenses at an annual rate of up to 0.15% of the Fund’s average daily net assets. Amounts reimbursed by the Adviser for short sale brokerage expenses are not subject to recoupment at a later date. This contract may not be terminated before February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first .

Example

This Example is intended to help you compare the cost of investing in the Long-Short Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	832	$	1,394	$	1,980	$	3,558
Class C shares	$	441	$	1,069	$	1,818	$	3,791
Class R shares	$	315	$	993	$	1,694	$	3,557
Institutional Class shares	$	241	$	773	$	1,332	$	2,854
Institutional Service Class shares	$	266	$	848	$	1,456	$	3,098

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	341	$	1,069	$	1,818	$	3,791

Portfolio Turnover

The Long-Short Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 31.13% of the average value of its portfolio.

Principal Strategies

The Long-Short Fund seeks to achieve its objective regardless of market conditions through the purchase and short sale of equity securities of U.S. companies of any size. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. As a non-fundamental policy, under normal circumstances, the Fund will invest at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of companies that:

· are organized under the laws of, or have their principal office in the United States;

· have their principal securities trading market in the United States;

· alone or on a consolidated basis derive the highest concentration of their annual revenue or earnings or assets from goods produced, sales made or services performed in the United States; and/or

· issue securities denominated in the currency of the United States.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Long-Short Fund.

The Fund seeks to achieve long-term capital appreciation with lower volatility than that of long-only equities, commodities or other investment classes. The use of both long and short positions enables the Fund to seek to produce returns that have low correlation to those available by investing in the market as a whole. The Fund may at any time have either a net long exposure or a net short exposure to the equity markets . In making purchases and short sales, the Fund’s investment team employs a fundamental, bottom-up equity investment style, which is characterized by intensive, first-hand research and disciplined company evaluation. The Fund’s investment team takes long positions in the stocks of companies it believes will increase in value and it sells short the stock of companies it believes will either decline in value or underperform the Fund’s long positions. With a long position, the Fund purchases a stock outright; with a short position, the Fund sells a security that it does not own and must borrow to meet its settlement obligations. In engaging in short sales, the Fund will profit or incur a loss depending on whether the value of the underlying stock decreases, or instead increases, between the time the stock is sold and when the Fund purchases its replacement.

Principal Risks

The Long-Short Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of the Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Long-Short Strategy Risk — The strategy used by the Fund’s investment team may fail to produce the intended result. There is no guarantee that the use of long and short positions will succeed in limiting the Fund’s exposure to stock market movements, capitalization, sector swings or other risk factors.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may take long positions in securities that underperform the stock market or other funds with similar investment objectives and strategies or take short positions in securities that have positive performance.

Short Sale Risk — The risk that the price of a security sold short will increase in value between the time of the short sale and the time the Fund must purchase the security to return it to the lender. The Fund’s potential loss on a short sale could theoretically be unlimited in a case where the Fund is unable, for any reason, to close out its short position.

Small-Cap Securities Risk — Stocks of smaller companies are usually less stable in price and less liquid than those of larger, more established companies. Therefore, they generally involve greater risk.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Long-Short Fund. The bar chart shows how the Fund’s annual total returns for Class C have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the S&P 500 ® Index, a broad-based securities index, and the Citigroup 3-Month Treasury Bill Index, an unmanaged index that is generally representative of the average of the last 3-month Treasury bill issues (excluding the current month-end bills). Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Long-Short Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Long-Short Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Long-Short Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Institutional Service Class returns prior to the commencement of operations of the Institutional Service Class (inception date: November 1, 2009) are based on the previous performance of the Fund’s Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Class C Shares
(Years Ended Dec. 31)

Highest Return: 5.48% - 3rd quarter 2010

Lowest Return: -8.62% - 3rd quarter 2008

After-tax returns are shown in the following table for Class C shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns
as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-4.64	%	1.79	%	2.78	%
Class C shares — Before Taxes	0.51	%	2.30	%	2.67	%
Class C shares — After Taxes on Distributions	-5.40	%	0.86	%	1.88	%
Class C shares — After Taxes on Distributions and Sales of Shares	5.19	%	1.82	%	2.09	%
Class R shares — Before Taxes	0.70	%	2.62	%	3.06	%
Institutional Class shares — Before Taxes	1.56	%	3.31	%	3.68	%
Institutional Service Class shares — Before Taxes	1.24	%	3.10	%	3.58	%
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes)	13.69	%	15.45	%	7.67	%
Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses or taxes)	0.03	%	0.07	%	1.46	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Long-Short Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Paul Atkinson*	Head of North American Equities	2008
Ralph Bassett, CFA ® **	Deputy Head of North American Equities	2008
Douglas Burtnick, CFA ®	Senior Investment Manager	2004***
Jason Kotik, CFA ®	Senior Investment Manager	2004***
Francis Radano, III, CFA ®	Senior Investment Manager	2004***

*Paul Atkinson will leave the Adviser at the end of June 2015 and shall be deemed removed from this table at that time.

** Ralph Bassett will succeed Paul Atkinson and, effective at the end of June 2015, his title shall be Head of North American Equities.

***Includes Predecessor Fund

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Minimum investment requirements do not apply to purchases by employees of the Adviser or its affiliates (or their spouses, children or immediate relatives), or to certain retirement plans, fee-based programs or omnibus accounts. Certain endowments, non-profits, and charitable organizations may also be eligible for waiver of minimum investment requirements. If you purchase shares through an intermediary, different minimum account requirements may apply. The Trust reserves the right to waive investment minimums under certain circumstances.

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

The Fund’s dividends and distributions are subject to federal income taxes and will be taxed as ordinary income or capital gains, unless you are a tax-exempt investor or invest through a qualified employee benefit plan, retirement plan or other tax-deferred account, in which case your withdrawals from such account may be taxed as ordinary income.

Payments to Broker-Dealers and Other Financial Intermediaries

If you purchase shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your financial advisor to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.

Summary — Aberdeen Global Natural Resources Fund

Aberdeen Global Natural Resources Fund

Objective

The Aberdeen Global Natural Resources Fund (the “Global Natural Resources Fund” or the “Fund”) seeks long-term capital growth.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Global Natural Resources Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.70	%	0.70	%	0.70	%	0.70	%	0.70	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.89	%	0.82	%	0.86	%	0.82	%	0.82	%
Total Annual Fund Operating Expenses	1.84	%	2.52	%	2.06	%	1.52	%	1.52	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.36	%	0.36	%	0.36	%	0.36	%	0.36	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.48	%	2.16	%	1.70	%	1.16	%	1.16	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.16% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Global Natural Resources Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Global Natural Resources Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	717	$	1,087	$	1,482	$	2,582
Class C shares	$	319	$	750	$	1,308	$	2,829
Class R shares	$	173	$	611	$	1,075	$	2,361
Institutional Class shares	$	118	$	445	$	795	$	1,782
Institutional Service Class shares	$	118	$	445	$	795	$	1,782

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	219	$	750	$	1,308	$	2,829

Portfolio Turnover

The Global Natural Resources Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 2.02% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Global Natural Resources Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by U.S. and foreign companies (including those located in emerging market countries) with business operations in or related to activities in natural resources industries, as discussed below. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. Natural resources are materials with economic value that are derived from natural origins, such as energy sources, precious metals (e.g., gold, platinum), non-precious metals (e.g., aluminum, copper), chemicals and other basic commodities.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Global Natural Resources Fund.

Under normal market conditions, the Fund will invest significantly (at least 40%—unless market conditions are not deemed favorable by the Adviser in which case the Fund would invest at least 30%) in non-U.S. companies. A company will be considered a non-U.S. company if it is tied economically to a particular country outside of the U.S., based on whether that company:

· is organized under the laws of or has its principal place of business in the country;

· has its principal securities trading market in such country;

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in the country; and/or

· issues securities denominated in the currency of the country.

Under normal market conditions, the Fund invests in securities from at least three different countries. The Fund may also invest in companies of emerging market countries. The Fund may invest in securities denominated in U.S. Dollars and the currencies of the foreign countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests.

A company that is eligible for investment by the Global Natural Resources Fund typically derives at least 50% of its revenues, net income or assets from the natural resources sector. Companies in natural resources industries may include those that:

· participate in the discovery and development of natural resources;

· own or produce natural resources;

· engage in the transportation, distribution, or processing of natural resources;

· contribute new technologies for the production or efficient use of natural resources, such as systems for energy conversion, conservation and pollution control;

· provide related services such as mining, drilling, chemicals and related parts and equipment;

· provide services/equipment that aid the production, processing or transportation of a resource (energy, agriculture, metals); and

· would have related investments such as drilling rigs, oil tankers, any oil field service company, engineering and construction companies, chemical companies, fertilizer and ethanol.

The Global Natural Resources Fund is diversified; however, the Fund concentrates at least 25% of its net assets in at least one or more of the following industries or groups of industries:

· agricultural and farming products;

· alternative energy sources;

· base metal production;

· building materials;

· chemicals;

· coal;

· energy services and technology;

· environmental services;

· ferrous and nonferrous metals;

· forest products;

· gold and other precious metals;

· integrated oil;

· steel and iron ore production;

· oil and gas exploration and production;

· paper products; and

· real estate.

The Global Natural Resources Fund may invest in natural resources companies of any size, including established large-cap companies, as well as small-cap and mid-cap companies.

Principal Risks

The Global Natural Resources Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Concentration Risk — Investing 25% or more of the Fund’s net assets in a select group of companies in natural resources industries could subject the Fund to greater risk of loss and could be considerably more volatile than a broad-based market index or other mutual funds that are diversified across a greater number of industries.

Country/Regional Focus Risk — Significant exposure to a single country or geographical region involves increased currency, political, regulatory and other risks. Market swings in the targeted country or geographical region likely will have a greater effect on portfolio performance than they would in a more geographically diversified fund.

Emerging Markets Risk — A magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging markets countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments also may involve risks relating to the impact of currency exchange rate fluctuations ; such risks may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.

Impact of Large Redemptions and Purchases of Fund Shares — Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause the Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of the Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Natural Resources Industry Risk — The natural resources industry can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and tax and other government regulations. The securities of companies in the natural resources sector may experience more price volatility than securities of companies in other industries.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Global Natural Resources Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI All Country World Index and the S&P Global Natural Resources Index™. Remember that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Global Natural Resources Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Global Natural Resources Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Global Natural Resources Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Global Natural Resources Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 28.91% - 3rd quarter 2005

Lowest Return: -34.35% - 4th quarter 2008

After-tax returns are shown in the following table for Class A shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-17.35	%	-3.21	%	6.03	%
Class A shares — After Taxes on Distributions	-17.84	%	-3.57	%	5.19	%
Class A shares — After Taxes on Distributions and Sales of Shares	-9.78	%	-2.52	%	5.34	%
Class C shares — Before Taxes	-12.90	%	-2.71	%	5.93	%
Class R shares — Before Taxes	-12.48	%	-2.24	%	6.43	%
Institutional Class shares — Before Taxes	-12.02	%	-1.75	%	6.98	%
Institutional Service Class shares — Before Taxes	-12.03	%	-1.72	%	6.98	%
MSCI All Country World Index (reflects no deduction for fees, expenses or taxes)	4.71	%	9.74	%	6.65	%
S&P Global Natural Resources Index™ (reflects no deduction for fees, expenses or taxes)	-9.66	%	-1.47	%	6.17	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Global Natural Resources Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Stephen Docherty	Head of Global Equities	2010
Bruce Stout	Senior Investment Manager	2010

Jamie Cumming, CFA ®	Senior Investment Manager	2010
Samantha Fitzpatrick, CFA ®	Senior Investment Manager	2010
Martin Connaghan	Senior Investment Manager	2010

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Minimum investment requirements do not apply to purchases by employees of the Adviser or its affiliates (or their spouses, children or immediate relatives), and generally do not apply to retirement plans, fee-based programs or omnibus accounts. Certain endowments, non-profits, and charitable organizations may also be eligible for waiver of minimum investment requirements. If you purchase shares through an intermediary, different minimum account requirements may apply. The Trust reserves the right to apply or waive investment minimums under certain circumstances.

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Small Cap Fund

Aberdeen Small Cap Fund

Objective

The Aberdeen Small Cap Fund (the “Small Cap Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Small Cap Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.50	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.91	%	0.91	%	0.91	%	0.91	%	0.91	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.43	%	0.36	%	0.41	%	0.36	%	0.36	%
Total Annual Fund Operating Expenses	1.59	%	2.27	%	1.82	%	1.27	%	1.27	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.12	%	0.12	%	0.12	%	0.12	%	0.12	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.47	%	2.15	%	1.70	%	1.15	%	1.15	%

(1) Unless you are otherwise eligible to purchase Class A shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 0.50% will be charged on Class A shares redeemed within 18 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid.

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.15% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Small Cap Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Small Cap Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	716	$	1,037	$	1,380	$	2,346
Class C shares	$	318	$	698	$	1,204	$	2,596
Class R shares	$	173	$	561	$	974	$	2,127
Institutional Class shares	$	117	$	391	$	685	$	1,523
Institutional Service Class shares	$	117	$	391	$	685	$	1,523

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	218	$	698	$	1,204	$	2,596

Portfolio Turnover

The Small Cap Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 29.32% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Small Cap Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by small-cap companies. The Fund considers small-cap companies to be companies that have market capitalizations similar to those of companies included in the Russell 2000 ® Index at the time of investment. The range of the Russell 2000 ® Index was $18.96 million to $7.26 billion as of December 31, 2014. In addition, based on current market conditions, the Fund generally will not consider a company with a market capitalization in excess of $5 billion to be small-cap; however, this maximum capitalization may change with market conditions. Some companies may outgrow the definition of a small company after the Fund has purchased their securities or may no longer fall within the range of a reconstituted index. These companies continue to be considered small for purposes of the Fund’s minimum 80% allocation to small company equities. The Fund also may invest in foreign securities and securities of larger companies. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. If the Fund changes its 80% investment policy it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Small Cap Fund.

While the Fund may sell a security if its market capitalization exceeds the definition of small-cap company, it is not required to sell solely because of that fact.

Principal Risks

The Small Cap Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Illiquid Securities — Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value. Over recent years, the capacity of dealers to make markets in fixed income securities has been outpaced by the growth in the size of the fixed income markets. Liquidity risk may be magnified in a rising interest rate environment or when investor redemptions from fixed income funds may be higher than normal, due to the increased supply in the market that would result from selling activity.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Small Cap Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the Russell 2000 ® Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Small Cap Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Small Cap Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Small Cap Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Small Cap Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 23.73% - 3rd quarter 2009

Lowest Return: - 31.39% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	0.61	%	14.31	%	8.20	%
Class A shares — After Taxes on Distributions	0.61	%	14.26	%	7.54	%
Class A shares — After Taxes on Distributions and Sales of Shares	0.35	%	11.50	%	6.71	%
Class C shares — Before Taxes	6.00	%	14.89	%	8.11	%
Class R shares — Before Taxes	6.46	%	15.40	%	8.64	%
Institutional Class shares — Before Taxes	7.10	%	16.03	%	9.18	%
Institutional Service Class shares — Before Taxes	7.09	%	16.00	%	9.21	%
Russell 2000 ® Index (reflects no deduction for fees, expenses or taxes)	4.89	%	15.55	%	7.77	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Small Cap Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Paul Atkinson*	Head of North American Equities	2008
Ralph Bassett, CFA ® **	Deputy Head of North American Equities	2008
Douglas Burtnick, CFA ®	Senior Investment Manager	2008
Jason Kotik, CFA ®	Senior Investment Manager	2008
Joseph McFadden, CFA ®	Investment Manager	2010

*Paul Atkinson will leave the Adviser at the end of June 2015 and shall be deemed removed from this table at that time.

** Ralph Bassett will succeed Paul Atkinson and, effective at the end of June 2015, his title shall be Head of North American Equities.

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen China Opportunities Fund

Aberdeen China Opportunities Fund

Objective

The Aberdeen China Opportunities Fund (the “China Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the China Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	1.25	%	1.25	%	1.25	%	1.25	%	1.25	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.80	%	0.78	%	0.93	%	0.78	%	0.80	%
Total Annual Fund Operating Expenses	2.30	%	3.03	%	2.68	%	2.03	%	2.05	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.41	%	0.41	%	0.41	%	0.41	%	0.41	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.89	%	2.62	%	2.27	%	1.62	%	1.64	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.62% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the China Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the China Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	756	$	1,215	$	1,699	$	3,029
Class C shares	$	365	$	898	$	1,556	$	3,317
Class R shares	$	230	$	794	$	1,383	$	2,982
Institutional Class shares	$	165	$	597	$	1,055	$	2,326
Institutional Service Class shares	$	167	$	603	$	1,066	$	2,347

You would pay the following expenses on the same investment if you did not sell your shares.

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	265	$	898	$	1,556	$	3,317

Portfolio Turnover

The China Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 30.61% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the China Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by Chinese companies (including Hong Kong). A company is generally considered to be a China company if it:

· is organized under the laws of, or has its principal office in China or Hong Kong;

· has its principal securities trading market in China or Hong Kong;

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in China or Hong Kong; and/or

· issues securities denominated in the currency of China or Hong Kong.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the China Fund.

The Fund may invest in securities denominated in U.S. Dollars and the currencies of the foreign countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests.

The Fund may invest without limit in the equity securities of companies of any size, including small-cap and mid-cap companies. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. The Fund also may invest in equity-linked notes. An equity-linked note is a security whose performance is generally tied to a single stock, a stock index or a basket of stocks. For purposes of the Fund’s 80% policy described above, equity-linked notes are classified according to their underlying or referenced security or securities.

In carrying out the Fund’s investment strategies, the Fund’s investment team employs a fundamental, bottom-up equity investment style, which is characterized by intensive, first-hand research and disciplined company evaluation. Stocks are identified for their long-term, fundamental value based on quality and price.

Principal Risks

The China Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund’s shares — may fluctuate. These changes may occur because of:

Emerging Markets Risk — A magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging

markets countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).

Equity-Linked Notes — The Fund may invest in equity-linked notes, which are generally subject to the same risks as the foreign equity securities or the basket of foreign securities they are linked to. If the linked security(ies) declines in value, the note may return a lower amount at maturity. The trading price of an equity-linked note also depends on the value of the linked security(ies).

Asian Risk. Parts of the Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Asian region may lead to a lack of liquidity while some countries have restricted the flow of money in and out of the country. Some countries in Asia have historically experienced political uncertainty, corruption, military intervention and social unrest. The Fund may be more volatile than a fund which is broadly diversified geographically.

China Risk . Concentrating investments in China and Hong Kong subjects the Fund to additional risks, and may make it significantly more volatile than geographically diverse mutual funds. Additional risks associated with investments in China and Hong Kong include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage) and differing legal standards.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the China Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI Zhong Hua Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the China Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The China Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the China Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The China Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Aberdeen Asset Management Asia Limited (“AAMAL”)

began sub-advising the Fund on January 1, 2009. Performance prior to this date reflects the performance of an unaffiliated sub-adviser.

Annual Total Returns — Class A Shares (Years Ended Dec. 31)

Highest Return: 42.99% - 2nd quarter 2009

Lowest Return: -27.49% — 3rd quarter 2008

After-tax returns are shown in the following table for Class A shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns

As of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-7.62	%	2.57	%	9.28	%
Class A shares — After Taxes on Distributions	-7.94	%	2.19	%	8.24	%
Class A shares — After Taxes on Distributions and Sales of Shares	-4.31	%	1.84	%	7.69	%
Class C shares — Before Taxes	-2.67	%	3.09	%	9.12	%
Class R shares — Before Taxes	-2.37	%	3.48	%	9.60	%
Institutional Class shares — Before Taxes	-1.80	%	4.03	%	10.19	%
Institutional Service Class shares — Before Taxes	-1.73	%	4.10	%	10.19	%
MSCI Zhong Hua Index (reflects no deduction for fees, expenses or taxes)	7.27	%	5.22	%	10.73	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the China Fund’s investment adviser and AAMAL serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Hugh Young	Global Head of Equities and Managing Director of Asian Equities	2009
Nicholas Yeo, CFA ®	Director and Head of Equities Hong Kong	2009
Flavia Cheong, CFA ®	Investment Director	2009
Kathy Xu, CFA ®	Investment Manager	2009
Frank Tian	Investment Manager	2009

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50

To start an Automatic Investment Plan		$	1,000
Additional Investments (Automatic Investment Plan)		$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen International Equity Fund

Aberdeen International Equity Fund

Objective

The Aberdeen International Equity Fund (the “International Equity Fund” or the “Fund”) seeks long-term capital appreciation by investing primarily in equity securities of companies located in Europe, Australasia, the Far East and other regions, including emerging countries.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the International Equity Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales —Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.80	%	0.80	%	0.80	%	0.80	%	0.80	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.28	%	0.23	%	0.32	%	0.23	%	0.36	%
Total Annual Fund Operating Expenses	1.33	%	2.03	%	1.62	%	1.03	%	1.16	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.33	%	2.03	%	1.62	%	1.03	%	1.16	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.10% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the International Equity Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the International Equity Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	703	$	972	$	1,262	$	2,084
Class C shares	$	306	$	637	$	1,093	$	2,358
Class R shares	$	165	$	511	$	881	$	1,922
Institutional Class shares	$	105	$	328	$	569	$	1,259
Institutional Service Class shares	$	118	$	368	$	638	$	1,409

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	206	$	637	$	1,093	$	2,358

Portfolio Turnover

The International Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 10.08% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the International Equity Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by companies that are located in, or that derive the highest concentration of their earnings or revenues from, a number of countries around the world other than the U.S. For purposes of the 80% policy, companies are considered located in countries other than the U.S. if they: (i) are organized under the laws of, or have their principal office in, a country other than the U.S., (ii) have their principal securities trading market in a country other than the U.S., and/or (iii) issue securities denominated in a currency other than the U.S. dollar. Under normal circumstances, a number of countries around the world will be represented in the Fund’s portfolio, some of which may be considered to be emerging market countries. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the International Equity Fund.

The Fund may invest in securities of any market capitalization.

The Fund’s investment team employs a fundamental, bottom-up equity investment style, which is characterized by intensive, first-hand research and disciplined company evaluation. Stocks are identified for their long-term, fundamental value. The stock selection process contains two filters, first quality and then price. In the quality filter, the investment team seeks to determine whether the company is a business that has good growth prospects and a balance sheet that supports expansion, and they evaluate other business risks. In the price filter, the investment team assesses the value of a company by reference to standard financial ratios, and estimates the value of the company relative to its market price and the valuations of companies within a relevant universe. The investment team may sell a security when they perceive that a company’s business direction or growth prospects have changed or the company’s valuations are no longer attractive.

Principal Risks

The International Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Emerging Markets Risk — A magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging market countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the International Equity Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI All Country World ex U.S. Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the International Equity Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The International Equity Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the International Equity Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The International Equity Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Aberdeen Asset Managers Limited (“AAML”) (formerly, Aberdeen Asset Management Investment Services Limited (“AAMISL”)) began sub-advising the Fund on January 1, 2009. Performance prior to this date reflects the performance of an unaffiliated sub-adviser.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 26.47% - 2nd quarter 2009

Lowest Return: -25.42% – 3rd quarter 2008

Average Annual Returns

As of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-9.93	%	3.98	%	6.75	%
Class A shares —After Taxes on Distributions	-11.26	%	3.05	%	6.04	%
Class A shares — After Taxes on Distributions and Sale of Shares	-5.57	%	2.69	%	5.24	%
Class C shares — Before Taxes	-5.02	%	4.49	%	6.63	%
Class R shares — Before Taxes	-4.61	%	4.97	%	7.15	%
Institutional Class shares —Before Taxes	-4.12	%	5.53	%	7.69	%
Institutional Service Class shares — Before Taxes	-4.24	%	5.40	%	7.63	%
MSCI All Country World ex U.S. Index (reflects no deduction for fees, expenses or taxes)	-3.44	%	4.89	%	5.59	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the International Equity Fund’s investment adviser and AAML serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Stephen Docherty	Head of Global Equities	2009
Bruce Stout	Senior Investment Manager	2009
Jamie Cumming, CFA ®	Senior Investment Manager	2009
Samantha Fitzpatrick, CFA ®	Senior Investment Manager	2009
Martin Connaghan	Senior Investment Manager	2009

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50


CLASS R SHARES

To open an account	No Minimum
Additional investments	No Minimum

INSTITUTIONAL CLASS SHARES

To open an account	$	1,000,000
Additional investments	No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account	$	1,000,000
Additional investments	No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Global Equity Fund

Aberdeen Global Equity Fund

Objective

The Aberdeen Global Equity Fund (the “Global Equity Fund” or the “Fund”) seeks long-term capital growth.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Global Equity Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales —Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%	0.90	%	0.90	%	0.90	%	0.90	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.39	%	0.27	%	0.43	%	0.27	%	0.27	%
Reimbursement of Prior Management Fees Waived	0.02	%	0.02	%	0.02	%	0.02	%	0.02	%
Total Annual Fund Operating Expenses	1.56	%	2.19	%	1.85	%	1.19	%	1.19	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.56	%	2.19	%	1.85	%	1.19	%	1.19	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.19% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Global Equity Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Global Equity Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	725	$	1,039	$	1,376	$	2,325
Class C shares	$	322	$	685	$	1,175	$	2,524
Class R shares	$	188	$	582	$	1,001	$	2,169
Institutional Class shares	$	121	$	378	$	654	$	1,443
Institutional Service Class shares	$	121	$	378	$	654	$	1,443

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	222	$	685	$	1,175	$	2,524

Portfolio Turnover

The Global Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 24.09% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Global Equity Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities issued by companies located throughout the world (including the U.S.). Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Global Equity Fund.

· is organized under the laws of or has its principal place of business in the country;

· has its principal securities trading market in such country;

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in the country; and/or

· issues securities denominated in the currency of the country.

Principal Risks

The Global Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Global Equity Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI World Index and the MSCI All Country World Index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Global Equity Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Global Equity Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Global Equity Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Global Equity Fund and the Predecessor Fund have substantially similar investment objectives and strategies. Aberdeen Asset Managers Limited (“AAML”) (formerly, Aberdeen Asset Management Investment Services Limited (“AAMISL”)) began managing assets as sub-adviser to the Fund on January 1, 2009. Performance prior to this date reflects the performance of an unaffiliated sub-adviser.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective class. Institutional Service Class returns prior to the commencement of operations of the Institutional Service Class (inception date: December 19, 2011) are based on the previous performance of the Institutional Class shares of the Predecessor Fund. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 23.82% - 2nd quarter 2009

Lowest Return: -21.22% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-6.43	%	5.63	%	5.53	%
Class A shares — After Taxes on Distributions	-7.67	%	4.83	%	5.02	%
Class A shares — After Taxes on Distributions and Sales of Shares	-3.63	%	4.03	%	4.19	%
Class C shares — Before Taxes	-1.43	%	6.19	%	5.45	%
Class R shares — Before Taxes	-1.09	%	6.64	%	5.91	%
Institutional Class shares — Before Taxes	-0.39	%	7.24	%	6.35	%
Institutional Service Class shares — Before Taxes	-0.47	%	7.12	%	6.28	%
MSCI World Index (reflects no deduction for fees, expenses or taxes)	5.50	%	10.81	%	6.61	%
MSCI All Country World Index (reflects no deduction for fees, expenses or taxes)	4.71	%	9.74	%	6.65	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Global Equity Fund’s investment adviser and AAML serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Stephen Docherty	Head of Global Equities	2009
Bruce Stout	Senior Investment Manager	2009
Jamie Cumming, CFA ®	Senior Investment Manager	2009
Samantha Fitzpatrick, CFA ®	Senior Investment Manager	2009
Martin Connaghan	Senior Investment Manager	2009

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50


CLASS R SHARES

To open an account	No Minimum
Additional investments	No Minimum

INSTITUTIONAL CLASS SHARES

To open an account	$	1,000,000
Additional investments	No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account	$	1,000,000
Additional investments	No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

The Fund’s dividends and distributions are subject to federal income taxes and will be taxed as ordinary

income or capital gains, unless you are a tax-exempt investor or invest through a qualified employee benefit plan, retirement plan or other tax-deferred account, in which case your withdrawals from such account may be taxed as ordinary income.

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Diversified Income Fund

Aberdeen Diversified Income Fund

Objective

The Aberdeen Diversified Income Fund (the “Diversified Income Fund” or the “Fund”) seeks total return with an emphasis on current income.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Diversified Income Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.15	%	0.15	%	0.15	%	0.15	%	0.15	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.68	%	0.67	%	0.89	%	0.67	%	0.67	%
Acquired Fund Fees and Expenses	0.67	%	0.67	%	0.67	%	0.67	%	0.67	%
Total Annual Fund Operating Expenses (2)	1.75	%	2.49	%	2.21	%	1.49	%	1.49	%
Less: Amount of Fee Limitations/Expense Reimbursements(3)	0.57	%	0.57	%	0.57	%	0.57	%	0.57	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements (2)	1.18	%	1.92	%	1.64	%	0.92	%	0.92	%

(2) The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements do not correlate to the Fund’s Ratio of Expenses (Prior to Reimbursements) to Average Net Assets and Ratio of Expenses to Average Net Assets, respectively, included in the Fund’s Financial Highlights in the Fund’s complete prospectus, as those ratios do not reflect indirect expenses, such as Acquired Fund Fees and Expenses.

(3) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.25% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Diversified Income Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Diversified Income Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	688	$	1,042	$	1,419	$	2,474
Class C shares	$	295	$	721	$	1,274	$	2,783
Class R shares	$	167	$	636	$	1,133	$	2,500
Institutional Class shares	$	94	$	415	$	759	$	1,731
Institutional Service Class shares	$	94	$	415	$	759	$	1,731

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	195	$	721	$	1,274	$	2,783

Portfolio Turnover

The Diversified Income Fund pays transaction costs, such as commissions, when it buys and sells certain securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 29.19% of the average value of its portfolio.

Principal Strategies

The Diversified Income Fund is a “fund of funds” that seeks to achieve its investment objective by investing primarily in underlying funds (the “Underlying Funds”) and, to a limited extent, in direct investments. The Fund intends to allocate its assets among a wide range of asset classes in a dynamic way to capture income from a number of fixed income, equity and other sources. The types of asset classes to which the Underlying Funds and direct investments provide exposure include U.S. and international equities (including emerging market equities), U.S. and international bonds (including emerging market bonds) and real estate. The Fund may also allocate assets to a limited extent to Underlying Funds that pursue alternative investment strategies, such as managed futures, commodity-linked instruments, equity sectors, currencies and floating rate loans. The asset classes are selected primarily based on their income-generating potential, without regard to the source of income, although diversification benefits and potential for capital appreciation may also be considered. The Fund may invest in Underlying Funds that do not have income as an objective, and to the extent it does so, it will not generate as much current income as a fund focused entirely on income-generation. The Underlying Funds include, among others, mutual funds advised by Aberdeen Asset Management Inc., the Fund’s investment adviser (the “Adviser”), as well as unaffiliated mutual funds, closed-end funds and exchange-traded funds. There is no minimum amount of assets that must be invested in affiliated Underlying Funds. The Underlying Funds may be either actively managed or passively managed (that is, providing indexed exposures) in nature. Some or all of the Underlying Funds may invest in derivatives.

The Fund may also seek exposure to income-producing asset classes by investing directly in exchange-traded notes (“ETNs”). The Fund may use ETNs as a substitute for taking a direct position in the underlying asset (where the Adviser believes that indirect exposure to the underlying asset is more effective). In addition to ETNs, the Fund’s direct investments may include investments in certain types of derivatives, for example, securities index futures or options, which may be used to hedge against a decline in the value of the Fund’s assets. A derivative is a contract whose value is based on performance of an underlying financial asset, index or economic measure.

Adviser’s view. The Fund retains the flexibility to emphasize specific asset class allocations based on relative valuations and other economic factors in order to seek to achieve the Fund’s objective. While the Fund will not invest more than 25% of its total assets in any one Underlying Fund, the Fund may have significant exposure to one or more asset classes depending on market conditions. The Fund has the ability to invest, through the Underlying Funds or ETNs, in small, medium or large capitalization issuers without regard to credit quality (including high yield bonds, which are commonly known as “junk bonds”) or geographic location, and is not limited by industry sector or the duration of individual instruments or the portfolio as a whole. At times, the Fund may emphasize any one of these exposures. Asset classes may be added or removed at the Adviser’s discretion.

For additional information regarding the above identified strategies, see “Fund Details: Additional Information about Principal Strategies” in the prospectus.

Principal Risks

The Diversified Income Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Affiliated Funds Risk — The Fund’s Adviser serves as the adviser of certain Underlying Funds. It is possible that a conflict of interest among the Fund and the Underlying Funds could affect how the Fund’s Adviser fulfills its fiduciary duties to the Fund and the Underlying Funds.

Asset Allocation Risk — The Fund is subject to different levels and combinations of risk, based on its actual allocation among the various asset classes and Underlying Funds. The Fund will be exposed to risks of the Underlying Funds in which it invests. The Fund will be affected by stock and bond market risks, among others. To the extent the Fund invests in Underlying Funds that expose it to non-traditional or alternative asset classes (which include investments that focus on a specialized asset class (e.g. long-short strategies)) as well as specific market sectors within a broader asset class, the Fund will be exposed to the increased risk associated with those asset classes. The potential impact of the risks related to an asset class depends on the size of Fund’s investment allocation to it.

Asset Class Variation Risk — The Underlying Funds invest principally in the securities or investments constituting their asset class. However, under normal market conditions, an Underlying Fund may vary the percentage of its assets in these securities or investments (subject to any applicable regulatory requirements). Depending upon the percentage of securities or investments in a particular asset class held by the Underlying Funds at any given time and the percentage of the Fund’s assets invested in various Underlying Funds, the Fund’s actual exposure to the securities or investments in a particular asset class may vary substantially from its allocation model for that asset class.

Derivatives Risk — Derivatives are speculative and may hurt the Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from the Fund’s derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual securities, and there can be no assurance that the use of this strategy will be successful.

Hedged Exposure Risk — Losses generated by a derivative or practice used by the Fund for hedging purposes should be offset in part by gains on the hedged investment depending on the degree of correlation between the hedging instrument and the assets hedged. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Exchange-Traded Notes Risk — ETNs are a type of unsecured, unsubordinated debt security that have characteristics and risks similar to those of fixed income securities and trade on a major exchange similar to shares of exchange-traded funds. However, this type of debt security differs from other types of bonds and notes because ETN returns are based upon the performance of a financial asset or market index minus applicable fees, no periodic coupon payments are distributed, and no principal protections exist. The purpose of ETNs is to create a type of security that combines the aspects of both bonds and exchange-traded funds. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or securities markets,

changes in the applicable interest rates, changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced asset or index.

Fund of Funds Risk — Your cost of investing in the Fund, as a fund of funds, may be higher than the cost of investing in a mutual fund that only invests directly in individual securities. An Underlying Fund may change its investment objective or policies without the Fund’s approval, which could force the Fund to withdraw its investment from such Underlying Fund at a time that is unfavorable to the Fund. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Fund would indirectly bear the costs of these trades without accomplishing any investment purpose.

Performance Risk — The Fund’s investment performance is directly tied to the performance of the Underlying Funds and other investments in which the Fund invests. If one or more of the Underlying Funds fails to meet its investment objective, the Fund’s performance could be negatively affected. There can be no assurance that the Fund or any Underlying Fund will achieve its investment objective.

Principal Risks of Underlying Funds

Commodity Risk — The value of commodities may be more volatile than the value of equity securities or debt instruments and their value may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity. The price of a commodity may be affected by demand/supply imbalances in the market for the commodity.

Counterparty and Third Party Risk — Transactions involving a counterparty or third party (other than the issuer of the instrument) are subject to the counterparty’s or third party’s credit risk and ability to perform in accordance with the terms of the transaction.

Credit Risk — A debt instrument’s price depends, in part, on the credit quality of the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory, geopolitical, or other conditions. High yield bonds (“junk bonds”) may be subject to an increased risk of default, a more limited secondary market than investment grade bonds, and greater price volatility.

Currency Risk —The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency.

Derivatives Risk — Derivatives can be highly volatile and involve risks in addition to the risks of the underlying security. Gains or losses from derivatives can be substantially greater than the derivatives’ original cost and can involve leverage.

Floating Rate Loan Risk — Floating rate loans generally are subject to restrictions on resale. Floating rate loans sometimes trade infrequently in the secondary market. As a result, valuing a floating rate loan can be more difficult, and buying and selling a floating rate loan at an acceptable price can be more difficult or delayed. Difficulty in selling a floating rate loan can result in a loss. In addition, a floating rate loan may not be fully collateralized which may cause the floating rate loan to decline significantly in value.

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments also may involve risks relating to the impact of currency exchange rate fluctuations ; such risks may impact an Underlying Fund more greatly to the extent the Underlying Fund does not hedge its currency risk, or hedging techniques used by the Underlying Fund are unsuccessful.

High-Yield Bond and Other Lower-Rated Securities Risk — An Underlying Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Underlying Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult

to price or sell, particularly in times of negative sentiment toward high-yield securities.

Illiquid Securities — Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the Underlying Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions. An inability to sell a portfolio position can adversely affect the Underlying Fund’s value or prevent the Underlying Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value. Over recent years, the capacity of dealers to make markets in fixed income securities has been outpaced by the growth in the size of the fixed income markets. Liquidity risk may be magnified in a rising interest rate environment or when investor redemptions from fixed income funds may be higher than normal, due to the increased supply in the market that would result from selling activity.

Impact of Large Redemptions and Purchases of Underlying Fund Shares — Occasionally, shareholders of an Underlying Fund may make large redemptions or purchases of the Underlying Fund’s shares, which may cause the Underlying Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Underlying Fund’s performance and increase transaction costs to Underlying Fund shareholders, including the Fund. In addition, large redemption requests may exceed the cash balance of the Underlying Fund and result in credit line borrowing fees and/or overdraft charges to the Underlying Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Interest Rate Risk — Fixed income investments are subject to interest rate risk, which generally causes the value of a fixed income portfolio to decrease when interest rates rise resulting in a decrease in the Underlying Fund’s, and possibly the Fund’s, net assets. An Underlying Fund, and therefore the Fund, may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Interest rate fluctuations tend to have a greater impact on fixed income-securities with a greater time to maturity and/or lower coupon. In periods of market volatility, the market values of fixed income securities may be more sensitive to changes in interest rates.

Market Risk —Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which an Underlying Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Sector Risk — At times, the Fund may have a significant portion of its assets invested in Underlying Funds that invest primarily in securities of companies conducting business in a broadly related group of industries within an economic sector. Companies in the same economic sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Diversified Income Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the Barclays U.S. Aggregate Bond Index and a blended benchmark of 50% MSCI All Country World Index / 50% Barclays U.S. Aggregate Bond Index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The Fund changed its investment objective and strategy effective September 24, 2012. Performance information for periods prior to September 24, 2012 does not reflect the current investment strategy. In connection with the change in investment objective and strategy, the Fund changed its name from Aberdeen Optimal Allocations Fund: Moderate to Aberdeen Diversified Income Fund. The returns presented for the Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”), which was acquired by the Fund. The Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The investment objective and strategy of the Fund, prior to the recent changes noted above, and those of the Predecessor Fund, were substantially similar.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Institutional Service Class returns prior to the commencement of operations of the Institutional Service Class (inception date: September 24, 2012) are based on the previous performance of the Fund’s Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 13.37% - 2nd quarter 2009

Lowest Return: -12.61% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-0.31	%	5.17	%	5.01	%
Class A shares — After Taxes on Distributions	-2.71	%	3.89	%	3.64	%
Class A shares — After Taxes on Distributions and Sales of Shares	0.76	%	3.57	%	3.51	%
Class C shares — Before Taxes	5.05	%	5.68	%	4.87	%
Class R shares — Before Taxes	5.32	%	6.00	%	5.28	%
Institutional Class shares — Before Taxes	6.11	%	6.73	%	5.90	%
Institutional Service Class shares — Before Taxes	6.11	%	6.58	%	5.71	%
Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)	5.97	%	4.45	%	4.71	%
50% MSCI All Country World Index / 50% Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)	5.42	%	7.37	%	6.04	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Diversified Income Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Length of Service on the Fund
Richard Fonash, CFA ®	Senior Investment Manager	2008*
Allison Mortensen, CFA ®	Senior Investment Manager	2008*

*Includes Predecessor Fund

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES


To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50


CLASS R SHARES

To open an account	No Minimum
Additional investments	No Minimum

INSTITUTIONAL CLASS SHARES

To open an account	$	1,000,000
Additional investments	No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account	$	1,000,000
Additional investments	No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Dynamic Allocation Fund

Aberdeen Dynamic Allocation Fund

Objective

The Aberdeen Dynamic Allocation Fund (the “Dynamic Allocation Fund” or the “Fund”) seeks total return.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Dynamic Allocation Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.15	%	0.15	%	0.15	%	0.15	%	0.15	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.76	%	0.74	%	0.94	%	0.74	%	0.74	%
Acquired Fund Fees and Expenses(2)	0.79	%	0.79	%	0.79	%	0.79	%	0.79	%
Total Annual Fund Operating Expenses (3)	1.95	%	2.68	%	2.38	%	1.68	%	1.68	%
Less: Amount of Fee Limitations/Expense Reimbursements(4)	0.64	%	0.64	%	0.64	%	0.64	%	0.64	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements (3)	1.31	%	2.04	%	1.74	%	1.04	%	1.04	%

(2) Acquired Fund Fees and Expenses include dividend and interest expense on short sales made by underlying funds that engage in short selling of 0.02% based on publicly available information from the underlying funds. This can vary over time based on the extent of short selling and the level of Fund assets invested in the relevant underlying fund

(3) The Total Annual Fund Operating Expenses and Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements do not correlate to the Fund’s Ratio of Expenses (Prior to Reimbursements) to Average Net Assets and Ratio of Expenses to Average Net Assets, respectively, included in the Fund’s Financial Highlights in the Fund’s complete prospectus, as those ratios do not reflect indirect expenses, such as Acquired Fund Fees and Expenses.

(4) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.25% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Dynamic Allocation Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Dynamic Allocation Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	701	$	1,094	$	1,511	$	2,670
Class C shares	$	307	$	772	$	1,363	$	2,965
Class R shares	$	177	$	681	$	1,213	$	2,667
Institutional Class shares	$	106	$	467	$	852	$	1,934
Institutional Service Class shares	$	106	$	467	$	852	$	1,934

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	207	$	772	$	1,363	$	2,965

Portfolio Turnover

The Dynamic Allocation Fund pays transaction costs, such as commissions, when it buys and sells certain securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 52.34% of the average value of its portfolio.

Principal Strategies

The Dynamic Allocation Fund is a “fund of funds” that seeks to achieve its investment objective by investing primarily in underlying funds (the “Underlying Funds”) and, to a limited extent, in direct investments. The Fund intends to allocate its assets among a wide range of asset classes in a dynamic way to capture return from a number of equity, fixed income and other sources. The types of asset classes to which the Underlying Funds and direct investments provide exposure include U.S. and international equities (including emerging market equities), U.S. and international bonds (including emerging market bonds) and real estate. The Fund may also allocate assets to a limited extent to Underlying Funds that pursue alternative investment strategies, such as managed futures, commodity-linked instruments, equity sectors, currencies and floating rate loans. The Underlying Funds include, among others, mutual funds advised by Aberdeen Asset Management Inc., the Fund’s investment adviser (the “Adviser”), as well as unaffiliated mutual funds and exchange-traded funds. There is no minimum amount of assets that must be invested in affiliated Underlying Funds. The Underlying Funds may be either actively managed or passively managed (that is, providing indexed exposures) in nature. Some or all of the Underlying Funds may invest in derivatives.

The Fund may invest directly in certain types of derivatives, for example, securities index futures or options, which may be used to hedge against a decline in the value of the Fund’s assets. A derivative is a contract whose value is based on performance of an underlying financial asset, index or economic measure.

The Adviser develops strategic asset class allocation views among broad asset classes based on its ongoing analyses of global financial markets and macro-economic conditions. The Fund’s portfolio management team constructs the Fund’s portfolio by setting target asset class allocations for the Fund. The portfolio management team then manages the Fund’s portfolio by dynamically adjusting the Fund’s asset class allocations based on the Adviser’s asset class allocation views and selecting Underlying Funds or direct investments to obtain exposures to the asset classes. As part of its process, the team evaluates the suitability of both active and passive vehicles to provide exposure to each asset class. The Fund’s asset class allocations and the investments held in the Fund’s portfolio are monitored by the portfolio management team on an ongoing basis and are adjusted periodically to reflect changes to the Adviser’s views. The Fund retains the flexibility to emphasize specific asset class allocations based on relative valuations and other economic factors in order to seek to achieve the Fund’s objective. While the Fund will not invest more than 25% of its total assets in any one Underlying Fund, the Fund may have significant exposure to one or more asset classes depending on market conditions. The Fund has the ability to invest, through the Underlying Funds, in small, medium or large capitalization issuers without regard to credit quality (including high yield bonds, which are commonly known as “junk bonds”) or geographic location, and is not limited by industry sector or the duration of individual instruments or the portfolio as a whole. At times, the Fund may emphasize any one of these exposures. Asset classes may be added or removed at the Adviser’s discretion.

For additional information regarding the above identified strategies, see “Fund Details: Additional Information about Principal Strategies” in the prospectus.

Principal Risks

The Dynamic Allocation Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Principal Risks of Underlying Funds

Alternative Strategies Risk — The performance of Underlying Funds that pursue alternative strategies is linked to the performance of highly volatile alternative asset classes (e.g., commodities and currencies) and alternative strategies (e.g., managed futures). To the extent the Fund invests in such Underlying Funds, the Fund’s share price will be exposed to potentially significant fluctuations in value. In addition, Underlying Funds that employ alternative strategies have the risk that anticipated opportunities do not play out as planned, resulting in potentially substantial losses to the Underlying Fund. Furthermore, alternative strategies may employ leverage, involve extensive short positions and/or focus on narrow segments of the market, which may magnify the overall risks and volatility associated with such Underlying Funds’ investments. Depending on the particular alternative strategies used by an Underlying Fund, it may be subject to risks not associated with more traditional investments. These risks may include, but are not limited to, derivatives risk, liquidity risk, credit risk, commodity risk and counterparty risk.

Counterparty and Third Party Risk - Transactions involving a counterparty or third party (other than the issuer of the instrument) are subject to the counterparty’s or third party’s credit risk and ability to perform in accordance with the terms of the transaction.

Currency Risk — The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency.

Floating Rate Loan Risk — Floating rate loans generally are subject to restrictions on resale. Floating rate loans sometimes trade infrequently in the secondary market. As a result, valuing a floating rate loan can be more difficult, and buying and selling a floating rate loan at an acceptable price can be more difficult or delayed. Difficulty in selling a floating rate loan can result in a loss. In addition, a floating rate loan may not be fully collateralized which may cause the floating rate loan to decline significantly in value.

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments also may involve risks relating to the impact of currency exchange rate fluctuations ; such risks may impact an Underlying Fund more greatly to the extent the Underlying Fund does not hedge its currency risk, or hedging techniques used by the Underlying Fund are unsuccessful.

Illiquid Securities — Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which the Underlying Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions. An inability to sell a portfolio position can adversely affect the Underlying Fund’s value or prevent the Underlying Fund from being able to take advantage of other investment opportunities. Illiquid securities and relatively less liquid securities may also be difficult to value. Over recent years, the capacity of dealers to make markets in fixed income securities has been outpaced by the growth in the

size of the fixed income markets. Liquidity risk may be magnified in a rising interest rate environment or when investor redemptions from fixed income funds may be higher than normal, due to the increased supply in the market that would result from selling activity.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which an Underlying Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Sector Risk - At times, the Fund may have a significant portion of its assets invested in Underlying Funds that invest primarily in securities of companies conducting business in a broadly related group of industries within an economic sector. Companies in the same economic sector may be similarly affected by economic or market events, making the Fund more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Dynamic Allocation Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI All Country World Index and a blended benchmark of 60% MSCI All Country World Index / 40% Barclays U.S. Aggregate Bond Index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The Fund changed its investment objective and strategy effective September 24, 2012. Performance information for periods prior to September 24, 2012 does not reflect the current investment strategy. In connection with the change in investment objective and strategy, the Fund changed its name from Aberdeen Optimal Allocations Fund: Moderate Growth to Aberdeen Dynamic Allocation Fund. The returns presented for the Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”), which was acquired by the Fund. The Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The investment objective and strategy of the Dynamic Allocation Fund, prior to the recent changes noted above, and those of the Predecessor Fund, were substantially similar.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Institutional Service Class returns prior to the commencement of operations of the Institutional Service Class (inception date: September 24, 2012) are based on the previous performance of the Fund’s Institutional Class shares. Institutional Class returns for the period from April 23, 2009 to July 28, 2009 are based on the previous performance of the Fund’s Class A shares, as the Institutional Class had no shareholders. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 16.83% - 2nd quarter 2009

Lowest Return: -18.37% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-0.07	%	6.21	%	5.18	%
Class A shares — After Taxes on Distributions	-0.59	%	5.60	%	4.09	%
Class A shares — After Taxes on Distributions and Sales of Shares	-0.04	%	4.59	%	3.75	%
Class C shares — Before Taxes	5.25	%	6.71	%	5.04	%
Class R shares — Before Taxes	5.53	%	7.16	%	5.48	%
Institutional Class shares — Before Taxes	6.24	%	7.66	%	5.91	%
Institutional Service Class shares — Before Taxes	6.24	%	7.61	%	5.87	%
MSCI All Country World Index (reflects no deduction for fees, expenses or taxes)	4.71	%	9.74	%	6.65	%
60% MSCI All Country World Index / 40% Barclays U.S. Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)	5.29	%	7.89	%	6.23	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Dynamic Allocation Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Richard Fonash, CFA ®	Senior Investment Manager	2008*
Allison Mortensen, CFA ®	Senior Investment Manager	2008*

*Includes Predecessor Fund

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Diversified Alternatives Fund

Aberdeen Diversified Alternatives Fund

Objective

The Aberdeen Diversified Alternatives Fund (the “Diversified Alternatives Fund” or the “Fund”) seeks total return.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Diversified Alternatives Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.15	%	0.15	%	0.15	%	0.15	%	0.15	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.48	%	0.46	%	0.54	%	0.46	%	0.46	%
Acquired Fund Fees and Expenses(2)	1.69	%	1.69	%	1.69	%	1.69	%	1.69	%
Total Annual Fund Operating Expenses (3)	2.57	%	3.30	%	2.88	%	2.30	%	2.30	%
Less: Amount of Fee Limitations/Expense Reimbursements(4)	0.36	%	0.36	%	0.36	%	0.36	%	0.36	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements (3)	2.21	%	2.94	%	2.52	%	1.94	%	1.94	%

(2) Acquired Fund Fees and Expenses include dividend and interest expense on short sales made by underlying funds that engage in short selling of 0.34% based on publicly available information from the underlying funds. This can vary over time based on the extent of short selling and the level of Fund assets invested in the relevant underlying fund.

Example

This Example is intended to help you compare the cost of investing in the Diversified Alternatives Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Diversified Alternatives Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	786	$	1,296	$	1,832	$	3,288
Class C shares	$	397	$	982	$	1,691	$	3,570
Class R shares	$	255	$	858	$	1,487	$	3,179
Institutional Class shares	$	197	$	684	$	1,198	$	2,608
Institutional Service Class shares	$	197	$	684	$	1,198	$	2,608

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	297	$	982	$	1,691	$	3,570

Portfolio Turnover

The Diversified Alternatives Fund pays transaction costs, such as commissions, when it buys and sells certain securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 54.26% of the average value of its portfolio.

Principal Strategies

The Diversified Alternatives Fund is a “fund of funds” that seeks to achieve its investment objective by investing primarily in underlying funds (the “Underlying Funds”) and, to a limited extent, in direct investments. The Fund intends to allocate its assets among a range of non-traditional or alternative asset classes in a dynamic way to capture return from such non-traditional or alternative sources. The Fund’s non-traditional and alternative exposures include industry sector equity strategies, long-short strategies, foreign currency trading strategies, floating rate bank loans, emerging market equities, emerging market bonds, managed futures strategies, Real Estate Investment Trusts (“REITs”), and other non-core investments. The Fund seeks to provide a return that has lower volatility than traditional core asset classes (i.e., U.S. large cap equity and investment grade bonds) by combining several non-traditional or alternative asset class exposures in measured amounts. In selecting Underlying Funds and asset class exposures, the Adviser will take asset diversification and potential volatility of return into account. Non-traditional or alternative asset categories have tended over time to have a lower correlation with the broad U.S. stock and bond markets. The Underlying Funds include, among others, mutual funds advised by Aberdeen Asset Management Inc., the Fund’s investment adviser (the “Adviser”), as well as unaffiliated mutual funds and exchange-traded funds. There is no minimum amount of assets that must be invested in affiliated Underlying Funds. The Underlying Funds may be either actively managed or passively managed (that is, providing indexed exposures) in nature. Some or all of the Underlying Funds may invest in derivatives.

The Adviser develops strategic asset class allocation views among broad asset classes based on its ongoing analyses of global financial markets and macro-economic conditions. The Fund’s portfolio management team constructs the Fund’s portfolio by setting target asset class allocations for the Fund. The portfolio management team then manages the Fund’s portfolio by dynamically adjusting the Fund’s asset class allocations based on the Adviser’s asset class allocation views and selecting Underlying Funds or direct investments to obtain exposures to the asset classes. The asset category allocations for the Fund are limited to non-traditional or alternative asset categories. As part of its process, the team evaluates the suitability of both active and passive vehicles to provide exposure to each asset category. The target asset category allocations established by the portfolio management team are intended to promote diversification among the asset classes. The Fund’s asset category allocations and the investments held in the Fund’s portfolio are monitored by the portfolio management team on an ongoing basis and may be adjusted to reflect changes to the Adviser’s views. The Fund retains the flexibility to emphasize specific asset category allocations based on relative valuations and other economic factors in order to seek to achieve the Fund’s objective. While the Fund will not invest more than 25% of its total assets in any one Underlying Fund, the Fund may have significant

exposure to one or more asset classes (including real estate and commodities) depending on market conditions. The Fund has the ability to invest, through the Underlying Funds, in small, medium or large capitalization issuers without regard to credit quality (including high yield bonds, which are commonly known as “junk bonds”) or geographic location, and is not limited by industry sector or the duration of individual instruments or the portfolio as a whole. At times, the Fund may emphasize any one of these exposures. Asset classes may be added or removed at the Adviser’s discretion.

For additional information regarding the above identified strategies, see “Fund Details: Additional Information about Principal Strategies” in the prospectus.

Principal Risks

The Diversified Alternatives Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Principal Risks of Underlying Funds

Currency Risk — The value of foreign currencies relative to the U.S. Dollar fluctuates in response to market, economic, political, regulatory, geopolitical or other conditions. A decline in the value of a foreign currency versus the U.S. Dollar reduces the value in U.S. Dollars of investments denominated in that foreign currency.

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments also may involve risks relating to the impact of currency exchange rate fluctuations ; such risks may impact an Underlying Fund more greatly to the extent the Underlying Fund does not hedge its currency risk, or hedging techniques used by the Underlying Fund are unsuccessful.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which an Underlying Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Short Sale Risk — The risk that the price of a security sold short will increase in value between the time of the short sale and the time the Underlying Fund must purchase the security to return it to the lender. The Underlying Fund’s potential loss on a short sale could theoretically be unlimited in a case where the Underlying Fund is unable, for any reason, to close out its short position.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Diversified Alternatives Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the Citigroup 3-Month Treasury Bill Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The Fund changed its investment objective and strategy effective September 24, 2012. Performance information for periods prior to September 24, 2012 does not reflect the current investment strategy. In connection with the change in investment objective and strategy, the Fund changed its name from Aberdeen Optimal Allocations Fund: Specialty to Aberdeen Diversified Alternatives Fund. The returns presented for the Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The investment objective and strategy of the Fund, prior to the recent changes noted above, and those of the Predecessor Fund, were substantially similar.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 19.07% — 2nd quarter 2009

Lowest Return: -21.91% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-1.74	%	5.15	%	4.45	%
Class A shares — After Taxes on Distributions	-2.60	%	4.47	%	3.40	%
Class A shares — After Taxes on Distributions and Sales of Shares	-0.98	%	3.71	%	3.17	%
Class C shares — Before Taxes	3.47	%	5.61	%	4.30	%
Class R shares — Before Taxes	3.93	%	6.06	%	4.77	%
Institutional Service Class shares — Before Taxes	4.56	%	6.52	%	5.13	%
Institutional Class shares — Before Taxes	4.48	%	6.67	%	5.34	%
Citigroup 3-Month Treasury Bill Index (reflects no deduction for fees, expenses or taxes)	0.03	%	0.07	%	1.46	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Diversified Alternatives Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Richard Fonash, CFA ®	Senior Investment Manager	2008*
Allison Mortensen, CFA ®	Senior Investment Manager	2008*

*Includes Predecessor Fund

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Asia Bond Fund

Aberdeen Asia Bond Fund

Objective

The Aberdeen Asia Bond Fund (the “Asia Bond Fund” or the “Fund”) seeks to maximize total investment return consistent with prudent investment management, consisting of a combination of interest income, currency gains and capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Asia Bond Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.50	%	0.50	%	0.50	%	0.50	%	0.50	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.30	%	0.30	%	0.30	%	0.30	%	0.54	%
Total Annual Fund Operating Expenses	1.05	%	1.80	%	1.30	%	0.80	%	1.04	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.10	%	0.10	%	0.10	%	0.10	%	0.10	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	0.95	%	1.70	%	1.20	%	0.70	%	0.94	%

(1) Unless you are otherwise eligible to purchase Class A shares without a sales charge, a contingent deferred sales charge (CDSC) of up to 0.75% will be charged on Class A shares redeemed within 18 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid.

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.70% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Asia Bond Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Asia Bond Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	518	$	735	$	970	$	1,644
Class C shares	$	273	$	557	$	966	$	2,108
Class R shares	$	122	$	402	$	703	$	1,559
Institutional Class shares	$	72	$	245	$	434	$	980
Institutional Service Class shares	$	96	$	321	$	564	$	1,262

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	173	$	557	$	966	$	2,108

Portfolio Turnover

The Asia Bond Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 57.03% of the average value of its portfolio.

Principal Strategies

The Asia Bond Fund seeks to achieve its objective by investing primarily in bonds and other debt securities of Asian issuers. As a non-fundamental policy, under normal market conditions, the Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in bonds of Asian issuers, as defined below, and derivatives that reflect the performance of bonds of Asian issuers. The portion of the Fund’s assets not invested in these investments may be invested in debt securities issued by the U.S. Government, its agencies and instrumentalities, U.S. companies and multinational organizations, such as the Asian Development Bank, as well as non-Asian derivatives and other assets. The Fund may invest without limit in emerging markets and in issuers of any market capitalization, including start-ups.

To the extent that the Fund invests in derivatives with an underlying asset that meets the 80% policy, the market value of the derivative would be included to meet the 80% minimum. If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Asia Bond Fund.

An issuer is generally considered to be an Asian issuer if it is: (a) a government or government-related body of an Asian country and/or (b) a corporation that: (i) is organized under the laws of, or has its principal office in Asia; (ii) has its principal securities trading market in Asia; (iii) alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in Asia; and/or (iv) issues securities denominated in the currency of an Asian country. For the purposes of the Fund’s investments, Asia currently includes Bangladesh, Brunei, China, Hong Kong, India, Indonesia, Japan, Kazakhstan, Korea, Laos, Macau, Malaysia, Mongolia, Nepal, Pakistan, the Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

The investment team bases its investment decisions on a combination of fundamental economic and market factors, incorporating an assessment of interest rate and currency factors as well as issuer credit quality. The Fund invests where the interest rate, currency and credit opportunities appear attractive on a risk adjusted basis. The Fund will be broadly diversified in terms of countries invested in and rating of issuers. The Fund may invest in debt securities of any quality, including debt securities rated as low as C by Moody’s Investors Service (“Moody’s”) or D by Standard & Poor’s Rating Services (“S&P”), or, if unrated, deemed by the Adviser to be of comparable quality. Securities rated C by Moody’s can be regarded as having extremely poor prospects of ever attaining any real investment standing. Securities rated D by S&P are in payment default. A bond is considered below investment grade (sometimes referred to as “junk bonds” or high yield securities) if rated to below investment grade by Moody’s (below Baa3), S&P (below BBB-), or Fitch, Inc. (“Fitch”) (below BBB-) or, if unrated, determined by the Adviser to be of comparable quality. The Fund currently intends to maintain an average portfolio credit rating of BB- or the equivalent based on ratings of the nationally recognized statistical rating organizations or, if unrated, determined by the Adviser to be of comparable quality.

The investment team seeks to achieve the Fund’s objective through active management of the Fund’s country allocation, duration and curve, credit allocations and currency exposures. A top-down analysis is performed to determine the portion of portfolio assets to be invested in Asian sovereign or corporate bonds in Asian local currency denominations or U.S. Dollars and the size and composition of the Fund’s interest rate and currency exposure. Then, the investment team determines the allocation of assets to particular countries and sectors in the region and finally, individual securities are selected by evaluating the industry and business profile of the issuer, the financial profile of the issuer, the structure and subordination of the security and other relevant factors. The investment team intends to enhance return by managing currency exposure, which may involve hedging transactions as well as speculating in comparative changes in currency exchange rates. The Fund’s exposure to a currency can exceed the value of the Fund’s securities denominated in that currency and may exceed the value of the Fund’s assets. Currency positions will be based on the investment team’s analysis of relevant global and regional macroeconomic and other factors. The Fund has no stated maturity or duration policy and the average effective maturity or duration may change. The Adviser has implemented proprietary risk management systems to monitor the Fund to protect against loss through overemphasis on a particular issuer, country or currency.

The Fund may hedge or take speculative positions in currencies. To gain or hedge exposure to currencies, the Fund may use futures, forwards, options or swaps.

The Fund may invest in all types of bonds, including:

· certificates of deposit and other bank obligations;

· corporate bonds, debentures and notes;

· convertible debt securities;

· credit linked notes;

· government securities;

· loans or similar extensions of credit;

· mortgage-backed and asset-backed securities;

· private placements including securities issued under Rule 144A and/or Regulation S (“Regulation S Securities”); and

· repurchase agreements involving portfolio securities.

The Fund primarily holds securities denominated in Asian currencies or in U.S. Dollars, although it may hold currencies in order to achieve its objective.

The Asia Bond Fund is non-diversified and may invest a significant portion of its assets in the securities of a single issuer or a small number of issuers.

The Fund may invest up to:

· 25% of assets in the securities of any one foreign government, its agencies, instrumentalities and political subdivisions;

· 50% of assets in bonds of issuers located in any single foreign country; and

· 100% of net assets in emerging markets and in bonds rated below investment grade.

The Fund may engage in other investment practices that include the use of options, futures, swaps and other derivative securities. A derivative is a contract whose value is based on performance of an underlying financial asset, index or economic measure. For example, an option is a derivative because its value changes in relation to the performance of an underlying stock. The value of an option on a futures contract varies with the value of the underlying futures contract, which in turn varies with the value of the underlying commodity or security. The Fund may attempt to take advantage of pricing inefficiencies in these securities. The Fund may engage in derivative transactions involving a variety of underlying instruments, including currencies, debt securities, securities indexes, futures and options on swaps (commonly referred to as swaptions). In particular, the Fund may engage in interest rate and currency futures, credit default swaps, cross-currency swaps, and interest rate swaps; options on futures and interest rate swaps, certificates of deposit or currencies; and forwards on currencies.

The Fund may use these derivative techniques for a wide variety of purposes, including, but not limited to, the following:

· to manage the Fund’s interest rate, credit and currency exposure;

· as a substitute for taking a position in the underlying asset (where the manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure);

· to gain an exposure to the composition and performance of a particular index (provided always that the Fund may not have an indirect exposure through an index to an instrument or currency to which it could not have direct exposure);

· as a hedging strategy;

· to seek to increase total returns (which is considered a speculative practice); and

· to take short positions via derivatives in securities, interest rates, credits, currencies and markets.

The Fund may write uncovered (or so-called “naked”) options as well as engage in other futures and derivative strategies. The Fund may attempt to hedge its investments in order to mitigate risk, but it is not required to do so.

Principal Risks

The Asia Bond Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Corporate Bonds — Corporate bonds are debt instruments issued by domestic or foreign corporations or similar entities.

Derivatives Risk (including Options, Futures and Swaps) — Derivatives are speculative and may hurt the Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from the Fund’s options, futures and derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual debt securities, and there can be no assurance that the use of this strategy will be successful.

Speculative Exposure Risk — To the extent that a derivative or practice is not used as a hedge, the Fund is directly exposed to its risks. Gains or losses from speculative positions in a derivative may be much greater than the derivative’s original cost. For example, potential losses from writing uncovered call options and from speculative short sales are unlimited.

Hedged Exposure Risk — Losses generated by a derivative or practice used by the Fund for hedging purposes should be substantially offset by gains on the hedged investment. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Extension Risk — Principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase. Rapidly rising interest rates may cause prepayments to occur more slowly than expected, thereby lengthening the maturity of the securities held by the Fund and making their prices more sensitive to rate changes and more volatile.

Asian Risk . Parts of the Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Some Asian countries can be

characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Asian region may lead to a lack of liquidity while some countries have restricted the flow of money in and out of the country. Some countries in Asia have historically experienced political uncertainty, corruption, military intervention and social unrest. The Fund may be more volatile than a fund which is broadly diversified geographically.

High-Yield Bonds and Other Lower-Rated Securities Risk — The Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities.

Interest Rate Risk — The Fund’s fixed income investments are subject to interest rate risk, which generally causes the value of a fixed income portfolio to decrease when interest rates rise resulting in a decrease in the Fund’s net assets. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives. Interest rate fluctuations tend to have a greater impact on fixed income-securities with a greater time to maturity and/or lower coupon. In periods of market volatility, the market values of fixed income securities may be more sensitive to changes in interest rates.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Non-Diversified Fund Risk — Because the Fund may hold larger positions in fewer securities than other funds, a single security’s increase or decrease in value may have a greater impact on the Fund’s value and total return.

Prepayment Risk — As interest rates decline, debt issuers may repay or refinance their loans or obligations earlier than anticipated. The issuers of fixed income securities may, therefore, repay principal in advance. This forces the Fund to reinvest the proceeds from the principal prepayments at lower rates, which reduces the Fund’s income.

Private Placements and Other Restricted Securities Risk — Investments in private placements and other restricted securities, including Regulation S Securities and Rule 144A Securities, could have the effect of increasing the Fund’s level of illiquidity. Private placements and restricted securities may be less liquid than other investments because such securities may not always be readily sold in broad public markets and the Fund might be unable to dispose of such securities promptly or at prices reflecting their true value.

Securities Selection Risk — The investment team may select securities that underperform the market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Asia Bond Fund. The bar chart shows how the Fund’s annual total returns for the Institutional Class shares have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the HSBC Asian Local Bond Index™, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Asia Bond Fund for periods prior to July 20, 2009 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Asia Bond Fund adopted the performance of the Predecessor Fund as the result of a reorganization in which the Asia Bond Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Asia Bond Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. The returns presented for Class A, Class C and Class R prior to the commencement of operations of Class A, Class C and Class R (inception date: February 27, 2012) are based on the previous performance of the Fund’s Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Institutional Class Shares
(Years Ended Dec. 31)

Highest Return: 12.66% - 2nd quarter 2009

Lowest Return: -5.76% - 2nd quarter 2013

After-tax returns are shown in the following table for Institutional Class shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		Since Inception (May 1, 2007)
Class A shares — Before Taxes	-1.08	%	2.99	%	3.45	%
Class C shares — Before Taxes	2.48	%	3.46	%	3.75	%
Class R shares — Before Taxes	3.04	%	3.72	%	3.92	%
Institutional Class shares — Before Taxes	3.56	%	4.04	%	4.13	%
Institutional Class shares — After Taxes on Distributions	2.86	%	2.40	%	2.68	%
Institutional Class shares — After Taxes on Distributions and Sales of Shares	2.01	%	2.59	%	2.71	%
Institutional Service Class shares — Before Taxes	3.34	%	3.85	%	4.01	%
HSBC Asian Local Bond Index™ (reflects no deduction for fees, expenses or taxes)	4.36	%	4.77	%	4.74	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Asia Bond Fund’s investment adviser and Aberdeen Asset Management Asia Limited (“AAMAL”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Victor Rodriguez	Head of Fixed Income — Asia-Pacific	Inception* - 2009; 2014
Adam McCabe	Head of Asian Fixed Income	Inception*
Thu-Ha Chow	Head of Asian Credit	2012
Kenneth Akintewe	Senior Investment Manager	2009
Thomas Drissner	Investment Manager	2014

*Includes Predecessor Fund

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Asia-Pacific (ex-Japan) Equity Fund

Aberdeen Asia-Pacific (ex-Japan) Equity Fund

Objective

The Aberdeen Asia-Pacific (ex-Japan) Equity Fund (the “Asia-Pacific Equity Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Asia-Pacific Equity Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales - Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	1.00	%	1.00	%	1.00	%	1.00	%	1.00	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.27	%	0.27	%	0.27	%	0.27	%	0.32	%
Total Annual Fund Operating Expenses	1.52	%	2.27	%	1.77	%	1.27	%	1.32	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.02	%	0.02	%	0.02	%	0.02	%	0.02	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.50	%	2.25	%	1.75	%	1.25	%	1.30	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.25% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Asia-Pacific Equity Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Asia-Pacific Equity Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	719	$	1,026	$	1,354	$	2,282
Class C shares	$	328	$	707	$	1,213	$	2,604
Class R shares	$	178	$	555	$	957	$	2,082
Institutional Class shares	$	127	$	401	$	695	$	1,532
Institutional Service Class shares	$	132	$	416	$	722	$	1,588

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	228	$	707	$	1,213	$	2,604

Portfolio Turnover

The Asia-Pacific Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 36.48% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Asia-Pacific Equity Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of Asia-Pacific (ex-Japan) companies. The “Asia-Pacific Region” includes, among other countries, Sri Lanka, Bangladesh, Pakistan, South Korea, Taiwan, Hong Kong, Malaysia, Singapore, China, Thailand, Indonesia, Australia, New Zealand, Philippines and India. A company is generally considered to be an Asia-Pacific (ex-Japan) company if, as determined by the Fund’s management, it:

· is organized under the laws of, or has its principal office in a country in the Asia-Pacific Region (excluding Japan);

· has its principal securities trading market in a country in the Asia-Pacific Region (excluding Japan);

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in a country in the Asia-Pacific Region (excluding Japan); and/or

· issues securities denominated in the currency of a country in the Asia-Pacific Region (excluding Japan).

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Asia-Pacific Equity Fund.

The portion of the Fund’s assets not invested in equity securities of Asia-Pacific (ex-Japan) companies may be, but is not required to be, invested in equity securities of companies that the Adviser and Subadviser expect will reflect developments in the Asia-Pacific (ex-Japan) Region. The Fund intends to diversify its investments across a number of different countries. However, at times the Fund may invest a significant part of its assets in a single country. The Fund may invest without limit in emerging market countries. The Fund may invest in securities denominated in U.S. Dollars and the currencies of the foreign countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests. In addition, the Fund may invest in equity securities without regard to market capitalization.

The Fund invests primarily in common stock, but may also invest in other types of equity securities, including, but not limited to, preferred stock and depositary receipts.

Principal Risks

The Asia-Pacific Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Asia-Pacific (ex-Japan) Region . The Asia-Pacific (ex-Japan) region generally refers to the part of the world in or near the Western Pacific Ocean. The area includes much of East Asia, South Asia, Australasia and Oceania, but excludes Japan. Parts of the Asian-Pacific region may be subject to a greater degree of economic, political and social instability, as described below under “ - Asian Risk .”

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Asia-Pacific Equity Fund. The bar chart shows how the Fund’s annual total returns for Institutional Class have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI AC Asia Pacific ex Japan Index™, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

Class A, Class C and Class R returns prior to the commencement of operations of Class A, Class C and Class R (inception date: February 28, 2012) are based on the previous performance of the Fund’s Institutional Class shares. Returns of each class have not been adjusted to reflect the expenses applicable to the respective classes. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Return — Institutional Class Shares
(Years Ended Dec. 31)

Highest Return: 16.95% - 3rd quarter 2010

Lowest Return: -17.09% - 3rd quarter 2011

After-tax returns are shown in the following table for Institutional Class shares and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates in effect and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		Since Inception (November 16, 2009)
Class A shares — Before Taxes	-4.16	%	4.56	%	4.47	%
Class C shares — Before Taxes	0.95	%	5.36	%	5.24	%
Class R shares — Before Taxes	1.33	%	5.62	%	5.50	%
Institutional Class shares — Before Taxes	2.00	%	5.95	%	5.82	%
Institutional Class shares — After Taxes on Distributions	1.05	%	4.89	%	4.79	%
Institutional Class shares — After Taxes on Distributions and Sales of Shares	1.49	%	4.33	%	4.24	%
Institutional Service Class shares — Before Taxes	1.87	%	5.92	%	5.77	%
MSCI AC Asia Pacific ex Japan Index™ (reflects no deduction for fees, expenses or taxes)	3.09	%	5.60	%	5.55	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Asia-Pacific Equity Fund’s investment adviser and Aberdeen Asset Management Asia Limited (“AAMAL”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Hugh Young	Global Head of Equities and Managing Director of Asian Equities	Inception
Chou Chong, CFA ®	Investment Director	Inception
Flavia Cheong, CFA ®	Investment Director	Inception
Adrian Lim, CFA ®	Senior Investment Manager	Inception
Christopher Wong, CFA ®	Senior Investment Manager	Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Asia-Pacific Smaller Companies Fund

Aberdeen Asia-Pacific Smaller Companies Fund

Objective

The Aberdeen Asia-Pacific Smaller Companies Fund (the “Asia-Pacific Smaller Companies Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Asia-Pacific Smaller Companies Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales - Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	1.30	%	1.30	%	1.30	%	1.30	%	1.30	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	1.14	%	1.09	%	1.16	%	1.09	%	1.09	%
Total Annual Fund Operating Expenses	2.69	%	3.39	%	2.96	%	2.39	%	2.39	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.89	%	0.89	%	0.89	%	0.89	%	0.89	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.80	%	2.50	%	2.07	%	1.50	%	1.50	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.50% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Asia-Pacific Smaller Companies Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Asia-Pacific Smaller Companies Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	747	$	1,283	$	1,843	$	3,362
Class C shares	$	353	$	959	$	1,688	$	3,616
Class R shares	$	210	$	832	$	1,479	$	3,217
Institutional Class shares	$	153	$	660	$	1,195	$	2,658
Institutional Service Class shares	$	153	$	660	$	1,195	$	2,658

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	253	$	959	$	1,688	$	3,616

Portfolio Turnover

The Asia-Pacific Smaller Companies Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 51.86% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Asia-Pacific Smaller Companies Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of Smaller Companies of Asia-Pacific (excluding Japan) companies. Based on current market conditions, the Fund considers “Smaller Companies” to be companies that have market capitalizations below $5 billion at the time of purchase; however, this number may fluctuate due to market conditions. Some companies may outgrow the definition of Smaller Companies after the Fund has purchased their securities. These companies will continue to be considered Smaller Companies for purposes of the Fund’s minimum 80% allocation to Smaller Companies.

A company is generally considered to be an Asia-Pacific (excluding Japan) company if, as determined by the Fund’s Adviser or Subadviser, it:

· is organized under the laws of, or has its principal office in a country in the Asia-Pacific region (excluding Japan);

· has its principal securities trading market in a country in the Asia-Pacific region (excluding Japan);

· issues securities denominated in the currency of a country in the Asia-Pacific region (excluding Japan).

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Asia-Pacific Smaller Companies Fund.

The portion of the Fund’s assets not invested in equity securities of Asia-Pacific Smaller Companies may be, but is not required to be, invested in equity securities of companies that the Adviser and Subadviser expect will reflect developments in the Asia-Pacific (ex-Japan) region. While the Fund intends to invest in a number of different countries, at times the Fund may invest a significant part of its assets in a single country. The Fund may invest without limit in emerging market countries. The Fund may invest in securities denominated in U.S. Dollars and the currencies of the foreign countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests.

The Fund invests primarily in common stock, but may also invest in other types of equity securities, including, but not limited to, preferred stock and depositary receipts.

Principal Risks

The Asia-Pacific Smaller Companies Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Asia-Pacific Region . The Asia-Pacific region generally refers to the part of the world in or near the Western Pacific Ocean. The area includes much of East Asia, South Asia, Australasia and Oceania. Parts of the Asian-Pacific region may be subject to a greater degree of economic, political and social instability, as described below under “ - Asian Risk .”

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Securities Selection Risk — The investment team may select securities that underperform the relevant stock markets or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Asia-Pacific Smaller Companies Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI AC Asia Pacific ex Japan Small Cap Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 17.76% - 1st quarter 2012

Lowest Return: -15.20% - 3rd quarter 2011

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (June 28, 2011)
Class A shares — Before Taxes	-4.86	%	3.10	%
Class A shares — After Taxes on Distributions	-5.91	%	1.17	%
Class A shares — After Taxes on Distributions and Sales of Shares	-2.29	%	2.03	%
Class C shares — Before Taxes	0.22	%	4.09	%
Class R shares — Before Taxes	0.67	%	4.39	%
Institutional Service Class shares — Before Taxes	1.22	%	5.46	%
Institutional Class shares — Before Taxes	1.13	%	5.15	%
MSCI AC Asia Pacific ex Japan Small Cap Index (reflects no deduction for fees, expenses or taxes)	0.77	%	0.21	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Asia-Pacific Smaller Companies Fund’s investment adviser and Aberdeen Asset Management Asia Limited (the “Subadviser”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Hugh Young	Global Head of Equities and Managing Director of Asian Equities	Inception
Chou Chong, CFA ®	Investment Director	Inception
Flavia Cheong, CFA ®	Investment Director	Inception
Adrian Lim	Senior Investment Manager	Inception
Christopher Wong, CFA ®	Senior Investment Manager	Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Aberdeen Emerging Markets Fund

Objective

The Aberdeen Emerging Markets Fund (the “Emerging Markets Fund” or the “Fund”) seeks long-term capital appreciation by investing primarily in equity securities of emerging market country issuers.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Emerging Markets Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%	0.90	%	0.90	%	0.90	%	0.90	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.28	%	0.22	%	0.41	%	0.22	%	0.46	%
Total Annual Fund Operating Expenses	1.43	%	2.12	%	1.81	%	1.12	%	1.36	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.02	%	0.02	%	0.02	%	0.02	%	0.02	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.41	%	2.10	%	1.79	%	1.10	%	1.34	%

Example

This Example is intended to help you compare the cost of investing in the Emerging Markets Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Emerging Markets Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	710	$	1,000	$	1,310	$	2,188
Class C shares	$	313	$	662	$	1,137	$	2,450
Class R shares	$	182	$	568	$	978	$	2,125
Institutional Class shares	$	112	$	354	$	615	$	1,361
Institutional Service Class shares	$	136	$	429	$	743	$	1,633

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	213	$	662	$	1,137	$	2,450

Portfolio Turnover

The Emerging Markets Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 5.00% of the average value of its portfolio.

Principal Strategies

The Emerging Markets Fund will invest primarily in common stocks, but may also invest in other types of equity securities, including, but not limited to, preferred stock and depositary receipts. As a non-fundamental policy, under normal circumstances, the Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of emerging market companies. An emerging market country is any country determined by the Adviser or Subadviser to have an emerging market economy, considering factors such as the country’s credit rating, its political and economic stability and the development of its financial and capital markets. Emerging market countries can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. A company is generally considered to be an emerging market company if it:

· is organized under the laws of, or has its principal office in an emerging market country;

· has its principal securities trading market in an emerging market country;

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in an emerging market country; and/or

· issues securities denominated in the currency of an emerging market country.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Fund.

The Fund may invest in securities denominated in U.S. Dollars and currencies of emerging market countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests.

The Fund may invest in securities of any market capitalization, including small and mid-cap securities.

Principal Risks

The Emerging Markets Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Impact of Large Redemptions and Purchases of Fund Shares — Occasionally, shareholders may make large redemptions or purchases of Fund shares, which

may cause the Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of the Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Emerging Markets Fund. The bar chart shows how the Fund’s annual total returns for the Institutional Class have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI Emerging Markets Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Emerging Markets Fund for periods prior to November 23, 2009 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Emerging Markets Fund adopted the performance of the Predecessor Fund as the result of a reorganization on November 23, 2009 in which the Emerging Markets Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Emerging Markets Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Class A, Class C and Class R returns prior to the commencement of operations of Class A, Class C and Class R (inception date: May 21, 2012) are based on the previous performance of the Fund’s Institutional Class shares. Institutional Service Class returns prior to the commencement of operations of the Institutional Service Class (inception date: November 23, 2009) are based on the previous performance of the Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns – Institutional Class Shares
(Years Ended Dec. 31)

Highest Return: 39.91% - 2nd quarter 2009

Lowest Return: -22.69% - 4th quarter 2008

After-tax returns are shown in the following table for the Institutional Class shares only and will vary for other classes. After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns

As of December 31, 2014

	1 Year		5 Years		Since Inception (May 11, 2007)
Class A shares - Before Taxes	-8.29	%	3.84	%	5.54	%
Class C shares - Before Taxes	-3.40	%	4.71	%	6.12	%
Class R shares - Before Taxes	-3.20	%	4.89	%	6.24	%
Institutional Class shares - Before Taxes	-2.45	%	5.26	%	6.48	%
Institutional Class shares - After Taxes on Distributions	-3.73	%	4.58	%	5.74	%
Institutional Class shares - After Taxes on Distributions and Sale of Shares	-0.76	%	3.92	%	4.93	%
Institutional Service Class shares - Before Taxes	-2.74	%	5.03	%	6.34	%
MSCI Emerging Markets Index (reflects no deduction for fees, expenses or taxes)	-1.82	%	2.11	%	2.27	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Emerging Markets Fund’s investment adviser and Aberdeen Asset Management Asia Limited (“AAMAL”) and Aberdeen Asset Managers Limited (“AAML”) serve as the Fund’s subadvisers.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Hugh Young	Global Head of Equities and Managing Director of Asian Equities	2009
Devan Kaloo	Head of Global Emerging Markets	2009
Joanne Irvine	Head of Emerging Markets (ex-Asia)	2009
Mark Gordon-James, CFA ®	Senior Investment Manager	2009
Fiona Manning, CFA ®	Senior Investment Manager	2009

Purchase and Sale of Fund Shares

Effective February 22, 2013, the Fund is closed to new investors, except in limited circumstances. Additional information is available in the “Investing in Aberdeen Funds — Fund Closure” section in the Fund’s prospectus.

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

If you purchase shares through an intermediary, different minimum account requirements may apply. The Trust reserves the right to apply or waive investment minimums under certain circumstances.

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Emerging Markets Debt Fund

Aberdeen Emerging Markets Debt Fund

Objective

The Aberdeen Emerging Markets Debt Fund (the “Emerging Markets Debt Fund” or the “Fund”) seeks long-term total return.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Emerging Markets Debt Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales - Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%	0.75	%	0.75	%	0.75	%	0.75	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.85	%	0.85	%	0.85	%	0.85	%	0.85	%
Total Annual Fund Operating Expenses	1.85	%	2.60	%	2.10	%	1.60	%	1.60	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.70	%	0.70	%	0.70	%	0.70	%	0.70	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.15	%	1.90	%	1.40	%	0.90	%	0.90	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.90% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Emerging Markets Debt Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	537	$	917	$	1,321	$	2,447
Class C shares	$	293	$	742	$	1,318	$	2,882
Class R shares	$	143	$	590	$	1,065	$	2,376
Institutional Class shares	$	92	$	436	$	805	$	1,841
Institutional Service Class shares	$	92	$	436	$	805	$	1,841

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	193	$	742	$	1,318	$	2,882

Portfolio Turnover

The Emerging Markets Debt Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 60.31% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Emerging Markets Debt Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in emerging market debt securities. An emerging market country is any country determined by the Adviser or Subadviser to have an emerging market economy, considering factors such as the country’s credit rating, its political and economic stability and the development of its financial and capital markets. Emerging market countries can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. Emerging market debt securities include securities issued by: (a) government-related bodies of emerging market countries and/or (b) a corporation that:

· is organized under the laws of, or has its principal office in an emerging market country;

· has its principal securities trading market in an emerging market country;

· issues securities denominated in the currency of an emerging market country.

Debt securities, for purposes of the 80% policy, include but are not limited to conventional and index-linked bonds, debt-related interest rate swaps, conventional bonds, inflation-linked sovereign and quasi-sovereign bonds and debt-related private placements including securities issued under Rule 144A or Regulation S (“Regulation S Securities”). The Fund may invest in both investment-grade and high yield securities (commonly referred to as “junk bonds”). The Fund may invest in securities of any maturity.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Emerging Markets Debt Fund.

The Emerging Markets Debt Fund is non-diversified and may invest a significant portion of its assets in the securities of a single issuer or a small number of issuers.

The portfolio management team will seek to identify those instruments that are likely to provide the greatest outperformance, taking account of forward-looking risks. It will assess both the risk-return profile of an individual investment, as well as the risk-return impact of its incremental addition to the Fund as a whole, and then construct a diversified, risk-controlled portfolio of instruments.

The Fund may invest in derivative instruments. Derivative instruments may be used for hedging purposes and for gaining risk exposures to countries, currencies and securities that are permitted investments for the Fund. The Fund may use derivative instruments as a substitute for purchasing or selling securities or for non-hedging purposes to seek to enhance potential gains. Permitted derivative

instruments include, but are not limited to, fixed income futures, non-deliverable forwards and swaps (including, but not limited to, credit default, credit derivative, interest rate, currency and inflation swaps). Derivative instruments may be used to adjust the interest rate, yield curve, currency, credit and spread risk exposure of the Fund, or for other purposes deemed necessary by the Adviser and/or Subadviser to pursue the Fund’s investment objective. Credit derivatives may be used to adjust the Fund’s exposure to the emerging market debt sector and/or sell/buy protection on the credit risk of individual issuers or a basket of individual issuers. The Fund may take short positions via derivatives in securities, interest rates, credits, currencies and markets. To the extent that the Fund invests in derivatives with an underlying asset that meets the 80% policy previously noted, the market value of the derivative would be included to meet the 80% policy.

For additional information regarding derivatives, see “Fund Details: Additional Information about Investments and Investment Techniques” and “Additional Information About Risks” in the prospectus.

The Fund’s investment objective may be changed by the Board of Trustees without shareholder approval.

Principal Risks

The Emerging Markets Debt Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Call and Redemption Risk — Some bonds allow the issuer to call a bond for redemption before it matures. If this happens, the Fund may be required to invest the proceeds in securities with lower yields.

Credit Risk - A debt instrument’s price depends, in part, on the credit quality of the issuer, borrower, counterparty, or underlying collateral and can decline in response to changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral, or changes in specific or general market, economic, industry, political, regulatory, geopolitical, or other conditions.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

price volatility of a foreign government’s debt securities. A foreign government’s default on its debt securities may cause the value of securities held by a Fund to decline significantly.

High-Yield Bonds and Other Lower-Rated Securities Risk — The Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. Issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Non-Diversified Fund Risk — Because the Fund is non-diversified, the Fund may hold larger positions in fewer securities than other funds. As a result, a single security’s increase or decrease in value may have a greater impact on the Fund’s value and total return.

Non-Hedging Foreign Currency Trading Risk — Foreign exchange rates can be extremely volatile and a variance in the degree of volatility of the market or in the direction of the market from the Adviser’s expectations may produce significant losses to the Fund.

Securities Selection Risk — The investment team may select securities that underperform the market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Emerging Markets Debt Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the J.P. Morgan EMBI Global Diversified Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated

performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 3.87% - 2nd quarter 2014

Lowest Return: -5.97% - 2nd quarter 2013

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (November 1, 2012)
Class A shares — Before Taxes	-2.66	%	-2.74	%
Class A shares — After Taxes on Distributions	-4.33	%	-4.25	%
Class A shares — After Taxes on Distributions and Sales of Shares	-1.49	%	-2.73	%
Class C shares — Before Taxes	0.82	%	-1.57	%
Class R shares — Before Taxes	1.35	%	-1.05	%
Institutional Class shares — Before Taxes	1.88	%	-0.59	%
Institutional Service Class shares — Before Taxes	1.88	%	-0.54	%
J.P. Morgan EMBI Global Diversified Index (reflects no deduction for fees, expenses or taxes)	7.43	%	1.69	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Emerging Markets Debt Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Brett Diment	Head of Emerging Market Debt	Inception
Edwin Gutierrez	Head of Emerging Market Sovereign Debt	Inception
Kevin Daly	Senior Investment Manager	Inception
Viktor Szabó, CFA ®	Senior Investment Manager	Inception
Andrew Stanners	Investment Manager	Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A AND CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Emerging Markets Debt Local Currency Fund

Aberdeen Emerging Markets Debt Local Currency Fund

Objective

The Aberdeen Emerging Markets Debt Local Currency Fund (the “Emerging Markets Debt Local Currency Fund” or the “Fund”) seeks long-term total return. Total return includes all aspects of return, including dividends, interest and share price appreciation/depreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Emerging Markets Debt Local Currency Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales - Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.80	%	0.80	%	0.80	%	0.80	%	0.80	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.61	%	0.57	%	0.82	%	0.57	%	0.57	%
Total Annual Fund Operating Expenses	1.66	%	2.37	%	2.12	%	1.37	%	1.37	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.47	%	0.47	%	0.47	%	0.47	%	0.47	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.19	%	1.90	%	1.65	%	0.90	%	0.90	%

Example

This Example is intended to help you compare the cost of investing in the Emerging Markets Debt Local Currency Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	541	$	882	$	1,247	$	2,269
Class C shares	$	293	$	695	$	1,223	$	2,670
Class R shares	$	168	$	619	$	1,096	$	2,415
Institutional Class shares	$	92	$	388	$	705	$	1,605
Institutional Service Class shares	$	92	$	388	$	705	$	1,605

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	193	$	695	$	1,223	$	2,670

Portfolio Turnover

The Emerging Markets Debt Local Currency Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 46.26% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Emerging Markets Debt Local Currency Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in debt securities that are denominated in the currency of an emerging market country and which are issued by: (a) government related bodies of emerging market countries; and/or (b) corporations that (i) are organized under the laws of, or have their principal office in, an emerging market country, (ii) have their principal securities trading market in an emerging market country, or (iii) alone or on a consolidated basis derive the highest concentration of their annual revenue or earnings from goods produced, sales made or services performed in emerging markets countries. An emerging market country is any country determined by the Adviser or Subadviser to have an emerging market economy, considering factors such as the country’s credit rating, its political and economic stability and the development of its financial and capital markets. Emerging market countries can include every nation in the world except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe.

As noted above, the Fund focuses on emerging market debt securities denominated in the local currencies. The Fund may also invest in private placements including securities issued under Rule 144A or Regulation S (“Regulation S Securities”).

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Emerging Markets Debt Local Currency Fund.

The portfolio management team will focus on the entire emerging markets local debt universe, investing in conventional and index-linked bonds, interest rates swaps, foreign exchange, conventional bonds and inflation-linked sovereign and quasi-sovereign bonds . The Fund may invest in both investment-grade and high yield securities (commonly referred to as “junk bonds”). The Fund may invest in securities of any maturity.

The portfolio management team will seek to identify those instruments that are likely to provide the greatest outperformance, taking account of forward-looking risks. They will assess both the risk-return profile of an individual investment, as well as the risk-return impact of its incremental addition to the Fund as a whole, and then construct a broad, risk-controlled portfolio of instruments.

The Fund may invest in derivative instruments. Derivative instruments may be used for hedging purposes and for gaining risk exposures to countries, currencies and securities that are permitted investments for the Fund. Derivative instruments may also be used to adjust the interest rate, yield curve, currency, credit and spread risk exposure of the Fund. The Fund invests in, but is not limited to, the following derivative instruments: credit default swaps (“CDS”) (both single name CDS and CDX Index), currency swaps and forwards, and interest rate swaps. CDS may be used to adjust the Fund’s exposure to the emerging market debt sector and/or sell/buy protection on the credit risk of individual issuers or a basket of individual issuers. CDS may also be used as a substitute for purchasing or selling securities or for non-hedging purposes to seek to enhance

potential gains. The base currency of the Fund is the U.S. Dollar. Performance may be strongly influenced by movements in currency rates because the Fund may have exposure to a particular currency that is different from the value of the securities denominated in that currency held by the Fund. Currency swaps and forwards are primarily used to manage the Fund’s currency exposure and interest rate swaps are primarily used to manage the Fund’s interest rate exposure.

To the extent that the Fund invests in derivatives with an underlying asset that meets the 80% policy, the market value of the derivative would be included to meet the 80% minimum. For additional information regarding derivatives, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

The Emerging Markets Debt Local Currency Fund is non-diversified and may invest a significant portion of its assets in the securities of a single issuer or a small number of issuers.

Principal Risks

The Emerging Markets Debt Local Currency Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Derivatives Risk (including Options, Futures and Swaps) — Derivatives are speculative and may hurt the Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from the Fund’s options, futures and derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual debt securities, and there can be no assurance that the use of this strategy will be successful.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Foreign Government Securities Risk — Debt securities issued by foreign governments are often supported by the full faith and credit of the foreign governments. These foreign governments may

permit their subdivisions, agencies or instrumentalities to have the full faith and credit of the foreign governments. The issuer of foreign government securities may be unwilling or unable to pay interest or repay principal when due. A government entity’s willingness or ability to repay principal and interest due in a timely manner may be affected by a number of political, economic, financial and other factors. A Fund may have limited recourse to compel payment in the event of a default. Periods of economic uncertainty may result in the illiquidity and increased price volatility of a foreign government’s debt securities. A foreign government’s default on its debt securities may cause the value of securities held by a Fund to decline significantly.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Securities Selection Risk — The investment team may select securities that underperform the market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Emerging Markets Debt Local Currency Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the J.P. Morgan GBI-EM Global Diversified Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 9.12% - 1st quarter 2012

Lowest Return: -10.12% - 3rd quarter 2011

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (May 2, 2011)
Class A shares — Before Taxes	-11.25	%	-4.99	%
Class A shares — After Taxes on Distributions	-11.25	%	-5.68	%
Class A shares — After Taxes on Distributions and Sales of Shares	-6.37	%	-3.94	%
Class C shares — Before Taxes	-7.99	%	-4.59	%
Class R shares — Before Taxes	-7.74	%	-4.21	%
Institutional Service Class shares — Before Taxes	-7.02	%	-3.62	%
Institutional Class shares — Before Taxes	-7.02	%	-3.62	%
J.P. Morgan GBI-EM Global Diversified Index (reflects no deduction for fees, expenses or taxes)	-5.72	%	-2.49	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Emerging Markets Debt Local Currency Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Brett Diment	Head of Emerging Market Debt	Inception
Edwin Gutierrez	Head of Emerging Market Sovereign Debt	Inception
Kevin Daly	Senior Investment Manager	Inception

Viktor Szabó, CFA ®		Senior Investment Manager		Inception
Andrew Stanners		Investment Manager		Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A AND CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Global Fixed Income Fund

Aberdeen Global Fixed Income Fund

Objective

The Aberdeen Global Fixed Income Fund (the “Global Fixed Income Fund” or the “Fund”) seeks to maximize total investment return consistent with prudent investment management, consisting of a combination of interest income, currency gains and capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Global Fixed Income Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.60	%	0.60	%	0.60	%	0.60	%	0.60	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.86	%	0.86	%	0.91	%	0.86	%	1.02	%
Total Annual Fund Operating Expenses	1.71	%	2.46	%	2.01	%	1.46	%	1.62	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.61	%	0.61	%	0.61	%	0.61	%	0.61	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.10	%	1.85	%	1.40	%	0.85	%	1.01	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.85% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Global Fixed Income Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	532	$	884	$	1,259	$	2,310
Class C shares	$	288	$	708	$	1,256	$	2,750
Class R shares	$	143	$	572	$	1,027	$	2,289
Institutional Class shares	$	87	$	402	$	739	$	1,694
Institutional Service Class shares	$	103	$	451	$	824	$	1,871

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	188	$	708	$	1,256	$	2,750

Portfolio Turnover

The Global Fixed Income Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 183.14% of the average value of its portfolio.

Principal Strategies

The Global Fixed Income Fund seeks to achieve its objective by investing in fixed income securities of U.S. and foreign issuers including:

· foreign governments, their agencies and instrumentalities, and foreign companies, including those in emerging markets;

· multinational organizations, such as the World Bank;

· the U.S. Government, its agencies and instrumentalities and U.S. companies; and

· asset-backed and mortgage-backed securities.

As a non-fundamental policy, under normal market conditions, the Global Fixed Income Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in fixed income securities of issuers located in a number of countries throughout the world, which may include the U.S.

If the Global Fixed Income Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Global Fixed Income Fund.

Under normal market conditions, the Fund will invest significantly (at least 40%—unless market conditions are not deemed favorable by the Adviser, in which case the Fund would invest at least 30%) in securities of non-U.S. issuers. An issuer will be considered a non-U.S. issuer if it is tied economically to a particular country outside of the U.S., based on whether that issuer:

· is organized under the laws of or has its principal place of business in the country;

· has its principal securities trading market in such country;

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in the country; and/or

· issues securities denominated in the currency of the country.

Under normal market conditions, the Fund invests in securities form at least three different countries. There is no limit on the Fund’s ability to invest in emerging market countries.

The investment team bases its investment decisions on fundamental factors, including economic, market and currency trends and credit quality. The Fund generally invests in markets where the combination of fixed income returns and currency exchange rates appears attractive, or, if the currency trend is unfavorable, where the investment team believes the currency risk can be reduced through hedging.

The Fund may invest in all types of fixed income securities, including:

· corporate bonds, debentures and notes;

· convertible debt securities;

· preferred stocks;

· government securities;

· municipal and other government related securities;

· mortgage-backed and other asset-backed securities;

· bank loans;

· private placements including securities issued under Rule 144A and/or Regulation S (“Regulation S Securities”); and

· repurchase agreements involving portfolio securities.

The Fund may purchase securities denominated in foreign currencies or in U.S. Dollars.

The Fund may invest up to:

· 40% of assets in securities of issuers located in any single foreign country;

· 35% of net assets in fixed income securities rated below investment grade (junk bonds);

· 25% of assets in the securities of any one foreign government, its agencies, instrumentalities and political subdivisions; and

· 20% of net assets in equity securities, including common stocks, warrants and rights.

Fixed income securities are considered below investment grade if rated below investment grade by Moody’s Investors Services, Inc. (“Moody’s”) (below Baa3), Standard & Poor’s Rating Services (“S&P”) (below BBB-), or Fitch, Inc. (“Fitch”) (below BBB-) or, if unrated, determined by the Adviser to be of comparable quality. In the event that a security receives different ratings from different nationally recognized statistical rating organizations (“NRSROs”), the Adviser will treat the security as being rated in the lowest rating category received from an NRSRO.

The Fund has no stated maturity policy and the average effective maturity may change.

In pursuing its investment strategies, the Fund may also invest in financial derivative instruments. A derivative is a contract whose value is based on the performance of an underlying financial asset, index or economic measure. In general, these financial derivative instruments include, but are not limited to, futures, options, swaps (including, but not limited to, credit and credit-default, interest rate and inflation swaps and options on swaps (commonly referred to as swaptions)), forward foreign currency exchange contracts and options, and credit linked notes. The Fund may enter into transactions which include but are not limited to the purchase of call and put options on securities (including exchange-listed and over-the-counter options), and the purchase and sale of futures contracts and options thereon such as securities indices, bond and interest rate futures.

The Fund may use these derivative techniques for a wide variety of purposes, including, but not limited to, the following:

· to manage the Fund’s interest rate, credit and currency exposure;

· as a substitute for taking a position in the underlying asset (where the manager feels that a derivative exposure to the underlying asset represents better value than a direct exposure);

· as a hedging strategy;

· to seek to increase total returns (which is considered a speculative practice); and

· to take short positions via derivatives in securities, interest rates, credits, currencies and markets.

To the extent that the Fund invests in derivatives with an underlying asset that meets the 80% policy, the market value of the derivative would be included to meet the 80% minimum. Derivative strategies involve risks which are further detailed in Principal Risks: Derivatives Risk.

The Fund may have high portfolio turnover and the portfolio turnover rate may exceed 100% per year.

Principal Risks

The Global Fixed Income Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Active Trading Risk — The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective. If a Fund does trade this way, it may incur increased costs, which can lower the actual return of the Fund.

geographical region likely will have a greater effect on portfolio performance than they would in a more geographically diversified fund.

Speculative Exposure Risk - To the extent that a derivative or practice is not used as a hedge, the Fund is directly exposed to its risks. Gains or losses from speculative positions in a derivative may be much greater than the derivative’s original cost. For example, potential losses from speculative short sales are unlimited.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk - Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

addition, large redemption requests may exceed the cash balance of the Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mortgage-Related Securities Risk — The Fund may invest in mortgage-related securities. Rising interest rates may cause an issuer to exercise its right to pay principal later than expected which tends to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, a fund that holds mortgage-related securities may exhibit additional volatility. This is known as extension risk. In addition, mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of the Fund because the Fund will have to reinvest that money at the lower prevailing interest rates.

Non-Hedging Foreign Currency Trading Risk —Foreign exchange rates can be extremely volatile and a variance in the degree of volatility of the market or in the direction of the market from the Adviser’s expectations may produce significant losses to the Fund.

Securities Selection Risk — The investment team may select securities that underperform the market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Global Fixed Income Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the Barclays Global Aggregate Bond Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Global Fixed Income Fund for periods prior to July 20, 2009 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Global Fixed Income Fund adopted the performance of the Predecessor Fund as the result of a reorganization in which the Global Fixed Income Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Global Fixed Income Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Institutional Service Class returns for periods prior to July 20, 2009 are based on the previous performance of the Common Class shares of the Predecessor Fund. Institutional Class returns prior to the commencement of operations of the Institutional Class (inception date: July 20, 2009) are based on the previous performance of the Predecessor Fund’s Common Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Class R shares have not been in operation for a full calendar year; therefore no performance information for Class R shares is provided. The returns for Class R shares will be substantially similar to returns for Class A shares because the shares are invested in

the same portfolio of securities and will only differ to the extent that the Classes have different expenses.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 7.74% - 3rd quarter 2009

Lowest Return: -4.88% - 3rd quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	-5.75	%	0.77	%	2.20	%
Class A shares — After Taxes on Distributions	-6.63	%	-0.19	%	1.05	%
Class A Shares — After Taxes on Distributions and Sale of Fund Shares	-3.24	%	0.24	%	1.26	%
Class C shares — Before Taxes	-2.34	%	0.86	%	1.89	%
Institutional Class shares — Before Taxes	-1.38	%	1.89	%	2.90	%
Institutional Service Class shares — Before Taxes	-1.48	%	1.77	%	2.83	%
Barclays Global Aggregate Bond Index (reflects no deduction for fees, expenses or taxes)	0.59	%	2.65	%	3.60	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Global Fixed Income Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Oliver Boulind, CFA ®	Head of Global Credit	2009
Jόzsef Szabό, CFA ®	Head of Global Macro	2012
Neil Moriarty	Head of US Core	2009
Richard Smith, CFA ®	Senior Investment Manager, Global Credit	2009
Emma Jack	Senior Portfolio Analyst	2013

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Global Small Cap Fund

Aberdeen Global Small Cap Fund

Objective

The Aberdeen Global Small Cap Fund (the “Global Small Cap Fund” or the “Fund”) seeks long-term growth of capital.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Global Small Cap Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	1.09	%	1.09	%	1.09	%	1.09	%	1.09	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.39	%	0.34	%	0.40	%	0.34	%	0.58	%
Total Annual Fund Operating Expenses	1.73	%	2.43	%	1.99	%	1.43	%	1.67	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.13	%	0.13	%	0.13	%	0.13	%	0.13	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.60	%	2.30	%	1.86	%	1.30	%	1.54	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.30% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Global Small Cap Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	728	$	1,077	$	1,448	$	2,488
Class C shares	$	333	$	745	$	1,284	$	2,756
Class R shares	$	189	$	612	$	1,061	$	2,306
Institutional Class shares	$	132	$	440	$	769	$	1,702
Institutional Service Class shares	$	157	$	514	$	895	$	1,965

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	233	$	745	$	1,284	$	2,756

Portfolio Turnover

The Global Small Cap Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 12.93% of the average value of its portfolio.

Principal Strategies

The Global Small Cap Fund seeks to achieve its objective by investing in equity securities of small U.S. and foreign companies. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. As a non-fundamental policy, under normal market conditions, the Fund will invest at least 80% of the value of its net assets, plus any borrowings for investment purposes, in equity securities of small companies from a broad range of countries, including the U.S.

If the Global Small Cap Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Global Small Cap Fund.

· is organized under the laws of or has its principal place of business in the country;

· has its principal securities trading market in such country;

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in the country; and/or

· issues securities denominated in the currency of the country.

The Fund considers a “small” company to be one whose market capitalization is within the range of capitalizations of companies in the MSCI World Small Cap Index at the time of purchase. As of January 31, 2015, the MSCI World Small Cap Index included companies with market capitalizations between $42 million and $8.54 billion. In addition, based on current market conditions, the Fund generally will not consider a company with a market capitalization in excess of $6 billion to be small-cap; however, this maximum capitalization may change with market conditions. Some companies may outgrow the definition of a small company or may no longer fall within the range of a reconstituted index after the Fund has purchased their securities. These companies will continue to be considered small for purposes of the Fund’s minimum 80% allocation to small company equities. In addition, the Fund may invest in companies of any size once the 80% policy is met. As a result, the Fund’s average market capitalization may sometimes exceed that of the largest company in the MSCI World Small Cap Index.

The Fund will diversify its investments across companies, industries and countries.

The Fund may invest:

· up to 20% of net assets in debt securities;

· up to 10% of net assets in private funds that invest in private equity and in venture-capital companies;

· up to 35% of net assets in emerging markets securities; and

· without limit in foreign securities.

Principal Risks

The Global Small Cap Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Country/Regional Focus Risk — Significant exposure to a single country or geographical region

involves increased currency, political, regulatory and other risks. Market swings in the targeted country or geographical region likely will have a greater effect on portfolio performance than they would in a more geographically diversified fund.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Global Small Cap Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI World Small Cap Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Global Small Cap Fund prior to July 20, 2009 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Global Small Cap Fund adopted the performance of the Predecessor Fund as the result of a reorganization in which the Global Small Cap Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. The Global Small Cap Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Returns of the Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Class A returns for periods prior to July 20, 2009 are based on the previous performance of the Common Class shares of the Predecessor Fund. Class R returns for periods prior to July 20, 2009 are based on the previous performance of the Adviser Class shares of the Predecessor Fund. Institutional Service Class returns prior to the commencement of operations of the Institutional Service Class (inception date: September 16, 2009) are based on the previous performance of the Fund’s Institutional Class shares. Institutional Class returns prior to the commencement of operations of the Institutional Class (inception date: July 20, 2009) are based on the previous performance of the Common Class shares of the Predecessor Fund. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Class A Shares
(Years Ended Dec. 31)

Highest Return: 23.29% - 2nd quarter 2009

Lowest Return: -27.42% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares —Before Taxes	-4.30	%	11.33	%	4.74	%
Class A shares —After Taxes on Distributions	-6.02	%	10.63	%	4.34	%
Class A shares —After Taxes on Distributions and Sale of Shares	-1.43	%	8.86	%	3.65	%
Class C shares —Before Taxes	0.83	%	11.88	%	4.61	%
Class R shares —Before Taxes	1.25	%	12.39	%	5.10	%
Institutional Class shares —Before Taxes	1.87	%	12.96	%	5.51	%
Institutional Service Class shares —Before Taxes	1.59	%	12.83	%	5.45	%
MSCI World Small Cap Index (reflects no deduction for fees, expenses or taxes)	2.32	%	13.18	%	8.04	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Global Small Cap Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Stephen Docherty	Head of Global Equities	2009
Bruce Stout	Senior Investment Manager	2009
Jamie Cumming, CFA ®	Senior Investment Manager	2009
Samantha Fitzpatrick, CFA ®	Senior Investment Manager	2009
Martin Connaghan	Senior Investment Manager	2009

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

Summary — Aberdeen Tax-Free Income Fund

Aberdeen Tax-Free Income Fund

Objective

The Aberdeen Tax-Free Income Fund (the “Tax-Free Income Fund” or the “Fund”) seeks a high level of current income that is exempt from federal income taxes by investing in investment grade municipal obligations.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Tax-Free Income Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholders Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.43	%	0.43	%	0.43	%	0.43	%	0.43	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.32	%	0.32	%	0.32	%	0.32	%	0.32	%
Total Annual Fund Operating Expenses	1.00	%	1.75	%	1.25	%	0.75	%	0.75	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.13	%	0.13	%	0.13	%	0.13	%	0.13	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	0.87	%	1.62	%	1.12	%	0.62	%	0.62	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.62% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

Example

This Example is intended to help you compare the cost of investing in the Tax-Free Income Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	510	$	717	$	942	$	1,586
Class C shares	$	265	$	538	$	937	$	2,052
Class R shares	$	114	$	384	$	674	$	1,500
Institutional Class shares	$	63	$	227	$	404	$	918
Institutional Service Class shares	$	63	$	227	$	404	$	918

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	165	$	538	$	937	$	2,052

Portfolio Turnover

The Tax-Free Income Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 5.58% of the average value of its portfolio.

Principal Strategies

As a fundamental policy, under normal circumstances, the Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in investment grade fixed income securities that qualify as tax-exempt municipal obligations. These obligations are issued by states, U.S. territories and their political subdivisions, such as counties, cities and towns. The income from these securities is exempt from regular federal income tax, but may be subject to the federal alternative minimum tax. For purposes of the Fund’s 80% policy, the Fund may, but is not required to, sell a security whose rating falls below investment grade. The Fund may invest in specific types of municipal obligations, including tax-exempt zero-coupon securities, auction rate securities and floating- and variable-rate bonds. Up to 20% of the Fund’s net assets may be invested in municipal securities whose interest income is treated as a preference item for purposes of the federal alternative minimum tax. Additionally, up to 20% of the Fund’s net assets may be invested in fixed income securities that qualify as tax-exempt municipal obligations that are considered below investment grade (sometimes referred to as “junk bonds” or high yield securities). A bond is considered below investment grade if rated below investment grade by Moody’s Investors Services, Inc. (“Moody’s”) (below Baa3), Standard & Poor’s Rating Services (“S&P”) (below BBB-), or Fitch, Inc. (“Fitch”) (below BBB-) or, if unrated, determined by the Adviser to be of comparable quality. In the event that a security receives different ratings from different nationally recognized statistical rating organizations (“NRSROs”), the Adviser will treat the security as being rated in the lowest rating category received from an NRSRO. In selecting securities for the Fund, the Adviser employs an opportunistic approach that takes advantage of changing market conditions. The Adviser’s process focuses on credit market, sector, security and yield curve analysis. The Fund may invest in securities of any maturity.

A security may be sold to take advantage of more favorable opportunities.

The Fund may invest in derivative instruments. Derivative instruments may be used for hedging purposes and for gaining risk exposures to securities that are permitted investments for the Fund. Derivative instruments may also be used to adjust the interest rate, yield curve, credit and spread risk exposure of the Fund. The Fund invests in, but is not limited to, the following derivative instruments: municipal credit default swaps (“MCDS”) (both single name MCDS and municipal credit default index swaps) and interest rate swaps and futures. MCDS may be used to adjust the Fund’s exposure to the industry sector and/or sell/buy protection on the credit risk of individual issuers or a basket of individual issuers. MCDS may also be used as a substitute for purchasing or selling securities or for non-hedging purposes to seek to enhance potential gains. Interest rate swaps are primarily used to manage the Fund’s interest rate exposure.

To the extent that the Fund invests in derivatives with an underlying asset that meets the 80% policy, the market value of the derivative would be included to meet the 80% minimum.

Principal Risks

The Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Call and Redemption Risk — Some bonds allow the issuer to call a bond for redemption before it matures. If this happens, the Tax-Free Income Fund may be required to invest the proceeds in securities with lower yields.

Hedged Exposure Risk —Losses generated by a derivative or practice used by the Fund for hedging purposes should be substantially offset by gains on the hedged investment. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Securities Selection Risk — The investment team may select securities that underperform the market or other funds with similar investment objectives and strategies.

Tax Risk — A municipal bond that is issued as tax-exempt may later be declared to be taxable. In addition, if the federal income tax rate is reduced, the value of the tax exemption may be less valuable, causing the value of a municipal bond to decline.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Tax-Free Income Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the Barclays Municipal Bond Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the Tax-Free Income Fund for periods prior to June 23, 2008 reflect the performance of a predecessor fund (the “Predecessor Fund”). The Tax-Free Income Fund adopted the performance of the Predecessor Fund as the result of a reorganization on June 23, 2008 in which the Tax-Free Income Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. Since June 23, 2008, Aberdeen Asset Management Inc. has served as the Fund’s investment adviser. Credit Suisse Asset Management, LLC served as the subadviser for the Tax-Free Income Fund from June 23, 2008 to February 27, 2011. The Tax-Free Income Fund and the Predecessor Fund have substantially similar investment objectives and strategies.

Class R, Institutional Class and Institutional Service Class returns prior to the commencement of operations of each class (inception date: February 25, 2013) are based on the previous performance of Class D shares of the Fund, which are no longer offered and were converted to Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes of the Fund invest in the same portfolio of securities, and only differ to the extent that the Classes have different expenses.

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Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 6.48% - 3rd quarter 2009

Lowest Return: -4.64% - 4th quarter 2010

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	2.60	%	3.41	%	3.38	%
Class A shares — After Taxes on Distributions	1.13	%	2.02	%	1.95	%
Class A shares — After Taxes on Distributions and Sales of Shares	1.50	%	2.12	%	2.08	%
Class C shares — Before Taxes	6.33	%	3.59	%	3.08	%
Class R shares — Before Taxes	6.85	%	4.42	%	4.00	%
Institutional Class shares — Before Taxes	7.39	%	4.62	%	4.10	%
Institutional Service Class shares — Before Taxes	7.39	%	4.62	%	4.10	%
Barclays Municipal Bond Index (reflects no deduction for fees, expenses or taxes)	9.05	%	5.16	%	4.74	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Tax-Free Income Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Edward Grant	Global Head of Credit Research	2011
Michael Degernes	Head of Municipals	2011

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

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CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

The Fund intends to distribute dividends exempt from regular federal income tax and capital gains distributions; although, a portion of the Fund’s distributions may be subject to federal income tax or alternative minimum tax.

Payments to Broker-Dealers and Other Financial Intermediaries

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Summary — Aberdeen Ultra-Short Duration Bond Fund

Aberdeen Ultra-Short Duration Bond Fund

Objective

The objective of the Aberdeen Ultra-Short Duration Bond Fund (the “Ultra-Short Duration Bond Fund” or the “Fund”) is to generate regular income and minimize fluctuations in fund value while maintaining a high level of liquidity.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Ultra-Short Duration Bond Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.20	%	0.20	%	0.20	%	0.20	%	0.20	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.93	%	0.93	%	0.98	%	0.93	%	0.93	%
Total Annual Fund Operating Expenses	1.38	%	2.13	%	1.68	%	1.13	%	1.13	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.83	%	0.83	%	0.83	%	0.83	%	0.83	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	0.55	%	1.30	%	0.85	%	0.30	%	0.30	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.30% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

103

Example

This Example is intended to help you compare the cost of investing in the Ultra-Short Duration Bond Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the Ultra-Short Duration Bond Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	479	$	765	$	1,072	$	1,943
Class C shares	$	232	$	587	$	1,068	$	2,397
Class R shares	$	87	$	448	$	835	$	1,918
Institutional Class shares	$	31	$	277	$	542	$	1,300
Institutional Service Class shares	$	31	$	277	$	542	$	1,300

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	132	$	587	$	1,068	$	2,397

Portfolio Turnover

The Ultra-Short Duration Bond Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 81.59% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in bonds. If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Fund. The Fund will primarily invest in investment-grade fixed income securities (BBB- rated minimum at the time of purchase by Standard & Poor’s Rating Services or Fitch, Inc., or Baa3 rated minimum at the time of purchase by Moody’s Investors Services), securities of the U.S. Government, and its agencies and instrumentalities, including agency mortgage-backed securities.

The Fund does not invest in non-investment grade securities; however, if an investment grade security is downgraded after purchase, the Fund may continue to hold the security at the discretion of the Adviser.

The Fund will purchase securities (other than structured products) with a maximum maturity of three and a quarter years. The Fund will purchase structured products with a maximum average life of three and a quarter years. Under normal circumstances, the duration of the Fund will be one year or less. Duration measures the price sensitivity of a fixed income security to changes in interest rates. Portfolio duration is actively managed. The portfolio management team seeks to maintain a high level of liquidity in the portfolio and to stabilize the principal value of the Fund’s assets. The portfolio management team attempts to maximize yield within these constraints.

The Fund may invest in futures for hedging and/or to manage the Fund’s interest rate exposure. To the extent that the Fund invests in futures with an underlying asset that meets the 80% policy, the market value of the futures position would be included to meet the 80% minimum.

Principal Risks

The Ultra-Short Duration Bond Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Call and Redemption Risk — Some bonds allow the issuer to call a bond for redemption before it matures. If this happens, the Ultra-Short Duration

104

Bond Fund may be required to invest the proceeds in securities with lower yields.

Futures Risk — Futures are speculative and may hurt the Fund’s performance. Futures may present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the future is linked changes in unexpected ways. The potential benefits to be derived from the Fund’s futures strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual debt securities, and there can be no assurance that the use of this strategy will be successful.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mortgage-Related Securities Risk — T he Fund may invest in mortgage-related securities. Rising interest rates may cause an issuer to exercise its right to pay principal later than expected which tends to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, a fund that holds mortgage-related securities may exhibit additional volatility. This is known as extension risk. In addition, mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of the Fund because the Fund will have to reinvest that money at the lower prevailing interest rates.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Ultra-Short Duration Bond Fund. The bar chart shows how the Fund’s annual total returns for Institutional Class have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the BofA Merrill Lynch 1 YR Treasury Bill Index™, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

Class A returns prior to the commencement of operations of Class A (inception date: November 22, 2011) are based on the previous performance

105

of the Fund’s Institutional Class shares. Institutional Service Class returns prior to the commencement of operations of Institutional Service Class (inception date: January 20, 2012) are based on the previous performance of the Fund’s Institutional Class shares (inception date: November 30, 2010). Returns of each class have not been adjusted to reflect the expenses applicable to the respective classes. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

The Fund’s Class C and R shares have not been in operation for a full calendar year; therefore no performance information for these share classes is provided. The returns for Class C and R shares will be substantially similar to returns for Institutional Class shares because the shares are invested in the same portfolio of securities and will only differ to the extent that the Classes have different expenses.

Annual Total Return — Institutional Class Shares

(Years Ended Dec. 31)

Highest Return: 0.69% - 1st quarter 2012

Lowest Return: -0.22% - 2nd quarter 2013

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (November 30, 2010)
Class A shares — Before Taxes	-4.34	%	-0.54	%
Institutional Class shares — Before Taxes	0.13	%	0.64	%
Institutional Class shares — After Taxes on Distributions	-0.10	%	0.31	%
Institutional Class shares — After Taxes on Distributions and Sales of Shares	0.07	%	0.37	%
Institutional Service Class — Before Taxes	0.02	%	0.64	%
BofA Merrill Lynch 1 YR Treasury Bill Index™ (reflects no deduction for fees, expenses or taxes)	0.22	%	0.30	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Ultra-Short Duration Bond Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Kam Poon	Head of US Money Markets and Short Duration	Inception
Michael Degernes	Head of Municipals	Inception
Neil Moriarty	Head of US Core	Inception
Stephen R. Cianci, CFA ®	Head of US Core Plus	Inception
Oliver Chambers	Senior Investment Manager	Inception

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Purchase and Sale of Fund Shares

Each Fund’s minimum investment requirements are as follows:

CLASS A AND CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	100,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	100,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

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Summary — Aberdeen High Yield Fund

Aberdeen High Yield Fund

Objective

The Aberdeen High Yield Fund (the “High Yield Fund” or the “Fund”) seeks to maximize total return consisting of interest income and capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the High Yield Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales - Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	4.25	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	0.75	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.60	%	0.60	%	0.60	%	0.60	%	0.60	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	1.32	%	1.28	%	1.28	%	1.28	%	1.28	%
Total Annual Fund Operating Expenses	2.17	%	2.88	%	2.38	%	1.88	%	1.88	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	1.08	%	1.08	%	1.08	%	1.08	%	1.08	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.09	%	1.80	%	1.30	%	0.80	%	0.80	%

(1) If you paid no sales charge on the original purchase and a finder’s fee was paid, a contingent deferred sales charge (CDSC) of up to 0.75% will be charged on Class A shares redeemed within 18 months of purchase.

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.80% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the fiscal year in which the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

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Example

This Example is intended to help you compare the cost of investing in the High Yield Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the High Yield Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	531	$	976	$	1,445	$	2,740
Class C shares	$	283	$	790	$	1,423	$	3,127
Class R shares	$	132	$	639	$	1,173	$	2,634
Institutional Class shares	$	82	$	486	$	916	$	2,113
Institutional Service Class shares	$	82	$	486	$	916	$	2,113

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	183	$	790	$	1,423	$	3,127

Portfolio Turnover

The High Yield Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 74.39% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the High Yield Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in debt securities that are, at the time of investment, below investment grade (sometimes referred to as “junk bonds” or high yield securities). If the High Yield Fund changes this 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the High Yield Fund.

In pursuing its objective and the non-fundamental policy above, the Fund intends to invest primarily in high yield debt securities of U.S. issuers, which includes issuers: (a) domiciled in the U.S.; (b) that conduct a majority of their business in the U.S.; or (c) listed in the Bank of America Merrill Lynch US High Yield Index (“BoA ML US HY Index”). The BoA ML US HY Index includes issuers that are organized and operating within and outside of the U.S. if they publicly issue U.S. dollar denominated below investment grade corporate debt. The Fund may also invest in debt securities issued by foreign companies and governments. The Fund intends to invest primarily in debt securities that are U.S. Dollar denominated, although the Fund may invest in debt securities denominated in foreign currency, including the currency of emerging market countries.

For purposes of the 80% policy, below investment grade debt securities include, but are not limited to, convertible and non-convertible corporate and non-corporate debt securities (such as securities of a government and its agencies, instrumentalities and political subdivisions, and structured finance securities), privately placed debt securities (which are securities sold directly in a negotiated sale to institutional or private investors rather than a public offering, such as privately placed bonds), fixed and floating rate bonds, zero-coupon and discount bonds, debentures, notes, certificates of deposit, banker’s acceptances, bills of exchange, asset-backed securities and bank loans. A debt security is considered below investment grade if rated below investment grade by Moody’s Investors Services, Inc. (“Moody’s”) (below Baa3), Standard & Poor’s Rating Services (“S&P”) (below BBB-), or Fitch, Inc. (“Fitch”) (below BBB-) or, if unrated, determined by the Adviser to be of comparable quality. In the event that a security receives different ratings from different nationally recognized statistical rating organizations (“NRSROs”), the Adviser will treat the security as being rated in the lowest rating category received from an NRSRO. The Fund’s investments may include securities not paying interest currently and securities in default following purchase.

The Fund may invest in derivative instruments. Derivative instruments may be used for hedging purposes and for gaining risk exposures to countries, currencies and securities that are permitted investments for the Fund. Derivative instruments may also be used to adjust the interest rate, yield curve, currency, credit and spread risk exposure of the Fund. The Fund invests in, but is not limited to, the following derivative instruments: credit default swaps (“CDS” or “CDX Index” and collectively, “CDS”), currency swaps and forwards, and futures. CDS may be used to adjust the Fund’s exposure to the industry sector and/or to sell or buy protection on the credit risk of individual issuers or a basket of individual issuers. CDS may also be used as a substitute for purchasing or selling securities or for non-hedging purposes to

109

seek to enhance potential gains. Currency swaps and forwards are primarily used to manage the Fund’s currency exposure and futures are primarily used to manage the Fund’s interest rate exposure.

To the extent that the Fund invests in derivatives with an underlying asset that meets its 80% policy, the market value of the derivative would be included to meet the 80% minimum. For additional information regarding derivatives, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

The Fund may invest in securities of any maturity.

Principal Risks

The High Yield Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Credit Default Swap Risk — Credit default swap contracts, a type of derivative instrument, involve special risks and may result in losses to the Fund. Credit default swaps may in some cases be illiquid, and they increase credit risk since the Fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap. Swaps may be difficult to unwind or terminate. The swap market could be disrupted or limited as a result of recent legislation, and these changes could adversely affect the Fund. Additionally, to the extent the Fund sells credit default swap contracts, the Fund effectively adds economic leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap in the event of a default of the referenced debt obligation.

Derivatives Risk (including Futures and Swaps) — Derivatives are speculative and may hurt the Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from the Fund’s swaps, forwards and futures strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual debt securities, and there can be no assurance that the use of this strategy will be successful.

Correlation Risk — The Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

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bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the High Yield Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charges for Class A. The table compares the Fund’s average annual total returns to the returns of the BofA Merrill Lynch US High Yield Master II Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 4.44% - 3rd quarter 2012

Lowest Return: -4.46% - 3rd quarter 2014

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effect and do not reflect the impact of state and local taxes. Your actual after-tax return depends on your personal tax situation and may differ from what is shown here. After-tax returns are not relevant to investors in tax-deferred arrangements, such as individual retirement accounts, 401(k) plans or certain other employer-sponsored retirement plans.

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (February 27, 2012)
Class A shares — Before Taxes	-7.13	%	3.15	%
Class A shares — After Taxes on Distributions	-9.67	%	-0.62	%
Class A shares — After Taxes on Distributions and Sales of Shares	-3.96	%	0.92	%
Class C shares — Before Taxes	-3.71	%	3.99	%
Class R shares — Before Taxes	-3.32	%	4.51	%
Institutional Service Class shares — Before Taxes	-2.75	%	5.04	%
Institutional Class shares — Before Taxes	-2.75	%	5.04	%
BofA Merrill Lynch US High Yield Master II Index (reflects no deduction for fees, expenses or taxes)	2.50	%	7.03	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the High Yield Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Keith Bachman	Head of US High Yield	Inception
Neal Rayner, CFA ®	Head of US Fixed Income Trading	Inception
Brendan Dillon	Senior Investment Manager	Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A AND CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line. If you hold shares through an authorized intermediary, you may redeem such shares through the intermediary.

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Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

113

Summary — Aberdeen U.S. Equity Fund

Aberdeen U.S. Equity Fund

Objective

The Aberdeen U.S. Equity Fund (the “U.S. Equity Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the U.S. Equity Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales - Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.75	%	0.75	%	0.75	%	0.75	%	0.75	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	0.25	%	0.23	%	0.23	%	0.23	%	0.32	%
Total Annual Fund Operating Expenses	1.25	%	1.98	%	1.48	%	0.98	%	1.07	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	0.08	%	0.08	%	0.08	%	0.08	%	0.08	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.17	%	1.90	%	1.40	%	0.90	%	0.99	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 0.90% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative service fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the date when the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

114

Example

This Example is intended to help you compare the cost of investing in the U.S. Equity Fund with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in the U.S. Equity Fund for the time periods indicated and then sell all of your shares at the end of those periods. It assumes a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	687	$	941	$	1,215	$	1,993
Class C shares	$	293	$	614	$	1,060	$	2,300
Class R shares	$	143	$	460	$	800	$	1,762
Institutional Class shares	$	92	$	304	$	534	$	1,194
Institutional Service Class shares	$	101	$	332	$	582	$	1,298

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	193	$	614	$	1,060	$	2,300

Portfolio Turnover

The U.S. Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 20.60% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the U.S. Equity Fund invests at least 80% of the value of its net assets, plus any borrowings for investment purposes, in U.S. equity securities. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. The Fund seeks to invest in securities of U.S. companies. A U.S. company:

· is organized under the laws of, or has its principal office in the United States,

· has its principal securities trading market in the United States,

· alone or on a consolidated basis derives the highest concentration of its annual revenue or earnings or assets from goods produced, sales made or services performed in the United States; and/or

· issues securities denominated in the currency of the United States.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the U.S. Equity Fund.

For purposes of the 80% policy, the Fund will usually invest in securities with a market capitalization of $2 billion and above at the time of purchase. While the Fund may sell a security if its market capitalization declines below this amount, the Fund is not required to sell a security solely because of market capitalization.

Principal Risks

The U.S. Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

115

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the U.S. Equity Fund. The bar chart shows how the Fund’s annual total returns for Class A have varied from year to year. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the S&P 500 ® Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

The returns presented for the U.S. Equity Fund for periods prior to October 10, 2011 reflect the performance of a predecessor fund (the “Predecessor Fund”) from June 23, 2008 to October 9, 2011. In addition, after February 28, 2009, the Predecessor Fund changed its investment style and became diversified. The returns prior to June 23, 2008 reflect the performance of another predecessor fund (the “Second Predecessor Fund”), which was acquired by the Predecessor Fund. The U.S. Equity Fund adopted the performance of the Predecessor Fund as the result of a reorganization on October 10, 2011 in which the U.S. Equity Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund. In connection with the reorganization, the Fund changed its name from Aberdeen U.S. Equity I Fund to Aberdeen U.S. Equity Fund. The U.S. Equity Fund maintained the investment objective and investment strategies of the Predecessor Fund on the date of the reorganization without any changes.

Returns of the Predecessor Fund and the Second Predecessor Fund have not been adjusted to reflect the expenses applicable to the respective classes. Institutional Service Class returns prior to the commencement of operations of Institutional Service Class of the Fund (inception date: October 10, 2011) are based on the previous performance of the Predecessor Fund’s and Second Predecessor Fund’s Institutional Class shares. Excluding the effect of any fee waivers or reimbursements, this performance is substantially similar to what each individual class would have produced because all classes invest in the same portfolio of securities.

Annual Total Returns — Class A Shares

(Years Ended Dec. 31)

Highest Return: 17.67% - 2nd quarter 2009

Lowest Return: -21.10% - 4th quarter 2008

Average Annual Total Returns

as of December 31, 2014

	1 Year		5 Years		10 Years
Class A shares — Before Taxes	1.51	%	10.26	%	5.78	%
Class A shares — After Taxes on Distributions	-0.36	%	9.65	%	5.16	%
Class A shares — After Taxes on Distributions and Sales of Shares	2.08	%	8.03	%	4.64	%
Class C shares — Before Taxes	6.92	%	10.82	%	5.68	%
Class R shares — Before Taxes	7.45	%	11.35	%	6.24	%

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Institutional Class shares — Before Taxes	7.96	%	11.96	%	6.75	%
Institutional Service Class shares — Before Taxes	7.95	%	11.90	%	6.73	%
S&P 500 ® Index (reflects no deduction for fees, expenses or taxes)	13.69	%	15.45	%	7.67	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the U.S. Equity Fund’s investment adviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Paul Atkinson*	Head of North American Equities	2008***
Ralph Bassett, CFA ® **	Deputy Head of North American Equities	2008***
Douglas Burtnick, CFA ®	Senior Investment Manager	2002***
Jason Kotik, CFA ®	Senior Investment Manager	2000***
Francis Radano, III, CFA ®	Senior Investment Manager	1999***

*Paul Atkinson will leave the Adviser at the end of June 2015 and shall be deemed removed from this table at that time.

** Ralph Bassett will succeed Paul Atkinson and, effective at the end of June 2015, his title shall be Head of North American Equities.

***Includes Predecessor Fund and/or Second Predecessor Fund

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

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other financial intermediary and your financial advisor to recommend the Fund over another investment. Ask your financial advisor or visit your financial intermediary’s website for more information.

118

Summary — Aberdeen European Equity Fund

Aberdeen European Equity Fund

Objective

The Aberdeen European Equity Fund (the “European Equity Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the European Equity Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	0.90	%	0.90	%	0.90	%	0.90	%	0.90	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	2.28	%	2.28	%	2.28	%	2.28	%	2.28	%
Total Annual Fund Operating Expenses	3.43	%	4.18	%	3.68	%	3.18	%	3.18	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	2.08	%	2.08	%	2.08	%	2.08	%	2.08	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.35	%	2.10	%	1.60	%	1.10	%	1.10	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.10% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, Rule 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the fiscal year in which the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

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Example

This Example is intended to help you compare the cost of investing in the European Equity Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	705	$	1,385	$	2,088	$	3,942
Class C shares	$	313	$	1,080	$	1,962	$	4,230
Class R shares	$	163	$	934	$	1,725	$	3,798
Institutional Class shares	$	112	$	785	$	1,483	$	3,341
Institutional Service Class shares	$	112	$	785	$	1,483	$	3,341

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	213	$	1,080	$	1,962	$	4,230

Portfolio Turnover

The European Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 7.75% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of European companies. For purposes of the 80% policy, equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. For purposes of the 80% policy, European equity securities include securities that are issued by companies or other issuers that (i) are organized under the laws of, or have their principal office in, a European country, (ii) have their principal securities trading market in a European country, (iii) alone or on a consolidated basis derive the highest concentration of their annual revenue or earnings or assets from goods produced, sales made or services performed in European countries; and/or (iv) issue securities denominated in the currency of a European market.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the European Equity Fund.

The portion of the Fund’s assets not invested in equity securities of European companies may be, but is not required to be, invested in equity securities of companies that the Adviser and Subadviser expect will reflect developments in Europe. The Fund intends to diversify its investments across a number of different countries. However, at times the Fund may invest a significant part of its assets in a single country. The Fund may invest without limit in emerging market countries. The Fund may invest in securities denominated in U.S. Dollars and the currencies of the foreign countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests. In addition, the Fund may invest in equity securities without regard to market capitalization.

The European Equity Fund is non-diversified and may invest a significant portion of its assets in the securities of a single issuer or a small number of issuers.

Principal Risks

The European Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments also may involve risks

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relating to the impact of currency exchange rate fluctuations ; such risks may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.

Europe — Recent Events. A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within and outside Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro, the common currency of the European Union, and/or withdraw from the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching . Whether or not the Fund invests in securities of issuers located in Europe or with significant exposure to European issuers or countries, these events could negatively affect the value and liquidity of the Fund’s investments.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the European Equity Fund. The bar chart shows the Fund’s annual total return for Class A. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the FTSE World Europe Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

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Annual Total Returns — Class A Shares

(Year Ended Dec. 31)

Highest Return: 10.44% - 3rd quarter 2013

Lowest Return: -8.60% - 3rd quarter 2014

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (March 25, 2013)
Class A shares — Before Taxes	-14.69	%	-1.94	%
Class A shares — After Taxes on Distributions	-15.63	%	-2.99	%
Class A shares — After Taxes on Distributions and Sales of Shares	-8.16	%	-1.87	%
Class C shares — Before Taxes	-10.12	%	0.64	%
Class R shares — Before Taxes	-9.61	%	1.18	%
Institutional Class shares — Before Taxes	-9.23	%	1.66	%
Institutional Service Class shares — Before Taxes	-9.23	%	1.66	%
FTSE World Europe Index (reflects no deduction for fees, expenses or taxes)	-5.57	%	8.32	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the European Equity Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Jeremy Whitley	Head of UK and European Equities	Inception
Edward Beal, CFA ®	Senior Investment Manager	Inception
Charles Luke	Senior Investment Manager	Inception
Ben Ritchie, CFA ®	Senior Investment Manager	Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

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INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

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Summary - Aberdeen Latin American Equity Fund

Aberdeen Latin American Equity Fund

Objective

The Aberdeen Latin American Equity Fund (the “Latin American Equity Fund” or the “Fund”) seeks long-term capital appreciation.

Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay when you buy and hold shares of the Latin American Equity Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Aberdeen Funds. More information about these and other discounts is available from your financial advisor and in the “Investing with Aberdeen Funds: Choosing a Share Class — Reduction and Waiver of Class A Sales Charges” section on page 185 of the Fund’s prospectus and in the “Additional Information on Purchases and Sales — Waiver of Class A Sales Charges” and “Reduction of Sales Charges” sections on pages 153-155 of the Fund’s Statement of Additional Information.

Shareholder Fees (fees paid directly from your investment)	Class A Shares		Class C Shares		Class R Shares		Institutional Class Shares		Institutional Service Class Shares
Maximum Sales Charge (Load) imposed upon purchases (as a percentage of offering price)	5.75	%	None		None		None		None
Maximum Deferred Sales Charge (Load) (as a percentage of offering or sale price, whichever is less)	1.00	%(1)	1.00	%	None		None		None
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)
Management Fees	1.10	%	1.10	%	1.10	%	1.10	%	1.10	%
Distribution and/or Service (12b-1) Fees	0.25	%	1.00	%	0.50	%	None		None
Other Expenses	3.27	%	3.27	%	3.27	%	3.27	%	3.27	%
Total Annual Fund Operating Expenses	4.62	%	5.37	%	4.87	%	4.37	%	4.37	%
Less: Amount of Fee Limitations/Expense Reimbursements(2)	3.07	%	3.07	%	3.07	%	3.07	%	3.07	%
Total Annual Fund Operating Expenses After Fee Limitations/Expense Reimbursements	1.55	%	2.30	%	1.80	%	1.30	%	1.30	%

(2) Aberdeen Funds (the “Trust”) and Aberdeen Asset Management Inc. (the “Adviser”) have entered into a written contract limiting operating expenses to 1.30% for all Classes of the Fund. This contractual limitation may not be terminated before February 29, 2016 without the approval of the Board of Trustees. This limit excludes certain expenses, including any taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, 12b-1 fees, administrative services fees and extraordinary expenses. The Trust is authorized to reimburse the Adviser for management fees previously limited and/or for expenses previously paid by the Adviser, provided, however, that any reimbursements must be paid at a date not more than three years after the fiscal year in which the Adviser limited the fees or reimbursed the expenses and the reimbursements do not cause a Class to exceed the applicable expense limitation in the contract at the time the fees were limited or expenses are paid.

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Example

This Example is intended to help you compare the cost of investing in the Latin American Equity Fund with the cost of investing in other mutual funds.

	1 Year		3 Years		5 Years		10 Years
Class A shares	$	724	$	1,628	$	2,539	$	4,848
Class C shares	$	333	$	1,332	$	2,423	$	5,115
Class R shares	$	183	$	1,189	$	2,198	$	4,733
Institutional Class shares	$	132	$	1,044	$	1,968	$	4,328
Institutional Service Class shares	$	132	$	1,044	$	1,968	$	4,328

You would pay the following expenses on the same investment if you did not sell your shares:

	1 Year		3 Years		5 Years		10 Years
Class C shares	$	233	$	1,332	$	2,423	$	5,115

Portfolio Turnover

The Latin American Equity Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 3.79% of the average value of its portfolio.

Principal Strategies

As a non-fundamental policy, under normal circumstances, the Fund will invest at least 80% of the value of its net assets in equity securities of Latin American companies. The Latin American region includes, but is not limited to, the following countries: Argentina, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, French Guyana, Guatemala, Guyana, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Suriname, Uruguay and Venezuela. Equity securities include, but are not limited to, common stock, preferred stock and depositary receipts. Latin American equity securities include securities that are issued by companies or other issuers that (i) are organized under the laws of, or have their principal office in, a Latin American country, (ii) have their principal securities trading market in a Latin American country, (iii) alone or on a consolidated basis derive the highest concentration of their annual revenue or earnings or assets from goods produced, sales made or services performed in Latin American countries; and/or (iv) issue securities denominated in the currency of a Latin American market.

If the Fund changes its 80% investment policy, it will notify shareholders at least 60 days before the change and, if necessary, will change the name of the Latin American Equity Fund.

The portion of the Fund’s assets not invested in equity securities of Latin American issuers may be, but is not required to be, invested in equity securities of companies that the Adviser and Subadviser expect will reflect developments in Latin America. The Fund intends to diversify its investments across a number of different countries. However, at times the Fund may invest a significant part of its assets in a single country. The Fund may invest without limit, and expects to invest a significant portion of its assets, in emerging market countries. The Fund may invest in securities denominated in U.S. Dollars and the currencies of the foreign countries in which it is permitted to invest. The Fund typically has full currency exposure to those markets in which it invests. In addition, the Fund may invest in securities of any market capitalization, including small and mid-cap securities.

The Latin American Equity Fund is non-diversified and may invest a significant portion of its assets in the securities of a single issuer or a small number of issuers.

Principal Risks

The Latin American Equity Fund cannot guarantee that it will achieve its investment objective.

As with any fund, the value of the Fund’s investments — and therefore, the value of Fund shares — may fluctuate. These changes may occur because of:

Emerging Markets Risk — A magnification of the risks that apply to foreign investments. These risks are greater for securities of companies in emerging

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markets countries because the countries may have less stable governments, more volatile currencies and less established markets (see “Foreign Securities Risk” below).

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments also may involve risks relating to the impact of currency exchange rate fluctuations; such risks may impact the Fund more greatly to the extent the Fund does not hedge its currency risk, or hedging techniques used by the Adviser are unsuccessful.

Latin American Risk . Latin American countries may be subject to a greater degree of political, sovereign and economic instability than is the case in the United States and Europe. Some Latin American countries can be characterized as emerging markets or newly industrialized and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Latin American region may lead to a lack of liquidity. The Fund may be more volatile than a fund which is broadly diversified geographically.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in those markets in which the Fund invests.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies.

Securities Selection Risk — The investment team may select securities that underperform the stock market or other funds with similar investment objectives and strategies.

Valuation Risk — The lack of active trading markets may make it difficult to obtain an accurate price for a security held by the Fund.

If the value of the Fund’s investments decreases, you may lose money.

For additional information regarding the above identified risks, see “Fund Details: Additional Information about Investments, Investment Techniques and Risks” in the prospectus.

Performance

The bar chart and table below can help you evaluate potential risks of the Latin American Equity Fund. The bar chart shows the Fund’s annual total return for Class A. The returns in the table reflect the maximum sales charge for Class A. The table compares the Fund’s average annual total returns to the returns of the MSCI EM Latin America 10/40 Index, a broad-based securities index. Remember, however, that past performance (before and after taxes) is not necessarily indicative of how the Fund will perform in the future. For updated performance information, please visit www.aberdeen-asset.us or call 866-667-9231.

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Annual Total Returns — Class A Shares

(Year Ended Dec. 31)

Highest Return: 6.01% - 2nd quarter 2014

Lowest Return: -15.80% - 2nd quarter 2013

Average Annual Total Returns

as of December 31, 2014

	1 Year		Since Inception (March 25, 2013)
Class A shares — Before Taxes	-20.19	%	-19.82	%
Class A shares — After Taxes on Distributions	-20.65	%	-20.29	%
Class A shares — After Taxes on Distributions and Sales of Shares	-11.38	%	-14.95	%
Class C shares — Before Taxes	-16.07	%	-17.74	%
Class R shares — Before Taxes	-15.61	%	-17.30	%
Institutional Class shares — Before Taxes	-15.14	%	-16.91	%
Institutional Service Class shares — Before Taxes	-15.24	%	-16.91	%
MSCI EM Latin America 10/40 Index (reflects no deduction for fees, expenses or taxes)	-12.03	%	-13.37	%

Investment Adviser

Aberdeen Asset Management Inc. (the “Adviser”) serves as the Latin American Equity Fund’s investment adviser and Aberdeen Asset Managers Limited (“AAML”) serves as the Fund’s subadviser.

Portfolio Managers

The Fund is managed using a team-based approach, with the following team members being jointly and primarily responsible for the day-to-day management of the Fund:

Name	Title	Served on the Fund Since
Devan Kaloo	Head of Global Emerging Markets	Inception
Nick Robinson, CFA ®	Director - Head of Brazilian Equities	Inception
Mark Gordon-James, CFA ®	Senior Investment Manager	Inception
Fiona Manning, CFA ®	Senior Investment Manager	Inception
Stephen Parr, CFA ®	Senior Investment Manager	Inception

Purchase and Sale of Fund Shares

The Fund’s minimum investment requirements are as follows:

CLASS A and CLASS C SHARES

To open an account	$	1,000
To open an IRA account	$	1,000
Additional investments	$	50
To start an Automatic Investment Plan	$	1,000
Additional Investments (Automatic Investment Plan)	$	50

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CLASS R SHARES

To open an account		No Minimum
Additional investments		No Minimum

INSTITUTIONAL CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

INSTITUTIONAL SERVICE CLASS SHARES

To open an account		$	1,000,000
Additional investments		No Minimum

Fund shares may be redeemed on each day that the New York Stock Exchange is open. Fund shares may be sold by mail or fax, by telephone or on-line.

Tax Information

Payments to Broker-Dealers and Other Financial Intermediaries

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Fund Details

Additional Information about Principal Strategies

Aberdeen Equity Long-Short Fund, Aberdeen Global Natural Resources Fund, Aberdeen Small Cap Fund, Aberdeen U.S. Equity Fund, Aberdeen China Opportunities Fund, Aberdeen International Equity Fund, Aberdeen Global Equity Fund, Aberdeen Asia-Pacific (ex-Japan) Equity Fund, Aberdeen Asia-Pacific Smaller Companies Fund, Aberdeen Emerging Markets Fund, Aberdeen Global Small Cap Fund, Aberdeen European Equity Fund and Aberdeen Latin American Equity Fund. Each Fund’s investment team employs a fundamental, bottom-up equity investment style (in the case of the Long-Short Fund, with respect to taking long positions), which is characterized by intensive, first-hand research and disciplined company evaluation. Stocks are identified for their long-term, fundamental value. The stock selection process contains two filters, first quality and then price. In the quality filter, the investment team seeks to determine whether the company is a business that has good growth prospects and a balance sheet that supports expansion, and they evaluate other business risks. In the price filter, the investment team assesses the value of a company by reference to standard financial ratios, and estimates the value of the company relative to its market price and the valuations of companies within a relevant universe. The investment team may sell a security when they perceive that a company’s business direction or growth prospects have changed or the company’s valuations are no longer attractive.

Aberdeen Emerging Markets Debt Local Currency Fund, Aberdeen Global Fixed Income Fund, Aberdeen Tax-Free Income Fund, Aberdeen Ultra-Short Duration Bond Fund and Aberdeen High Yield Fund. Each Fund’s investment team employs a fundamental, bottom-up investment process, which is characterized by intensive first-hand research that includes detailed evaluation of issuers and securities. Particularly for the global and non-US strategies, the teams also utilize internally developed macro views when constructing portfolios. Securities that are identified as potential purchase candidates are evaluated by the research team from two perspectives: fundamentals, and relative valuation (cheapness). The investment team will add a security only after it is determined that the issuer is fundamentally sound, and that the security’s valuation is attractive relative to other potential alternatives. Similarly, investments that achieve full valuation or are deemed to no longer be fundamentally sound are sold from portfolios and replaced by more attractive securities. There is continuous dialogue and sharing of research and information among all of the investment management professionals at the firm, including portfolio managers, research analysts and traders.

Aberdeen Asia Bond Fund. A fundamental top-down analysis is the foundation of the Adviser’s and Subadviser’s investment process for the Fund. The investment team follows a disciplined investment process that ensures the fundamental analysis is complemented by market and issuer research. Only after thorough independent research does the investment team form a basis for investment decisions. T he investment team focuses on longer-term cyclical and structural investment themes to uncover opportunities across the diverse Asian fixed income strategies of interest rate, credit and currency, with the aim of delivering superior risk adjusted returns.

Aberdeen Emerging Markets Debt Fund. A fundamental top-down analysis is the foundation of the Adviser’s and Subadviser’s investment process for the Fund. The portfolio management team follows a disciplined investment process that applies intensive fundamental research into investment recommendations, portfolio construction, and risk management. The process is designed to seek to highlight total return opportunities across all emerging debt markets.

Funds of Funds. The Funds’ investment team employs a fund-of-funds approach categorized by first-hand due diligence that includes detailed evaluation of investment vehicles and their investment managers, in order to determine their suitability to provide exposure to a chosen asset class. On-going due diligence is a key element of the investment team’s process and includes monitoring factors such as consistent adherence to the investment process, style drift, strategy capacity and the manager’s commitment to the fund, along with exogenous factors such as market conditions. The investment team develops its strategic asset class allocation views across a broad range of asset classes based on its continuing analysis of global financial markets and macro-economic conditions.

The Diversified Income Fund allocates its assets among a wide range of asset classes in a dynamic way to capture income from a variety of sources. The types of asset classes utilized may include, but are not necessarily limited to, U.S. and international equities (including emerging market equities), U.S. and international bonds (including emerging market bonds), preferred securities, floating rate loans and real estate. Asset classes are selected primarily based on their income-generating potential, without regard to the source of income, although diversification benefits and potential for capital appreciation may also be considered.

The Dynamic Allocation Fund allocates its assets among a wide range of asset classes in a dynamic way to capture return from a variety of sources. The types of asset classes utilized may include, but are

129

not necessarily limited to, U.S. and international equities (including emerging market equities), U.S. and international bonds (including emerging market bonds) and real estate. Asset classes are selected primarily based on their diversification benefits and potential for capital appreciation.

The Diversified Alternatives Fund allocates its assets among a variety of non-traditional or alternative asset classes in a dynamic way to capture diversifying returns from these non-traditional or alternative sources. The Fund’s exposures may include, but are not necessarily limited to, industry sector equity strategies, long-short strategies, foreign currency trading strategies, floating rate bank loans, emerging market equities, emerging market bonds, managed futures strategies, Real Estate Investment Trusts (“REITs”) and other non-core investments. The Fund seeks to provide a return that has lower volatility than traditional core asset classes (i.e., U.S. large cap equity and investment grade bonds) by combining several non-traditional or alternative asset class exposures in measured amounts.

Split Ratings. In the event that a security receives different ratings from different NRSROs, unless specific disclosure in the Fund’s summary provides otherwise, the Adviser treats the security as being rated in the lowest rating category received from an NRSRO. For certain Funds that invest primarily in below investment-grade securities, this could result in such a Fund holding a portion of its assets in securities that have received an investment-grade rating from one or more NRSROs. For the Aberdeen Ultra-Short Duration Bond Fund, in the event that a security receives different ratings from different NRSROs, the Adviser treats the security as being rated in the highest rating category received from an NRSRO. This could result in the Fund purchasing assets in securities that have a below investment grade rating from one or more NRSROs.

The investment objective of each Fund is not fundamental and may be changed by the Board of Trustees without shareholder approval.

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Additional Information about Investments, Investment Techniques and Risks (except for the Funds-of-Funds and Underlying Funds)

The principal investments and principal risks of each Fund are disclosed in each Fund’s Summary section. The Funds may invest in certain additional investments and may be subject to various additional risks. The table below shows some of the principal and non-principal investment methods and securities that each Fund may use and the paragraphs that follow provide more information on these instruments and the related risks. The Underlying Funds in which the Diversified Income Fund, Dynamic Allocation Fund and Diversified Alternatives Fund (the “Funds-of-Funds”) may invest may also invest in certain of these investments and are also subject to certain of these risks. The Statement of Additional Information also contains information on additional investments in which each Fund may invest to a lesser degree and additional risks to which each Fund may be subject.

Long-
Short
Fund

Global
Natural
Resources
Fund

Small
Cap
Fund

Emerging
Markets
Fund

U.S.
Equity
Fund

China Fund

International
Equity Fund

Global
Equity
Fund

European
Equity
Fund

Latin
American
Equity
Fund

Concentration Risk

Convertible Securities

Counterparty or Third Party Risk

Country/Regional Focus Risk

Custody/Sub-Custody Risk

Depositary Receipts

Derivatives Risk

Emerging Markets Risk

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Long-
Short
Fund

Global
Natural
Resources
Fund

Small
Cap
Fund

Emerging
Markets
Fund

U.S.
Equity
Fund

China Fund

International
Equity Fund

Global
Equity
Fund

European
Equity
Fund

Latin
American
Equity
Fund

Equity-Linked Notes

Event Risk

Focus Risk

Foreign Currency Exposure Risk

Foreign Securities Risk

Illiquid Securities

Impact of Large Redemptions and Purchases of Fund Shares

Issuer Risk

Leverage Risk

Long-Short Strategy Risk

Management Risk

Market Events Risk

132

Long-
Short
Fund

Global
Natural
Resources
Fund

Small
Cap
Fund

Emerging
Markets
Fund

U.S.
Equity
Fund

China Fund

International
Equity Fund

Global
Equity
Fund

European
Equity
Fund

Latin
American
Equity
Fund

Market Risk

Mid-Cap Securities Risk

Natural Resources Industry Risk

Non-Diversified Fund Risk

Preferred Stock

Private Placements and Other Restricted Securities

REIT and Real Estate Risk

Repurchase Agreements

Rights Issues and Warrants

Sector Risk

Securities Selection Risk

133

Short Sale Risk

Small-Cap Securities Risk

Temporary Investments

Valuation Risk

134

Asia
Bond
Fund

Asia-
Pacific
Equity
Fund

Asia-
Pacific
Smaller
Companies
Fund

Emerging
Markets
Debt
Fund

Emerging
Markets
Debt
Local
Currency
Fund

Global
Fixed
Income
Fund

High
Yield
Fund

Global
Small
Cap
Fund

Tax-
Free
Income
Fund

Ultra-
Short
Duration
Bond
Fund

Active Trading Risk

Asset-Backed Securities

Bank Loans

Bank Loan Risk

Bank Obligations

Call and Redemption Risk

Convertible Securities

Corporate Bonds

Counterparty or Third Party Risk

Country/Regional Focus Risk

Credit Default Swap Risk

Credit Risk

Custody/Sub-Custody Risk

135

Depositary Receipts

Derivatives Risk

· (futures only)

Emerging Markets Risk

Event Risk

Extension Risk

Fixed Income Securities

Focus Risk

Foreign Currency Exposure Risk

Foreign Government Securities Risk

Foreign Securities Risk

High-Yield Bonds and Other Lower-Rated Securities Risk

Illiquid Securities

Impact of Large Redemptions and Purchases of Fund Shares

136

Impact of Sub-Prime Mortgage Market

Inflation Risk

Interest Rate Risk

Investment-Grade Debt Securities

Issuer Risk

Management Risk

Market Events Risk

Market Risk

Mid-Cap Securities Risk

Mortgage-Backed Securities

Mortgage-Related Securities Risk

Municipal Securities

Non-Diversified Fund Risk

137

Non-Hedging Foreign Currency Trading Risk

Preferred Stock

Prepayment Risk

Private Placements and Other Restricted Securities

REIT and Real Estate Risk

Repurchase Agreements

Rights Issues and Warrants

Sector Risk

Securities Selection Risk

Small-Cap Securities Risk

Structured Instruments

Temporary Investments

U.S. Government Securities Risk

138

Valuation Risk

When-Issued Securities and Forward Commitments

Zero Coupon Bonds

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Active Trading Risk — A Fund that engages in active and frequent trading of portfolio securities, which would result in a higher portfolio turnover rate, may incur increased costs, which can lower the actual return of the Fund. Active trading or high portfolio turnover may also increase short term gains and losses, which may affect taxes that must be paid.

Asset-Backed Securities —The Ultra-Short Bond Fund will not invest in asset-backed securities with residential credit exposure. Like traditional fixed income securities, the value of asset-backed securities typically increases when interest rates fall and decreases when interest rates rise. Certain asset-backed securities may also be subject to the risk of prepayment. In a period of declining interest rates, borrowers may pay what they owe on the underlying assets more quickly than anticipated. Prepayment reduces the yield to maturity and the average life of the asset-backed securities. In addition, when a Fund reinvests the proceeds of a prepayment, it may receive a lower interest rate. In a period of rising interest rates, prepayments may occur at a slower rate than expected. As a result, the average maturity of a Fund’s portfolio may increase. Prepayments also vary based on, among other factors, general economic conditions and other demographic conditions. The value of longer term securities generally changes more in response to changes in interest rates than shorter term securities. Asset-backed securities present credit risks that are not presented by mortgage-backed securities. This is because asset-backed securities generally do not have the benefit of a security interest in collateral that is comparable to mortgage assets. If the issuer of an asset-backed security defaults on its payment obligations, there is the possibility that, in some cases, a Fund will be unable to possess and sell the underlying collateral and that a Fund’s recoveries on repossessed collateral may not be available to support payments on the securities. In the event of a default, a Fund may suffer a loss if it cannot sell collateral quickly and receive the amount it is owed. The risk of default by borrowers is greater during periods of rising interest rates and/or unemployment rates. In addition, instability in the markets for asset-backed securities may affect the liquidity of such securities, which means a Fund may be unable to sell such securities at an advantageous time and price. As a result, the value of such securities may decrease and a Fund may incur greater losses on the sale of such securities than under more stable market conditions. Furthermore, instability and illiquidity in the market for lower-rated asset-backed securities may affect the overall market for such securities thereby impacting the liquidity and value of higher-rated securities.

Asset-backed securities may also be structured as pools of assets whose cash flows are “passed through” to the holders of the securities via monthly payments of interest and principal, similar to mortgage-backed securities (referred to as “Other Asset-Backed Securities”). A Fund may invest in a variety of Other Asset-Backed securities which may be subject to additional risks.

At times, instability in the markets for fixed income securities, particularly Other Asset-Backed Securities, may significantly decrease the liquidity of portfolios that invest in Other Asset-Backed Securities. In the event of redemptions, a Fund that invests in Other Asset-Backed Securities may be unable to sell these portfolio securities at a fair price. As a result of this illiquidity, a Fund may incur a greater loss on the sale of such securities than under more stable market conditions. Such losses can impact a Fund’s performance.

Bank Loans — Bank loans include floating and fixed-rate debt obligations. Floating rate loans are debt obligations issued by companies or other entities with floating interest rates that reset periodically. Floating rate loans are secured by specific collateral of the borrower and are senior to most other securities of the borrower (e.g., common stock or debt instruments) in the event of bankruptcy. Floating rate loans are often issued in connection with recapitalizations, acquisitions, leveraged buyouts, and refinancings. Floating rate loans are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the floating rate loan. Floating rate loans may be acquired directly through the agent, as an assignment from another lender who holds a direct interest in the floating rate loan, or as a participation interest in another lender’s portion of the floating rate loan.

Bank Loan Risk — There are a number of risks associated with an investment in bank loans including credit risk, interest rate risk, illiquid securities risk, and prepayment risk. There is also the possibility that the collateral securing a loan, if any, may be difficult to liquidate or be insufficient to cover the amount owed under the loan. These risks could cause a Fund to lose income or principal on a particular investment, which in turn could affect the Fund’s returns.

Bank Obligations — Bank obligations are obligations issued or guaranteed by U.S. or foreign banks. Bank obligations, including without limitation, time deposits, bankers’ acceptances and certificates of deposit, may be general obligations of the parent bank or may be limited to the issuing branch by the terms of the specific obligations or by government regulations. Banks are subject to extensive but different governmental regulations which may limit both the amount and types of loans which may be made and interest rates which may be charged. General economic conditions as well as exposure to credit losses arising from possible financial difficulties of borrowers play an important part in the operation of the banking industry.

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Concentration Risk — Some of the Funds are concentrated, which means they invest 25% or more of their total assets in a group of companies in one or more industry groups. To the extent that a Fund concentrates its securities in one or more sectors or industries, the Fund may be especially susceptible to factors affecting those industries, including:

· government regulation;

· economic cycles;

· rapid change in products or services; or

· competitive pressures.

Convertible Securities — Convertible securities are generally debt securities or preferred stocks that may be converted into common stock. Convertibles typically pay current income as either interest (debt security convertibles) or dividends (preferred stocks). A convertible’s value usually reflects both the stream of current income payments and the value of the underlying common stock. The market value of a convertible performs like that of a regular debt security, that is, if market interest rates rise, the value of a convertible usually falls. Since it is convertible into common stock, the convertible also has the same types of market and issuer risk as the underlying common stock.

Corporate Bonds — Corporate bonds are debt instruments issued by domestic or foreign corporations or similar entities.

Counterparty or Third Party Risk — Transactions involving a counterparty other than the issuer of the instrument, or a third party responsible for servicing the instrument, are subject both to the credit risk of the counterparty or third party, and to the counterparty’s or third party’s ability to perform in accordance with the terms of the transaction.

The primary risk of swap transactions is the creditworthiness of the counterparty, since the integrity of the transaction depends on the willingness and ability of the counterparty to maintain the agreed-upon payment stream. If there is a default by a counterparty in a swap transaction, a Fund’s potential loss is the net amount of payments the Fund is contractually entitled to receive for one payment period (if any, the Fund could be in a net payment position), not the entire notional amount, which does not change hands in a swap transaction. Swaps do not involve the delivery of securities or other underlying assets or principal as collateral for the transaction. A Fund may have contractual remedies pursuant to the swap agreement but, as with any contractual remedy, there is no guarantee that a Fund would be successful in pursuing them—the counterparty may be judgment proof due to insolvency, for example. The Fund thus assumes the risk that it may be delayed or prevented from obtaining payments owed to it. The standard industry swap agreements do, however, permit a Fund to terminate a swap agreement (and thus avoid making additional payments) in the event that a counterparty fails to make a timely payment to the Fund.

Country/Regional Focus Risk — In the event that a Fund’s investments focus on a single country or geographical region, the Fund would be exposed to increased currency, political, regulatory and other risks. Market swings in the targeted country or geographical region likely will have a greater effect on portfolio performance than they would in a fund with a wider geographical allocation.

Credit Default Swap Risk — Certain Funds may buy or sell credit default swaps. Credit default swap contracts, a type of derivative instrument, involve special risks and may result in losses to a Fund. Credit default swaps may in some cases be illiquid, and they increase credit risk since the Fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap. Swaps may be difficult to unwind or terminate. The swap market could be disrupted or limited as a result of recent legislation, and these changes could adversely affect the Fund. As a seller in a credit default swap contract, the Fund pays the par (or other agreed-upon) value of a referenced debt obligation to the counterparty in the event of a default (or similar event) by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, the Fund receives from the counterparty a periodic stream of payments over the term of the contract, provided that no event of default (or similar event) occurs. The Fund effectively adds economic leverage to its portfolio because, in addition to its total net assets, the Fund is subject to investment exposure on the notional amount of the swap.

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Because the issuers of high-yield bonds or junk bonds (bonds rated below the fourth highest category) may be in uncertain financial health, the prices of these bonds may be more vulnerable to bad economic news or even the expectation of bad news, than investment-grade bonds. In some cases, bonds, particularly high-yield bonds, may decline in credit quality or go into default. Because a Fund may invest in securities not paying current interest or in securities already in default, these risks may be more pronounced. Fixed income securities are not traded on exchanges. The over-the-counter market may be illiquid, and there may be times when no counterparty is willing to purchase or sell certain securities. The nature of the market may make valuations difficult or unreliable.

Custody/Sub-Custody Risk — To the extent that a Fund invests in markets where custodial and/or settlement systems are not fully developed, there may be very limited regulatory oversight of certain foreign banks or securities depositories that hold foreign securities and foreign currency. The laws of certain countries may limit the ability to recover such assets if a foreign bank or depository or their agents goes bankrupt and the assets of a Fund may be exposed to risk in circumstances where the custodian/sub-custodian or Adviser will have no liability.

Depositary Receipts — Depositary receipts typically issued by a bank or trust company, represent the ownership of underlying securities that are issued by a foreign company and held by the bank or trust company. American Depositary Receipts (“ADRs”) are usually issued by a U.S. bank trust or trust company and traded on a U.S. exchange. Global Depositary Receipts (“GDRs”) may be issued by institutions located anywhere in the world and traded in any securities market. European Depositary Receipts (“EDRs”) are issued in Europe and used in bearer form in European markets.

Depositary receipts may or may not be jointly sponsored by the underlying issuer. The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Certain depositary receipts are not listed on an exchange and therefore may be considered to be illiquid securities.

Derivatives Risk — A Fund may invest in financial derivative instruments and/or utilize techniques and instruments for hedging and/or investment purposes, efficient portfolio management and/or to manage foreign exchange risks. Derivatives are financial instruments, whose values are derived from another security, a commodity (such as gold or oil), an index or a currency (a measure of value or rates, such as the S&P 500 ® Index or the prime lending rate).

Derivatives include the purchase and sale of futures contracts, forward contracts, non-deliverable forwards, swaps, options, warrants and structured notes.

Futures contracts commit the parties to a transaction at a time in the future at a price determined when the transaction is initiated. Futures and options on futures are exchange-traded contracts that enable a Fund to hedge against or speculate on future changes in currency values, interest rates or stock indexes. Futures obligate a Fund (or give it the right, in the case of options) to receive or make payment at a specific future time based on those future changes. Futures contracts are traded through regulated exchanges and are “marked to market” daily.

Forward contracts are obligations to purchase or sell an asset or, most commonly, a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Forward foreign currency contracts are the primary means of hedging currency exposure.

Options are instruments that provide a right to buy (call) or sell (put) a particular security or an index of securities at a fixed price within a certain time period. Options differ from forward and futures contracts in that the buyer of the option has no obligation to perform under the contract. An option is out-of-the-money if the exercise price of the option is above, in the case of a call option, or below, in the case of a put option, the current price (or interest rate or yield for certain options) of the referenced security or instrument. Use of put and call options may result in losses to a Fund, force the sale or purchase of portfolio securities at inopportune times or for prices higher than (in the case of put options) or lower than (in the case of call options) current market values, limit the amount of appreciation a Fund can realize on its investments or cause a Fund to hold a security it might otherwise sell.

A non-deliverable forward is an outright forward or futures contract in which counterparties settle the difference between the contracted non-deliverable forward price or rate and the prevailing spot price or rate on an agreed notional amount. They are used in various markets such as foreign exchange and commodities. Non-deliverable forwards are prevalent in some countries where forward contract trading has been banned or constrained by the government.

A swap is an agreement between two parties to exchange the proceeds of certain financial instruments or components of financial instruments. Parties may exchange streams of interest rate

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payments, principal denominated in two different currencies, or virtually any payment stream as agreed to by the parties. A credit default swap is a credit derivative contract between two counterparties. The buyer makes periodic payments to the seller, and in return receives protection if an underlying financial instrument defaults. Interest rate swaps involve the exchange by a Fund with another party of its respective commitments to pay or receive interest, such as an exchange of fixed-rate payments for floating rate payments. Credit swaps involve the receipt of floating or fixed rate payments in exchange for assuming potential credit losses on an underlying security. Currency swaps involve the exchange of the parties’ respective rights to make or receive payments in specified currencies. A Fund may also purchase and write (sell) options contracts on swaps, commonly referred to as swaptions. A swaption is an option to enter into a swap agreement.

Warrants are securities that give the holder the right, but not the obligation, to purchase securities from an issuer at a fixed price within a certain time frame. Interest rate warrants are rights that are created by an issuer, typically a financial institution, entitling the holder to purchase, in the case of a call, or sell, in the case of a put, a specific bond issue or an interest rate index at a certain level over a fixed time period that can typically be exercised in the underlying instrument or settled in cash. Structured notes are securities for which the amount of principal repayments and/or interest payments is based upon the movement of one or more “factors.” These factors include, but are not limited to, currency exchange rates, interest rates (such as the prime lending rate and LIBOR), a single security, basket of securities, indices (such as the S&P 500 ® Index) and commodities.

Derivatives may be used for a wide variety of purposes, including, but not limited to, the following:

(i) to manage a Fund’s interest rate, credit and currency exposure;

(ii) as a substitute for taking a position in the underlying asset (where a Fund’s Adviser or Subadviser, as the case may be, believes that a derivative exposure to the underlying asset represents better value than a direct exposure);

(iii) to gain an exposure to the composition and performance of a particular index; and

(iv) to take short positions via derivatives in securities, interest rates, credits, currencies and markets.

In addition to the use of financial derivatives instruments, a Fund may also employ other techniques for efficient portfolio management, such as reverse repurchase transactions.

Without limiting the generality of the foregoing, a Fund’s Adviser or Subadviser may alter the currency exposure of the Fund, solely through the use of derivative contracts (without buying or selling underlying transferable securities or currencies). The base currency of each Fund is U.S. Dollars. Performance may be strongly influenced by movements in currency rates because a Fund may have exposure to a particular currency that is different from the value of the securities denominated in that currency held by the Fund. Furthermore, a Fund’s portfolio may be fully or partially hedged back to the base currency if, in the opinion of the Fund’s adviser or sub-adviser, this is believed to be appropriate.

Derivatives are speculative and may hurt a Fund’s performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from a Fund’s options, futures and derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual equity or debt securities, and there can be no assurance that the use of this strategy will be successful. Some additional risks of investing in derivatives include:

· the other party to the derivatives contract may fail to fulfill its obligations;

· their use may reduce liquidity and make a Fund harder to value, especially in declining markets;

· a Fund may suffer disproportionately heavy losses relative to the amount invested; and

· changes in the value of derivatives may not match or fully offset changes in the value of the hedged portfolio securities, thereby failing to achieve the original purpose for using the derivatives.

Speculative Exposure Risk — To the extent that a derivative or practice is not used as a hedge, a Fund is directly exposed to its risks. Gains or losses from speculative positions in a derivative may be much greater than the derivative’s original cost. For example, potential losses from writing uncovered call options on currencies and from speculative short positions on currencies are unlimited.

Hedged Exposure Risk — Losses generated by a derivative or practice used by a Fund for hedging purposes should be substantially offset by gains on the hedged investment. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

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Correlation Risk — A Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation are not yet known and may not be known for some time. New regulation of derivatives may make them more costly, may limit their availability, or may otherwise adversely affect their value or performance.

Emerging Markets Risk — The risks of investing in foreign securities are increased in connection with investments in emerging markets. Emerging markets are countries generally considered to be relatively less developed or industrialized. Emerging markets often face economic problems that could subject a Fund to increased volatility or substantial declines in value. Deficiencies in regulatory oversight, market infrastructure, shareholder protections and company laws could expose a Fund to risks beyond those generally encountered in developed countries. In addition, profound social changes and business practices that depart from norms in developed countries’ economies have hindered the orderly growth of emerging economies and their markets in the past and have caused instability. High levels of debt tend to make emerging economies heavily reliant on foreign capital and vulnerable to capital flight. Countries in emerging markets are also more likely to experience high levels of inflation, deflation or currency devaluation, which could also hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative.

Equity-Linked Notes — The China Fund, the European Equity Fund and the Latin American Equity Fund may invest in equity-linked notes, which are generally subject to the same risks as the foreign equity securities or the basket of foreign securities they are linked to. Upon the maturity of the note, the holder generally receives a return of principal based on the capital appreciation of the linked security(ies). If the linked security(ies) declines in value, the note may return a lower amount at maturity. The trading price of an equity-linked note also depends on the value of the linked security(ies). Equity-linked notes involve further risks associated with:

· purchases and sales of notes, including the possibility that exchange rate fluctuations may negatively affect the value of a note and

· the credit quality of the note’s issuer.

Equity-linked notes are frequently secured by collateral. If an issuer defaults, the Fund would look to any underlying collateral to recover its losses. Ratings of issuers of equity-linked notes refer only to the issuer’s creditworthiness and the related collateral. They provide no indication of the potential risks of the linked securities.

Event Risk — Event risk is the risk that a corporate event such as a restructuring, merger, leveraged buyout, takeover, or similar action may cause a decline in market value or credit quality of the issuer’s stocks or bonds due to factors including an unfavorable market response or a resulting increase in the issuer’s debt. Added debt may significantly reduce the credit quality and market value of an issuer’s bonds.

Extension Risk — Extension risk is the risk that principal repayments will not occur as quickly as anticipated, causing the expected maturity of a security to increase. Rapidly rising interest rates may cause prepayments to occur more slowly than expected, thereby lengthening the maturity of the securities held by a Fund and making their prices more sensitive to rate changes and more volatile.

Fixed Income Securitie s — Fixed income securities include fixed, variable and floating rate bonds, debentures, notes, mortgage-backed securities and asset-backed securities. Investments in fixed income securities (“debt securities”) may include investments in below-investment grade fixed income securities, which are generally referred to as “high yield securities” or “junk bonds”. Descriptions of the ratings used by S&P and Moody’s are included in the Statement of Additional Information (“SAI”).

Focus Risk — To the extent that a Fund invests a greater proportion of its assets in the securities of a smaller number of issuers, the Fund may be subject to greater volatility with respect to its investments than a fund that invests in a larger number of securities.

Foreign Currency Exposure Risk — Funds that invest in securities that trade in, or receive revenues in, foreign currencies are subject to the risk that those currencies may fluctuate in value relative to the U.S. Dollar. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the U.S. or abroad. These risks may impact a Fund more greatly to the extent the Fund does not hedge its currency risk. To manage currency risk, a Fund may enter into foreign currency exchange contracts to hedge against a decline in the U.S. Dollar value of a security it already owns or against an increase in the value of an asset it expects to

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purchase. Not all Funds hedge currency risk. In addition, the Adviser’s use of hedging techniques does not eliminate exchange rate risk. In certain circumstances, the Adviser may hedge using a foreign currency other than the currency which the portfolio securities being hedged are denominated. This type of hedging entails greater risk because it is dependent on a stable relationship between the two currencies paired in the hedge and the relationship can be very unstable at times. If the Adviser is unsuccessful in its attempts to hedge against exchange rate risk, the Fund could be in a less advantageous position than if the Adviser did not establish any currency hedge. The Adviser may also employ strategies to increase a Fund’s exposure to certain currencies, which may result in losses from such currency positions. When deemed appropriate by the Adviser, the Adviser may from time to time seek to reduce foreign currency risk by hedging some or all of a Fund’s foreign currency exposure back into the U.S. Dollar. Losses on foreign currency transactions used for hedging purposes may be offset by gains on the assets that are the subject of a Fund’s hedge. Certain Funds may also purchase a foreign currency on a spot or forward basis in order to obtain potential appreciation of such currency relative to U.S. Dollar or to other currencies in which a Fund’s holdings are denominated (see “Non-Hedging Foreign Currency Trading Risk” for more detail). Losses on such transactions may not be offset by gains from other Fund assets.

A Fund’s gains from its positions in foreign currencies may accelerate and/or recharacterize the Fund’s income or gains at the Fund level and its distributions to shareholders. A Fund’s losses from such positions may also recharacterize the Fund’s income and its distributions to shareholders and may cause a return of capital to Fund shareholders.

To the extent a foreign government limits or causes delays in the convertibility or repatriation of its currency, this will adversely affect the U.S. dollar value and/or liquidity of investments denominated in that currency. Such actions could severely affect security prices, impair a Fund’s ability to purchase or sell foreign securities or transfer the Fund’s assets back into the U.S., or otherwise adversely affect the Fund’s operations.

Foreign Government Securities Risk — Debt securities issued by foreign governments are often supported by the full faith and credit of the foreign governments. These foreign governments may permit their subdivisions, agencies or instrumentalities to have the full faith and credit of the foreign governments. The issuer of foreign government securities may be unwilling or unable to pay interest or repay principal when due. A government entity’s willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, political or economic changes, its cash flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the governmental entity’s policy toward the International Monetary Fund, and the political constraints to which a governmental entity may be subject. A Fund may have limited recourse to compel payment in the event of a default. Periods of economic uncertainty may result in the illiquidity and increased price volatility of a foreign government’s debt securities. A foreign government’s default on its debt securities may cause the value of securities held by a Fund to decline significantly.

Foreign Securities Risk — The Funds use various criteria to determine which country is deemed to have issued the securities in which the Funds invest. Because issuers often have activities and operations in several different countries, an issuer could be considered a non-U.S. issuer even though changes in the value of its securities held by a Fund are significantly impacted by its U.S. activities. Similarly, an issuer could be classified as a U.S. issuer even when the changes in the value of the issuer’s securities held by a Fund are significantly impacted by non-U.S. activities. Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments involve some of the following risks as well:

· political and economic instability;

· the impact of currency exchange rate fluctuations;

· reduced information about issuers;

· higher transaction costs;

· less stringent regulatory and accounting standards; and

· delayed settlement.

Additional risks include the possibility that a foreign jurisdiction might impose or increase withholding taxes on income payable with respect to foreign securities; the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which a Fund could lose its entire investment in a certain market); and the possible adoption of foreign governmental restrictions such as exchange controls. The risks of investing in foreign securities are increased in connection with investments in emerging markets. See “Emerging Markets Risk” above.

Asian Risk. Certain Funds may invest their assets in Asian securities, and those Funds may be subject to general economic and political conditions in Asia. Certain Funds may invest a significant portion of their assets in Asian securities, and those Funds may be more volatile than a fund which is broadly diversified geographically. The Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Many Asian countries can be characterized as emerging markets or newly industrialized and tend to experience more volatile economic cycles than developed countries and are subject to the risks described above under “Emerging Markets Risk”. Many countries in Asia have historically experienced political uncertainty, corruption, military intervention and social unrest. A Fund that focuses its investments in Asia, or the Asia-Pacific region, may be more volatile than a fund which is broadly diversified geographically. Additional

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factors relating to Asia that an investor in a Fund should consider include the following:

· Investing in Asian companies could be adversely affected by major hostilities in the area. If a military conflict or the perception of such a conflict occurs, it could affect many aspects of the region’s economy, which may subject a Fund to increased volatility and substantial declines in value.

· Many Asian countries are dependent on the economies of the United States and Europe as key trading partners. Reduction in spending on products and services or changes in the U.S. or European economies or their relationships with countries in the region may cause an adverse impact on the regional economy, which may have a negative impact on a Fund’s investment portfolio and share price.

· Most of the securities markets of Asia have substantially less volume than the New York Stock Exchange, and equity securities of most companies in Asia are less liquid and more volatile than equity securities of U.S. companies of comparable size.

· Asia has historically depended on oil for most of its energy requirements. Almost all of its oil is imported. In the past, oil prices have had a major impact on the Asian economy.

· The Asian region has in the past experienced earthquakes, mud slides and tidal waves of varying degrees of severity (e.g., tsunami), and the risks of such phenomena, and the damage resulting from natural disasters, continue to exist.

For a more detailed analysis and explanation of the specific risks of investing in Asia, please see “Foreign Securities (including Developing Countries) - Asian Risk” in the SAI.

China Risk. In addition to the risks listed above under “Emerging Markets Risk,” “Foreign Securities Risk” and “ - Asian Risk ,” investing in China presents additional risks. Concentrating investments in China and Hong Kong may make a Fund significantly more volatile than geographically diverse mutual funds. Additional risks associated with investments in China and Hong Kong include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage) and differing legal standards. Inflation and rapid fluctuations in inflation and interest rates have had, and may continue to have, negative effects on the economies and securities markets of China or Hong Kong. The Chinese government could, at any time, alter or discontinue economic reform programs implemented since 1978. Military conflicts, either in response to internal social unrest or conflicts with other countries, are an ever present consideration. The adoption or continuation of protectionist trade policies by one or more countries (including the U.S.) could lead to decreased demand for Chinese products and have an adverse effect on the Chinese securities markets.

Exposure to China may be gained through investments in securities that are economically tied to China or, in some cases, through direct investment in China securities (described below under “ — Direct China Securities ”). For a more detailed analysis and explanation of the specific risks of investing in China, please see “Foreign Securities (including Developing Countries) — Investing in China” in the SAI.

Direct China Securities. Historically, direct investments in foreign investments in stocks, bonds and warrants listed and traded on a Mainland China stock exchange, investment companies, and other financial instruments approved by the Chinese regulators (collectively referred to as “China Securities”) were not eligible for investment by non-Chinese investors. AAMAL has been granted a qualified foreign institutional investor (“QFII”) license, which allows AAMAL to invest in China Securities for its clients. AAMAL is authorized to invest in China Securities for all of its clients only up to a specified quota established by the Chinese regulators (the “Quota”). The China Opportunities Fund and the Asia Bond Fund (collectively, the “China Investor Funds”) invest in China Securities directly, together with other AAMAL clients, subject to the Quota granted to AAMAL.

Once the entire Quota is invested in China Securities, aggregate investment capital and profits may not be repatriated for a minimum of one year. As long as this limitation applies, the China Securities will be subject to the China Investor Funds’ limits on investing in illiquid securities. Despite this limitation, individual China Securities held by the China Investor Funds may be bought and sold, as long as the aggregate amount invested in China Securities by AAMAL clients, including the China Investor Funds, at least equals the Quota. There can be no guarantee that another AAMAL client would increase its China Securities exposure at a time when a China Investor Fund wished to decrease its exposure. Net realized profits may not currently be repatriated until the completion of an audit by a registered accountant in

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China, payment of all applicable taxes and approval by the Chinese State Administration of Foreign Exchange (SAFE). Repatriation of principal would generally result in a reduction in AAMAL’s Quota, with no new infections of principal being permitted without AAMAL applying for and obtaining a new Quota, which cannot be guaranteed.

Although China law permits the use of nominee accounts for clients of investment managers who are QFIIs, the Chinese regulators require the securities trading and settlement accounts to be maintained in the name of the QFII. The China Investor Funds have been advised that, as a matter of Chinese law, the assets belong to the relevant client and not the QFII license-holder. There is a risk that creditors of AAMAL may assert that AAMAL is the legal owner of the securities and other assets in the accounts. Nonetheless, if a court upholds a creditor’s assertion that the QFII assets belong to AAMAL as license-holder, then creditors of AAMAL could seek payment from the China Investor Funds’ investments in China Securities. For more information, please see “Investing in China” in the SAI.

Latin American Risk. The economies in Latin America are considered emerging market economies and are subject to the risks listed above under “Emerging Markets Risk”. Investing in Latin America imposes risks greater than, or in addition to, the risks of investing in more developed foreign markets. Latin American countries may be subject to a greater degree of political, sovereign and economic instability and may experience more volatile economic cycles than developed countries. The developing nature of securities markets in many countries in the Latin American region may lead to a lack of liquidity. Specifically, most economies in Latin America have historically been characterized by high levels of inflation, including, in some cases, hyperinflation and currency devaluations. In the past, these conditions have led to high interest rates, extreme measures by governments to limit inflation, and limited economic growth. Although inflation in many countries has lessened, the economies of the Latin American region continue to be volatile and characterized by high interest rates and unemployment. In addition, the economies of many Latin American countries are sensitive to fluctuations in commodities prices because exports of agricultural products, minerals and metals represent a significant percentage of Latin American exports. As a result, a Fund heavily invested in Latin America may be more volatile than a fund which is broadly diversified geographically. For a more detailed analysis and explanation of the specific risks of investing in Latin America, please see “Foreign Securities (including Developing Countries) — Latin America” in the SAI.

Europe — Recent Events Risk. A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within and outside Europe.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro, the common currency of the European Union, and/or withdraw from the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching . Whether or not a Fund invests in securities of issuers located in Europe or with significant exposure to European issuers or countries, these events could negatively affect the value and liquidity of a Fund’s investments.

High-Yield Bonds and Other Lower-Rated Securities Risk — A Fund’s investments in high-yield bonds (commonly referred to as “junk bonds”) and other lower-rated securities will subject the Fund to substantial risk of loss. Investments in high-yield bonds are speculative and issuers of these securities are generally considered to be less financially secure and less able to repay interest and principal than issuers of investment-grade securities. Prices of high-yield bonds tend to be very volatile. These securities are less liquid than investment-grade debt securities and may be difficult to price or sell, particularly in times of negative sentiment toward high-yield securities. A Fund’s investments in lower-rated securities may involve the following specific risks:

· greater risk of loss due to default because of the increased likelihood that adverse economic or company specific events will make the issuer unable to pay interest and/or principal when due;

· wider price fluctuations due to changing interest rates and/or adverse economic and business developments; and

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· greater risk of loss due to declining credit quality.

Illiquid Securities — Illiquid securities are assets which may not be sold or disposed of in the ordinary course of business within seven days at approximately the price at which a Fund has valued the investment on its books and may include such securities as those not registered under U.S. securities laws or securities that cannot be sold in public transactions.

There is a risk that a Fund may invest to a greater degree in instruments that trade in lower volumes and may make investments that may be less liquid than other investments. There is also the risk that a Fund may make investments that may become less liquid in response to market developments or adverse investor perceptions. When there is no willing buyer and investments cannot be readily sold at the desired time or price, a Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect a Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities. To meet redemption requests, a Fund may be forced to sell liquid securities at an unfavorable time and conditions.

Illiquid securities and relatively less liquid securities may also be difficult to value. Over recent years, the capacity of dealers to make markets in fixed income securities has been outpaced by the growth in the size of the fixed income markets. Liquidity risk may be magnified in a rising interest rate environment or when investor redemptions from fixed income funds may be higher than normal, due to the increased supply in the market that would result from selling activity.

Impact of Large Redemptions and Purchases of Fund Shares — Occasionally, shareholders may make large redemptions or purchases of Fund shares, which may cause the Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund’s performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of the Fund and result in credit line borrowing fees and/or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Impact of Sub-Prime Mortgage Market — Certain Funds may invest in mortgage-backed, asset-backed and other fixed income securities whose value and liquidity may be adversely affected by the critical downturn in the sub-prime mortgage lending market in the U.S. sub-prime loans, which, have higher interest rates, are made to borrowers with low credit ratings or other factors that increase the risk of default. Concerns about widespread defaults on sub-prime loans have also created heightened volatility and turmoil in the general credit markets. As a result, a Fund’s investments in certain fixed income securities may decline in value, their market value may be more difficult to determine, and the Fund may have more difficulty disposing of them.

Inflation Risk — Inflation risk is the risk that prices of existing fixed-rate debt securities will decline due to inflation or the threat of inflation. The income produced by these securities is worth less when prices for goods and services rise. To compensate for this loss of purchasing power, the securities trade at lower prices. Inflation also reduces the purchasing power of any income you receive from a Fund.

Interest Rate Risk — Interest rates have an effect on the value of a Fund’s fixed income investments because the value of those investments will vary as interest rates fluctuate. Generally, fixed income securities will decrease in value when interest rates rise and when interest rates decline, the value of fixed income securities can be expected to rise. The longer the effective maturity of a Fund’s securities, the more sensitive the Fund will be to interest rate changes. (As a general rule, a 1% rise in interest rates means a 1% fall in value for every year of duration.) Duration is a measure of the average life of a fixed income security that was developed as a more precise alternative to the concepts of “term to maturity” or “average dollar weighted maturity” as measures of “volatility” or “risk” associated with changes in interest rates. With respect to the composition of a fixed income portfolio, the longer the duration of the portfolio, generally the greater the anticipated potential for total return, with, however, greater attendant interest rate risk and price volatility than for a portfolio with a shorter duration.

Investment-Grade Debt Securities — Investment-grade debt securities are debt securities rated within the four highest grades (AAA/Aaa through BBB/Baa) by S&P or Moody’s rating services, and unrated securities of comparable quality.

Issuer Risk — The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage and reduced demand for the issuer’s goods or service.

Leverage Risk — Certain transactions may give rise to a form of leverage. Such transactions may include, among others, loans of securities, and the use of when-issued, delayed delivery or forward commitment transactions. The use of derivatives may also create leveraging risk. To mitigate leveraging risk, a Fund will segregate or “earmark” cash, liquid assets or otherwise cover the transactions that may give rise to such risk. The use of leverage may cause a Fund to liquidate portfolio positions to satisfy its obligations to meet segregation requirements when it may not be

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advantageous to do so. Leverage, including borrowing, may cause a Fund to be more volatile than if the Fund had not been leveraged. This is because leverage tends to exaggerate the effect of any increase or decrease in the value of a Fund’s securities.

Long-Short Strategy Risk — The strategy used by the Long-Short Fund’s investment team may fail to produce the intended results. There is no guarantee that the use of long and short positions will succeed in limiting the Fund’s exposure to stock market movements, capitalization, sector swings or other risk factors. The strategy used by the Fund’s investment team involves securities transactions that involve risks different from those involved with direct investment in equity securities. As a result, the Fund is intended for investors who are able to maintain their investment over a longer term and are willing to assume the risks associated with the Fund.

Management Risk — Each Fund is subject to risk that the Adviser may make poor security selections. The Adviser and its portfolio managers apply their own investment techniques and risk analyses in making investment decisions for the Funds, but there can be no guarantee that these decisions will achieve the desired results for the Funds. In addition, the Adviser may select securities that underperform the relevant market of other funds with similar investment objectives and strategies.

Market Events Risk — The global financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities and unprecedented volatility in the markets. In response to the crisis, the U.S. Government and the Federal Reserve, as well as certain foreign governments and their central banks took steps to support financial markets, including by keeping interest rates low. More recently, the Federal Reserve has terminated certain of its market support activities. The withdrawal of this support could negatively affect financial markets generally as well as reduce the value and liquidity of certain securities. This environment could make identifying investment risks and opportunities especially difficult for the Adviser.

In addition, policy and legislative changes in the United States and in other countries are affecting many aspects of financial regulation. The impact of these changes on the markets, and the practical implications for market participants, may not be fully known for some time.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in that market. Developments in a particular class of bonds or the stock market could also adversely affect a Fund by reducing the relative attractiveness of bonds or stocks as an investment. Also, to the extent that a Fund emphasizes bonds or stocks from any given industry, it could be hurt if that industry does not do well. Additionally, a Fund could lose value if the individual stocks in which it maintains long positions and/or the overall stock markets on which the stocks trade decline in price. In addition, a Fund that engages in short sales could lose value if the individual stocks which they sell short increase in price. Stocks and stock markets may experience short-term volatility (price fluctuation) as well as extended periods of price decline or increase. Individual stocks are affected by many factors, including:

· corporate earnings;

· production;

· management;

· sales; and

· market trends, including investor demand for a particular type of stock, such as growth or value stocks, small or large stocks, or stocks within a particular industry.

Stock markets are affected by numerous factors, including interest rates, the outlook for corporate profits, the health of the national and world economies, national and world social and political events, and the fluctuation of other stock markets around the world.

Mid-Cap Securities Risk — Stocks of medium-sized companies tend to be more volatile and less liquid than stocks of larger companies. Compared to larger companies, mid-cap securities tend to have analyst coverage by fewer Wall Street firms and may trade at prices that reflect incomplete or inaccurate information. Medium-sized companies may have a shorter history of operations, less access to financing and a less diversified product line and be more susceptible to market pressures and therefore have more volatile stock prices and company performance than larger companies. During some periods, stocks of medium-sized companies, as an asset class, have underperformed the stocks of larger companies.

Mortgage-Backed Securities — These fixed income securities represent the right to receive a portion of principal and/or interest payments made on a pool of residential or commercial mortgage loans. When interest rates fall, borrowers may refinance or otherwise repay principal on their loans earlier than scheduled. When this happens, certain types of mortgage-backed securities will be paid off more quickly than originally anticipated and a Fund will have to invest the proceeds in securities with lower yields. This risk is known as “prepayment risk.” When interest rates rise, certain types of mortgage-backed securities will be paid off more slowly than originally

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anticipated and the value of these securities will fall. This risk is known as “extension risk.”

Because of prepayment risk and extension risk, mortgage-backed securities react differently to changes in interest rates than other fixed income securities. Small movements in interest rates (both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities.

The Funds generally will invest in fixed or floating rate mortgage-backed securities which include, but are not limited to, U.S. Government agency securities issued by the Government National Mortgage Association, Federal Home Loan Mortgage Corporation or Federal National Mortgage Association and non-agency issued securities. The Funds may purchase securities on a when issued, to be announced, delayed delivery, delayed settlement, or forward commitment basis. The Funds may also utilize grantor trusts and senior classes of real estate investment conduits or other legal structures, including collateralized mortgage obligations (“CMOs”), as well as Interest Only (“IO”) or Principal Only (“PO”) instruments in combination with each other or with MBS pass-throughs to synthetically create pass-through equivalents. MBS pass-through roll proceeds may be re-invested in short duration instruments with an effective duration of 1 year or less including a short duration mutual fund or a pooled fund.

Mortgage-Related Securities Risk — Mortgage-related securities are pools of residential or commercial mortgages whose cash flows are “passed through” to the holders of the securities via monthly payments of interest and principal. A Fund may invest in mortgage-related securities. Rising interest rates may cause an issuer to exercise its right to pay principal later than expected which tends to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, a Fund that holds mortgage-related securities may exhibit additional volatility. This is known as extension risk. In addition, mortgage-related securities are subject to prepayment risk. When interest rates decline, borrowers may pay off their mortgages sooner than expected. This can reduce the returns of a Fund because the Fund will have to reinvest that money at the lower prevailing interest rates.

At times instability in the markets for fixed income securities, particularly mortgage-related securities may significantly decrease the liquidity of portfolios that invest in mortgage-backed securities. In the event of redemptions, a Fund that invests in mortgage-related securities may be unable to sell these portfolio securities at a fair price. As a result of this illiquidity, a Fund may incur a greater loss on the sale of such securities than under more stable market conditions. Such losses can impact the Fund’s performance.

Municipal Securities — Municipal bonds are securities (including tax-exempt securities) issued by states, municipalities and other political subdivisions, agencies, authorities and instrumentalities of states and multi-state agencies or authorities. Municipal bonds can be significantly affected by political and economic changes, including inflation, as well as uncertainties in the municipal market related to taxation, legislative changes, or the rights of municipal security holders. Municipal bonds have varying levels of sensitivity to changes in interest rates. In general, the price of a Municipal bond can fall when interest rates rise and can rise when interest rates fall. Interest rate risk is generally lower for shorter-term Municipal bonds and higher for long term Municipal bonds. Under certain market conditions, the Adviser may purchase Municipal bonds that the Adviser perceives are undervalued. Undervalued Municipal bonds are subject to the same market volatility and principal and interest rate risks described above. Lower quality Municipal bonds involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower quality Municipal bonds often fluctuates in response to political or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty. In the case of tax-exempt Municipal bonds, if the Internal Revenue Service or state tax authorities determine that an issuer of a tax-exempt Municipal bond has not complied with applicable tax requirements, interest from the security could become taxable at the federal, state and/or local level, and the security could decline significantly in value. Municipal bonds are subject to credit or default risk. Credit risk is the risk that the issuer of a municipal security might not make interest and principal payments on the security as they become due.

Municipal Securities in which a Fund may invest consist of bonds, notes, commercial paper and other instruments (including participation interests in such securities) issued by or on behalf of the states, territories and possessions of the United States (including the District of Columbia) and their political subdivisions, agencies or instrumentalities.

Municipal Securities include both “general” and “revenue” bonds and may be issued to obtain funds for various purposes. General obligations are secured by the issuer’s pledge of its full faith, credit and taxing power. Revenue obligations are payable only from the revenues derived from a particular facility or class of facilities. Municipal Securities are often issued to obtain funds for various public purposes, including the construction of a wide range of public facilities such as bridges, highways, housing, hospitals, mass transportation, schools, streets and water and sewer works. Municipal Securities include private activity,

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bonds, pre-refunded municipal securities and auction rate securities.

Natural Resources Industry Risk — Certain Funds are subject to the risks of the natural resources industries. The natural resources industries can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and tax and other government regulations. The securities of companies in the natural resources sector may experience more price volatility than securities of companies in other industries.

Non-Diversified Fund Risk — Certain Funds are subject to non-diversified fund risk because they may hold larger positions in fewer securities than other funds. As a result, a single security’s increase or decrease in value may have a greater impact on the Fund’s value and total return.

Non-Hedging Foreign Currency Trading Risk — Certain Funds may engage in forward foreign currency transactions for speculative purposes. In pursuing this strategy, the Adviser seeks to profit from anticipated movements in currency rates by establishing “long” and/or “short” portions in forward contracts on various foreign currencies. Foreign exchange rates can be extremely volatile and a variance in the degree of volatility of the market or in the direction of the market from the Adviser’s expectations may produce significant losses to a Fund.

Preferred Stock — Preferred stock is a class of stock that often pays dividends at a specified rate and has preference over common stock in dividend payments and liquidation of assets. Preferred stock may be convertible into common stock.

In addition, changes in prepayment levels can change the value and increase the volatility of prices and yields on mortgage- and asset-backed securities. If a Fund pays a premium (a price higher than the principal amount of the bond) for a mortgage- or asset-backed security and that security is prepaid, the Fund may not recover the premium, resulting in a capital loss.

Private Placements and Other Restricted Securities — Private placement and other restricted securities include securities that have been privately placed and are not registered under the Securities Act of 1933 (“1933 Act”), such as unregistered securities eligible for resale without registration pursuant to Rule 144A (“Rule 144A Securities”) and privately placed securities of U.S. and non-U.S. issuers offered outside of the U.S. without registration with the U.S. Securities and Exchange Commission pursuant to Regulation S (“Regulation S Securities”).

Private placements may offer attractive opportunities for investment not otherwise available on the open market.

Private placements securities typically may be sold only to qualified institutional buyers (or, in the case of the initial sale of certain securities, such as those issued in collateralized debt obligations or collateralized loan obligations, to accredited investors (as defined in Rule 501(a) under the 1933 Act)), or in a privately negotiated transaction or to a limited number of purchasers, or in limited quantities after they have been held for a specified period of time and other conditions are met pursuant to an exemption from registration. Rule 144A Securities and Regulation S Securities may be freely traded among certain qualified institutional investors, such as the Funds, but their resale in the U.S. is permitted only in limited circumstances.

Private placements typically are subject to restrictions on resale as a matter of contract or under federal securities laws. Because there may be relatively few potential purchasers for such securities, especially under adverse market or economic conditions or in the event of adverse changes in the financial condition of the issuer, a Fund could find it more difficult to sell such securities when it may be advisable to do so or it may be able to sell such securities only at prices lower than if such securities were more widely held. At times, it also may be more difficult to determine the fair value of such securities for purposes of computing a Fund’s net asset value due to the absence of a trading market.

Private placements and restricted securities may be considered illiquid securities, which could have the effect of increasing the level of a Fund’s illiquidity. Additionally, a restricted security that was liquid at the time of purchase may subsequently become illiquid. Restricted securities that are determined to be illiquid may not exceed a Fund’s limit on investments in illiquid securities.

REIT and Real Estate Risk — Investment in REITs and real estate involves the risks that are associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds and unexpected vacancies of properties. REITs that invest in real estate mortgages are also subject to prepayment risk.

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To the extent a Fund invests in REITs, the Fund may be subject to these risks.

Repurchase Agreements — When entering into a repurchase agreement, a Fund essentially makes a short-term loan to a qualified bank or broker-dealer. A Fund buys securities that the seller has agreed to buy back at a specified time and at a set price that includes interest. There is a risk that the seller will be unable to buy back the securities at the time required and a Fund could experience delays in recovering amounts owed to it.

Rights Issues and Warrants — Rights issues give the right, to existing shareholders, to buy a proportional number of additional securities at a given price (generally at a discount) within a fixed period (generally on a short term period) and are offered at the company’s discretion. Warrants are securities that give the holder the right to buy common stock at a specified price for a specified period of time. Warrants are speculative and have no value if they are not exercised before the expiration date.

Sector Risk — To the extent that a Fund has a significant portion of its assets invested in securities of companies conducting business in a broadly related group of industries within an economic sector, the Fund may be more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.

Securities Selection Risk — The investment team may select securities that underperform the relevant market or other funds with similar investment objectives and strategies.

Short Sale Risk — In a short sale, a Fund may sell a security the Fund does not own in the hope of buying the same security at a later date at a lower price. The Fund is required to borrow the security to deliver it to the buyer and is obligated to return the security to the lender at a later date. Short sales involve the risk that the price of the security sold short increases from the time the security is sold short to the date the Fund purchases the security to replace the borrowed security. The Fund’s potential loss on a short sale could theoretically be unlimited in a case where the Fund is unable, for any reason, to close out its short position. A loss on a short sale is increased by the amount of the premium or interest the Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Fund must pay to the lender of the security. When a cash dividend is declared on a security for which the Fund has a short position, the Fund incurs the obligation to pay an amount equal to that dividend to the lender of the shorted security. However, any such dividend on a security sold short generally reduces the market value of the shorted security, thus increasing the Fund’s unrealized gain or reducing the Fund’s unrealized loss on its short-sale transaction. The Fund is also required to segregate other assets on its books to cover its obligation to return the security to the lender which means that those other assets may not be available to meet the Fund’s needs for immediate cash or other liquidity.

A Fund’s performance may also suffer if it is required to close out a short position earlier than it had intended. This would occur if the securities lender required the Fund to deliver the securities the Fund borrowed prior to the end of the term of the short sale and the Fund was unable to borrow the securities from another securities lender.

Small-Cap Securities Risk — In general, stocks of small-cap companies trade in lower volumes and are subject to greater or more unpredictable price changes than larger cap securities or the market overall. Small-cap companies may have limited product lines or markets, be less financially secure than larger companies, or depend on a small number of key personnel. If adverse developments occur, such as due to management changes or product failure, a Fund’s investment in a small-cap company may lose substantial value. Investing in small-cap companies requires a longer term investment view and may not be appropriate for all investors.

Structured Instruments —Structured investments include swaps, structured securities and other instruments that allow a Fund to gain access to the performance of a benchmark asset (such as an index or selected bonds) that may be more attractive or accessible than the Fund’s direct investment.

Temporary Investments — If a Fund’s management believes that business, economic, political or financial conditions warrant, a Fund may invest without limit in cash or money market cash equivalents, including:

· short-term U.S. Government securities;

· certificates of deposit, bankers’ acceptances, and interest-bearing savings deposits of commercial banks;

· prime quality commercial paper;

· repurchase agreements covering any of the securities in which the Fund may invest directly;

· shares of money market funds; and

· shares of other investment companies that invest in securities in which the Fund may invest, to the extent permitted by applicable law.

The use of temporary investments prevents a Fund from fully pursuing its investment objective, and the Fund may miss potential market upswings.

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U.S. Government Securities Risk — Securities issued by U.S. Government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. The U.S. Government does not guaranty the net asset value of a Fund’s shares. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly-owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or the Department of Veterans Affairs. U.S. Government agencies or government-sponsored entities (i.e., not backed by the full faith and credit of the U.S. Government) include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Pass-through securities issued by Fannie Mae are guaranteed as the timely payment of principal and interest by Fannie Mae but are not backed by the full faith and credit of the U.S. Government. Freddie Mac guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government. If a government-sponsored entity is unable to meet its obligations, the performance of a Fund that holds securities of the entity may be adversely affected. U.S. Government obligations are ordinarily viewed as having minimal or no credit risk, but are still subject to interest rate risk.

In 2008, the U.S. Treasury Department and the Federal Housing Finance Administration (“FHFA”) placed FNMA and FHLMC into a conservatorship under FHFA. The effect that this conservatorship may have on these companies’ debt and equity securities is unclear. FHFA has the power to repudiate any contract entered into by FNMA or FHLMC prior to FHFA’s appointment if FHFA determines that performance of the contract is burdensome and the repudiation of the contract promotes the orderly administration of FNMA’s or FHLMC’s affairs. While the FHFA has indicated that it has no intention to repudiate the guaranty obligations of FNMA or FHLMC, doing so would adversely affect holders of their mortgage-backed securities. FHFA also has the right to transfer or sell any asset or liability of FNMA or FHLMC without any approval, assignment or consent. In addition, holders of mortgage-backed securities issued by FNMA or FHLMC may not enforce certain rights related to such securities against FHFA, or the enforcement of such rights may be delayed, during the conservatorship. The Federal Government continues to review issues concerning the role of these agencies in the U.S. housing market.

Valuation Risk - For investments where market quotations are not readily available, or if the Adviser believes a market quotation does not reflect fair value, the Funds are required to fair value their investments. The Funds may rely on the quotations furnished by pricing services or third parties, including broker dealers and counterparties to price these investments, which may be inaccurate or unreliable. Fair market valuation entails specific risks, and these risks may be further complicated by the complexities of each transaction. The recent decline of worldwide economies has increased the volatility of market prices and has increased the level of uncertainty in valuations. Consequently, a Fund may have more frequently applied fair valuation determinations in determining net asset value. There is no uniform or single standard for fair valuation pricing. Miscalculations of fair valuation pricing may result in overestimating or underestimating the net asset value.

In addition, since foreign exchanges may be open on days when the Funds do not price their shares, the value of the securities in a Fund’s portfolio may change on days when shareholders are not be able to purchase or sell that Fund’s shares.

When-Issued Securities and Forward Commitments — When-issued securities and forward commitments include the purchase or sale of securities for delivery at a future date. The market value may change before delivery.

Zero Coupon Bonds — Zero coupon bonds pay no interest during the life of the security and are issued by a wide variety of governmental issuers. They often are sold at a deep discount. Zero coupon bonds may be subject to greater price changes as a result of changing interest rates than bonds that make regular interest payments; their value tends to grow more during periods of falling interest rates and, conversely, tends to fall more during periods of rising interest rates. Although not traded on a national securities exchange, zero coupon bonds are widely traded by brokers and dealers, and are considered liquid. Holders of zero coupon bonds are required by federal income tax laws to pay taxes on the interest, even though such payments are not actually being made. To avoid federal income tax liability, a Fund may have to make distributions to shareholders and may have to sell some assets at inappropriate times in order to generate cash for the distributions.

The SAI contains more information on the Funds’ principal investments and strategies and can be requested using the address and telephone numbers on the back of this prospectus.

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Additional Information about Investments, Investment Techniques and Risks of the Funds-of-Funds

The Funds-of-Funds may invest in certain direct investments.

The Funds-of-Funds, which invest in Underlying Funds in reliance on Section 12(d)(1)(G) of the 1940 Act, are also eligible to invest in other securities in reliance on Rule 12d1-2 under the 1940 Act. In addition, pursuant to an SEC order exempting the Funds from Rule 12d1-2(a) of the 1940 Act, the Funds-of-Funds may invest, to the extent consistent with their investment objectives, policies, strategies and limitations, in financial instruments that may not be “securities” within the meaning of Section 2(a)(36) of the 1940 Act.

As a result of making certain direct investments, the Funds-of-Funds may be subject to various risks.

Affiliated Funds Risk — The Fund-of-Funds’ Adviser serves as the adviser of certain Underlying Funds. It is possible that a conflict of interest among a Fund-of-Funds and the Underlying Funds could affect how the Fund-of-Funds’ Adviser fulfills its fiduciary duties to a Fund-of-Funds and the Underlying Funds.

Asset Allocation Risk — Each Fund-of-Funds is subject to different levels and combinations of risk, based on its actual allocation among the various asset classes and Underlying Funds. Each Fund-of-Funds will be exposed to risks of the Underlying Funds in which it invests. A Fund-of-Funds will be affected by stock and bond market risks, among others. To the extent a Fund-of-Funds invests in Underlying Funds that expose it to non-traditional or alternative asset classes (which include investments that focus on a specialized asset class (e.g. long-short strategies)) as well as specific market sectors within a broader asset class, the Fund will be exposed to the increased risk associated with those asset classes. The potential impact of the risks related to an asset class depends on the size of the Fund-of-Funds’ investment allocation to it.

Asset Class Variation Risk — The Underlying Funds invest principally in the securities or investments constituting their asset class. However, under normal market conditions, an Underlying Fund may vary the percentage of its assets in these securities or investments (subject to any applicable regulatory requirements). Depending upon the percentage of securities or investments in a particular asset class held by the Underlying Funds at any given time and the percentage of a Fund-of-Funds’ assets invested in various Underlying Funds, the Fund-of-Funds’ actual exposure to the securities or investments in a particular asset class may vary substantially from its allocation model for that asset class.

Derivatives — The Funds-of-Funds may invest in certain types of derivatives, particularly securities index futures, which will be used to hedge against a decline in the value of the Funds-of-Funds assets. A derivative is a contract whose value is based on performance of an underlying financial asset, index or economic measure.

Derivatives are speculative and may hurt a Fund-of-Funds’ performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from a Fund-of-Funds’ derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual equity or debt securities, and there can be no assurance that the use of this strategy will be successful. Some additional risks of investing in derivatives include:

· the other party to the derivatives contract may fail to fulfill its obligations;

· their use may reduce liquidity and make a Fund-of-Funds harder to value, especially in declining markets;

· a Fund-of-Funds may suffer disproportionately heavy losses relative to the amount invested; and

Hedged Exposure Risk — Losses generated by a derivative or practice used by a Fund-of-Funds for hedging purposes should be offset in part by gains on the hedging instrument and the assets hedged. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

Correlation Risk — A Fund-of-Funds is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Counterparty Risk — Derivative transactions depend on the creditworthiness of the counterparty and the counterparty’s ability to fulfill its contractual obligations.

Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation are not yet known and may not be known for some time. New regulation of derivatives may

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make them more costly, may limit their availability, or may otherwise adversely affect their value or performance.

Exchange-Traded Notes Risk — The Funds-of-Funds may seek exposure to the asset classes described in their principal investment strategies by investing directly in ETNs. The Funds-of-Funds may use ETNs as a substitute for taking a direct position in the underlying asset (where the Adviser believes that indirect exposure to the underlying asset is more effective). ETNs are a type of unsecured, unsubordinated debt security that have characteristics and risks similar to those of fixed income securities and trade on a major exchange similar to shares of exchange-traded funds. However, this type of debt security differs from other types of bonds and notes because ETN returns are based upon the performance of a financial asset or market index minus applicable fees, no periodic coupon payments are distributed, and no principal protections exist. The purpose of ETNs is to create a type of security that combines the aspects of both bonds and exchange-traded funds. The value of an ETN may be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying commodities or securities markets, changes in the applicable interest rates, changes in the issuer’s credit rating and economic, legal, political or geographic events that affect the referenced asset or index.

Fund of Funds Risk — Your cost of investing in a Fund-of-Funds may be higher than the cost of investing in a mutual fund that only invests directly in individual securities. An Underlying Fund may change its investment objective or policies without the Fund-of-Funds’ approval, which could force the Fund to withdraw its investment from such Underlying Fund at a time that is unfavorable to the Fund. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Fund-of-Funds would indirectly bear the costs of these trades without accomplishing any investment purpose.

Impact of Large Redemptions and Purchases of Fund Shares — Occasionally, shareholders may make large redemptions or purchases of shares of the Fund-of-Funds in which it is invested, which may cause the Fund to have to sell securities or invest additional cash. These transactions may adversely affect the Fund-of-Funds’ performance and increase transaction costs. In addition, large redemption requests may exceed the cash balance of the Fund-of-Funds and result in credit line borrowing fees and/or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Performance Risk — Each Fund-of-Funds’ investment performance is directly tied to the performance of the Underlying Funds and other investments in which the Fund invests. If one or more of the Underlying Funds fails to meet its investment objective, the Fund-of-Funds’ performance could be negatively affected. There can be no assurance that each Fund-of-Funds or any Underlying Fund will achieve its investment objective.

Redemption Fee Risk — Certain unaffiliated Underlying Funds may charge redemption fees to shareholders who redeem their Underlying Fund shares within a specified period of time following the purchase of such shares.

Ordinarily, a mutual fund that imposes redemption fees does so in order to deter investors from engaging in excessive or short-term trading, often referred to as “market timing,” and to reimburse it for transaction costs borne by other fund shareholders on account of market timing activity. Each Fund-of-Funds does not intend to engage in market timing in Underlying Fund shares. However, each Fund-of-Funds will place purchase and redemption orders in shares of Underlying Funds pursuant to an established asset allocation model in response to daily purchases and redemptions of the Fund’s own shares, to conduct periodic rebalancing of the Fund’s assets to conform to the established model following periods of market fluctuation, and in response to changes made to an existing asset allocation model itself. While the portfolio managers will attempt to conduct each Fund-of-Funds’ purchase and redemption of Underlying Fund shares in a manner to avoid or minimize subjecting the Fund to redemption fees, there may be instances where payment of such fees is unavoidable or the portfolio managers are not successful in minimizing their impact.

Additional Information about Investments, Investment Techniques and Risks of the Underlying Funds

The Underlying Funds in which the Funds-of-Funds may invest may also invest in certain of the investments described below under “Investments of the Underlying Funds” and are also subject to certain of the risks subsequently described under “Risks of the Underlying Funds”.

Investments of the Underlying Funds

Asset-Backed Securities — Like traditional fixed income securities, the value of asset-backed securities typically increases when interest rates fall and decreases when interest rates rise. Certain asset-backed securities may also be subject to the risk of prepayment. In a period of declining interest rates, borrowers may pay what they owe on the underlying assets more quickly than anticipated. Prepayment reduces the yield to maturity and the average life of the asset-backed securities. In addition, when an

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Underlying Fund reinvests the proceeds of a prepayment, it may receive a lower interest rate. In a period of rising interest rates, prepayments may occur at a slower rate than expected. As a result, the average maturity of an Underlying Fund’s portfolio may increase. Prepayments also vary based on, among other factors, general economic conditions and other demographic conditions. The value of longer term securities generally changes more in response to changes in interest rates than shorter term securities. Asset-backed securities present credit risks that are not presented by mortgage-backed securities. This is because asset-backed securities generally do not have the benefit of a security interest in collateral that is comparable to mortgage assets. If the issuer of an asset-backed security defaults on its payment obligations, there is the possibility that, in some cases, an Underlying Fund will be unable to possess and sell the underlying collateral and that an Underlying Fund’s recoveries on repossessed collateral may not be available to support payments on the securities. In the event of a default, an Underlying Fund may suffer a loss if it cannot sell collateral quickly and receive the amount it is owed. The risk of default by borrowers is greater during periods of rising interest rates and/or unemployment rates. In addition, instability in the markets for asset-backed securities may affect the liquidity of such securities, which means an Underlying Fund may be unable to sell such securities at an advantageous time and price. As a result, the value of such securities may decrease and an Underlying Fund may incur greater losses on the sale of such securities than under more stable market conditions. Furthermore, instability and illiquidity in the market for lower-rated asset-backed securities may affect the overall market for such securities thereby impacting the liquidity and value of higher-rated securities.

Collateralized Instruments — Collateralized instruments include mortgage-backed securities and other interests in pools of assets, such as loans or receivables. Payment of principal and interest generally depends on the cash flows generated by the underlying assets and the terms of the instrument. Certain collateralized instruments offer multiple classes that differ in terms of their priority to receive principal and/or interest payments under the terms of the instrument. Collateralized instruments typically involve a third party responsible for servicing the instrument and performing operational functions such as collecting and aggregating principal, interest and escrow payments, accounting and loan analysis.

Commodity-Linked Derivatives — Commodity-linked derivatives are derivatives whose value is based on the value of a commodity, a commodity futures or option contract, a commodity index, or some other indicator that reflects the value of a particular commodity or commodity market or the difference between one or more commodities or commodity markets (“commodity indicator”). Commodity-linked derivatives include notes, futures, options, and swaps.

Corporate Bonds — Corporate bonds are debt instruments issued by domestic or foreign corporations or similar entities.

Debt Instruments — Debt instruments represent obligations of corporations, governments, and other entities to repay money borrowed. The issuer or borrower usually pays a fixed, variable, or floating rate of interest, and must repay the amount borrowed, usually at the maturity of the instrument. Some debt instruments, such as zero coupon bonds or payment-in-kind bonds, do not pay current interest. Other debt instruments, such as certain mortgage backed and other asset-backed securities, make periodic payments of interest and/or principal. Some debt instruments are partially or fully secured by collateral supporting the payment of interest and principal. High yield securities or “junk bonds” are debt instruments of less than investment grade quality.

Derivatives — Derivatives are financial contracts whose value is based on the value of one or more underlying indicators or the difference between underlying indicators. Underlying indicators may include a security or other financial instrument, asset, currency, interest rate, credit rating, commodity, volatility measure, or index. Derivatives often involve a counterparty to the transaction. Derivatives include, but are not limited to, futures, options, swaps, forward foreign currency contracts and credit linked notes. Derivatives may be used for a wide variety of purposes, including, but not limited to, the following: (i) to manage interest rate, credit and currency exposure; (ii) as a substitute for taking a position in the underlying asset; (iii) to gain an exposure to the composition and performance of a particular index; and (iv) to take short positions via derivatives in securities, interest rates, credits, currencies and markets.

Equity Securities — Equity securities represent an ownership interest, or the right to acquire an ownership interest, in a company or other issuer.

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Different types of equity securities provide different voting and dividend rights and priorities in the event of bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, securities convertible into stocks, and depositary receipts for those securities.

Floating Rate Loans — Floating rate loans are debt securities issued by companies or other entities with floating interest rates that reset periodically. Most floating rate loans are secured by specific collateral of the borrower and are senior to most other securities of the borrower (e.g., common stock or debt instruments) in the event of bankruptcy. Floating rate loans are often issued in connection with recapitalizations, acquisitions, leveraged buyouts, and refinancings. Floating rate loans are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the floating rate loan. Floating rate loans may be acquired directly through the agent, as an assignment from another lender who holds a direct interest in the floating rate loan, or as a participation interest in another lender’s portion of the floating rate loan.

Foreign Government Securities — Foreign government securities are debt instruments issued, guaranteed, or supported, as to the payment of principal and interest, by foreign governments, foreign government agencies, foreign semi-governmental entities or supranational entities, or debt instruments issued by entities organized and operated for the purpose of restructuring outstanding foreign government securities. Foreign government securities may not be supported as to the payment of principal and interest by the full faith and credit of the foreign government.

Inflation-Adjusted Debt Instruments — Inflation-adjusted debt instruments are debt instruments whose principal and/or interest are adjusted for inflation. Inflation-adjusted debt instruments issued by the U.S. Treasury pay a fixed rate of interest that is applied to an inflation-adjusted principal amount. The principal amount is adjusted based on changes in the Consumer Price Index. The principal due at maturity is typically equal to the inflation-adjusted principal amount, or to the instrument’s original par value, whichever is greater. Other types of inflation-adjusted debt instruments may use other methods of adjusting for inflation, and other measures of inflation. Other issuers of inflation-adjusted debt instruments include U.S. Government agencies, instrumentalities and sponsored entities, corporations, and foreign governments.

Private Placements and Other Restricted Securities — Private placement and other restricted securities include securities that have been privately placed and are not registered under the 1933 Act such as unregistered securities eligible for resale without registration pursuant to Rule 144A (“Rule 144A Securities”) and privately placed securities of U.S. and non-U.S. issuers offered outside of the U.S. without registration with the U.S. Securities and Exchange Commission pursuant to Regulation S (“Regulation S Securities”) Private placements may offer attractive opportunities for investment not otherwise available on the open market.

Private placements securities typically may be sold only to qualified institutional buyers (or, in the case of the initial sale of certain securities, such as those issued in collateralized debt obligations or collateralized loan obligations, to accredited investors (as defined in Rule 501(a) under the 1933 Act)), or in a privately negotiated transaction or to a limited number of purchasers, or in limited quantities after they have been held for a specified period of time and other conditions are met pursuant to an exemption from registration. Rule 144A Securities and Regulation S Securities may be freely traded among certain qualified institutional investors, such as the Underlying Funds, but whose resale in the U.S. is permitted only in limited circumstances.

Private placements typically are subject to restrictions on resale as a matter of contract or under federal securities laws. Because there may be relatively few potential purchasers for such securities, especially under adverse market or economic conditions or in the event of adverse changes in the financial condition of the issuer, an Underlying Fund could find it more difficult to sell such securities when it may be advisable to do so or it may be able to sell such securities only at prices lower than if such securities were more widely held. At times, it also may be more difficult to determine the fair value of such securities for purposes of computing an Underlying Fund’s net asset value due to the absence of a trading market.

Private placements and restricted securities may be considered illiquid securities, which could have the

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effect of increasing the level of an Underlying Fund’s illiquidity. Additionally, a restricted security that was liquid at the time of purchase may subsequently become illiquid. Restricted securities that are determined to be illiquid may not exceed an Underlying Fund’s limit on investments in illiquid securities.

Real Estate-Related Investments — Real estate-related investments include REITs, issuers similar to REITs formed under the laws of non-U.S. countries, and other U.S. and foreign issuers that earn at least 50% of their gross revenues or net profits from real estate activities or from products or services related to the real estate sector. Real estate activities include owning, developing, managing, or acting as a broker for real estate. Examples of real estate products or services include building supplies and mortgage servicing. REITs are pooled investment vehicles that invest primarily in income producing real estate or real estate-related loans or interests. Equity REITs invest most of their assets directly in U.S. or foreign real property, receive most of their income from rents and may also realize gains by selling appreciated property. Mortgage REITs invest most of their assets in real estate mortgages and receive most of their income from interest payments.

Short Sales — Short sales are transactions to sell a security that one does not own to a third party by borrowing the security from a broker in anticipation of purchasing the same security on a later date to close out the short position. In engaging in short sales, the Underlying Fund will profit or incur a loss depending on whether the value of the underlying stock decreases, as anticipated, or instead increases, between the time the stock is sold and when the Underlying Fund purchases its replacement.

U.S. Government Securities — U.S. Government securities are securities issued or guaranteed by the U.S. Treasury, by an agency or instrumentality of the U.S. Government, or by a U.S. Government-sponsored entity. Certain U.S. Government securities are not supported as to the payment of principal and interest by the full faith and credit of the U.S. Treasury or the ability to borrow from the U.S. Treasury. Some U.S. Government securities are supported as to the payment of principal and interest only by the credit of the entity issuing or guaranteeing the security. U.S. Government securities include mortgage-backed securities and other types of collateralized instruments issued or guaranteed by the U.S. Treasury, by an agency or instrumentality of the U.S. Government, or by a U.S. Government-sponsored entity.

Risks of the Underlying Funds

Alternative Strategies Risk — The performance of Underlying Funds that pursue alternative strategies is linked to the performance of highly volatile alternative asset classes (e.g., commodities and currencies) and alternative strategies (e.g., managed futures). To the extent a Fund-of-Funds invests in such Underlying Funds, the Fund’s share price will be exposed to potentially significant fluctuations in value. In addition, Underlying Funds that employ alternative strategies have the risk that anticipated opportunities do not play out as planned, resulting in potentially substantial losses to the Underlying Fund. Furthermore, alternative strategies may employ leverage, involve extensive short positions and/or focus on narrow segments of the market, which may magnify the overall risks and volatility associated with such Underlying Funds’ investments. Depending on the particular alternative strategies used by an Underlying Fund, it may be subject to risks not associated with more traditional investments. These risks may include, but are not limited to, derivatives risk, liquidity risk, credit risk, commodity risk and counterparty risk.

Commodity Risk — The value of commodities may be more volatile than the value of equity securities or debt instruments. The value of commodities may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments. The price of a commodity may be affected by demand/supply imbalances in the market for the commodity. These imbalances maybe significant due to the length of time required to alter the supply of some commodities in response to changes in demand. To the extent an Underlying Fund focuses its investments in a particular asset of the commodities market (such as oil, metal, or agricultural products), the fund will be more susceptible to risks associated with that particular asset.

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delivery of securities or other underlying assets or principal as collateral for the transaction. An Underlying Fund may have contractual remedies pursuant to the swap agreement but, as with any contractual remedy, there is no guarantee that an Underlying Fund would be successful in pursuing them—the counterparty may be judgment proof due to insolvency, for example. The Underlying Funds thus assume the risk that they may be delayed or prevented from obtaining payments owed to them. The standard industry swap agreements do, however, permit an Underlying Fund to terminate a swap agreement (and thus avoid making additional payments) in the event that a counterparty fails to make a timely payment to the Underlying Fund.

Credit Risk — Credit risk refers to the likelihood that an issuer will default in the payment of the principal or interest on an instrument and is broadly gauged by the credit ratings of the securities in which an Underlying Fund invests. However, ratings are only the opinions of rating agencies and are not guarantees of the quality of the securities. In addition, the depth and liquidity of the market for a fixed income security may affect its credit risk. Credit risk of a security may change over its life and rated securities are often reviewed and may be subject to downgrade by a rating agency. An Underlying Fund purchasing bonds faces the risk that the creditworthiness of an issuer may decline, causing the value of the bonds to decline. In addition, an issuer may not be able to make timely payments on the interest and/or principal on the bonds it has issued. Because the issuers of high-yield bonds or junk bonds (bonds rated below the fourth highest category) may be in uncertain financial health, the prices of these bonds may be more vulnerable to bad economic news or even the expectation of bad news, than investment-grade bonds. In some cases, bonds, particularly high-yield bonds, may decline in credit quality or go into default. Because an Underlying Fund may invest in securities not paying current interest or in securities already in default, these risks may be more pronounced. Fixed income securities are not traded on exchanges. The over-the-counter market may be illiquid, and there may be times when no counterparty is willing to purchase or sell certain securities. The nature of the market may make valuations difficult or unreliable.

Custody/Sub-Custody Risk — To the extent an Underlying Fund invests in markets where custodial and/or settlement systems are not fully developed, there may be very limited regulatory oversight of certain foreign banks or securities depositories that hold foreign securities and foreign currency. The laws of certain countries may limit the ability to recover such assets if a foreign bank or depository or their agents goes bankrupt and the assets of an Underlying Fund may be exposed to risk in circumstances where the custodian/sub-custodian or Adviser will have no liability.

Derivatives Risk — Derivatives are speculative and may hurt an Underlying Fund’s and a Fund-of-Funds’ performance. Derivatives present the risk of disproportionately increased losses and/or reduced opportunities for gains when the financial asset or measure to which the derivative is linked changes in unexpected ways. The potential benefits to be derived from an Underlying Fund’s options, futures and derivatives strategy are dependent upon the portfolio managers’ ability to discern pricing inefficiencies and predict trends in these markets, which decisions could prove to be inaccurate. This requires different skills and techniques than predicting changes in the price of individual equity or debt securities, and there can be no assurance that the use of this strategy will be successful. Some additional risks of investing in derivatives include:

· the other party to the derivatives contract may fail to fulfill its obligations;

· their use may reduce liquidity and make an Underlying Fund harder to value, especially in declining markets;

· an Underlying Fund may suffer disproportionately heavy losses relative to the amount invested; and

Speculative Exposure Risk — To the extent that a derivative or practice is not used as a hedge, an Underlying Fund is directly exposed to its risks. Gains or losses from speculative positions in a derivative may be much greater than the derivative’s original cost. For example, potential losses from writing uncovered call options on currencies and from speculative short positions on currencies are unlimited.

Hedged Exposure Risk — Losses generated by a derivative or practice used by an Underlying Fund for hedging purposes should be substantially offset by gains on the hedged investment. However, while hedging can reduce or eliminate losses, it can also reduce or eliminate gains.

Correlation Risk — An Underlying Fund is exposed to the risk that changes in the value of a hedging instrument will not match those of the investment being hedged.

Recent legislation calls for new regulation of the derivatives markets. New regulation of derivatives make them more costly, limit their availability, or may otherwise adversely affect their value or performance.

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Emerging Markets Risk — The risks of investing in foreign securities are increased in connection with investments in emerging markets. Emerging markets are countries generally considered to be relatively less developed or industrialized. Emerging markets often face economic problems that could subject an Underlying Fund to increased volatility or substantial declines in value. Deficiencies in regulatory oversight, market infrastructure, shareholder protections and company laws could expose an Underlying Fund to risks beyond those generally encountered in developed countries. In addition, profound social changes and business practices that depart from norms in developed countries’ economies have hindered the orderly growth of emerging economies and their markets in the past and have caused instability. High levels of debt tend to make emerging economies heavily reliant on foreign capital and vulnerable to capital flight. Countries in emerging markets are also more likely to experience high levels of inflation, deflation or currency devaluation, which could also hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative.

Extension Risk — Extension risk is the risk that principal repayments will not occur as quickly as anticipated, causing the expected maturity of a security to increase. Rapidly rising interest rates may cause prepayments to occur more slowly than expected, thereby lengthening the maturity of the securities held by an Underlying Fund and making their prices more sensitive to rate changes and more volatile.

Floating Rate Loan Risk — Floating rate loans generally are subject to legal or contractual restrictions on resale. The liquidity of floating rate loans, including the volume and frequency of secondary market trading in such loans, varies significantly over time and among individual floating rate loans. For example, if the credit quality of a floating rate loan unexpectedly declines significantly, secondary market trading in that floating rate loan can also decline for a period of time. During periods of infrequent trading, valuing a floating rate loan can be more difficult, and buying and selling a floating rate loan at an acceptable price can be more difficult and delayed. Difficulty in selling a floating rate loan can result in a loss. In addition, the value of the collateral securing a floating rate loan can decline, be insufficient to meet the obligations of the borrower, or be difficult to liquidate. As a result, a floating rate loan may not be fully collateralized and can decline significantly in value.

Foreign Currency Transactions Risk — Underlying Funds that invest directly in foreign currencies and in securities that trade in, or receive revenues in, foreign currencies are subject to the risk that those currencies may fluctuate in value relative to the U.S. Dollar. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, or by the imposition of currency controls or other political developments in the U.S. or abroad. To manage this risk, an Underlying Fund may enter into foreign currency exchange contracts to hedge against a decline in the U.S. Dollar value of a security it already owns or against an increase in the value of an asset it expects to purchase. The Adviser’s use of hedging techniques does not eliminate exchange rate risk. In certain circumstances, the Adviser may hedge using a foreign currency other than the currency which the portfolio securities being hedged are denominated. This type of hedging entails greater risk because it is dependent on a stable relationship between the two currencies paired in the hedge and the relationship can be very unstable at times. If the Adviser is unsuccessful in its attempts to hedge against exchange rate risk, an Underlying Fund could be in a less advantageous position than if the Adviser did not establish any currency hedge. The Adviser may also employ strategies to increase an Underlying Fund’s exposure to certain currencies, which may result in losses from such currency positions. When deemed appropriate by the Adviser, the Adviser may from time to time seek to reduce foreign currency risk by hedging some or all of an Underlying Fund’s foreign currency exposure back into the U.S. Dollar. Losses on foreign currency transactions used for hedging purposes may be offset by gains on the assets that are the subject of an Underlying Fund’s hedge. An Underlying Fund may also purchase a foreign currency on a spot or forward basis in order to obtain potential appreciation of such currency relative to U.S. Dollar or to other currencies in which an Underlying Fund’s holdings are denominated. Losses on such transactions may not be offset by gains from other Underlying Fund assets.

An Underlying Fund’s gains from its positions in foreign currencies may accelerate and/or recharacterize the Underlying Fund’s income or gains at the Underlying Fund level and its distributions to shareholders. An Underlying Fund’s losses from such positions may also recharacterize the Underlying Fund’s income and its distributions to shareholders and may cause a return of capital to Underlying Fund shareholders.

Foreign Securities Risk — Foreign securities may be more volatile, harder to price and less liquid than U.S. securities. Foreign investments involve some of the following risks as well:

· political and economic instability;

· the impact of currency exchange rate fluctuations;

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· reduced information about issuers;

· higher transaction costs;

· less stringent regulatory and accounting standards; and

· delayed settlement.

Additional risks include the possibility that a foreign jurisdiction might impose or increase withholding taxes on income payable with respect to foreign securities; the possible seizure, nationalization or expropriation of the issuer or foreign deposits (in which an Underlying Fund could lose its entire investment in a certain market); and the possible adoption of foreign governmental restrictions such as exchange controls.

Europe — Recent Events. A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within and outside Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro, the common currency of the European Union, and/or withdraw from the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching. Whether or not an Underlying Fund invests in securities of issuers located in Europe or with significant exposure to European issuers or countries, these events could negatively affect the value and liquidity of the Underlying Fund’s investments.

· greater risk of loss due to default because of the increased likelihood that adverse economic or company specific events will make the issuer unable to pay interest and/or principal when due;

· wider price fluctuations due to changing interest rates and/or adverse economic and business developments; and

· greater risk of loss due to declining credit quality.

Illiquid Securities Risk — There is a risk that an Underlying Fund may invest to a greater degree in instruments that trade in lower volumes and may make investments that may be less liquid than other investments. There is also the risk that an Underlying Fund may make investments that may become less liquid in response to market developments or adverse investor perceptions. When there is no willing buyer and investments cannot be readily sold at the desired time or price, an Underlying Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect an Underlying Fund’s value or prevent the Underlying Fund from being able to take advantage of other investment opportunities. To meet redemption requests, an Underlying Fund may be forced to sell liquid securities at an unfavorable time and conditions.

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Underlying Fund shareholders, including the Fund. In addition, large redemption requests may exceed the cash balance of the Underlying Fund and result in credit line borrowing fees and/or overdraft charges to the Underlying Fund until the sales of portfolio securities necessary to cover the redemption request settle.

Inflation-Adjusting Risk — Interest payments on inflation-adjusted debt instruments can be unpredictable and vary based on the level of inflation. If inflation is negative, principal and income both can decline. In addition, the measure of inflation used may not correspond to the actual rate of inflation experienced by a particular individual.

Interest Rate Risk — Interest rates have an effect on the value of an Underlying Fund’s fixed income investments because the value of those investments will vary as interest rates fluctuate. Generally, fixed income securities will decrease in value when interest rates rise and when interest rates decline, the value of fixed income securities can be expected to rise. The longer the effective maturity of an Underlying Fund’s securities, the more sensitive the Underlying Fund will be to interest rate changes. (As a general rule, a 1% rise in interest rates means a 1% fall in value for every year of duration.) Duration is a measure of the average life of a fixed income security that was developed as a more precise alternative to the concepts of “term to maturity” or “average dollar weighted maturity” as measures of “volatility” or “risk” associated with changes in interest rates. With respect to the composition of a fixed income portfolio, the longer the duration of the portfolio, generally the greater the anticipated potential for total return, with, however, greater attendant interest rate risk and price volatility than for a portfolio with a shorter duration.

Leverage Risk — The use of leverage may exaggerate changes in the net asset value (“NAV”) of Underlying Fund shares and thus result in increased volatility of returns. The amount that an Underlying Fund must repay may fluctuate due to market forces, and the Underlying Fund’s assets that are used as collateral to secure the leverage may decrease in value during the time the leverage exposure is outstanding, which would require the Underlying Fund to use its other assets to make up a shortfall in the value of the collateral. Leverage will create interest and other expenses for the Underlying Fund which can exceed the income from the assets purchased with the leverage and thus reduce overall Underlying Fund returns.

Management Risk — Each Underlying Fund is subject to risk that the Adviser may make poor security selections. The Adviser and its portfolio managers apply their own investment techniques and risk analyses in making investment decisions for the Underlying Funds, but there can be no guarantee that these decisions will achieve the desired results for the Underlying Funds. In addition, the Adviser may select securities that underperform the relevant market of other funds with similar investment objectives and strategies.

Market Risk — Deteriorating market conditions might cause a general weakness in the market that reduces the prices of securities in that market. Developments in a particular class of bonds or the stock market could also adversely affect an Underlying Fund by reducing the relative attractiveness of bonds or stocks as an investment. Also, to the extent that an Underlying Fund emphasizes bonds or stocks from any given industry, it could be hurt if that industry does not do well. Additionally, an Underlying Fund could lose value if the individual stocks in which it maintains long positions and/or the overall stock markets on which the stocks trade decline in price. In addition, an Underlying Fund that engages in short sales could lose value if the individual stocks which they sell short increase in price. Stocks and stock markets may experience short-term volatility (price fluctuation) as well as extended periods of price decline or increase. Individual stocks are affected by many factors, including:

· corporate earnings;

· production;

· management;

· sales; and

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· market trends, including investor demand for a particular type of stock, such as growth or value stocks, small or large stocks, or stocks within a particular industry.

Prepayment Risk — As interest rates decline, debt issuers may repay or refinance their loans or obligations earlier than anticipated. The issuers of mortgage- and asset-backed securities may, therefore, repay principal in advance. This forces an Underlying Fund to reinvest the proceeds from the principal prepayments at lower rates, which reduces the Underlying Fund’s income. In addition, changes in prepayment levels can change the value and increase the volatility of prices and yields on mortgage- and asset-backed securities. If an Underlying Fund pays a premium (a price higher than the principal amount of the bond) for a mortgage- or asset-backed security and that security is prepaid, the Underlying Fund may not recover the premium, resulting in a capital loss.

REIT and Real Estate Risk — Investment in REITs and real estate involves the risks that are associated with direct ownership of real estate and with the real estate industry in general. These risks include risks related to general, regional and local economic conditions; fluctuations in interest rates; property tax rates, zoning laws, environmental regulations and other governmental action; cash flow dependency; increased operating expenses; lack of availability of mortgage funds; losses due to natural disasters; changes in property values and rental rates; and other factors. REITs that invest in real estate mortgages are also subject to prepayment risk. Equity REITs may be affected by changes in the value of the underlying property owned by the trusts. Equity and mortgage REITs could be adversely affected by failure to qualify for tax-free pass-through of income under the Internal Revenue Code of 1986, as amended, or to maintain their exemption from registration under the Investment Company Act of 1940, as amended. The securities of small real estate-related issuers can be more volatile, less liquid, and have more limited financial resources than securities of larger issuers.

Sector Risk - To the extent that a Fund-of-Funds has a significant portion of its assets invested in Underlying Funds that invest primarily in securities of companies conducting business in a broadly related group of industries within an economic sector, the Underlying Fund may be more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly.

Securities Selection Risk —- The risk that the securities held by an Underlying Fund may underperform other funds investing in the same asset class or benchmarks that are representative of the asset class because of the Adviser’s selection of securities for the Underlying Fund.

Short Sale Risk — In a short sale, an Underlying Fund may sell a security the Underlying Fund does not own in the hope of buying the same security at a later date at a lower price. The Underlying Fund is required to borrow the security to deliver it to the buyer and is obligated to return the security to the lender at a later date. Short sales involve the risk that the price of the security sold short increases from the time the security is sold short to the date the Underlying Fund purchases the security to replace the borrowed security. The Fund’s potential loss on a short sale could theoretically be unlimited in a case where the Fund is unable, for any reason, to close out its short position. A loss on a short sale is increased by the amount of the premium or interest the Underlying Fund must pay to the lender of the security. Likewise, any gain will be decreased by the amount of premium or interest the Underlying Fund must pay to the lender of the security. When a cash dividend is declared on a security for which the Underlying Fund has a short position, the Underlying Fund incurs the obligation to pay an amount equal to that dividend to the lender of the shorted security. However, any such dividend on a security sold short generally reduces the market value of the shorted security, thus increasing the Underlying Fund’s unrealized gain or reducing the Underlying Fund’s unrealized loss on its short-sale transaction. The Underlying Fund is also required to segregate other assets on its books to cover its obligation to return the security to the lender which means that those other assets may not be available to meet the Underlying Fund’s needs for immediate cash or other liquidity. Short sales may reduce the Underlying Fund’s returns or increase volatility.

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overall. Small-cap companies may have limited product lines or markets, be less financially secure than larger companies, or depend on a small number of key personnel. If adverse developments occur, such as due to management changes or product failure, an Underlying Fund’s investment in a small-cap company may lose substantial value. Investing in small-cap companies requires a longer term investment view and may not be appropriate for all investors.

U.S. Government Securities Risk — Securities issued by U.S. Government agencies or government sponsored entities may not be guaranteed by the U.S. Treasury. The U.S. Government does not guaranty the net asset value of an Underlying Fund’s shares. The Government National Mortgage Association (“GNMA” or “Ginnie Mae”), a wholly-owned U.S. Government corporation, is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions approved by GNMA and backed by pools of mortgages insured by the Federal Housing Administration or the Department of Veterans Affairs. U.S. Government agencies or government-sponsored entities (i.e., not backed by the full faith and credit of the U.S. Government) include the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). Pass-through securities issued by Fannie Mae are guaranteed as the timely payment of principal and interest by Fannie Mae but are not backed by the full faith and credit of the U.S. Government. Freddie Mac guarantees the timely payment of interest and ultimate collection of principal, but its participation certificates are not backed by the full faith and credit of the U.S. Government. If a government-sponsored entity is unable to meet its obligations, the performance of an Underlying Fund that holds securities of the entity may be adversely affected. U.S. Government obligations are ordinarily viewed as having minimal or no credit risk, but are still subject to interest rate risk.

Other Information

Commodity Pool Operator Exclusion — The Adviser has claimed an exclusion from the definition of “commodity pool operator” under Commodity Futures Trading Commission (“CFTC”) Rule 4.5 for each Fund, except the Funds-of-Funds, and therefore the Funds and the Adviser (with respect to the Funds) are not currently subject to registration, disclosure, and regulatory requirements under applicable CFTC rules. The Funds will have to reaffirm annually their eligibility for this exclusion. The Adviser intends to continue to operate each Fund in a manner to maintain its exclusion under CFTC Rule 4.5. The Funds-of-Funds rely on no-action relief that delays any obligation for the Adviser to register with the CFTC with respect to the Funds-of-Funds until six months from the date the CFTC staff issues revised guidance on the application to funds-of-funds of the de minimus thresholds in the exclusion from the definition of commodity pool operator under CFTC Rule 4.5.

Portfolio Holdings Disclosure — Each Fund posts on the Trust’s internet site, www.aberdeen-asset.us, substantially all of its securities holdings as of the end of each month. Such portfolio holdings are available no earlier than 7 business days after the end of the previous month for equity funds and 15 business days after the end of the previous month for fixed income funds. A description of the Funds’ policies and procedures regarding the release of portfolio holdings information is available in the Funds’ SAI.

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Fund Management

Investment Adviser

Aberdeen Asset Management Inc., a Delaware corporation formed in 1993, serves as the investment adviser to each Fund. The Adviser’s principal place of business is located at 1735 Market Street, 32 nd Floor, Philadelphia, Pennsylvania 19103. The Adviser manages and supervises the investment of each Fund’s assets on a discretionary basis.

The Adviser is a wholly-owned subsidiary of Aberdeen Asset Management PLC (“Aberdeen PLC”), which is the parent company of an asset management group managing approximately $504.12 billion in assets as of December 31, 2014 for a range of pension funds, financial institutions, investment trusts, unit trusts, offshore funds, charities and private clients, in addition to U.S. registered investment companies. Aberdeen PLC, its affiliates and subsidiaries are referred to collectively herein as “Aberdeen.” Aberdeen PLC was formed in 1983 and was first listed on the London Stock Exchange in 1991.

Subadvisers

Aberdeen China Opportunities Fund, Aberdeen International Equity Fund, Aberdeen Global Equity Fund, Aberdeen Asia Bond Fund, Aberdeen Asia-Pacific (ex-Japan) Equity Fund, Aberdeen Asia-Pacific Smaller Companies Fund, Aberdeen Global Fixed Income Fund, Aberdeen Emerging Markets Fund, Aberdeen Emerging Markets Debt Fund, Aberdeen Emerging Markets Debt Local Currency Fund, Aberdeen Global Small Cap Fund, Aberdeen Global Natural Resources Fund, Aberdeen European Equity Fund and Aberdeen Latin American Equity Fund

Aberdeen Asset Managers Limited (“AAML”), a Scottish Company, and Aberdeen Asset Management Asia Limited (“AAMAL” and together with AAML, the “Subadvisers”), a Singapore corporation, serve as Subadvisers to the above-listed Funds. AAML’s principal place of business is located at Bow Bells House, 1 Bread Street, London, England, EC4M9HH. AAMAL’s principal place of business is located at 21 Church Street, #01-01 Capital Square Two, Singapore 049480. AAML is responsible for the day-to-day management of each of the Global Fixed Income Fund, Global Natural Resources Fund, the Global Small Cap Fund, the International Equity Fund, the Global Equity Fund, the Emerging Markets Debt Local Currency Fund, the Emerging Markets Debt Fund, the European Equity Fund and the Latin American Equity Fund. AAMAL is responsible for the day-to-day management of the China Fund, the Asia Bond Fund, the Asia-Pacific Equity Fund and the Asia-Pacific Smaller Companies Fund. AAML and AAMAL are responsible for the day-to-day management of the Emerging Markets Fund. To the extent that AAML or AAMAL do not have management over a specific portion of a Fund’s assets, AAML and AAMAL will assist the Adviser with oversight for the Fund. When a portfolio management team from AAML or AAMAL is allocated a specific portion of a Fund’s assets to manage, it will receive a fee from the Adviser for its investment management services. AAML and AAMAL are both affiliates of the Adviser and wholly owned by Aberdeen PLC.

A discussion regarding the basis for the Board of Trustees’ approval of the investment advisory and subadvisory agreements for the Funds is available in the Funds’ Annual Report to Shareholders for the period ended October 31, 2014.

Management Fees

Each Fund pays the Adviser a management fee based on its average daily net assets. With respect to each Fund that has a Subadviser(s), the Adviser pays the Subadviser(s) from the management fee it receives.

The total annual advisory fees each Fund pays the Adviser (as a percentage of its average daily net assets) are set forth in the following table. The actual management fee rate paid by each Fund for the fiscal year ended October 31, 2014 disclosed below takes into account the expense limitation that was in effect for the Fund during the year.

Fund Assets	Management Fee		Actual Rate for Fiscal Year Ended October 31, 2014
Aberdeen Equity Long-Short Fund
On assets up to $1 billion	1.15	%	1.00	%
On assets of $1 billion and more	1.00	%
Aberdeen Global Natural Resources Fund
On assets up to $500 million	0.70	%	0.34	%
On assets of $500 million up to $2 billion	0.65	%
On assets of $2 billion and more	0.60	%
Aberdeen Small Cap Fund
On assets up to $100 million	0.95	%	0.79	%
On assets of $100 million and more	0.80	%

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Fund Assets	Management Fee		Actual Rate for Fiscal Year Ended October 31, 2014
Aberdeen U.S. Equity Fund
On assets up to $500 million	0.75	%	0.67	%
On assets of $500 million up to $2 billion	0.70	%
On assets of $2 billion and more	0.65	%
Aberdeen China Opportunities Fund
On assets up to $500 million	1.25	%	0.84	%
On assets of $500 million up to $2 billion	1.20	%
On assets of $2 billion and more	1.15	%
Aberdeen International Equity Fund
On all assets	0.80	%	0.80	%
Aberdeen Global Equity Fund
On assets up to $500 million	0.90	%	0.90	%
On assets of $500 million up to $2 billion	0.85	%
On assets of $2 billion and more	0.80	%
Aberdeen Diversified Income Fund
On all assets	0.15	%	0.00	%
Aberdeen Dynamic Allocation Fund
On all assets	0.15	%	0.00	%
Aberdeen Diversified Alternatives Fund
On all assets	0.15	%	0.00	%
Aberdeen Asia Bond Fund
On all assets	0.50	%	0.40	%
Aberdeen Asia-Pacific (ex-Japan) Equity Fund
On all assets	1.00	%	0.98	%
Aberdeen Asia-Pacific Smaller Companies Fund
On assets up to $500 million	1.30	%	0.41	%
On assets of $500 million up to $2 billion	1.25	%
On assets of $2 billion and more	1.15	%
Aberdeen Emerging Markets Fund
On all assets	0.90	%	0.88	%
Aberdeen Emerging Markets Debt Fund
On assets up to $500 million	0.75	%	0.05	%
On assets of $500 million or more	0.70	%
Aberdeen Emerging Markets Debt Local Currency Fund
On assets up to $500 million	0.80	%	0.33	%
On assets of $500 million or more	0.75	%
Aberdeen Global Fixed Income Fund
On assets up to $500 million	0.60	%	0.00	%
On assets of $500 million up to $1 billion	0.55	%
On assets of $1 billion and more	0.50	%
Aberdeen High Yield Fund
On assets up to $500 million	0.60	%	0.00	%
On assets of $500 million or more	0.55	%
Aberdeen Global Small Cap Fund
On assets up to $100 million	1.25	%	0.96	%
On assets of $100 million and more	1.00	%
Aberdeen Tax-Free Income Fund
On assets up to $250 million	0.425	%	0.30	%
On assets of $250 million up to $1 billion	0.375	%
On assets of $1 billion and more	0.355	%
Aberdeen Ultra-Short Duration Bond Fund
On all assets	0.20	%	0.00	%
Aberdeen European Equity Fund
On assets up to $500 million	0.90	%	0.00	%
On assets of $500 million up to $2 billion	0.85	%
On assets of $2 billion and more	0.80	%

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Fund Assets	Management Fee		Actual Rate for Fiscal Year Ended October 31, 2014
Aberdeen Latin American Equity Fund
On assets of up to $500 million	1.10	%	0.00	%
On assets of $500 million up to $2 billion	1.05	%
On assets of $2 billion and more	1.00	%

The Adviser has entered into a written expense limitation agreement with the Trust on behalf of the Funds (the “Expense Limitation Agreement”). The expense limitations exclude taxes, interest, brokerage fees, short-sale dividend expenses, Acquired Fund Fees and Expenses, 12b-1 fees, administrative services fees and extraordinary expenses. Pursuant to the Expense Limitation Agreement, the Adviser has contractually agreed to waive advisory fees and, if necessary, reimburse expenses in order to limit total annual fund operating expenses, of the Funds as follows:

Name of Fund/Class	Expense Limitation
Aberdeen China Opportunities Fund	1.62	%
Aberdeen International Equity Fund	1.10	%
Aberdeen Equity Long-Short Fund	1.40	%
Aberdeen Global Equity Fund	1.19	%
Aberdeen Global Natural Resources Fund	1.16	%
Aberdeen Small Cap Fund	1.15	%
Aberdeen Tax-Free Income Fund	0.62	%
Aberdeen Dynamic Allocation Fund	0.25	%
Aberdeen Diversified Income Fund	0.25	%
Aberdeen Diversified Alternatives Fund	0.25	%
Aberdeen Asia Bond Fund	0.70	%
Aberdeen Global Fixed Income Fund	0.85	%
Aberdeen Global Small Cap Fund	1.30	%
Aberdeen Emerging Markets Fund	1.10	%
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	1.25	%

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Aberdeen Ultra-Short Duration Bond Fund	0.30	%
Aberdeen Emerging Markets Debt Local Currency Fund	0.90	%
Aberdeen Asia-Pacific Smaller Companies Fund	1.50	%
Aberdeen U.S. Equity Fund	0.90	%
Aberdeen High Yield Fund	0.80	%
Aberdeen Emerging Markets Debt Fund	0.90	%
Aberdeen European Equity Fund	1.10	%
Aberdeen Latin American Equity Fund	1.30	%

Under certain circumstances, the Adviser may recoup amounts reimbursed under the Expense Limitation Agreement . Please refer to “Fees and Expenses of the Fund” in the “Fund Summaries” section of this Prospectus for more information regarding the Expense Limitation Agreement.

In addition, the Adviser has entered into a written agreement with the Long-Short Fund to reimburse the Fund for short-sale brokerage expenses at an annual rate of up to 0.15% of the Fund’s average daily net assets. Amounts reimbursed by AAMI for short-sale brokerage expenses are not subject to recoupment at a later date.

Portfolio Management

The Adviser and Subadvisers generally use a team-based approach for the management of each Fund. Information about the Aberdeen team members jointly and primarily responsible for managing each Fund is included below.

Aberdeen Equity Long-Short Fund, Aberdeen Small Cap Fund and Aberdeen U.S. Equity Fund

Each of the Long-Short Fund, the Small Cap Fund and the U.S. Equity Fund is managed by the Aberdeen North American Equity Team. The North American Equity Team works in a truly collaborative fashion; all team members have both portfolio construction and research responsibilities. Teams work in an open floor plan environment in an effort to foster communication among all members. The Adviser does not believe in having star managers, instead preferring to have both depth and experience within the team. Depth of team members allows the Adviser to perform the diligent research required by the Adviser’s process. The experience of senior managers provides the confidence needed to take a long-term view. The Team is jointly and primarily responsible for the day-to-day management of the Funds, with the following members having the most significant responsibility for the day-to-day management of each Fund, as indicated:

Portfolio Manager

Funds

Paul Atkinson(1), Head of North American Equities (AAMI)

Paul Atkinson is Head of North American Equities and responsible for all North American equity portfolios and team members. Paul joined Aberdeen in 1998 and was previously responsible for specialist global equity funds before joining the North American equity team in 2005. Prior to Aberdeen, Paul worked for UBS and Prudential-Bache. Paul earned a BSc in Economics, with honors from Cardiff Business School and an MSc in Finance from the University of London.

Aberdeen Equity Long-Short Fund

Aberdeen Small Cap Fund

Aberdeen U.S. Equity Fund

(1) Paul Atkinson will leave AAMI at the end of June 2015, at which time he shall no longer serve the Aberdeen Equity Long-Short Fund, Aberdeen Small Cap Fund or Aberdeen U.S. Equity Fund and he shall be deemed removed from this section at that time.

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Ralph Bassett, CFA ® (2), Deputy Head of North American Equities (AAMI) Ralph Bassett is Deputy Head of North American Equities where he is responsible for the co-management of client portfolios, in addition to operational responsibilities. Ralph joined Aberdeen in 2006 from Navigant Consulting. Ralph graduated with a BS in Finance, with honors, from Villanova University. He is a CFA® Charterholder.		Aberdeen Equity Long-Short Fund Aberdeen Small Cap Fund Aberdeen U.S. Equity Fund

Douglas Burtnick, CFA ® , Senior Investment Manager (AAMI) Douglas Burtnick is a Senior Investment Manager on the North American Equity team responsible for the co-management of client portfolios. Doug joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services. Previously, Doug worked at both Brown Brothers Harriman and Barra, Inc. Doug graduated with a BS from Cornell University. He is a CFA® Charterholder.		Aberdeen Equity Long-Short Fund Aberdeen Small Cap Fund Aberdeen U.S. Equity Fund

Jason Kotik, CFA ® , Senior Investment Manager (AAMI) Jason Kotik is a Senior Investment Manager on the North American Equity team responsible for the co-management of client portfolios. Jason joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services. Previously, Jason worked at Allied Investment Advisors and T. Rowe Price. Jason graduated from the University of Delaware, and earned an MBA from Johns Hopkins University. He is a CFA® Charterholder.		Aberdeen Equity Long-Short Fund Aberdeen Small Cap Fund Aberdeen U.S. Equity Fund

Francis Radano, III, CFA ® , Senior Investment Manager (AAMI) Fran Radano is a Senior Investment Manager on the North American Equity team responsible for the co-management of client portfolios. Fran joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services. Previously, Fran worked at Salomon Smith Barney and SEI Investments. Fran graduated with a BA in Economics from Dickinson College and an MBA in Finance from Villanova University. He is a CFA® Charterholder.		Aberdeen Equity Long-Short Fund Aberdeen U.S. Equity Fund

Joseph McFadden, CFA ® , Investment Manager (AAMI) Joseph McFadden is an Investment Manager on the North American Equity Team. In this role, Joseph analyzes current and prospective investments and co-manages client portfolios. Joseph joined Aberdeen in 2006 on the US fixed income team and subsequently transitioned to the North American Equity Team in 2010. Prior to Aberdeen, Joseph worked at Eagle Asset Management as an equity analyst and Raymond James & Associates as a credit analyst. Joseph graduated with a BA from the University of South Florida and an MBA from the University of Chicago. He is a CFA® Charterholder.		Aberdeen Small Cap Fund

Aberdeen China Opportunities Fund, Aberdeen Asia-Pacific (ex-Japan) Equity Fund, Aberdeen Asia-Pacific Smaller Companies Fund, Aberdeen Emerging Markets Fund and Aberdeen Latin American Equity Fund

The China Fund, the Asia-Pacific Equity Fund and the Asia-Pacific Smaller Companies Fund are managed by the Asia Pacific Equity Team. The Emerging Markets Fund and the Latin American Equity Fund are managed by the Global Emerging Markets Equity Team. Each team works in a truly collaborative fashion; all team members have both portfolio construction and research responsibilities. The teams work in an open floor plan environment in an effort to foster communication among all members. The Adviser and Subadvisers do not believe in having star managers, instead preferring to have both depth and experience within the team. Depth of team members allows the

(2) Effective at the end of June 2015, Ralph Bassett will succeed Paul Atkinson as Head of North American Equities and he shall be responsible for all North American equity portfolios and team members.

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Adviser and Subadvisers to perform the diligent research required by the Adviser’s process. The experience of senior managers provides the confidence needed to take a long-term view.

The Teams are jointly and primarily responsible for the day-to-day management of the Funds, with the following members having the most significant responsibility for the day-to-day management of each Fund, as indicated:

Portfolio Manager		Funds

Hugh Young, Global Head of Equities and Managing Director of Asian Equities (AAMAL) Hugh Young is a Director of Aberdeen PLC, its Global Head of Equities and Managing Director of Asian Equities. Hugh joined Aberdeen in 1985 to manage Asian equities from London, having previously held posts at Fidelity International and MGM Assurance. He founded Singapore-based Aberdeen Asia in 1992 and since then he has built AAMAL into one of the largest and most well-respected managers of such assets globally. Hugh graduated with a BA (Hons) in politics from Exeter University.		Aberdeen China Opportunities Fund Aberdeen Asia-Pacific (ex-Japan) Equity Fund Aberdeen Asia-Pacific Smaller Companies Fund Aberdeen Emerging Markets Fund

Nicholas Yeo, CFA ® , Director and Head of Equities Hong Kong (AAMAL) Nicholas Yeo is the Head of China/Hong Kong Equities Team. Nicholas joined Aberdeen in 2000 via the acquisition of Murray Johnstone. He was seconded to the London Global Emerging Market Team for two years where he covered EMEA and Latin American companies, before returning to the Asian Equities Team in Singapore in March 2004. In March 2007, he transferred to Hong Kong to lead Chinese equity research, where he is assisted by five analysts and fund managers. Nicholas graduated with a BA (Hons) in Accounting and Finance from The University of Manchester and an MSc in Financial Mathematics from Warwick Business School. Nicholas is a CFA Charterholder.		Aberdeen China Opportunities Fund

Kathy Xu, CFA ® , Investment Manager (AAMAL) Kathy Xu is an Investment Manager on the China/Hong Kong Equities Team. Kathy joined Aberdeen in 2007 upon graduation. Kathy graduated with a BA in Economics from Fudan University, China and an MSc in Economics (Distinction) from University of Hong Kong. She is a CFA Charterholder.		Aberdeen China Opportunities Fund

Frank Tian, Investment Manager (AAMAL) Frank Tian is an Investment Manager on the China/Hong Kong Equities Team. Frank joined Aberdeen in 2008 having completed an internship with the Global Emerging Market Equities Team in summer 2007. Frank graduated with a BSc (Hons) in Economics from the London School of Economics.		Aberdeen China Opportunities Fund

Chou Chong, CFA ® , Investment Director (AAMAL) Chou Chong is an Investment Director on the Asian Equities Team, as well as Managing Director of Aberdeen Asset Management Sdn Bhd. Chou joined Aberdeen Asia in 1994 and became instrumental in refining the group’s investment process and portfolio		Aberdeen Asia-Pacific (ex-Japan) Equity Fund Aberdeen Asia-Pacific Smaller Companies Fund

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construction techniques as the team expanded, and he was made a Director. Chou then spent time in Sydney, Australia as Investment Director before transferring to London to lead the Pan-European Equity Team. In June 2008, Chou returned to Singapore and joined the Asian Equities Team. He graduated with a double Masters in Accounting & Finance and Information Systems from the London School of Economics. He is also a CFA Charterholder.

Flavia Cheong, CFA ® , Investment Director (AAMAL) Flavia Cheong is an Investment Director on the Asian Equities Team, where, in addition to sharing responsibility for company research, she oversees regional portfolio construction. Before joining Aberdeen in 1996, she was an economist with the Investment Company of the People’s Republic of China, and earlier with the Development Bank of Singapore. Flavia graduated with a BA in Economics and an MA (Hons) in Economics from the University of Auckland. She is a CFA Charterholder.		Aberdeen Asia-Pacific (ex-Japan) Equity Fund Aberdeen Asia-Pacific Smaller Companies Fund Aberdeen China Opportunities Fund

Adrian Lim, CFA ® , Senior Investment Manager (AAMAL) Adrian Lim is a Senior Investment Manager on the Asian Equities Team. Adrian originally joined Aberdeen in 2000 as a Manager on the Private Equity Team, upon the acquisition of Murray Johnstone, but transferred to his current post soon afterwards. Previously, Adrian worked for Arthur Andersen LLP as an Associate Director advising clients on mergers & acquisitions. Adrian graduated with a BAcc from Nanyang Technological University, Singapore and is a CFA Charterholder.		Aberdeen Asia-Pacific (ex-Japan) Equity Fund Aberdeen Asia-Pacific Smaller Companies Fund

Christopher Wong, CFA ® , Senior Investment Manager (AAMAL) Christopher Wong is a Senior Investment Manager on the Asian Equities Team. Chris joined Aberdeen in 2001 in the Private Equity Team and transferred to the Asian Equities Team in 2002. Previously, Chris worked for Andersen Corporate Finance as an Associate Director advising clients on mergers and acquisitions in South East Asia. Chris graduated with a BA in Accounting and Finance from Heriot-Watt University, Edinburgh. Chris is a Fellow of the Chartered Certified Accountants (FCCA) and is a CFA Charterholder.		Aberdeen Asia-Pacific (ex-Japan) Equity Fund Aberdeen Asia-Pacific Smaller Companies Fund

Devan Kaloo, Head of Global Emerging Markets (AAML) Devan Kaloo is Head of Global Emerging Markets, responsible for the London based Global Emerging Markets Equity Team, which manages Latin America and EMEA Equities, and also has oversight of Global Emerging Markets Equity Team input from the Asia team based in Singapore, with whom he works closely. Devan joined Aberdeen in 2000 on the Asian portfolio team before becoming responsible for the Asian ex Japan region as well as regional portfolios within emerging market mandates and technology stocks. Previously, Devan worked for Martin Currie on the North American desk before transferring to the global		Aberdeen Emerging Markets Fund Aberdeen Latin American Equity Fund

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asset allocation team and then Asian portfolios. Devan graduated with a MA (Hons) in Management and International Relations from The University of St Andrews and a postgraduate degree in Investment Analysis from The University of Stirling.

Joanne Irvine, Head of Emerging Markets (ex-Asia) (AAML) Joanne Irvine is Head of Emerging Markets (ex-Asia), on the Global Emerging Markets Equity Team in London. Joanne joined Aberdeen in 1996 in a group development role, and moved to the Global Emerging Markets Equity Team in 1997. Prior to Aberdeen, Joanne was with Rutherford Manson Dowds (subsequently acquired by Deloitte), specializing in raising private equity and bank funding for private companies. Joanne has a BA in Accounting from Caledonian University and qualified as a Chartered Accountant with Hardie Caldwell LLP in Glasgow, Scotland.		Aberdeen Emerging Markets Fund

Mark Gordon-James, CFA ® , Senior Investment Manager (AAML) Mark Gordon-James is a Senior Investment Manager on the Global Emerging Markets Equities Team. Mark joined Aberdeen in 2004 from Merrill Lynch Investment Managers where he worked with the emerging markets team. Mark graduated with a BSc in Geography and Economics from the London School of Economics. Mark is a CFA Charterholder.		Aberdeen Emerging Markets Fund Aberdeen Latin American Equity Fund

Fiona Manning, CFA ® , Senior Investment Manager (AAML) Fiona Manning is a Senior Investment Manager on the Global Emerging Markets Equity Team. Fiona joined Aberdeen in 2005 via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses. Fiona graduated with a BA (Hons) in History with French from Durham University. Fiona is a CFA Charterholder.		Aberdeen Emerging Markets Fund Aberdeen Latin American Equity Fund

Nick Robinson, CFA ® , Director, Head of Brazilian Equities (AAML) Nick Robinson is the Head of Brazilian Equities and a Director of Aberdeen’s operations in São Paulo. Nick joined Aberdeen in 2000 and spent eight years on the North American Equities Team, including three years based in Aberdeen’s US offices. In 2008 he returned to London to join the Global Emerging Markets Equity Team. Nick relocated to São Paulo in 2009. Nick graduated with an MA in Chemistry from Lincoln College, Oxford and is a CFA Charterholder.		Aberdeen Latin American Equity Fund

Stephen Parr , CFA ® , Senior Investment Manager (AAML) Stephen Parr is a Senior Investment Manager on the Global Emerging Markets Equity Team. Stephen joined Aberdeen in July 2009 following the acquisition of certain asset management businesses from Credit Suisse Asset Management. Previously, Stephen worked for Energis Communications as Head of Strategy. Prior to that, Stephen worked for Ernst &		Aberdeen Latin American Equity Fund

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Young Management Consultants as a Managing Consultant and prior to that for Energis Communications, Northern Telecom, and CASE Communications in strategic planning and marketing management. Stephen graduated with a BA (Hons) in Geography from the University of Manchester, a PhD in Geography from the University of Keele and an MBA from Warwick Business School and is a CFA Charterholder.

Aberdeen Global Natural Resources Fund, Aberdeen International Equity Fund, Aberdeen Global Equity Fund and Aberdeen Global Small Cap Fund

Each of the Global Natural Resources Fund, the International Equity Fund, the Global Equity Fund and the Global Small Cap Fund is managed by the Global Equity Team. The Global Equity Team works in a truly collaborative fashion; all team members have both portfolio construction and research responsibilities. The teams work in an open floor plan environment in an effort to foster communication among all members. The Adviser and Subadviser do not believe in having star managers, instead preferring to have both depth and experience within the team. Depth of team members allows the Adviser and Subadviser to perform the diligent research required by the Adviser’s process. The experience of senior managers provides the confidence needed to take a long-term view.

Portfolio Manager		Funds

Stephen Docherty, Head of Global Equities (AAML) Stephen Docherty is Head of Global Equities, managing a team of seventeen, including seven senior global equity investment managers and two assistant fund managers, who are responsible for Aberdeen’s overall strategy towards global equity investment, including ethical portfolios. Stephen joined Aberdeen in 1994, successfully establishing performance measurement procedures before taking up a fund management role. Previously, Stephen worked for Abbey National Plc in the Department of Actuarial Services within the Life Division. Stephen graduated with a BSc (Hons) in Mathematics and Statistics from the University of Aberdeen.		Aberdeen Global Natural Resources Fund Aberdeen International Equity Fund Aberdeen Global Equity Fund Aberdeen Global Small Cap Fund

Bruce Stout, Senior Investment Manager (AAML) Bruce Stout is a Senior Investment Manager on the Global Equity Team. He joined Aberdeen in 2001 via the acquisition of Murray Johnstone where he held a number of roles including Investment Manager for their emerging markets team. Bruce graduated with a BA in Economics from the University of Strathclyde and completed a graduate training course with General Electric Company UK.		Aberdeen Global Natural Resources Fund Aberdeen International Equity Fund Aberdeen Global Equity Fund Aberdeen Global Small Cap Fund

Jamie Cumming, CFA ® , Senior Investment Manager (AAML) Jamie Cumming is a Senior Investment Manager on the Global Equity Team. Jamie joined Aberdeen via the acquisition of Edinburgh Fund Managers in 2003, where he was an Investment Manager on the Japanese Equities Team. Previously, Jamie worked for Grant Thornton Chartered Accountant and is a member of the Institute of Chartered Accountants in Scotland. Jamie graduated with a BA (Hons) from Strathclyde University and is a CFA Charterholder.		Aberdeen Global Natural Resources Fund Aberdeen International Equity Fund Aberdeen Global Equity Fund Aberdeen Global Small Cap Fund

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Samantha Fitzpatrick, CFA ® , Senior Investment Manager (AAML)

Samantha Fitzpatrick is a Senior Investment Manager on the Global Equity Team. Samantha joined Aberdeen in 2001 through the acquisition of Murray Johnstone where she was in the Market Data Team. Samantha graduated with a BSc (Hons) in Mathematics from the University of Strathclyde and is a CFA ® Charterholder.

Aberdeen Global Natural Resources Fund

Aberdeen International Equity Fund

Aberdeen Global Equity Fund

Aberdeen Global Small Cap Fund

Martin Connaghan, Senior Investment Manager (AAML)

Martin Connaghan is a Senior Investment Manager on the Global Equity Team. Martin joined Aberdeen in 2001, via the acquisition of Murray Johnstone. Martin has held a number of roles with Aberdeen, including Trader and SRI Analyst on the Global Equity Team; he also spent two years as a Portfolio Analyst on the Fixed Income Team in London.

Aberdeen Global Natural Resources Fund

Aberdeen International Equity Fund

Aberdeen Global Equity Fund

Aberdeen Global Small Cap Fund

Aberdeen Diversified Income Fund, Aberdeen Dynamic Allocation Fund, Aberdeen Diversified Alternatives Fund

The Adviser generally uses a team-based approach for management of each Fund. Richard Fonash and Allison Mortensen are the portfolio managers for each of the Funds.

Portfolio Managers		Funds

Richard Fonash, CFA ® , Senior Investment Manager (AAMI) Richard Fonash is a Senior Investment Manager on the Aberdeen Investment Solutions team. Richard joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services’ equity investment management team, where since May 2000 he served in several positions, including chief investment officer and chief operating officer — investments. Previously, Richard was a finance director at Advanta Corporation. Richard graduated with a BS in finance from Villanova University and an MBA in finance from the University of Rochester. He is a CFA Charterholder.		Aberdeen Diversified Income Fund Aberdeen Dynamic Allocation Fund Aberdeen Diversified Alternatives Fund

Allison Mortensen, CFA ® , Senior Investment Manager (AAMI) Allison Mortensen is a Senior Investment Manager on the Aberdeen Investment Solutions team. Allison joined Aberdeen in 2007 following the acquisition of Nationwide Financial Services’ equity investment management team. Allison joined Nationwide in April 2004 as a member of the quantitative research team, after having spent nine years at Morgan Stanley Investment Management, most recently as Vice President and Director of Quantitative Research. Allison graduated with a BS in finance and computer science from the University of Richmond. She is a CFA Charterholder.		Aberdeen Diversified Income Fund Aberdeen Dynamic Allocation Fund Aberdeen Diversified Alternatives Fund

Aberdeen Asia Bond Fund

The Asia Bond Fund is managed by the Asian Fixed Income Team. The Adviser’s and Subadviser’s dedicated Asian Fixed Income Team has investment professionals based in the Asian region, with specialist macro and credit teams.

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The Asian macro team is responsible for performing the analysis of the countries/sovereigns in the Asian region and for managing the interest rate and currency strategies in the Fund, while the Asian credit team is responsible for performing the credit analysis and management of the credit risk of the Fund. Importantly, the team is responsible for managing the overall credit risk and allocations within representative sectors, but also undertakes fundamental analysis of both the credit worthiness and conviction in credit quality/profile of an issuer. Only after thoroughly researching the fundamentals does the investment team form a basis for investment decisions. The Adviser and Subadviser believe team-based decisions have distinct advantages over decisions made by individuals. The Asian Fixed Income Team is jointly and primarily responsible for the day-to-day management of the Fund, with the following members having the most significant responsibility for the day-to-day management of the Fund:

Portfolio Managers		Funds

Victor Rodriguez, Head of Asia-Pacific Fixed Income (AAMAL) Victor Rodriguez is the Head of Asia-Pacific Fixed Income in the Asia Pacific region. In this role, he has responsibility for Aberdeen’s Asian and Australian fixed income teams, with the heads of these teams reporting directly to him. Victor joined Aberdeen in 2009 following the acquisition of Credit Suisse Asset Management (Australia) Limited and was appointed Head of Australian fixed income in 2009. He joined Credit Suisse Asset Management in 1995 as a member of the fixed income team and prior to this spent two years working with Westpac Financial Services as an investment analyst. Victor graduated from Sydney University with a Bachelor of Economics degree. He holds a Graduate Diploma in Applied Finance and Investment from the Securities Institute of Australia and is a Certified Practicing Accountant.		Aberdeen Asia Bond Fund

Adam McCabe, Head of Asian Fixed Income (AAMAL) Adam McCabe is the Head of Asian Fixed Income, responsible for overseeing the investment strategies and portfolio management for Aberdeen’s Asian Fixed Income portfolios. Adam joined Aberdeen in 2009 following the acquisition of certain asset management businesses from Credit Suisse. Adam worked for Credit Suisse from 2001, where he was a director/investment manager responsible for the development and implementation of its Asian currency and interest rate strategies. Before that, he was a member of Credit Suisse’s Australian Fixed Income Team, where he was responsible for interest rate and currency strategies. He was a member of the global currency and emerging currency strategy groups. Adam was also Head of Fixed Income for Woori Credit Suisse Asset Management, Korea, where he was responsible for the fixed income and money market portfolio management, investment strategy and processes. Adam holds a BComm (First Class Honours and University Medal) from the University of Sydney, Australia and a Diploma in Global Finance from the Chinese University of Hong Kong.		Aberdeen Asia Bond Fund

Thomas Drissner, Investment Manager (AAMAL) Thomas Drissner is an Investment Manager within the Asian Fixed Income team based in Singapore. Thomas joined Aberdeen in 2010. Before transferring to		Aberdeen Asia Bond Fund

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Singapore in 2012, he worked as a Credit Analyst in Aberdeen’s EMEA Fixed Income team based in London. Prior to that Thomas held positions at Standard & Poor’s, and Commerzbank in London. Thomas holds a BA (Hons) in Business Administration from The Open University, UK and a Diplom-Betriebswirt (Berufsakademie) from the University of Cooperative Education, Germany.

Kenneth Akintewe, Senior Investment Manager (AAMAL) Kenneth Akintewe is a senior investment manager on the Asian Fixed Income team. Kenneth joined Aberdeen in 2002, working first on the global equities desk in Glasgow before moving to the global fixed income team in London in 2003. In his role as assistant fund manager he transferred to Aberdeen’s Singapore office in 2004 to facilitate the incorporation of Asian fixed income into global bond portfolios, before joining the Asian Fixed Income team in 2005 to focus on Asian local currency, interest rate and foreign exchange strategy. Kenneth has an MA in Economics and an MSc in International Banking and Financial Studies from Heriot-Watt University, Edinburgh, UK.		Aberdeen Asia Bond Fund

Thu-Ha Chow, Head of Asian Credit (AAMAL) Thu-Ha Chow is the Head of Asian Credit on the Asian Fixed Income team in Singapore. Thu-Ha joined Aberdeen’s Asian Fixed Income team as a senior credit analyst in 2012 from the London office where she was a senior portfolio manager in the European investment grade team. Previously she worked for Deutsche Asset Management in 2001 as a sector specialist covering utilities and ABS. Prior to that, Thu-Ha was a credit analyst/portfolio manager at Threadneedle Asset Management. Thu-Ha started her career at Credit Suisse in the corporate finance division. Thu-Ha graduated with a BSc (Econ) and an MSc (Econ) in Economics from the London School of Economics and Political Science.		Aberdeen Asia Bond Fund

Aberdeen Global Fixed Income Fund, Aberdeen Tax-Free Income Fund, Aberdeen Ultra-Short Duration Bond Fund and Aberdeen High Yield Fund

The Tax-Free Income Fund, the Ultra-Short Duration Bond Fund and the High Yield Fund are managed by the North American Fixed Income Team. Portfolio decisions are made by the Senior Portfolio Managers responsible for the respective fund together with other team members.

The Global Fixed Income Fund is managed by the Global Fixed Income Team. The Global Fixed Income Team works closely with the Adviser’s and Subadvisers’ fixed income teams located in London, Philadelphia, Singapore and Sydney. The local teams undertake proprietary fundamental research on sovereign and corporate credits within their markets. Local fund managers construct portfolios targeted towards those local regions. The Global Fixed Income Team develops an understanding of the local teams’ research and portfolio construction, and then seeks to construct the Global Fixed Income Fund in such a way that takes advantage of the Adviser’s and Subadvisers’ unique global investment platform while optimising risk-adjusted return.

The Advisers’ and Subadvisers’ teams coordinate in both formal and informal meetings. The Global Fixed Income Team coordinates a formal periodic macroeconomic review process and combines it with formal periodic output from

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local research teams and regional product teams. The Global Fixed Income Team participates in all formal meetings and undertakes daily informal meetings and dialogue with local research analysts and portfolio managers.

The following portfolio managers are jointly and primarily responsible for the day-to-day management of each Fund, as indicated:

Portfolio Managers		Funds

Neil Moriarty, Head of US Core (AAMI) Neil Moriarty III is Head of US Core on the North American Fixed Income team. Neil joined Aberdeen in 2005 via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses. Prior to this, Neil worked at Swarthmore/Cypress Capital Management in fixed income portfolio management, Chase Securities in fixed income trading and research, and Prudential Securities and Paine Webber in similar roles. Neil graduated with a BA from University of Massachusetts.		Aberdeen Global Fixed Income Fund Aberdeen Ultra-Short Duration Bond Fund

Oliver Boulind, CFA ® , Head of Global Credit (AAML) Oliver Boulind is Head of Global Credit, and is based in London. He was previously a senior portfolio manager on the US fixed income team. Oliver joined Aberdeen in 2008 from AllianceBernstein where he was a credit analyst focusing on telecom and media across the credit quality spectrum. Previously, Oliver worked for INVESCO as a credit analyst focusing on high yield telecom and media. Prior to that, Oliver was at JP Morgan Fleming in credit and portfolio management roles and, prior to graduate school, was at Salomon Brothers as an investment banking analyst in leveraged finance. Oliver graduated with a BSc in Economics from the Wharton School at the University of Pennsylvania and received an MBA from the Tuck School at Dartmouth College. He is a CFA Charterholder.		Aberdeen Global Fixed Income Fund

Stephen Cianci, CFA ® , Head of US Core Plus (AAMI) Steve Cianci is Head of US Core Plus on the North American Fixed Income team. Steve joined Aberdeen in 2010 from Logan Circle Partners where he was co-head of their Core and Core Plus fixed income strategies, lead portfolio manager for Short Duration products and the Head of Structured Products. Previously, Steve held similar roles as a senior portfolio manager at Delaware Investments. He is an adjunct professor of finance and a member of the Business Advisory Council at Widener University. Steve graduated with an MBA and BA from Widener University and is a CFA Charterholder.		Aberdeen Ultra-Short Duration Bond Fund

Richard Smith, CFA ® , Senior Investment Manager, Global Credit (AAML) Richard Smith is a Senior Investment Manager on the Global Credit Team. Richard Joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Richard held the same role at Deutsche Asset Management in London, having joined in 1998 as part of the graduate scheme. Richard graduated with a BSc (Hons) from Surrey University and is a CFA Charterholder.		Aberdeen Global Fixed Income Fund

József Szabó, CFA ® , Head of Global Macro (AAML) József Szabó is Head of Global Macro. József joined		Aberdeen Global Fixed Income Fund

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Aberdeen in 2011 from the central bank of Hungary where in the last six years he was managing fixed income portfolios as part of the official FX reserves management operations. Previously, József worked in monetary analysis within the central bank and served as secretary to the Monetary Council. Prior to that, József worked for the Hungarian Government Debt Management Agency. József graduated with an MSc in Economic Sciences from the Budapest University and is a CFA charterholder.

Keith Bachman, Head of US High Yield (AAMI) Keith Bachman is Head of US High Yield. Keith joined Aberdeen in 2007 from Stone Tower Capital where he was director of credit research. Previously, Keith was a Portfolio Manager at Deutsche Asset Management and High Yield Analyst/Director of Distressed Investments at Oppenheimer Funds. Keith has also worked at Merrill Lynch Asset Management and T. Rowe Price in high yield credit. Keith graduated with a BA from the University of Maryland Baltimore County and an MBA from Columbia Business School.		Aberdeen High Yield Fund

Michael Degernes, Head of Municipals (AAMI) Michael Degernes is Head of Municipals on the North American Fixed Income team. Michael joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Previously Michael worked at Bank of America and Bank of America Securities where he was managing director and fixed income analyst. Previously, Michael worked for NationsBank Leasing as senior vice president for utility leasing and financial structuring. Prior to that, Michael worked for Nova Northwest, Inc. as chief financial officer. Michael also worked for PacifiCorp as vice president of finance and assistant treasurer. Michael began his career with the Washington Utilities & Transportation Commission as economist and expert witness in utility rate cases. Michael graduated with a BS from Washington State University and an MS from University of California, Davis.		Aberdeen Tax-Free Income Fund Aberdeen Ultra-Short Duration Bond Fund

Edward Grant, Global Head of Credit Research (AAMI) Edward Grant is Global Head of Credit Research on the North American Fixed Income team. Edward joined Aberdeen following the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Before joining Aberdeen, Edward worked for PNC and Deutsche Bank Capital Corp where he was a fixed income portfolio manager. Previously, Edward worked for Raymond James & Associates as head of corporate research. Prior to that, Edward worked for American Century Investments and ING Investment Management as a credit analyst. Edward graduated with a BS from Lebanon Valley College, Pennsylvania, and an MBA from Widener University, Pennsylvania.		Aberdeen Tax-Free Income Fund Aberdeen High Yield Fund

Neal Rayner, CFA ® , Head of US Fixed Income Trading (AAMI) Neal Rayner is Head of US Fixed Income Trading on the North American Fixed Income team, focused primarily on US and Global High Yield strategies. Neal joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Prior to		Aberdeen High Yield Fund

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that, Neal worked at Toronto’s Securities Valuation Company, where he was responsible for the fixed income database group. Neal graduated with a BA from McGill University, Montreal and is a CFA charterholder.

Kam Poon, Head of US Money Markets and Short Duration (AAMI) Kam Poon is Head of US Money Markets and Short Duration on the North American Fixed Income team focusing on short duration mandates. Kam joined Aberdeen following the acquisition of Credit Suisse’s asset management division in 2009 where he was Director and fixed income portfolio manager. Before joining Aberdeen, Kam worked as an Account Administrator with Bank of New York and in the municipal bond area at US Trust. Kam graduated with a BS in Finance and an MBA from New York University - Stern School of Business.		Aberdeen Ultra-Short Duration Bond Fund

Brendan Dillon, Senior Investment Manager (AAMI) Brendan Dillon is a Senior Investment Manager on the North American Fixed Income team, focusing primarily on US High Yield strategies. Brendan joined Aberdeen in 2006 from Gartmore Global Investments, where he was an Analyst/Trader on the Convertible Securities Team. Previously, Brendan worked for The Benchmark Group and Wachovia Securities as an investment banking analyst focusing on mergers and acquisitions. Brendan graduated with a BS in Business Administration from Bucknell University.		Aberdeen High Yield Fund

Oliver Chambers, Senior Investment Manager (AAMI) Oliver Chambers is a Senior Investment Manager on the North American Fixed Income team. Oliver joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Previously, Oliver worked for The Bank of New York where he was a senior custody administrator. Oliver graduated with a BS from Elmhurst College and an MS in Finance from DePaul University.		Aberdeen Ultra-Short Duration Bond Fund

Emma Jack, Senior Portfolio Analyst, Global Credit (AAML) Emma Jack is a Senior Portfolio Analyst on the Global Credit Team. Emma joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Emma held a similar role at Deutsche Asset Management, which she joined in 1999 as a portfolio administrator before joining the fixed income team. Previously, Emma worked as an analyst in the investor relations audit team at Makinson Cowell, a capital markets advisory firm.		Aberdeen Global Fixed Income Fund

Aberdeen Emerging Markets Debt Fund and Aberdeen Emerging Markets Debt Local Currency Fund

The Emerging Markets Debt Fund and the Emerging Markets Debt Local Currency Fund are managed by the Emerging Markets Debt team (“EMD team”). A fundamental top-down analysis is the foundation of the Adviser’s and Subadviser’s investment process for the Fund. The portfolio management teams follow a disciplined investment process that applies daily information flow into investment recommendations, portfolio construction, and risk management. The process is designed to seek to highlight total return opportunities across all emerging debt markets.

The following portfolio managers are jointly and primarily responsible for the day-to-day management of each Fund,

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as indicated:

Portfolio Managers		Funds

Kevin Daly, Senior Investment Manager (AAML) Kevin Daly is a Senior Investment Manager on the EMD team. Kevin joined Aberdeen in April 2007 having spent the previous ten years at Standard & Poor’s in London and Singapore. During that time Kevin worked as a Credit Market Analyst covering global emerging debt and was Head of Origination for Global Sovereign Ratings. Kevin was a regular participant on the Global Sovereign Ratings Committee and was one of the initial members of the Emerging Market Council, formed in 2006 to advise senior management on business and market developments in emerging markets. Kevin graduated with a BA in English Literature from the University of California, Los Angeles.		Aberdeen Emerging Markets Debt Fund Aberdeen Emerging Markets Debt Local Currency Fund

Brett Diment, Head of Emerging Market Debt (AAML) Brett Diment is the Head of Emerging Market Debt. Brett joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005, where he held the same role since 1999. Brett joined Deutsche Asset Management in 1991 as a graduate and began researching emerging markets in 1995. Brett graduated with a BSc from the London School of Economics.		Aberdeen Emerging Markets Debt Fund Aberdeen Emerging Markets Debt Local Currency Fund

Edwin Gutierrez, Head of Emerging Market Sovereign Debt (AAML) Edwin Gutierrez is Head of Emerging Market Sovereign Debt. Edwin joined Aberdeen following the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005, where he held the same role since joining Deutsche in 2000. Previously, Edwin worked as an emerging debt portfolio manager at Invesco Asset Management and as a Latin American economist at LGT Asset Management. Edwin graduated with an MS in International Affairs from Georgetown University and a BA in International Political Economy from the University of California, Berkeley.		Aberdeen Emerging Markets Debt Fund Aberdeen Emerging Markets Debt Local Currency Fund

Viktor Szabó, CFA ® , Senior Investment Manager (AAML) Viktor Szabó is a Senior Investment Manager on the EMD team. Viktor joined Aberdeen via the acquisition of certain asset management businesses from Credit Suisse Asset Management in 2009. Previously, Viktor worked for Credit Suisse Asset Management Hungary as country Chief Investment Officer. Prior to that, Viktor worked for the National Bank of Hungary as the Head of Market Analysis team. Viktor graduated with an MSc in Economics from the Corvinus University of Budapest. Viktor is a CFA Charterholder.		Aberdeen Emerging Markets Debt Fund Aberdeen Emerging Markets Debt Local Currency Fund

Andrew Stanners, Investment Manager (AAML) Andrew Stanners is an Investment Manager on the EMD team. Andrew joined Aberdeen via the acquisition of Deutsche Asset Management’s London and Philadelphia fixed income businesses in 2005. Andrew held a similar		Aberdeen Emerging Markets Debt Fund Aberdeen Emerging Markets Debt Local Currency Fund

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role at Deutsche Asset Management, which he re-joined in 2004 following a short appointment as an Analyst at Cheyne Capital. Andrew initially joined Deutsche Asset Management in 2001. Andrew graduated with a BA joint honours in Economics and Economic History from York University.

Aberdeen European Equity Fund

The European Equity Fund is managed by the UK and European Equities Team. The investment team believes that, given the inefficiency of markets, long-term returns are achieved by identifying good quality stocks at a reasonable price and holding them for the long term. The UK and European Equities Team identifies companies from first-hand research, and add value from active management, which constitutes intensive and ongoing scrutiny at the company level. No stock is purchased without the investment team having first met management, and carried out detailed due diligence. An estimate of a company’s worth is analysed in two stages, assessing quality then price. Quality is defined with reference to management, business focus, balance sheet and corporate governance. Price is calculated relative to key financial ratios, market, peer group and business prospects. European equity portfolios are generally conservatively run, with an emphasis on traditional buy-and-hold investment resulting in low turnover.

The following portfolio managers are jointly and primarily responsible for the day-to-day management of the Fund:

Portfolio Managers		Fund

Jeremy Whitley, Head of UK and European Equities (AAML) Jeremy Whitley was appointed Head of UK and European Equities in July 2009. Previous roles at Aberdeen include Senior Investment Manager on the Global Equity Team as well as the Asian Equities Team based in Singapore. Jeremy graduated with an MA (Joint Hons) in English and Art History from the University of St Andrews and an MBA from the University of Edinburgh.		Aberdeen European Equity Fund

Edward Beal, CFA ® , Senior Investment Manager (AAML) Edward Beal is a Senior Investment Manager on the UK and European Equities Team. Edward joined Aberdeen via the acquisition of Edinburgh Fund Managers in 2003. Edward graduated with a BSc (Hons) in Biochemistry from the University of Dundee and is a CFA Charterholder.		Aberdeen European Equity Fund

Charles Luke, Senior Investment Manager (AAML) Charles Luke is a Senior Investment Manager on the UK and European Equities Team having joined Aberdeen in 2000. Charles started his career at Framlington Investment Management in 1998, covering UK equities. Charles graduated with a BA in Economics and Japanese Studies from Leeds University and an MSc in Business and Economic History from the London School of Economics.		Aberdeen European Equity Fund

Ben Ritchie, CFA ® , Senior Investment Manager (AAML) Ben Ritchie is a Senior Investment Manager on the UK and European Equities Team. Ben joined Aberdeen in 2002 as a graduate. Ben graduated with a BA (Hons) in Modern History and Politics from Pembroke College, University of Oxford and is a CFA charterholder.		Aberdeen European Equity Fund

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The SAI provides additional information about each portfolio manager’s compensation, other accounts managed by the portfolio manager and the portfolio manager’s ownership of securities in the Fund(s) managed by the portfolio manager, if any.

Multi-Manager Structure

The Adviser and the Trust have received an exemptive order from the Securities and Exchange Commission for a multi-manager structure that allows the Adviser, subject to the approval of the Board of Trustees, to hire, replace or terminate a subadviser (excluding hiring a subadviser which is an affiliate of the Adviser) without the approval of shareholders. The order also allows the Adviser to revise a subadvisory agreement with an unaffiliated subadviser with the approval of the Board of Trustees, but without shareholder approval.

If a new unaffiliated subadviser is hired for a Fund, shareholders will receive information about the new subadviser within 90 days of the change. The multi-manager structure allows the Funds greater flexibility enabling them to operate more efficiently.

Under the multi-manager structure, the Adviser has ultimate responsibility, subject to oversight by the Board of Trustees, for overseeing a Fund’s subadviser(s) and recommending to the Board of Trustees the hiring, termination or replacement of a subadviser. In instances where the Adviser hires a subadviser, the Adviser performs the following oversight and evaluation services to a subadvised Fund:

· initial due diligence on prospective Fund subadvisers;

· monitoring subadviser performance, including ongoing analysis and periodic consultations;

· communicating performance expectations and evaluations to the subadvisers; and

· making recommendations to the Board of Trustees regarding renewal, modification or termination of a subadviser’s contract.

The Adviser does not currently utilize un-affiliated subadvisers in reliance on this exemptive order. Where the Adviser does recommend subadviser changes, the Adviser periodically provides written reports to the Board of Trustees regarding its evaluation and monitoring of the subadviser. Although the Adviser monitors the subadviser’s performance, there is no certainty that any subadviser or Fund will obtain favorable results at any given time.

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Investing with Aberdeen Funds

Shares of the Funds have not been registered for sale outside of the United States and its territories.

Share Classes

A Note About Share Classes

Each Fund offers five share classes — Class A, Class C, Class R, Institutional Service Class and Institutional Class.

An investment in any share class of a Fund represents an investment in the same assets of the Fund. However, the fees, sales charges and expenses for each share class are different. The different share classes simply let you choose the cost structure that is right for you. The fees and expenses for the Fund are set forth in the Fund Summary.

Fund Closure

In order to protect the integrity of the investment process that is used to manage the Aberdeen Emerging Markets Fund, e ffective February 22, 2013 (the “Closing Date”), the Fund no longer accepts purchase orders from new investors or exchanges from other Funds of the Trust into the Fund by new investors. However, the categories of persons described below will continue to be able to invest in the Fund:

· Existing shareholders, as of the Closing Date, are permitted to make new investments into the Fund directly.

· Existing shareholders, as of the Closing Date, are permitted to continue to purchase Fund shares through the Automatic Investment Plan and through dividend and capital gain reinvestments.

· Existing shareholders, as of the Closing Date, are permitted to transfer assets from one existing account to another account within the Fund, regardless of whether such account is under a different registration or holds shares of the Fund as of the Closing Date. Such shareholders are permitted to make new investments into such account.

· Existing shareholders, as of the Closing Date, are permitted to exchange shares within an existing account from one share class to another share class of the Fund, subject to any investment minimum or eligibility requirements detailed in the Fund’s prospectus. Such shareholders are permitted to make new investments into such account.

· 401(k) plans, other qualified employee benefit plans, and firm-wide model-based investment programs, each with existing accounts in the Fund as of the Closing Date, are permitted to purchase additional shares in the Fund.

· Financial intermediaries trading in an omnibus structure that currently have accounts in the Fund or that convert fully disclosed accounts to an omnibus structure are permitted to purchase additional shares in the Fund on behalf of existing or new clients or customers.

Existing shareholders, as of the Closing Date, who later sell all of their shares of the Fund will not be permitted to establish new accounts or reinvest in the Fund. In addition, the Fund reserves the right to accept purchases from institutions that notified the Fund’s adviser or distributor of their intent to invest in the Fund prior to the Closing Date, regardless of whether such institutions held shares of the Fund as of the Closing Date. The Fund’s Board, and officers and employees of the Fund’s adviser and its affiliates, are not permitted to purchase additional shares in the Fund after the Closing Date unless such investment is through a permitted channel (i.e., 401(k) plan). The Fund reserves the right to accept purchases from the Funds-of-Funds, regardless of whether such funds held shares of the Fund as of the Closing Date. The Fund reserves the right to accept investments transferred from other Aberdeen emerging markets vehicles at its discretion.

The Fund will continue to limit inflows to the Fund until otherwise notified.

Choosing a Share Class

When selecting a share class, you should consider the following:

· which share classes are available to you;

· how long you expect to own your shares;

· how much you intend to invest;

· total costs and expenses associated with a particular share class; and

· whether you qualify for any reduction or waiver of sales charges.

Your financial advisor can help you to decide which share class is best suited to your needs.

The table below provides a comparison of Class A and Class C shares. Class A and Class C shares are available to all investors. In addition to Class A and Class C shares, each Fund also offers Class R, Institutional Service Class and Institutional Class shares, which are only available to institutional accounts. Class R, Institutional Service Class and

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Institutional Class shares are subject to different fees and expenses, have different minimum investment requirements, and are entitled to different services. For eligible investors, Class R, Institutional Service Class and Institutional Class shares may be more suitable than Class A or Class C shares.

Before you invest, compare the features of each share class, so that you can choose the class that is right for you. We describe each share class in detail on the following pages. Your financial advisor can help you with this decision. When you buy shares, be sure to specify the class of shares. If you do not choose a share class, your investment will be made in Class A shares. If you are not eligible for the class you have selected, your investment may be refused. However, we recommend that you discuss your investment with a financial advisor before you make a purchase to be sure that the Fund and the share class are appropriate for you. In addition, consider the Fund’s investment objectives, principal investment strategies and principal risks to determine which Fund and share class is most appropriate for your situation.

Comparing Class A and Class C Shares

Class A Shares

Front-end sales charge up to 5.75% (equity funds) or 4.25% (fixed income funds) for Class A Shares		The offering price of the shares includes a front-end sales charge which means that a portion of your initial investment goes toward the sales charge and is not invested.

Contingent deferred sales charge (CDSC) up to 1.00% (1)		Reduction and waivers of sales charges may be available.

Annual service and/or 12b-1 fee of 0.25% Administrative services fee of up to 0.25%		Total annual operating expenses are lower than Class C expenses which means higher dividends and/or NAV per share. No conversion feature. No maximum investment amount.

Class C Shares

No front-end sales charge.

CDSC of 1.00%

No front-end sales charge means your full investment immediately goes toward buying shares.

No reduction of CDSC, but waivers may be available.

The CDSC declines to zero after one year.

Annual service and/or 12b-1 fee of 1.00%

No administrative services fee

Total annual operating expenses are higher than Class A expenses which means lower dividends and/or NAV per share.

No conversion feature.

Maximum investment amount of $1,000,000(2). Larger investments may be rejected.

(1) Unless you are otherwise eligible to purchase Class A shares without a sales charge, a CDSC of up to 1.00% (up to 0.75% for the Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, Global Fixed Income Fund, High Yield Fund, Tax-Free Income Fund, Asia Bond Fund and Ultra-Short Duration Bond Fund and up to 0.50% of the Small Cap Fund) will be charged on Class A shares redeemed within 18 months of purchase if you paid no sales charge on the original purchase and a finder’s fee was paid.

(2) This limit was calculated based on a one-year holding period.

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Class A Shares

Class A shares may be most appropriate for investors who want lower fund expenses or those who qualify for reduced front-end sales charges or a waiver of sales charges.

Front-End Sales Charges For Class A Shares (other than Tax-Free Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, Global Fixed Income Fund, High Yield Fund, Asia Bond Fund and Ultra-Short Duration Bond Fund)

	Sales Charge as a Percentage of				Dealer Commission
			Net Amount Invested		as Percentage of
Amount of Purchase	Offering Price*		(Approximately)		Offering Price

Less than $50,000	5.75	%	6.10	%	5.00	%
$50,000 up to $100,000	4.75		4.99		4.00
$100,000 up to $250,000	3.50		3.63		3.00
$250,000 up to $500,000	2.50		2.56		2.00
$500,000 up to $1 million	2.00		2.04		1.75
$1 million or more	None		None		None	**

* The offering price of Class A Shares of the Fund is the next determined NAV per share plus the initial sales charge listed in the table above which is paid to the Fund’s distributor at the time of purchase of shares.

** Dealer may be eligible for a finder’s fee as described in “Purchasing Class A Shares without a Sales Charge” below.

Front-End Sales Charges for Class A Shares of Tax-Free Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, Global Fixed Income Fund, High Yield Fund, Asia Bond Fund and Ultra-Short Duration Bond Fund

	Sales Charge as a Percentage of				Dealer Commission
			Net Amount Invested		as Percentage of
Amount of Purchase	Offering Price*		(Approximately)		Offering Price

Less than $100,000	4.25	%	4.44	%	3.75	%
$100,000 up to $250,000	3.50		3.63		3.00
$250,000 up to $500,000	2.50		2.56		2.00
$500,000 up to $1 million	2.00		2.04		1.75
$1 million or more	None		None		None	**

** Dealer may be eligible for a finder’s fee as described in “Purchasing Class A Shares without a Sales Charge” below.

Reduction and Waiver of Class A Sales Charges

If you qualify for a reduction or waiver of Class A sales charges, you must notify Customer Service, your financial advisor or other intermediary at the time of purchase and must also provide any required evidence showing that you qualify. The value of cumulative quantity discount eligible shares equals the cost or current value of those shares, whichever is higher. The current value of shares is determined by multiplying the number of shares by their current NAV. In order to obtain a sales charge reduction, you may need to provide your financial intermediary or the Fund’s transfer agent, at the time of purchase, with information regarding shares of the Funds held in other accounts which may be eligible for aggregation. Such information may include account statements or other records regarding shares of the Funds held in (i) all accounts (e.g., retirement accounts) with the Funds and your financial intermediary; (ii) accounts with other financial intermediaries; and (iii) accounts in the name of immediate family household members (spouse and children under 21). You should retain any records necessary to substantiate historical costs because the Fund, its transfer agent, and financial intermediaries may not maintain this information. Otherwise, you may not receive the reduction or waiver. See “Reduction of Class A Sales Charges” and “Waiver of Class A Sales Charges” below and “Reduction of Class A Sales Charges” in the SAI for more information. This information regarding breakpoints is available free of charge by visiting www.aberdeen-asset.us.

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Reduction of Class A Sales Charges

Investors may be able to reduce or eliminate front-end sales charges on Class A shares through one or more of these methods:

· A Larger Investment. The sales charge decreases as the amount of your investment increases.

· Rights of Accumulation. To qualify for the reduced Class A sales charge that would apply to a larger purchase than you are currently making (as shown in the tables above), you and other family members living at the same address can add the value of any Class A or Class C shares in the Aberdeen Funds and Aberdeen Investment Funds that you currently own or are currently purchasing to the value of your Class A purchase.

· Share Repurchase Privilege. If you redeem Fund shares from your account, you qualify for a one-time reinvestment privilege. You may reinvest some or all of the proceeds in shares of the same class without paying an additional sales charge within 30 days of redeeming shares on which you previously paid a sales charge. (Reinvestment does not affect the amount of any capital gains tax due. However, if you realize a loss on your redemption and then reinvest all or some of the proceeds, all or a portion of that loss may not be tax deductible.)

· Letter of Intent Discount. If you declare in writing that you or a group of family members living at the same address intend to purchase at least $50,000 in Class A shares (at least $100,000 in Class A shares of Global Fixed Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, High Yield Fund, Tax-Free Income Fund, Asia Bond Fund or Ultra-Short Duration Bond Fund) during a 13-month period, your sales charge is based on the total amount you intend to invest. You can also combine your holdings of Class A and Class C shares in the Aberdeen Funds and Aberdeen Investment Funds to fulfill your Letter of Intent. You are not legally required to complete the purchases indicated in your Letter of Intent. However, if you do not fulfill your Letter of Intent, additional sales charges may be due and shares in your account would be liquidated to cover those sales charges.

Waiver of Class A Sales Charges

The following purchasers qualify for a waiver of front-end sales charges on Class A shares:

· investors purchasing shares through an unaffiliated brokerage firm that has an agreement with the Fund or the Funds’ distributor to waive sales charges (Class A shares only);

· directors, officers, full-time employees, sales representatives and their employees and investment advisory clients of a broker-dealer that has a dealer/selling agreement with the Funds’ distributor (Class A shares only);

· “Retirement Plans”;

· “Retirement Plans” include 401(a) plans, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, non-qualified deferred compensation plans, employer sponsored benefit plans (including health savings accounts), defined benefit plans, and other similar employer-sponsored retirement and benefit plans. “Retirement Plans” do not include individual retirement vehicles, such as traditional and Roth IRAs, Coverdell education savings accounts, individual 403(b)(7) custodial accounts, one-person Keogh plans, SEPs, SARSEPs, SIMPLE IRAs or similar accounts.

· investment advisory clients of the Adviser’s affiliates;

· directors, officers, full-time employees (and their spouses, children or immediate relatives) of companies that may be affiliated with the Adviser from time to time; and

· financial intermediaries who have entered into an agreement with a Fund’s distributor to offer shares to self-directed investment brokerage accounts that may or may not charge a transaction fee to its customers.

The SAI lists other investors eligible for sales charge waivers.

Purchasing Class A Shares Without a Sales Charge

Purchases of $1 million or more of Class A shares have no front-end sales charge. You can purchase $1 million or more in Class A shares in one or more of the funds offered by the Trust (including the Funds in this prospectus) at one time. Or, you can utilize the Rights of Accumulation Discount and Letter of Intent Discount as described above. However, a contingent deferred sales charge (CDSC) may apply when you redeem your shares in certain circumstances (see “Contingent Deferred Sales Charges on Certain Redemptions of Class A Shares”).

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A CDSC of up to 1.00% (CDSC of up to 0.75% for Global Fixed Income Fund, Tax-Free Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, High Yield Fund, Asia Bond and Ultra-Short Duration Bond Fund and of up to 0.50% for Small Cap Fund) applies to purchases of $1 million or more of Class A Shares if a “finder’s fee” is paid by the Funds’ distributor or Adviser to your financial advisor or intermediary and you redeem your shares within 18 months of purchase. The CDSC covers the finder’s fee paid to the selling dealer.

The CDSC does not apply:

· if you are eligible to purchase Class A shares without a sales charge for another reason; or

· if no finder’s fee was paid; or

· to shares acquired through reinvestment of dividends or capital gains distributions.

Contingent Deferred Sales Charge on Certain Redemptions of Class A Shares (other than the Tax-Free Income Fund, the Emerging Markets Debt Fund, the Emerging Markets Debt Local Currency Fund, the Global Fixed Income Fund, the Ultra-Short Duration Bond Fund, the High Yield Fund, the Asia Bond Fund and the Small Cap Fund)

Amount of Purchase	Amount of CDSC
$1 Million up to $4 Million	1.00	%
$4 Million up to $25 Million	0.50	%
$25 Million or More	0.25	%

Contingent Deferred Sales Charge on Certain Redemptions of Class A Shares of the Tax-Free Income Fund, the Emerging Markets Debt Fund, the Emerging Markets Debt Local Currency Fund, the Global Fixed Income Fund, the High Yield Fund, the Asia Bond Fund and the Ultra-Short Duration Bond Fund

Amount of Purchase	Amount of CDSC
$1 Million up to $4 Million	0.75	%
$4 Million up to $25 Million	0.50	%
$25 Million or More	0.25	%

Contingent Deferred Sales Charge on Certain Redemptions of Class A Shares of the Small Cap Fund

Amount of Purchase	Amount of CDSC
$1 Million up to $4 Million	0.50	%
$4 Million up to $25 Million	0.50	%
$25 Million or More	0.25	%

A shareholder may be subject to a CDSC if he or she did not pay an up-front sales charge and redeems Class A shares within 18 months of the date of purchase. Any CDSC is based on the original purchase price or the current market value of the shares being redeemed, whichever is less. If you redeem a portion of your shares, shares that are not subject to a CDSC are redeemed first, followed by shares that you have owned the longest. This minimizes the CDSC you pay. Please see “Waiver of Contingent Deferred Sales Charges-Class A, and Class C Shares” for a list of situations where a CDSC is not charged. The CDSC of Class A shares for the Funds in this prospectus are described above; however, the CDSC for Class A shares of other Funds of the Trust may be different and are described in their respective prospectuses. If you purchase more than one Fund of the Trust and subsequently redeem those shares, the amount of the CDSC is based on the specific combination of Funds purchased and is proportional to the amount you redeem from each Fund.

Waiver of Contingent Deferred Sales Charges — Class A and Class C Shares

The CDSC may be waived on:

· the redemption of Class A or Class C shares purchased through reinvested dividends or distributions;

· Class A or Class C shares sold following the death or disability of a shareholder, provided the redemption occurs within one year of the shareholder’s death or disability;

· mandatory withdrawals of Class A or Class C shares from traditional IRA accounts after age 70½ and for other required distributions from retirement accounts; and

· redemptions of Class C shares from retirement plans offered by retirement plan administrators that maintain an agreement with the Funds, the Funds’ Adviser or the Funds’ distributor.

If a CDSC is charged when you redeem your Class C shares, and you then reinvest the proceeds in Class C shares within 30 days, shares equal to the amount of the CDSC are re-deposited into your new account.

If you qualify for a waiver of a CDSC, you must notify Customer Service, your financial advisor or intermediary at the time of purchase and must also provide any required evidence showing that you qualify. Your financial intermediary may not have the capability to waive such sales charges. For more complete information, see the SAI.

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Class C Shares

Class C shares may be appropriate if you are uncertain how long you will hold your shares. If you redeem your Class C shares within the first year after you purchase them you must pay a CDSC of 1%.

For Class C shares, the CDSC is based on the original purchase price or the current market value of the shares being redeemed, whichever is less. If you redeem a portion of your shares, shares that are not subject to a CDSC are redeemed first, followed by shares that you have owned the longest. This minimizes the CDSC that you pay. See “Waiver of Contingent Deferred Sales Charges-Class A and Class C Shares” for a list of situations where a CDSC may be waived.

The Fund’s distributor or Adviser may compensate broker-dealers and financial intermediaries for sales of Class C shares from its own resources at the rate of 1.00% of sales.

Share Classes Available Only to Institutional Accounts

The Funds offer Institutional Service Class, Institutional Class and Class R shares. Only certain types of entities and selected individuals are eligible to purchase shares of these classes.

If an institution or retirement plan has hired an intermediary and is eligible to invest in more than one class of shares, the intermediary can help determine which share class is appropriate for that retirement plan or other institutional account. Plan fiduciaries should consider their obligations under ERISA when determining which class is appropriate for the retirement plan.

Other fiduciaries should also consider their obligations in determining the appropriate share class for a customer including:

· the level of distribution and administrative services the plan requires;

· the total expenses of the share class; and

· the appropriate level and type of fee to compensate the intermediary. An intermediary may receive different compensation depending on which class is chosen.

Class R Shares

Class R shares are available to retirement plans including:

· 401(a) plans;

· 401(k) plans;

· 457 plans;

· 403(b) plans;

· profit sharing and money purchase pension plans;

· defined benefit plans;

· non-qualified deferred compensation plans; and

· other retirement accounts in which the retirement plan or the retirement plan’s financial services firm has an agreement with the Fund, the Funds’ Adviser or the Funds’ distributor to use Class R shares.

The above-referenced plans are generally small and mid-sized retirement plans that have at least $1 million in assets and shares held through omnibus accounts that are represented by an intermediary such as a broker, third-party administrator, registered investment adviser or other plan service provider.

Class R shares are not available to:

· institutional non-retirement accounts;

· traditional and Roth IRAs;

· Coverdell Education Savings Accounts;

· SEPs and SAR-SEPs;

· SIMPLE IRAs;

· one-person Keogh plans;

· individual 403(b) plans; or

· 529 Plan accounts.

Institutional Service Class Shares

Institutional Service Class shares are available for purchase only by the following:

· retirement plans advised by financial professionals who are not associated with brokers or dealers primarily engaged in the retail securities business and rollover individual retirement accounts from such plans;

· retirement plans for which third-party administrators provide recordkeeping services and are compensated by the Funds for these services;

· a bank, trust company or similar financial institution investing for its own account or for trust accounts for which it has authority to make

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investment decisions as long as the accounts are part of a program that collects an administrative services fee;

· registered investment advisers investing on behalf of institutions and high net worth individuals. This may also include registered investment advisers as well as financial intermediaries with clients enrolled in certain fee-based/advisory platforms where compensation for advisory services is derived exclusively from clients; or

· life insurance separate accounts using the investment to fund benefits for variable annuity contracts issued to governmental entities as an investment option for 457 or 401(k) plans.

Institutional Class Shares

Institutional Class shares are available for purchase only by the following:

· funds of funds offered by affiliates of the Funds;

· retirement plans for which no third-party administrator receives compensation from the Funds;

· institutional advisory accounts of the Adviser’s affiliates, those accounts which have client relationships with an affiliate of the Adviser, its affiliates and their corporate sponsors, subsidiaries; and related retirement plans;

· rollover individual retirement accounts from such institutional advisory accounts;

· a bank, trust company or similar financial institution investing for its own account or for trust accounts for which it has authority to make investment decisions as long as the accounts are not part of a program that requires payment of Rule 12b-1 or administrative service fees to the financial institution;

· registered investment advisers investing on behalf of institutions and high net-worth individuals. This may also include registered investment advisers as well as financial intermediaries with clients enrolled in certain fee-based/advisory platforms where compensation for advisory services is derived exclusively from clients;

· where the advisers derive compensation for advisory services exclusively from clients; or

· high net-worth individuals who invest directly without using the services of a broker, investment adviser or other financial intermediary.

Sales Charges and Fees

Sales Charges

Sales charges, if any, are paid to the Funds’ distributor. These fees are either kept or paid to your financial advisor or other intermediary.

Distribution and Service Fees

Each Fund with Class A, Class C and Class R shares has adopted a Distribution Plan under Rule 12b-1 of the Investment Company Act of 1940, which permits Class A, Class C and Class R shares of the Funds to compensate the Funds’ distributor or any other entity approved by the Board (collectively, “payees”) for expenses associated with the distribution-related and/or shareholder services provided by such entities. These fees are paid to the Funds’ distributor and are either kept or paid to your financial advisor or other intermediary for distribution and shareholder services. Institutional Class and Institutional Service Class shares pay no 12b-1 fees.

These 12b-1 fees are in addition to applicable sales charges and are paid from the Funds’ assets on an ongoing basis. The 12b-1 fees are accrued daily and paid monthly. As a result, 12b-1 fees increase the cost of your investment and over time may cost more than other types of sales charges. Under the Distribution Plan, Class A, Class C and Class R shares pay the Funds’ distributor annual amounts not exceeding the following:

		As a % of
Class		Daily Net Assets
Class A		0.25%
		(distribution or service fee)
Class C		1.00%
		(0.25% service fee)
Class R		0.50%
		(0.25% of which will be a distribution fee and 0.25% of which will be a service fee)

Administrative Services Fees

Class A, Class R and Institutional Service Class shares of the Funds are subject to fees pursuant to an Administrative Services Plan adopted by the Board of Trustees. (These fees are in addition to Rule 12b-1 fees for Class A and Class R shares as described above.) These fees are paid by the Funds to broker-dealers or other financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds. Under the Administrative Services Plan, a Fund may pay a broker-dealer or other intermediary a maximum

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annual administrative services fee of 0.25% for Class A, Class R and Institutional Service Class shares; however, many intermediaries do not charge the maximum permitted fee or even a portion thereof.

Because these fees are paid out of a Fund’s Class A, Class R and Institutional Service Class assets on an ongoing basis, these fees will increase the cost of your investment in such share class over time and may cost you more than paying other types of fees.

Transfer Agent Out-of-Pocket Expenses

The Funds may pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. (These fees may be in addition to the Rule 12b-1 fees and Administrative Services fees described above.) Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative or shareholder services.

Because these fees are paid out of a Fund’s assets on an ongoing basis, these fees will increase the cost of your investment in such share class over time and may cost you more than paying other types of fees.

Revenue Sharing

The Adviser and/or its affiliates (collectively, “Aberdeen”) may make payments for marketing, promotional or related services provided by broker-dealers and other financial intermediaries that sell shares of the Trust or which include them as investment options for their respective customers. The Adviser may also pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative services.

These payments are often referred to as “revenue sharing payments.” The existence or level of such payments may be based on factors that include, without limitation, differing levels or types of services provided by the broker-dealer or other financial intermediary, the expected level of assets or sales of shares, the placing of some or all of the Funds on a recommended or preferred list and/or access to an intermediary’s personnel and other factors. Current revenue sharing payments have various structures and typically may be made in one or more of the following forms, one time payments of up to 0.25% on gross sales, asset-based payments of up to 0.20%, flat fees or minimum aggregate fees of up to $250,000 annually. These amounts are subject to change at the discretion of Aberdeen. Revenue sharing payments are paid from Aberdeen’s own legitimate profits and other of its own resources (not from the Funds) and may be in addition to any Rule 12b-1 payments that are paid to broker-dealers and other financial intermediaries. The Board will monitor these revenue sharing arrangements as well as the payment of advisory fees paid by the Funds to ensure that the levels of such advisory fees do not involve the indirect use of the Funds’ assets to pay for marketing, promotional or related services. Because revenue sharing payments are paid by Aberdeen, and not from the Funds’ assets, the amount of any revenue sharing payments is determined by Aberdeen.

In addition to the revenue sharing payments described above, Aberdeen may offer other incentives to sell shares of the Funds in the form of sponsorship of educational or other client seminars relating to current products and issues, assistance in training or educating an intermediary’s personnel, and/or entertainment or meals. These payments may also include, at the direction of a retirement plan’s named fiduciary, amounts to a retirement plan intermediary to offset certain plan expenses or otherwise for the benefit of plan participants and beneficiaries.

The recipients of such payments may include:

· the Funds’ distributor and other affiliates of the Adviser;

· broker-dealers;

· financial institutions; and

· other financial intermediaries through which investors may purchase shares of a Fund.

Payments may be based on current or past sales, current or historical assets or a flat fee for specific services provided. In some circumstances, such payments may create an incentive for an intermediary or its employees or associated persons to sell shares of a Fund to you instead of shares of funds offered by competing fund families.

Contact your financial intermediary for details about revenue sharing payments it may receive.

Notwithstanding the revenue sharing payments described above, the Adviser and all subadvisers to the Trust are prohibited from considering a broker-dealer’s sale of any of the Trust’s shares in selecting such broker-dealer for the execution of Fund portfolio transactions, except as may be specifically permitted by law.

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Fund portfolio transactions nevertheless may be effected with broker-dealers who coincidentally may have assisted customers in the purchase of Fund shares, although neither such assistance nor the volume of shares sold of the Trust or any affiliated investment company is a qualifying or disqualifying factor in the Adviser’s or a subadviser’s selection of such broker-dealer for portfolio transaction execution.

Investing Through Financial Intermediaries

Financial intermediaries may provide varying arrangements for their clients to purchase and redeem shares of the Funds. In addition, financial intermediaries are responsible for providing to you any communication from a Fund to its shareholders, including but not limited to, prospectuses, prospectus supplements, proxy materials and notices regarding the source of dividend payments under Section 19 of the Investment Company Act of 1940. They may charge additional fees not described in this prospectus to their customers for such services.

If shares of a Fund are held in a “street name” account with financial intermediary, all recordkeeping, transaction processing and payments of distributions relating to your account will be performed by the financial intermediary, and not by the Fund and its transfer agent. Since the Funds will have no record of your transactions, you should contact your financial intermediary to purchase, redeem or exchange shares, to make changes in or give instructions concerning the account or to obtain information about your account. The transfer of shares in a “street name” account to an account with another dealer or to an account directly with a Fund involves special procedures and may require you to obtain historical purchase information about the shares in the account from your financial intermediary. If your financial intermediary’s relationship with Aberdeen is terminated, and you do not transfer your account to another financial intermediary, the Trust reserves the right to redeem your shares. The Trust will not be responsible for any loss in an investor’s account resulting from a redemption.

Financial intermediaries may be authorized to accept, on behalf of the Trust, purchase, redemption and exchange orders placed by or on behalf of their customers, and if approved by the Trust, to designate other financial intermediaries to accept such orders. In these cases:

· A Fund will be deemed to have received an order that is in good form when the order is accepted by the financial intermediary on a business day, and the order will be priced at a Fund’s net asset value per share (adjusted for any applicable sales charge) next determined after such acceptance.

· Financial intermediaries are responsible for transmitting accepted orders to a Fund within the time period agreed upon by them.

You should contact your financial intermediary to learn whether it is authorized to accept orders for the Trust.

Contacting Aberdeen Funds

Customer Service Representatives are available 8 a.m. to 9 p.m. Eastern Time, Monday through Friday at 866-667-9231.

Automated Voice Response Call 866-667-9231, 24 hours a day, seven days a week, for easy access to mutual fund information. Choose from a menu of options to:

· make transactions;

· hear fund price information; and

· obtain mailing and wiring instructions.

Internet Go to www.aberdeen-asset.us/aam.nsf/usRetail/home 24 hours a day, seven days a week, for easy access to your mutual fund accounts. The website provides instructions on how to select a password and perform transactions. On the website, you can:

· download Fund prospectuses;

· obtain information on the Aberdeen Funds;

· access your account information; and

· request transactions, including purchases, redemptions and exchanges.

By Regular Mail

Aberdeen Funds

P.O. Box 55930

Boston, MA 02205-5930

By Overnight Mail

Aberdeen Funds

c/o Boston Financial Data Services

30 Dan Rd
Canton, MA 02021.

By Fax 866-923-4269.

Share Price

The net asset value or “NAV” is the value of a single share. A separate NAV is calculated for each share class of a Fund. The NAV is:

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· calculated at the close of regular trading (usually 4 p.m. Eastern Time) each day the New York Stock Exchange is open.

· generally determined by dividing the total net market value of the securities and other assets owned by a Fund allocated to a particular class, less the liabilities allocated to that class, by the total number of outstanding shares of that class.

The purchase or “offering” price for Fund shares is the NAV for a particular class next determined after the order is received in good form by a Fund’s transfer agent or an authorized intermediary, plus any applicable sales charge. An order is in “good form” if the Funds’ transfer agent has all the information and documentation it deems necessary to effect your order.

Please note the following with respect to the price at which your transactions are processed:

· Fund shares will generally not be priced on any day the New York Stock Exchange is closed, although fixed income Fund shares may be priced on such days if the Securities Industry and Financial Markets Association (“SIFMA”) recommends that the bond markets remain open for all or part of the day. On any business day when the SIFMA recommends that the bond markets close early, a fixed income Fund reserves the right to close at or prior to the SIFMA recommended closing time. If a fixed income Fund does so, it will cease granting same business day credit for purchase and redemption orders received after the Fund’s closing time and credit will be given to the next business day.

· The Trust reserves the right to reprocess purchase (including dividend reinvestments), redemption and exchange transactions that were processed at a NAV that is subsequently adjusted, and to recover amounts from (or distribute amounts to) shareholders accordingly based on the official closing NAV, as adjusted.

· The time at which transactions and shares are priced and the time by which orders must be received may be changed in case of an emergency or if regular trading on the New York Stock Exchange and/or the bond markets are stopped at a time other than their regularly scheduled closing time. In the event the New York Stock Exchange and/or the bond markets do not open for business, the Trust may, but is not required to, open one or more Funds for purchase, redemption and exchange transactions if the Federal Reserve wire payment system is open. To learn whether a Fund is open for business during this situation, please call 1-866-667-9231.

The Funds do not calculate NAV on days when the New York Stock Exchange is closed (except as described above for fixed income Funds). The New York Stock Exchange is closed on the following days:

· New Year’s Day

· Martin Luther King, Jr. Day

· Presidents’ Day

· Good Friday

· Memorial Day

· Independence Day

· Labor Day

· Thanksgiving Day

· Christmas Day

· Other days as determined by the New York Stock Exchange.

Foreign securities may trade on their local markets on days when a Fund is closed. As a result, if a Fund holds foreign securities, its NAV may be impacted on days when investors may not be able to purchase or redeem shares.

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Buying, Exchanging and Selling Shares

Buying Shares: Fund Transactions — Class A and Class C Shares

All transaction orders must be received by the Funds’ transfer agent in Canton, Massachusetts or an authorized intermediary prior to the calculation of each Fund’s NAV to receive that day’s NAV. The Fund has the right to close your account after a period of inactivity, as determined by state law, and transfer your shares to the appropriate state.

How to Buy Shares

How to Exchange* or Sell** Shares

Be sure to specify the class of shares you wish to purchase. Each Fund may reject any order to buy shares and may suspend the offering of shares at any time.

Through an authorized intermediary. The Funds or the Funds’ distributor have relationships with certain brokers and other financial intermediaries who are authorized to accept purchase, exchange and redemption orders for the Funds. Your transaction is processed at the NAV next calculated after the Funds’ transfer agent or an authorized intermediary receives your order in proper form.

By mail. Complete an application and send with a check made payable to: Aberdeen Funds. Payment must be made in U.S. Dollars and drawn on a U.S. bank. The Funds do not accept cash, starter checks, third-party checks, travelers’ checks, credit card checks or money orders.

* Exchange privileges may be amended or discontinued upon 60 days written notice to shareholders.

** A medallion signature guarantee may be required. See “Medallion Signature Guarantee” below.

By mail or fax. You may request an exchange or redemption by mailing or faxing a letter to Aberdeen Funds. The letter must include your account number(s) and the name(s) of the Fund(s) you wish to exchange from and to. The letter must be signed by all account owners. We reserve the right to request original documents for any faxed requests.

By telephone. You will have automatic telephone privileges unless you decline this option on your application. The Funds follow procedures to confirm that telephone instructions are genuine and will not be liable for any loss, injury, damage or expense that results from executing such instructions. The Funds may revoke telephone privileges at any time, without notice to shareholders. For redemptions, shareholders who own shares in an IRA account should call 866-667-9231. It may be difficult to make telephone transactions in times of unusual economic or market conditions.

Additional information for selling shares. A check made payable to the shareholder(s) of record will be mailed to the address of record. The Funds may record telephone instructions to redeem shares, and may request redemption instructions in writing, signed by all shareholders on the account.

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How to Buy Shares

How to Exchange* or Sell** Shares

On-line. Transactions may be made through the Aberdeen Funds’ website at www.aberdeen-asset.us. However, the Funds may discontinue on-line transactions of Fund shares at any time.

By bank wire. You may have your bank transmit funds by federal funds wire to the Funds’ custodian bank. The authorization will be in effect unless you give the Funds written notice of its termination.

· if you choose this method to open a new account, you must call our toll-free number before you wire your investment and arrange to fax your completed application.

· your bank may charge a fee to wire funds.

· the wire must be received by 4:00 p.m. in order to receive the current day’s NAV.

By Automated Clearing House (ACH). You can fund your Aberdeen Funds’ account with proceeds from your bank via ACH on the second business day after your purchase order has been processed. A voided check must be attached to your application. Money sent through ACH typically reaches Aberdeen Funds from your bank in two business days. There is no fee for this service. The authorization will be in effect unless you give the Funds written notice of its termination.

By Automatic Investment Plan (AIP). Once your account has been opened, you may make regular investments automatically in amounts of not less than $50 per month in Class A or Class C Shares of a Fund. You will need to complete the appropriate section of the Mutual Fund Application for New Accounts or contact your financial intermediary or the Funds’ transfer agent to do this. Your financial institution must be a member of the Automated Clearing House (ACH) network to participate in an AIP. Any request to change or terminate your AIP should be submitted to the Transfer Agent 10 days prior to effective date. Please call Aberdeen Funds at (866) 667-9231 for further information. If you redeem shares purchased via the AIP within 10 days, the Transfer Agent may delay payment until it is assured that the purchase has cleared your account.

Retirement plan participants should contact their retirement plan administrator regarding transactions. Retirement plans or their administrators wishing to conduct transactions should call our toll-free number 866-667-9231. Eligible entities or individuals wishing to conduct transactions in Institutional Service Class or Institutional Class shares should call our toll-free number 866-667-9231.

On-line. Transactions may be made through the Aberdeen Funds’ website at www.aberdeen-asset.us. However, the Funds may discontinue on-line transactions of Fund shares at any time.

By bank wire. The Funds can wire the proceeds of your redemption directly to your account at a commercial bank. A voided check must be attached to your application. The authorization will be in effect unless you give the Funds written notice of its termination.

· your proceeds typically will be wired to your bank on the next business day after your order has been processed.

· Aberdeen Funds deducts a $20 service fee from the redemption proceeds for this service.

· your financial institution may also charge a fee for receiving the wire.

· funds sent outside the U.S. may be subject to higher fees.

Bank wire is not an option for exchanges.

By Automated Clearing House (ACH). Your redemption proceeds can be sent to your bank via ACH on the second business day after your order has been processed. A voided check must be attached to your application. Money sent through ACH should reach your bank in two business days. There is no fee for this service. The authorization will be in effect unless you give the Funds written notice of its termination. ACH is not an option for exchanges.

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Fair Value Pricing

The Funds value their securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Funds’ Valuation and Liquidity Procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to contract at the measurement date.

Equity securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is traded at the “Valuation Time”, subject to application, when appropriate, of the valuation factors described in the paragraph below. The Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Open-end mutual funds are valued at the respective net asset value as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and exchange-traded funds (“ETFs”) are valued at the market price of the security at the Valuation Time.

Foreign equity securities that are traded on foreign exchanges that close prior to the Valuation Time are valued by applying valuation factors to the last sale price or the mean price as noted above. Valuation factors are provided by an independent pricing service provider. These valuation factors are used when pricing a Fund’s portfolio holdings to estimate market movements between the time foreign markets close and the time a Fund values such foreign securities. These valuation factors are based on inputs such as depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. When prices with the application of valuation factors are utilized, the value assigned to the foreign securities may not be the same as quoted or published prices of the securities on their primary markets. Valuation factors are not utilized if the independent pricing service provider is unable to provide a valuation factor or if the valuation factor falls below a predetermined threshold.

Long-term debt and other fixed income securities are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service provider. If there are no current day bids, the security is valued at the previously applied bid. Short-term debt securities (such as commercial paper and U.S. treasury bills) having a remaining maturity of 60 days or less are valued at the last quoted or evaluated bid price on the valuation date provided by an independent pricing service, or on the basis of amortized cost if it represents the best approximation for fair value.

In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time), the security is valued at fair value as determined by the Funds’ Pricing Committee, taking into account the relevant factors and surrounding circumstances using Valuation and Liquidity Procedures approved by the Funds’ Board of Trustees.

In-Kind Purchases

Each Fund may accept payment for shares in the form of securities that are permissible investments for the Fund.

Customer Identification Information

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify and record information that identifies each person that opens a new account, and to determine whether such person’s name appears on government lists of known or suspected terrorists and terrorist organizations.

As a result, unless such information is collected by the broker-dealer or other financial intermediary pursuant to an agreement, the Funds must obtain the following information for each person that opens a new account:

· name;

· date of birth (for individuals);

· residential or business street address (although post office boxes are still permitted for mailing); and

· Social Security number, taxpayer identification number, or other identifying number.

You may also be asked for a copy of your driver’s license, passport or other identifying document in order to verify your identity. In addition, it may be necessary to verify your identity by cross-referencing your identification information with a consumer report or other electronic database. Additional information may be required to open accounts for corporations and other entities. Federal law prohibits the Funds and other financial institutions from opening a new account unless they receive the minimum identifying information listed above. After an account is opened,

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the Funds may restrict your ability to purchase additional shares until your identity is verified. The Funds may close your account or take other appropriate action if they are unable to verify your identity within a reasonable time. If your account is closed for this reason, your shares will be redeemed at the NAV next calculated after the account is closed. If the NAV on the redemption date is lower than the NAV on your original purchase date, you will receive less than your original investment amount when the account is closed (less any applicable CDSC).

Accounts with Low Balances

Maintaining small accounts is costly for the Funds and may have a negative effect on performance. Shareholders are encouraged to keep their accounts above each Fund’s minimum.

· If the value of your account falls below $1,000, you are generally subject to a $5 quarterly fee. Shares from your account are redeemed each quarter to cover the fee, which is returned to the Fund to offset small account expenses. Under some circumstances, each Fund may waive the quarterly fee. See the SAI for information about the circumstances under which this fee will not be assessed.

· Each Fund reserves the right to redeem your remaining shares and close your account if a redemption of shares brings the value of your account below $1,000. In such cases, you will be notified and given 60 days to purchase additional shares before the account is closed.

Exchanging Shares

You may exchange your Fund shares for shares of any Fund of the Trust that is currently accepting new investments as long as:

· both accounts have the same registration;

· your first purchase in the new fund meets its minimum investment requirement; and

· you purchase the same class of shares. For example, you may exchange between Class A shares of any Fund of the Trust, but may not exchange between Class A shares and Class C shares.

The exchange privileges may be amended or discontinued upon 60 days’ written notice to shareholders.

Generally, there are no sales charges for exchanges of Class C, Class R, Institutional Class or Institutional Service Class shares. However,

· if you exchange from Class A shares of a Fund with a lower sales charge to a fund with a higher sales charge, you may have to pay the difference in the two sales charges.

· if you exchange Class A shares that are subject to a CDSC, and then redeem those shares within 18 months of the original purchase, the CDSC applicable to the original purchase is charged.

For purposes of calculating a CDSC, the length of ownership is measured from the date of original purchase and is not affected by any permitted exchange.

You should obtain and carefully read the prospectus of the Fund you are acquiring before making an exchange.

Moving Share Classes in the Same Fund

A financial intermediary may exchange shares in one class held on behalf of its customers for another class of the same Fund with a lower total expense ratio, subject to any agreements between the customer and the intermediary. All such transactions are subject to meeting any investment minimum or eligibility requirements. Neither the Fund nor the Adviser will make any representations regarding the tax implications of such exchanges.

Systematic Withdrawal Program

You may elect to automatically redeem Class A and Class C shares in a minimum amount of $50. Complete the appropriate section of the Mutual Fund Application for New Accounts or contact your financial intermediary or the Funds’ transfer agent. Your account value must meet the minimum initial investment amount at the time the program is established. This program may reduce, and eventually deplete, your account. Generally, it is not advisable to continue to purchase Class A or Class C shares subject to a sales charge while redeeming shares using this program. A systematic withdrawal plan for Class C shares will be subject to any applicable CDSC.

Systematic Exchange Plan and Dividend Moves

This systematic exchange plan allows you to transfer $50 or more to one Fund from another Fund systematically, monthly or quarterly. Accounts participating in a systematic exchange plan have a minimum balance requirement of $5,000. You will need to complete the appropriate section of the Mutual Fund Application for New Accounts or contact your financial intermediary or the Funds’ transfer agent to do this. Dividends of any amount can be

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moved automatically from one Fund to another at the time they are paid.

Selling Shares

You can sell, or in other words redeem, your Fund shares at any time, subject to the restrictions described below. The price you receive when you redeem your shares is the NAV (minus any applicable sales charges) next determined after the Fund’s authorized intermediary or an agent of the Fund receives your properly completed redemption request. The value of the shares you redeem may be worth more or less than their original purchase price depending on the market value of the Fund’s investments at the time of the redemption.

You may not be able to redeem your Fund shares or the Funds may delay paying your redemption proceeds if:

· the New York Stock Exchange is closed (other than customary weekend and holiday closings);

· trading is restricted; or

· an emergency exists (as determined by the Securities and Exchange Commission).

Generally, a Fund will issue payment for shares that you redeem the next business day after your redemption request is received in good order. The proceeds will be sent to you thereafter and delivery time may vary depending on the method by which you owned your shares (for example, directly or through a broker). Payment for shares that you recently purchased may be delayed up to 10 business days from the purchase date to allow time for your payment to clear. A Fund may delay forwarding redemption proceeds for up to seven days:

· if the account holder is engaged in excessive trading or

· if the amount of the redemption request would disrupt efficient portfolio management or adversely affect the Fund.

Occasionally, large shareholder redemption requests may exceed the cash balance of a Fund and result in overdraft charges to the Fund until the sale of portfolio securities to cover the redemption request settle, which is typically a few days.

If you choose to have your redemption proceeds mailed to you and the redemption check is returned as undeliverable or is not presented for payment within six months, the Funds reserve the right to reinvest the check proceeds and future distributions in shares of the particular Fund at the Fund’s then-current NAV until you give the Funds different instructions.

Under extraordinary circumstances, a Fund, in its sole discretion, may elect to honor redemption requests by transferring some of the securities held by the Fund directly to an account holder as a redemption-in-kind of securities (instead of cash). For more about Aberdeen Funds’ ability to make a redemption-in-kind, see the SAI.

The Board of Trustees has adopted procedures for redemptions in-kind by shareholders including affiliated persons of a Fund. Affiliated persons of a Fund include shareholders who are affiliates of the Adviser and shareholders of a Fund owning 5% or more of the outstanding shares of that Fund. These procedures provide that a redemption-in-kind shall be effected at approximately the affiliated shareholder’s proportionate share of the Fund’s current net assets, and are designed so that such redemptions will not favor the affiliated shareholder to the detriment of any other shareholder.

Medallion Signature Guarantee

A medallion signature guarantee is required for sales of shares of the Funds in any of the following instances:

· if ownership is being changed on your account;

· the redemption check is made payable to anyone other than the registered shareholder;

· the proceeds are mailed to an address other than the address of record;

· your account address has changed within the last 15 calendar days;

· the redemption proceeds are being wired or sent by ACH to a bank for which instructions are currently not on your account; or

· the redemption proceeds are being wired or sent by ACH to a bank account that has been added or changed within the past 15 calendar days.

A medallion signature guarantee is a certification by a bank, brokerage firm or other financial institution that a customer’s signature is valid. Medallion signature guarantees can be provided by members of the STAMP program. We reserve the right to require a medallion signature guarantee in other circumstances, without notice.

Excessive or Short-Term Trading

Aberdeen Funds seek to discourage short-term or excessive trading (often described as “market timing”). Excessive trading (either frequent exchanges between Funds of the Trust or sales and repurchases of Funds within a short time period) may:

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· disrupt portfolio management strategies;

· increase brokerage and other transaction costs; and

· negatively affect fund performance.

Each Fund may be more or less affected by short-term trading in Fund shares, depending on various factors such as the size of the Fund, the amount of assets the Fund typically maintains in cash or cash equivalents, the dollar amount, number and frequency of trades in Fund shares and other factors. Funds that invest in foreign securities may be at greater risk for excessive trading. Investors may attempt to take advantage of anticipated price movements in securities held by the Funds based on events occurring after the close of a foreign market that may not be reflected in a Fund’s NAV (referred to as “arbitrage market timing”). Arbitrage market timing may also be attempted in funds that hold significant investments in small-cap securities, high-yield (junk) bonds and other types of investments that may not be frequently traded. There is the possibility that arbitrage market timing, under certain circumstances, may dilute the value of Fund shares if redeeming shareholders receive proceeds (and buying shareholders receive shares) based on NAVs that do not reflect appropriate fair value prices.

The Ultra-Short Duration Bond Fund is not subject to the prohibitions on frequent purchases and redemptions. Because the Ultra-Short Duration Bond Fund is designed for short-term investing and frequent purchases and redemptions of the Fund’s shares generally are not expected to harm other shareholders of the Fund, the Board of Trustees has determined that, at the present time, policies and procedures to prevent frequent purchases and redemptions of Fund shares are unnecessary and a redemption fee for the Fund is not necessary or appropriate. However, frequent purchases and redemptions of the Ultra-Short Duration Bond Fund’s shares may result in additional costs for the Fund.

The Board of Trustees has adopted and implemented the following policies and procedures to detect, discourage and prevent excessive short-term trading in the Funds (except the Ultra-Short Duration Bond Fund):

Monitoring of Trading Activity

The Funds, through the Adviser, its subadviser(s) (if applicable) and its agents, monitor selected trades and flows of money in and out of the Funds in an effort to detect excessive short-term trading activities. If a shareholder is found to have engaged in excessive short-term trading, the Funds may, in their discretion, ask the shareholder to stop such activities or refuse to process purchases or exchanges in the shareholder’s account. Despite its best efforts, Aberdeen Funds may be unable to identify or deter excessive trades conducted through certain intermediaries or omnibus accounts that transmit aggregate purchase, exchange and redemption orders on behalf of their customers. In short, Aberdeen Funds may not be able to prevent all market timing and its potential negative impact.

Restrictions on Transactions

Whenever a Fund is able to identify short-term trades or traders, such Fund has broad authority to take discretionary action against market timers and against particular trades and uniformly will apply the short-term trading restrictions to all such trades that the Fund identifies. A Fund also has sole discretion to:

· restrict purchases or exchanges that the Fund or its agents believe constitute excessive trading and

· reject transactions that violate a Fund’s excessive trading policies or its exchange limits.

In general if you make an exchange equaling 1% or more of a Fund’s NAV, the exchange into the other Fund may be rejected.

On December 11, 2013, the Board of Trustees of the Trust approved the elimination of each Fund’s redemption and exchange fees that were previously applicable to certain accounts and were designed to discourage excessive trading and to help offset the expense of such trading. The Board of Trustees determined that, at the present time, policies and procedures to monitor and prevent frequent purchases and redemptions of Fund shares are adequate and that a redemption fee for the Funds is not necessary or appropriate.

Fair Valuation

The Trust has fair value pricing procedures in place as described above in “Investing with Aberdeen Funds: Share Price.”

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D i s t r i bu t i on s an d T a x e s

The following information is provided to help you understand the income and capital gains you can earn while you own Fund shares, as well as the federal income taxes you may have to pay. The amount of any distribution will vary and there is no guarantee a Fund will pay either income dividends or capital gain distributions. For tax advice about your personal tax situation, please speak with your tax adviser.

Income and Capital Gain Distributions

Each Fund intends to qualify each year as a regulated investment company under the Internal Revenue Code. As a regulated investment company, a Fund generally pays no federal income tax on the income and capital gains it distributes to you. Each Fund except High Yield Fund, Tax-Free Income Fund and Ultra-Short Duration Bond Fund expects to declare and distribute its net investment income, if any, to shareholders as dividends quarterly. Each of Tax-Free Income Fund and Ultra-Short Duration Bond Fund expects to declare daily and distribute its net investment income, if any, to shareholders as dividends monthly. The High Yield Fund expects to declare and distribute its net investment income, if any, to shareholders as dividends monthly. Capital gains, if any, may be distributed at least annually. A Fund may distribute income dividends and capital gains more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on a Fund. All income and capital gain distributions are automatically reinvested in shares of the applicable Fund. You may request in writing a payment in cash if the distribution is in excess of $5.

If you choose to have dividends or capital gain distributions, or both, mailed to you and the distribution check is returned as undeliverable or is not presented for payment within six months, the Trust reserves the right to reinvest the check proceeds and future distributions in shares of the particular Fund at the Fund’s then-current NAV until you give the Trust different instructions.

Tax Considerations

Most of the income dividends you receive from the Tax-Free Income Fund, if applicable, are expected to be exempt from regular federal income taxes. If you are a taxable investor, dividends and capital gain distributions you receive from a Fund (or a portion thereof in the case of the Tax-Free Income Fund), whether you reinvest your distributions in additional Fund shares or receive them in cash, are subject to federal income tax, state taxes and possibly local taxes:

· distributions are taxable to you at either ordinary income or capital gains tax rates (except as described below with respect to Tax-Free Income Fund);

· distributions of short-term capital gains are paid to you as ordinary income that is taxable at applicable ordinary income tax rates;

· distributions of long-term capital gains are taxable to you as long-term capital gains no matter how long you have owned your Fund shares;

· for individuals, a portion of the income dividends paid may be qualified dividend income eligible for long-term capital gain tax rates, provided that certain holding period requirements are met;

· for corporate shareholders, a portion of income dividends may be eligible for the corporate dividends-received deduction, subject to certain limitations; and

· distributions declared in October, November or December to shareholders of record in such month, but paid in January, are taxable as if they were paid in December.

In addition, if you are a shareholder of the Tax-Free Income Fund, you should be aware of the following basic tax points about tax-exempt mutual funds:

· exempt-interest dividends (dividends paid from interest earned on municipal securities) are exempt from regular federal income tax;

· exempt-interest dividends are taken into account when determining the taxable portion of your Social Security or railroad retirement benefits;

· income paid from tax-exempt bonds whose proceeds are used to fund private, for-profit organizations (private activity bonds) are a tax preference item subject to the federal alternative minimum tax;

· income dividends from interest earned on municipal securities of a state or its political subdivisions are generally exempt from that state’s income taxes. Almost all states, however, tax interest earned on municipal securities of other states;

· income dividends from the Tax-Free Income Fund’s investments in securities that do not pay tax-exempt income and market discount are paid to you as ordinary income.

The amount and type of income dividends and the tax status of any capital gains distributed to you are

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reported on Form 1099-DIV (any exempt interest dividends will be reported on Form 1099-INT), which we send to you annually during tax season (unless you hold your shares in a qualified tax-deferred plan or account or are otherwise not subject to federal income tax). A Fund may reclassify income after your tax reporting statement is mailed to you. This can result from the rules in the Internal Revenue Code that effectively prevent mutual funds, such as the Funds, from ascertaining with certainty, until after the calendar year end, and in some cases a Fund’s fiscal year end, the final amount and character of distributions the Fund has received on its investments during the prior calendar year. Prior to issuing your statement, each Fund makes every effort to search for reclassified income to reduce the number of corrected forms mailed to shareholders. However, when necessary, the Fund will send you a corrected Form 1099-DIV to reflect reclassified information.

The Tax-Free Income Fund is not managed to address state or local taxes. The Tax-Free Income Fund, as a tax-free fund, may not be a suitable investment for retirement plans and other tax-exempt investors. Corporate shareholders should note that exempt-interest dividends may be fully taxable in states that impose corporate franchise taxes, and they should consult with their tax advisers about the taxability of this income before investing in the Tax-Free Income Fund.

While the Tax-Free Income Fund endeavors to purchase only bona fide tax-exempt securities, there are risks that: (a) a security issued as tax-exempt may be reclassified by the IRS or a state tax authority as taxable and/or (b) future legislative, administrative or court actions could adversely impact the qualification of income from a tax-exempt security as tax-free. Such reclassifications or actions could cause interest from a security to become taxable, possibly retroactively, subjecting you to increased tax liability. In addition, such reclassifications or actions could cause the value of a security, and therefore, the value of the Tax-Free Income Fund’s shares, to decline.

Distributions from the Funds (both taxable dividends and capital gains) are normally taxable to you when made, regardless of whether you reinvest these distributions or receive them in cash (unless you hold your shares in a qualified tax-deferred plan or account or are otherwise not subject to federal income tax).

If more than 50% of a Fund’s total assets at the end of a fiscal year is invested in foreign securities, the Fund may elect to pass through to you your pro rata share of foreign taxes paid by the Fund. If a Fund elects to do so, then any foreign taxes it pays on these investments may be passed through to you either as a deduction (in calculating U.S. taxable income, but only for investors who itemize their deductions on their personal tax returns) or as a foreign tax credit.

If you are a taxable investor and invest in a Fund shortly before the record date of a capital gains distribution, the distribution will lower the value of the Fund’s shares by the amount of the distribution and, in effect, you will receive some of your investment back in the form of a taxable distribution. This is commonly known as “buying a dividend.”

Selling and Exchanging Shares

Selling your shares may result in a realized capital gain or loss, which is subject to federal income tax. For tax purposes, an exchange of one Fund of the Trust for another is the same as a sale. For individuals, any long-term capital gains you realize from selling Fund shares are currently taxed at 15% for individuals with incomes below approximately $400,000 ($450,000 if married filing jointly), 20% for individuals with any income above those amounts that is long-term capital gain and 0% at certain income levels (with these income thresholds adjusted annually for inflation). You or your tax adviser should track your purchases, tax basis, sales and any resulting gain or loss. If you redeem Fund shares for a loss, you may be able to use this capital loss to offset any other capital gains you have.

Tax Status for Retirement Plans and Other Tax-Deferred Accounts

When you invest in a Fund through a qualified employee benefit plan, retirement plan or some other tax-deferred account, dividend and capital gain distributions generally are not subject to current federal income taxes. In general, these entities are governed by complex tax rules. You should ask your tax adviser or plan administrator for more information about your tax situation, including possible state or local taxes.

Backup Withholding

By law, you may be subject to backup withholding on a portion of your taxable distributions and redemption proceeds unless you provide your correct Social Security or taxpayer identification number and certify that (1) this number is correct, (2) you are not subject to backup withholding, and (3) you are a U.S. person (including a U.S. resident alien). You may also be subject to withholding if the Internal Revenue Service instructs us to withhold a portion of your distributions and proceeds.

Other

Distributions and gains from the sale or exchange of your Fund shares may be subject to state and local

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taxes, even if not subject to federal income taxes. State and local tax laws vary; please consult your tax adviser. Non-U.S. investors may be subject to U.S. withholding at a 30% or lower treaty tax rate, U.S. estate tax and special U.S. tax certification requirements to avoid backup withholding and claim any treaty benefits. Exemptions from U.S. withholding tax are provided for capital gain dividends paid by a Fund from long-term capital gains, if any. However, notwithstanding such exemption from U.S. withholding at the source, any dividends and distributions of income or capital gains will be subject to backup withholding if you fail to properly certify that you are not a U.S. person.

Under current law, the Funds serve to block unrelated business taxable income from being realized by their tax-exempt shareholders. Notwithstanding the foregoing, a tax-exempt shareholder could realize unrelated business taxable income by virtue of its investment in the Fund if shares in the Fund constitute debt-financed property in the hands of the tax-exempt shareholder within the meaning of IRC Section 514(b). Certain types of income received by the Fund from REITs, real estate mortgage investment conduits, taxable mortgage pools or other investments may cause the Fund to designate some or all of its distributions as “excess inclusion income.” To Fund shareholders, such excess inclusion income may (i) constitute taxable income, as “unrelated business taxable income” for those shareholders who would otherwise be tax-exempt such as individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non-U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified organizations” as defined by the IRC are Fund shareholders. If a charitable remainder annuity trust or a charitable remainder unitrust (each as defined in IRC Section 664) has UBTI for a taxable year, a 100% excise tax on the UBTI is imposed on the trust.

A 3.8% Medicare contribution tax is imposed on net investment income, including, among other things, dividends and net gain from investments, of U.S. individuals with income exceeding $200,000 ($250,000 if married filing jointly), and of estates and trusts.

Additionally, a 30% withholding tax is currently imposed on fund dividends and, beginning in 2017, will be imposed on redemption proceeds paid, to (i) foreign financial institutions including non-U.S. investment funds unless they agree to collect and disclose to the Internal Revenue Service (“IRS”) information regarding their direct and indirect U.S. account holders and (ii) certain other foreign entities unless they certify certain information regarding their direct and indirect U.S. owners. To avoid withholding, foreign financial institutions will need to (i) enter into agreements with the IRS that state that they will provide the IRS information, including the names, addresses and taxpayer identification numbers of direct and indirect U.S. account holders, comply with due diligence procedures with respect to the identification of U.S. accounts, report to the IRS certain information with respect to U.S. accounts maintained, agree to withhold tax on certain payments made to non-compliant foreign financial institutions or to account holders who fail to provide the required information, and determine certain other information as to their account holders, or (ii) in the event that an applicable intergovernmental agreement and implementing legislation are adopted, provide local revenue authorities with similar account holder information. Other foreign entities will need to either provide the name, address, and taxpayer identification number of each substantial U.S. owner or certifications of no substantial U.S. ownership unless certain exceptions apply. Under some circumstances, a foreign shareholder may be eligible for refunds or credits of such taxes.

This discussion of “Distributions and Taxes” is not intended or written to be used as tax advice. Because everyone’s tax situation is unique, you should consult your tax professional about federal, state, local or foreign tax consequences before making an investment in the Funds.

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Financial Highlights

The financial highlights tables are intended to help you understand the Funds’ financial performance for the past five years ended October 31. Certain information reflects financial results for a single Fund share. The total returns in the tables represent the rate that an investor would have earned (or lost) on an investment in each Fund (assuming reinvestment of all dividends and distributions and no sales charges). Information has been audited by KPMG LLP, independent registered public accounting firm, whose report, along with the Funds’ financial statements, is included in the Funds’ most recent annual report, which is available upon request.

The financial highlights information presented for Emerging Markets Fund for periods prior to November 23, 2009, is that of a Predecessor Fund. The financial highlights information presented for the U.S. Equity Fund for periods prior to October 10, 2011 is that of the Predecessor Fund.

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Selected Data for Each Share of Capital Outstanding Throughout the Periods Indicated

Aberdeen Equity Long-Short Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains on Investments		Total from Investment Activities			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	12.12	$	(0.13	)	$	0.48	$	0.35		$	(0.21	)	$	(0.21	)	$	—	$	12.26
Year Ended October 31, 2013	11.29		(0.14		)	1.10		0.96			(0.13		)	(0.13		)	—		12.12
Year Ended October 31, 2012	11.17		(0.19		)	0.42		0.23			(0.11		)	(0.11		)	—		11.29
Year Ended October 31, 2011	11.35		(0.20		)	0.02		(0.18		)	—			—			—		11.17
Year Ended October 31, 2010	10.66		(0.18		)	0.87		0.69			—			—			—		11.35
Class C Shares
Year Ended October 31, 2014	8.45		(0.15		)	0.34		0.19			(0.21		)	(0.21		)	—		8.43
Year Ended October 31, 2013	7.96		(0.15		)	0.77		0.62			(0.13		)	(0.13		)	—		8.45
Year Ended October 31, 2012	7.97		(0.19		)	0.29		0.10			(0.11		)	(0.11		)	—		7.96
Year Ended October 31, 2011	8.16		(0.20		)	0.01		(0.19		)	—			—			—		7.97
Year Ended October 31, 2010	7.71		(0.19		)	0.64		0.45			—			—			—		8.16
Class R Shares
Year Ended October 31, 2014	11.69		(0.18		)	0.47		0.29			(0.21		)	(0.21		)	—		11.77
Year Ended October 31, 2013	10.94		(0.18		)	1.06		0.88			(0.13		)	(0.13		)	—		11.69
Year Ended October 31, 2012	10.88		(0.23		)	0.40		0.17			(0.11		)	(0.11		)	—		10.94
Year Ended October 31, 2011	11.08		(0.23		)	0.03		(0.20		)	—			—			—		10.88
Year Ended October 31, 2010	10.43		(0.22		)	0.87		0.65			—			—			—		11.08
Institutional Service Class Shares
Year Ended October 31, 2014	12.28		(0.12		)	0.49		0.37			(0.21		)	(0.21		)	—		12.44
Year Ended October 31, 2013	11.43		(0.12		)	1.10		0.98			(0.13		)	(0.13		)	—		12.28
Year Ended October 31, 2012	11.30		(0.18		)	0.42		0.24			(0.11		)	(0.11		)	—		11.43
Year Ended October 31, 2011	11.47		(0.21		)	0.04		(0.17		)	—			—			—		11.30
Period Ended October 31, 2010(i)	10.79		(0.10		)	0.78		0.68			—			—			—		11.47
Institutional Class Shares
Year Ended October 31, 2014	12.37		(0.10		)	0.50		0.40			(0.21		)	(0.21		)	—		12.56
Year Ended October 31, 2013	11.48		(0.10		)	1.12		1.02			(0.13		)	(0.13		)	—		12.37
Year Ended October 31, 2012	11.33		(0.16		)	0.42		0.26			(0.11		)	(0.11		)	—		11.48
Year Ended October 31, 2011	11.48		(0.17		)	0.02		(0.15		)	—			—			—		11.33
Year Ended October 31, 2010	10.75		(0.15		)	0.88		0.73			—			—			—		11.48

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

203

Aberdeen Equity Long-Short Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income (Loss) to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Dividend Expense (d)(f)		PortfolioTurnover (g)
Class A Shares
Year Ended October 31, 2014	2.90	%	$	30,368	2.64	%	(1.09	)%	2.79	%	1.08	%(h)	31.13	%
Year Ended October 31, 2013	8.54	%	62,819		2.62	%	(1.15	)%	2.72	%	1.04	%(h)	41.95	%
Year Ended October 31, 2012	2.10	%	70,070		2.79	%	(1.70	)%	2.79	%	1.10	%(h)	47.63	%
Year Ended October 31, 2011	(1.58	)%	93,352		2.32	%	(1.75	)%	2.40	%	0.63	%	62.65	%
Year Ended October 31, 2010	6.57	%	105,897		2.15	%	(1.61	)%	2.15	%	0.43	%	152.09	%
Class C Shares
Year Ended October 31, 2014	2.26	%	10,162		3.36	%	(1.81	)%	3.51	%	1.11	%(h)	31.13	%
Year Ended October 31, 2013	7.83	%	12,104		3.32	%	(1.85	)%	3.42	%	1.05	%(h)	41.95	%
Year Ended October 31, 2012	1.31	%	13,681		3.46	%	(2.36	)%	3.46	%	1.10	%(h)	47.63	%
Year Ended October 31, 2011	(2.33	)%	17,345		3.04	%	(2.47	)%	3.13	%	0.62	%	62.65	%
Year Ended October 31, 2010	5.84	%	23,685		2.88	%	(2.35	)%	2.88	%	0.43	%	152.09	%
Class R Shares
Year Ended October 31, 2014	2.49	%	3,437		3.12	%	(1.56	)%	3.27	%	1.12	%(h)	31.13	%
Year Ended October 31, 2013	8.07	%	2,759		3.01	%	(1.55	)%	3.12	%	1.01	%(h)	41.95	%
Year Ended October 31, 2012	1.60	%	2,118		3.22	%	(2.12	)%	3.22	%	1.11	%(h)	47.63	%
Year Ended October 31, 2011	(1.81	)%	2,245		2.61	%	(2.07	)%	2.68	%	0.67	%	62.65	%
Year Ended October 31, 2010	6.23	%	1,477		2.51	%	(2.05	)%	2.51	%	0.51	%	152.09	%
Institutional Service Class Shares
Year Ended October 31, 2014	3.03	%	1,871		2.59	%	(1.02	)%	2.75	%	1.09	%(h)	31.13	%
Year Ended October 31, 2013	8.61	%	3,551		2.47	%	(1.00	)%	2.59	%	0.99	%(h)	41.95	%
Year Ended October 31, 2012	2.17	%	1,992		2.72	%	(1.60	)%	2.72	%	1.11	%(h)	47.63	%
Year Ended October 31, 2011	(1.48	)%	8,380		2.37	%	(1.90	)%	2.40	%	0.77	%	62.65	%
Period Ended October 31, 2010(i)	6.30	%	965		2.04	%	(1.53	)%	2.04	%	0.43	%	152.09	%
Institutional Class Shares
Year Ended October 31, 2014	3.26	%	303,638		2.33	%	(0.78	)%	2.49	%	1.08	%(h)	31.13	%
Year Ended October 31, 2013	8.92	%	581,327		2.29	%	(0.82	)%	2.40	%	1.03	%(h)	41.95	%
Year Ended October 31, 2012	2.34	%	480,181		2.48	%	(1.37	)%	2.48	%	1.11	%(h)	47.63	%
Year Ended October 31, 2011	(1.31	)%	382,920		2.06	%	(1.50	)%	2.14	%	0.64	%	62.65	%
Year Ended October 31, 2010	6.79	%	321,696		1.88	%	(1.36	)%	1.88	%	0.43	%	152.09	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Indicates the dividend expense charged for the period to average net assets.

(g) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(h) Dividend expense ratio includes broker related expenses for securities sold short.

(i) For the period from November 2, 2009 (commencement of operations) through October 31, 2010.

204

Aberdeen Global Natural Resources Fund

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	16.37	$	0.22		$	(0.98	)	$	(0.76	)	$	(0.26	)	$	(0.26	)	$	—	$	15.35
Year Ended October 31, 2013	16.30		0.16			0.04			0.20			(0.13		)	(0.13		)	—		16.37
Year Ended October 31, 2012	16.23		0.17			0.07			0.24			(0.17		)	(0.17		)	—		16.30
Year Ended October 31, 2011	16.60		0.17			(0.41		)	(0.24		)	(0.13		)	(0.13		)	—		16.23
Year Ended October 31, 2010	15.02		(0.01		)	1.59			1.58			—			—			—		16.60
Class C Shares
Year Ended October 31, 2014	15.56		0.10			(0.93		)	(0.83		)	(0.14		)	(0.14		)	—		14.59
Year Ended October 31, 2013	15.52		0.05			0.04			0.09			(0.05		)	(0.05		)	—		15.56
Year Ended October 31, 2012	15.50		0.05			0.08			0.13			(0.11		)	(0.11		)	—		15.52
Year Ended October 31, 2011	15.86		0.04			(0.38		)	(0.34		)	(0.02		)	(0.02		)	—		15.50
Year Ended October 31, 2010	14.44		(0.10		)	1.52			1.42			—			—			—		15.86
Class R Shares
Year Ended October 31, 2014	16.11		0.18			(0.96		)	(0.78		)	(0.22		)	(0.22		)	—		15.11
Year Ended October 31, 2013	16.05		0.13			0.04			0.17			(0.11		)	(0.11		)	—		16.11
Year Ended October 31, 2012	15.99		0.14			0.07			0.21			(0.15		)	(0.15		)	—		16.05
Year Ended October 31, 2011	16.36		0.13			(0.40		)	(0.27		)	(0.10		)	(0.10		)	—		15.99
Year Ended October 31, 2010	14.82		(0.03		)	1.57			1.54			—			—			—		16.36
Institutional Service Class Shares
Year Ended October 31, 2014	16.60		0.28			(1.01		)	(0.73		)	(0.32		)	(0.32		)	—		15.55
Year Ended October 31, 2013	16.51		0.21			0.06			0.27			(0.18		)	(0.18		)	—		16.60
Year Ended October 31, 2012	16.43		0.22			0.08			0.30			(0.22		)	(0.22		)	—		16.51
Year Ended October 31, 2011	16.81		0.19			(0.38		)	(0.19		)	(0.19		)	(0.19		)	—		16.43
Year Ended October 31, 2010	15.15		0.05			1.61			1.66			—			—			—		16.81
Institutional Class Shares
Year Ended October 31, 2014	16.61		0.26			(0.99		)	(0.73		)	(0.32		)	(0.32		)	—		15.56
Year Ended October 31, 2013	16.54		0.18			0.07			0.25			(0.18		)	(0.18		)	—		16.61
Year Ended October 31, 2012	16.47		0.21			0.08			0.29			(0.22		)	(0.22		)	—		16.54
Year Ended October 31, 2011	16.85		0.23			(0.42		)	(0.19		)	(0.19		)	(0.19		)	—		16.47
Year Ended October 31, 2010	15.19		0.05			1.61			1.66			—			—			—		16.85

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

205

Aberdeen Global Natural Resources Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		PortfolioTurnover (d)
Class A Shares
Year Ended October 31, 2014	(4.75	)%	$	15,053	1.48	%	1.30	%	1.84	%	2.02	%
Year Ended October 31, 2013	1.28	%	21,396		1.49	%	1.00	%	1.64	%	12.50	%
Year Ended October 31, 2012	1.54	%	28,898		1.48	%	1.06	%	1.51	%	7.98	%
Year Ended October 31, 2011	(1.45	)%	34,936		1.45	%	0.96	%	1.49	%	6.30	%
Year Ended October 31, 2010	10.52	%	52,490		1.42	%	(0.05	)%	1.42	%	105.24	%
Class C Shares
Year Ended October 31, 2014	(5.39	)%	2,793		2.16	%	0.62	%	2.52	%	2.02	%
Year Ended October 31, 2013	0.58	%	4,345		2.16	%	0.32	%	2.31	%	12.50	%
Year Ended October 31, 2012	0.86	%	5,786		2.16	%	0.35	%	2.19	%	7.98	%
Year Ended October 31, 2011	(2.17	)%	8,353		2.13	%	0.24	%	2.16	%	6.30	%
Year Ended October 31, 2010	9.83	%	14,501		2.08	%	(0.69	)%	2.08	%	105.24	%
Class R Shares
Year Ended October 31, 2014	(4.94	)%	3,134		1.70	%	1.09	%	2.06	%	2.02	%
Year Ended October 31, 2013	1.06	%	3,942		1.70	%	0.80	%	1.85	%	12.50	%
Year Ended October 31, 2012	1.34	%	5,279		1.69	%	0.90	%	1.72	%	7.98	%
Year Ended October 31, 2011	(1.69	)%	5,677		1.67	%	0.73	%	1.71	%	6.30	%
Year Ended October 31, 2010	10.39	%	8,841		1.60	%	(0.20	)%	1.60	%	105.24	%
Institutional Service Class Shares
Year Ended October 31, 2014	(4.52	)%	672		1.16	%	1.66	%	1.53	%	2.02	%
Year Ended October 31, 2013	1.67	%	816		1.16	%	1.31	%	1.31	%	12.50	%
Year Ended October 31, 2012	1.90	%	1,156		1.17	%	1.33	%	1.20	%	7.98	%
Year Ended October 31, 2011	(1.18	)%	1,564		1.12	%	1.09	%	1.16	%	6.30	%
Year Ended October 31, 2010	10.96	%	3,271		1.08	%	0.30	%	1.08	%	105.24	%
Institutional Class Shares
Year Ended October 31, 2014	(4.52	)%	1,524		1.16	%	1.54	%	1.52	%	2.02	%
Year Ended October 31, 2013	1.55	%	2,206		1.16	%	1.10	%	1.31	%	12.50	%
Year Ended October 31, 2012	1.85	%	6,781		1.16	%	1.31	%	1.19	%	7.98	%
Year Ended October 31, 2011	(1.17	)%	9,968		1.12	%	1.32	%	1.16	%	6.30	%
Year Ended October 31, 2010	10.93	%	12,686		1.08	%	0.33	%	1.08	%	105.24	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

206

Aberdeen Small Cap Fund

			Investment Activities							Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains on Investments		Total from Investment Activities		Net Investment Income			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	21.86	$	0.01		$	2.03	$	2.04	$	—		$	—		$	—	$	23.90
Year Ended October 31, 2013	15.85		0.05			5.96		6.01		—			—			—		21.86
Year Ended October 31, 2012	14.06		(0.07		)	1.86		1.79		—			—			—		15.85
Year Ended October 31, 2011	13.65		0.04			0.47		0.51		(0.10		)	(0.10		)	—		14.06
Year Ended October 31, 2010	10.77		(0.07		)	2.95		2.88		—			—			—		13.65
Class C Shares
Year Ended October 31, 2014	19.53		(0.14		)	1.81		1.67		—			—			—		21.20
Year Ended October 31, 2013	14.26		(0.07		)	5.34		5.27		—			—			—		19.53
Year Ended October 31, 2012	12.73		(0.16		)	1.69		1.53		—			—			—		14.26
Year Ended October 31, 2011	12.42		(0.05		)	0.42		0.37		(0.06		)	(0.06		)	—		12.73
Year Ended October 31, 2010	9.86		(0.14		)	2.70		2.56		—			—			—		12.42
Class R Shares
Year Ended October 31, 2014	20.44		(0.04		)	1.90		1.86		—			—			—		22.30
Year Ended October 31, 2013	14.85		0.01			5.58		5.59		—			—			—		20.44
Year Ended October 31, 2012	13.21		(0.10		)	1.74		1.64		—			—			—		14.85
Year Ended October 31, 2011	12.84		0.03			0.42		0.45		(0.08		)	(0.08		)	—		13.21
Year Ended October 31, 2010	10.16		(0.09		)	2.77		2.68		—			—			—		12.84
Institutional Service Class Shares
Year Ended October 31, 2014	22.76		0.08			2.12		2.20		—			—			—		24.96
Year Ended October 31, 2013	16.47		0.09			6.20		6.29		—			—			—		22.76
Year Ended October 31, 2012	14.56		(0.02		)	1.93		1.91		—			—			—		16.47
Year Ended October 31, 2011	14.10		0.06			0.51		0.57		(0.11		)	(0.11		)	—		14.56
Year Ended October 31, 2010	11.10		(0.04		)	3.04		3.00		—			—			—		14.10
Institutional Class Shares
Year Ended October 31, 2014	22.73		0.07			2.13		2.20		—			—			—		24.93
Year Ended October 31, 2013	16.43		0.12			6.18		6.30		—			—			—		22.73
Year Ended October 31, 2012	14.53		(0.02		)	1.92		1.90		—			—			—		16.43
Year Ended October 31, 2011	14.07		0.10			0.47		0.57		(0.11		)	(0.11		)	—		14.53
Year Ended October 31, 2010	11.08		(0.03		)	3.02		2.99		—			—			—		14.07

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

207

Aberdeen Small Cap Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		Portfolio Turnover (d)
Class A Shares
Year Ended October 31, 2014	9.33	%	$	72,790	1.47	%	0.03	%	1.59	%	29.32	%
Year Ended October 31, 2013	37.92	%	81,916		1.47	%	0.25	%	1.58	%	39.71	%
Year Ended October 31, 2012	12.73	%	70,189		1.47	%	(0.46	)%	1.55	%	23.05	%
Year Ended October 31, 2011	3.65	%	92,187		1.44	%	0.28	%	1.59	%	41.48	%
Year Ended October 31, 2010	26.74	%	121,975		1.35	%	(0.57	)%	1.65	%	24.37	%
Class C Shares
Year Ended October 31, 2014	8.55	%	31,346		2.15	%	(0.66	)%	2.27	%	29.32	%
Year Ended October 31, 2013	36.96	%	32,664		2.15	%	(0.42	)%	2.26	%	39.71	%
Year Ended October 31, 2012	12.02	%	29,734		2.15	%	(1.13	)%	2.23	%	23.05	%
Year Ended October 31, 2011	2.94	%	35,391		2.11	%	(0.33	)%	2.26	%	41.48	%
Year Ended October 31, 2010	25.96	%	48,374		2.04	%	(1.27	)%	2.35	%	24.37	%
Class R Shares
Year Ended October 31, 2014	9.10	%	1,152		1.70	%	(0.19	)%	1.82	%	29.32	%
Year Ended October 31, 2013	37.64	%	1,507		1.67	%	0.08	%	1.78	%	39.71	%
Year Ended October 31, 2012	12.41	%	2,195		1.73	%	(0.68	)%	1.81	%	23.05	%
Year Ended October 31, 2011	3.45	%	3,336		1.65	%	0.18	%	1.80	%	41.48	%
Year Ended October 31, 2010	26.38	%	5,622		1.55	%	(0.78	)%	1.85	%	24.37	%
Institutional Service Class Shares
Year Ended October 31, 2014	9.67	%	1,626		1.15	%	0.33	%	1.27	%	29.32	%
Year Ended October 31, 2013	38.19	%	1,694		1.15	%	0.48	%	1.26	%	39.71	%
Year Ended October 31, 2012	13.12	%	11,909		1.15	%	(0.13	)%	1.23	%	23.05	%
Year Ended October 31, 2011	4.00	%	15,100		1.12	%	0.40	%	1.26	%	41.48	%
Year Ended October 31, 2010	27.03	%	13,422		1.04	%	(0.31	)%	1.35	%	24.37	%
Institutional Class Shares
Year Ended October 31, 2014	9.68	%	27,404		1.15	%	0.30	%	1.27	%	29.32	%
Year Ended October 31, 2013	38.34	%	19,619		1.15	%	0.61	%	1.26	%	39.71	%
Year Ended October 31, 2012	13.08	%	26,346		1.15	%	(0.10	)%	1.23	%	23.05	%
Year Ended October 31, 2011	4.01	%	35,100		1.11	%	0.67	%	1.26	%	41.48	%
Year Ended October 31, 2010	26.99	%	52,428		1.04	%	(0.20	)%	1.29	%	24.37	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

208

Aberdeen China Opportunities Fund

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	20.54	$	0.16		$	(0.33	)	$	(0.17	)	$	(0.18	)	$	(0.18	)	$	—	$	20.19
Year Ended October 31, 2013	19.64		0.15			0.82			0.97			(0.08		)	(0.08		)	0.01		20.54
Year Ended October 31, 2012	18.81		0.35			0.88			1.23			(0.41		)	(0.41		)	0.01		19.64
Year Ended October 31, 2011	20.66		0.21			(1.91		)	(1.70		)	(0.16		)	(0.16		)	0.01		18.81
Year Ended October 31, 2010	16.40		0.14			4.21			4.35			(0.09		)	(0.09		)	—		20.66
Class C Shares
Year Ended October 31, 2014	19.87		0.01			(0.32		)	(0.31		)	(0.06		)	(0.06		)	—		19.50
Year Ended October 31, 2013	19.09		(0.01		)	0.81			0.80			(0.02		)	(0.02		)	—		19.87
Year Ended October 31, 2012	18.30		0.19			0.87			1.06			(0.28		)	(0.28		)	0.01		19.09
Year Ended October 31, 2011	20.09		0.02			(1.80		)	(1.78		)	(0.02		)	(0.02		)	0.01		18.30
Year Ended October 31, 2010	15.97		0.01			4.11			4.12			—			—			—		20.09
Class R Shares
Year Ended October 31, 2014	20.29		0.10			(0.35		)	(0.25		)	(0.12		)	(0.12		)	—		19.92
Year Ended October 31, 2013	19.43		0.10			0.79			0.89			(0.03		)	(0.03		)	—		20.29
Year Ended October 31, 2012	18.62		0.26			0.89			1.15			(0.35		)	(0.35		)	0.01		19.43
Year Ended October 31, 2011	20.46		0.14			(1.88		)	(1.74		)	(0.11		)	(0.11		)	0.01		18.62
Year Ended October 31, 2010	16.26		0.17			4.10			4.27			(0.07		)	(0.07		)	—		20.46
Institutional Service Class Shares
Year Ended October 31, 2014	20.62		0.21			(0.33		)	(0.12		)	(0.22		)	(0.22		)	—		20.28
Year Ended October 31, 2013	19.72		0.18			0.84			1.02			(0.13		)	(0.13		)	0.01		20.62
Year Ended October 31, 2012	18.88		0.38			0.91			1.29			(0.46		)	(0.46		)	0.01		19.72
Year Ended October 31, 2011	20.73		0.22			(1.87		)	(1.65		)	(0.21		)	(0.21		)	0.01		18.88
Year Ended October 31, 2010	16.44		0.18			4.25			4.43			(0.14		)	(0.14		)	—		20.73
Institutional Class Shares
Year Ended October 31, 2014	20.64		0.25			(0.38		)	(0.13		)	(0.23		)	(0.23		)	—		20.28
Year Ended October 31, 2013	19.74		0.19			0.83			1.02			(0.13		)	(0.13		)	0.01		20.64
Year Ended October 31, 2012	18.90		0.39			0.90			1.29			(0.46		)	(0.46		)	0.01		19.74
Year Ended October 31, 2011	20.74		0.25			(1.89		)	(1.64		)	(0.21		)	(0.21		)	0.01		18.90
Year Ended October 31, 2010	16.49		0.18			4.21			4.39			(0.14		)	(0.14		)	—		20.74

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

209

Aberdeen China Opportunities Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		Portfolio Turnover (d)
Class A Shares
Year Ended October 31, 2014	(0.82	)%	$	19,425	1.89	%	0.79	%	2.30	%	30.61	%
Year Ended October 31, 2013	4.98	%	21,682		1.89	%	0.71	%	2.18	%	14.51	%
Year Ended October 31, 2012	6.68	%	21,882		1.90	%	1.81	%	2.13	%	21.42	%
Year Ended October 31, 2011	(8.20	)%	25,086		1.89	%	1.02	%	2.12	%	20.44	%
Year Ended October 31, 2010	26.58	%	27,216		1.88	%	0.77	%	2.18	%	27.91	%
Class C Shares
Year Ended October 31, 2014	(1.57	)%	6,064		2.62	%	0.04	%	3.03	%	30.61	%
Year Ended October 31, 2013	4.18	%	7,704		2.62	%	(0.06	)%	2.91	%	14.51	%
Year Ended October 31, 2012	5.90	%	9,164		2.62	%	1.02	%	2.85	%	21.42	%
Year Ended October 31, 2011	(8.78	)%	9,161		2.62	%	0.11	%	2.84	%	20.44	%
Year Ended October 31, 2010	25.74	%	14,438		2.62	%	0.03	%	2.90	%	27.91	%
Class R Shares
Year Ended October 31, 2014	(1.25	)%	1,495		2.27	%	0.50	%	2.68	%	30.61	%
Year Ended October 31, 2013	4.61	%	1,599		2.25	%	0.47	%	2.54	%	14.51	%
Year Ended October 31, 2012	6.32	%	1,225		2.24	%	1.36	%	2.47	%	21.42	%
Year Ended October 31, 2011	(8.44	)%	930		2.20	%	0.71	%	2.43	%	20.44	%
Year Ended October 31, 2010	26.30	%	578		2.12	%	0.95	%	2.43	%	27.91	%
Institutional Service Class Shares
Year Ended October 31, 2014	(0.56	)%	1,778		1.64	%	1.05	%	2.05	%	30.61	%
Year Ended October 31, 2013	5.22	%	2,383		1.62	%	0.88	%	1.91	%	14.51	%
Year Ended October 31, 2012	6.99	%	4,529		1.62	%	1.99	%	1.85	%	21.42	%
Year Ended October 31, 2011	(7.92	)%	3,498		1.62	%	1.08	%	1.84	%	20.44	%
Year Ended October 31, 2010	27.00	%	5,138		1.62	%	1.03	%	1.91	%	27.91	%
Institutional Class Shares
Year Ended October 31, 2014	(0.65	)%	1,604		1.62	%	1.23	%	2.03	%	30.61	%
Year Ended October 31, 2013	5.22	%	1,250		1.62	%	0.90	%	1.91	%	14.51	%
Year Ended October 31, 2012	6.99	%	1,683		1.62	%	2.01	%	1.85	%	21.42	%
Year Ended October 31, 2011	(7.91	)%	1,247		1.62	%	1.20	%	1.84	%	20.44	%
Year Ended October 31, 2010	26.73	%	1,448		1.62	%	0.98	%	1.87	%	27.91	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

210

Aberdeen International Equity Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	15.34	$	0.50	$	(0.42	)	$	0.08		$	(0.57	)	$	(0.57	)	$	—	$	14.85
Year Ended October 31, 2013	13.57		0.26		1.73			1.99			(0.22		)	(0.22		)	—		15.34
Year Ended October 31, 2012	13.00		0.31		0.56			0.87			(0.30		)	(0.30		)	—		13.57
Year Ended October 31, 2011	13.02		0.30		(0.04		)	0.26			(0.28		)	(0.28		)	—		13.00
Year Ended October 31, 2010	11.37		0.21		1.66			1.87			(0.22		)	(0.22		)	—		13.02
Class C Shares
Year Ended October 31, 2014	14.51		0.39		(0.42		)	(0.03		)	(0.47		)	(0.47		)	—		14.01
Year Ended October 31, 2013	12.86		0.15		1.64			1.79			(0.14		)	(0.14		)	—		14.51
Year Ended October 31, 2012	12.35		0.20		0.54			0.74			(0.23		)	(0.23		)	—		12.86
Year Ended October 31, 2011	12.38		0.19		(0.03		)	0.16			(0.19		)	(0.19		)	—		12.35
Year Ended October 31, 2010	10.84		0.12		1.58			1.70			(0.16		)	(0.16		)	—		12.38
Class R Shares
Year Ended October 31, 2014	14.71		0.46		(0.42		)	0.04			(0.53		)	(0.53		)	—		14.22
Year Ended October 31, 2013	13.03		0.21		1.65			1.86			(0.18		)	(0.18		)	—		14.71
Year Ended October 31, 2012	12.49		0.27		0.55			0.82			(0.28		)	(0.28		)	—		13.03
Year Ended October 31, 2011	12.51		0.25		(0.01		)	0.24			(0.26		)	(0.26		)	—		12.49
Year Ended October 31, 2010	10.95		0.18		1.59			1.77			(0.21		)	(0.21		)	—		12.51
Institutional Service Class Shares
Year Ended October 31, 2014	15.64		0.56		(0.44		)	0.12			(0.60		)	(0.60		)	—		15.16
Year Ended October 31, 2013	13.84		0.28		1.77			2.05			(0.25		)	(0.25		)	—		15.64
Year Ended October 31, 2012	13.25		0.35		0.56			0.91			(0.32		)	(0.32		)	—		13.84
Year Ended October 31, 2011	13.26		0.33		(0.04		)	0.29			(0.30		)	(0.30		)	—		13.25
Year Ended October 31, 2010	11.58		0.24		1.69			1.93			(0.25		)	(0.25		)	—		13.26
Institutional Class Shares
Year Ended October 31, 2014	15.70		0.58		(0.45		)	0.13			(0.62		)	(0.62		)	—		15.21
Year Ended October 31, 2013	13.88		0.32		1.76			2.08			(0.26		)	(0.26		)	—		15.70
Year Ended October 31, 2012	13.29		0.41		0.51			0.92			(0.33		)	(0.33		)	—		13.88
Year Ended October 31, 2011	13.30		0.34		(0.03		)	0.31			(0.32		)	(0.32		)	—		13.29
Year Ended October 31, 2010	11.59		0.29		1.65			1.94			(0.23		)	(0.23		)	—		13.30

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

211

Aberdeen International Equity Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		Portfolio Turnover (d)
Class A Shares
Year Ended October 31, 2014	0.49	%	$	148,018	1.33	%	3.30	%	1.33	%	10.08	%
Year Ended October 31, 2013	14.75	%	222,275		1.33	%	1.77	%	1.33	%	23.35	%
Year Ended October 31, 2012	6.84	%	200,574		1.37	%	2.37	%	1.37	%	15.29	%
Year Ended October 31, 2011	1.96	%	158,454		1.57	%	2.22	%	1.57	%	22.15	%
Year Ended October 31, 2010	16.73	%	140,052		1.57	%	1.73	%	1.58	%	22.61	%
Class C Shares
Year Ended October 31, 2014	(0.24	)%	35,696		2.03	%	2.68	%	2.03	%	10.08	%
Year Ended October 31, 2013	14.02	%	42,861		2.01	%	1.08	%	2.01	%	23.35	%
Year Ended October 31, 2012	6.09	%	35,754		2.05	%	1.64	%	2.05	%	15.29	%
Year Ended October 31, 2011	1.29	%	28,322		2.24	%	1.48	%	2.24	%	22.15	%
Year Ended October 31, 2010	15.88	%	35,944		2.24	%	1.06	%	2.25	%	22.61	%
Class R Shares
Year Ended October 31, 2014	0.26	%	16,938		1.62	%	3.13	%	1.62	%	10.08	%
Year Ended October 31, 2013	14.42	%	17,303		1.59	%	1.51	%	1.59	%	23.35	%
Year Ended October 31, 2012	6.67	%	11,531		1.58	%	2.10	%	1.58	%	15.29	%
Year Ended October 31, 2011	1.87	%	10,395		1.75	%	1.97	%	1.75	%	22.15	%
Year Ended October 31, 2010	16.39	%	10,195		1.74	%	1.55	%	1.75	%	22.61	%
Institutional Service Class Shares
Year Ended October 31, 2014	0.75	%	185,166		1.16	%	3.57	%	1.16	%	10.08	%
Year Ended October 31, 2013	14.91	%	206,212		1.13	%	1.92	%	1.13	%	23.35	%
Year Ended October 31, 2012	7.07	%	191,580		1.17	%	2.61	%	1.17	%	15.29	%
Year Ended October 31, 2011	2.19	%	219,773		1.37	%	2.38	%	1.37	%	22.15	%
Year Ended October 31, 2010	16.91	%	211,007		1.36	%	1.98	%	1.36	%	22.61	%
Institutional Class Shares
Year Ended October 31, 2014	0.81	%	496,344		1.03	%	3.73	%	1.03	%	10.08	%
Year Ended October 31, 2013	15.14	%	558,986		1.01	%	2.13	%	1.01	%	23.35	%
Year Ended October 31, 2012	7.18	%	475,051		1.01	%	3.02	%	1.01	%	15.29	%
Year Ended October 31, 2011	2.32	%	14,491		1.24	%	2.50	%	1.24	%	22.15	%
Year Ended October 31, 2010	16.97	%	12,669		1.24	%	2.41	%	1.23	%	22.61	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

212

Aberdeen Global Equity Fund

			Investment Activities							Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains on Investments			Total from Investment Activities		Net Investment Income			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	13.83	$	0.45	$	0.01		$	0.46	$	(0.46	)	$	(0.46	)	$	—	$	13.83
Year Ended October 31, 2013	12.01		0.18		1.80			1.98		(0.16		)	(0.16		)	—		13.83
Year Ended October 31, 2012	11.14		0.20		0.88			1.08		(0.21		)	(0.21		)	—		12.01
Year Ended October 31, 2011	11.00		0.22		0.13			0.35		(0.21		)	(0.21		)	—		11.14
Year Ended October 31, 2010	9.82		0.16		1.19			1.35		(0.17		)	(0.17		)	—		11.00
Class C Shares
Year Ended October 31, 2014	13.15		0.33		0.03			0.36		(0.38		)	(0.38		)	—		13.13
Year Ended October 31, 2013	11.44		0.12		1.68			1.80		(0.09		)	(0.09		)	—		13.15
Year Ended October 31, 2012	10.63		0.14		0.82			0.96		(0.15		)	(0.15		)	—		11.44
Year Ended October 31, 2011	10.50		0.13		0.13			0.26		(0.13		)	(0.13		)	—		10.63
Year Ended October 31, 2010	9.39		0.08		1.14			1.22		(0.11		)	(0.11		)	—		10.50
Class R Shares
Year Ended October 31, 2014	13.36		0.40		—		(g)	0.40		(0.42		)	(0.42		)	—		13.34
Year Ended October 31, 2013	11.61		0.16		1.73			1.89		(0.14		)	(0.14		)	—		13.36
Year Ended October 31, 2012	10.78		0.19		0.83			1.02		(0.19		)	(0.19		)	—		11.61
Year Ended October 31, 2011	10.65		0.18		0.13			0.31		(0.18		)	(0.18		)	—		10.78
Year Ended October 31, 2010	9.51		0.14		1.16			1.30		(0.16		)	(0.16		)	—		10.65
Institutional Service Class Shares
Year Ended October 31, 2014	13.88		0.44		0.05			0.49		(0.51		)	(0.51		)	—		13.86
Year Ended October 31, 2013	12.01		0.23		1.85			2.08		(0.21		)	(0.21		)	—		13.88
Period Ended October 31, 2012(i)(j)	10.56		0.23		1.41			1.64		(0.19		)	(0.19		)	—		12.01
Institutional Class Shares
Year Ended October 31, 2014	13.84		0.47		0.04			0.51		(0.51		)	(0.51		)	—		13.84
Year Ended October 31, 2013	12.02		0.25		1.78			2.03		(0.21		)	(0.21		)	—		13.84
Year Ended October 31, 2012	11.15		0.23		0.89			1.12		(0.25		)	(0.25		)	—		12.02
Year Ended October 31, 2011	11.01		0.26		0.12			0.38		(0.24		)	(0.24		)	—		11.15
Year Ended October 31, 2010	9.82		0.13		1.26			1.39		(0.20		)	(0.20		)	—		11.01

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

213

Aberdeen Global Equity Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	3.37	%	$	73,230	1.56	%	3.22	%	1.56	%	24.09	%
Year Ended October 31, 2013	16.59	%	83,800		1.57	%	1.42	%	1.57	%	12.87	%
Year Ended October 31, 2012	9.86	%	76,894		1.49	%	1.73	%	1.68	%	24.83	%
Year Ended October 31, 2011	3.12	%	25,480		1.61	%	1.89	%	1.83	%	25.44	%
Year Ended October 31, 2010	13.97	%	27,691		1.61	%	1.56	%	1.96	%	23.44	%
Class C Shares
Year Ended October 31, 2014	2.78	%	4,165		2.19	%	2.50	%	2.19	%	24.09	%
Year Ended October 31, 2013	15.83	%	5,278		2.19	%	0.96	%	2.19	%	12.87	%
Year Ended October 31, 2012	9.11	%	3,348		2.20	%	1.28	%	2.39	%	24.83	%
Year Ended October 31, 2011	2.43	%	2,437		2.32	%	1.18	%	2.54	%	25.44	%
Year Ended October 31, 2010	13.17	%	3,017		2.32	%	0.85	%	2.67	%	23.44	%
Class R Shares
Year Ended October 31, 2014	3.06	%	1,986		1.85	%	2.96	%	1.85	%	24.09	%
Year Ended October 31, 2013	16.35	%	2,312		1.76	%	1.26	%	1.76	%	12.87	%
Year Ended October 31, 2012	9.61	%	2,265		1.71	%	1.70	%	1.90	%	24.83	%
Year Ended October 31, 2011	2.85	%	595		1.82	%	1.59	%	2.04	%	25.44	%
Year Ended October 31, 2010	13.82	%	838		1.82	%	1.46	%	2.18	%	23.44	%
Institutional Service Class Shares
Year Ended October 31, 2014	3.62	%(h)	2		1.19	%	3.12	%	1.19	%	24.09	%
Year Ended October 31, 2013	17.44	%(h)	1		1.19	%	1.80	%	1.20	%	12.87	%
Period Ended October 31, 2012(i)(j)	15.65	%(h)	1		1.19	%	2.28	%	1.39	%	24.83	%
Institutional Class Shares
Year Ended October 31, 2014	3.77	%(h)	78,381		1.19	%	3.36	%	1.19	%	24.09	%
Year Ended October 31, 2013	17.01	%(h)	67,843		1.19	%	1.89	%	1.19	%	12.87	%
Year Ended October 31, 2012	10.16	%	39,134		1.20	%	1.95	%	1.39	%	24.83	%
Year Ended October 31, 2011	3.40	%	10,491		1.32	%	2.29	%	1.54	%	25.44	%
Year Ended October 31, 2010	14.35	%	3,925		1.32	%	1.30	%	1.69	%	23.44	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) Less than $0.005 per share.

(h) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(i) For the period from December 19, 2011 (commencement of operations) through October 31, 2012.

(j) There were no shareholders in the class for the period from April 23, 2009 through December 18, 2011. The financial highlights information presented is for two separate periods of time when shareholders were invested in the class. See Note 6 for Financial Highlight information prior to year ended October 31, 2009.

214

Aberdeen Diversified Income Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	12.58	$	0.39	$	0.48		$	0.87		$	(0.46	)	$	(0.46	)	$	12.99
Year Ended October 31, 2013	12.03		0.35		0.56			0.91			(0.36		)	(0.36		)	12.58
Year Ended October 31, 2012	11.39		0.25		0.62			0.87			(0.23		)	(0.23		)	12.03
Year Ended October 31, 2011	11.42		0.23		(0.03		)	0.20			(0.23		)	(0.23		)	11.39
Year Ended October 31, 2010	10.20		0.18		1.21			1.39			(0.17		)	(0.17		)	11.42
Class C Shares
Year Ended October 31, 2014	12.35		0.29		0.48			0.77			(0.37		)	(0.37		)	12.75
Year Ended October 31, 2013	11.81		0.25		0.56			0.81			(0.27		)	(0.27		)	12.35
Year Ended October 31, 2012	11.18		0.17		0.61			0.78			(0.15		)	(0.15		)	11.81
Year Ended October 31, 2011	11.22		0.15		(0.05		)	0.10			(0.14		)	(0.14		)	11.18
Year Ended October 31, 2010	10.03		0.09		1.20			1.29			(0.10		)	(0.10		)	11.22
Class R Shares
Year Ended October 31, 2014	12.49		0.33		0.49			0.82			(0.41		)	(0.41		)	12.90
Year Ended October 31, 2013	11.94		0.29		0.57			0.86			(0.31		)	(0.31		)	12.49
Year Ended October 31, 2012	11.31		0.19		0.62			0.81			(0.18		)	(0.18		)	11.94
Year Ended October 31, 2011	11.34		0.20		(0.06		)	0.14			(0.17		)	(0.17		)	11.31
Year Ended October 31, 2010	10.13		0.10		1.26			1.36			(0.15		)	(0.15		)	11.34
Institutional Service Class Shares
Year Ended October 31, 2014	12.57		0.42		0.48			0.90			(0.50		)	(0.50		)	12.97
Year Ended October 31, 2013	12.01		0.39		0.57			0.96			(0.40		)	(0.40		)	12.57
Period from September 24, 2012 through October 31, 2012(h)(i)	12.06		0.03		(0.08		)	(0.05		)	—			—			12.01
Period from November 1, 2008 through April 22, 2009(h)(j)	8.77		0.06		(0.24		)	(0.18		)	(0.08		)	(0.08		)	8.51
Institutional Class Shares
Year Ended October 31, 2014	12.56		0.42		0.49			0.91			(0.50		)	(0.50		)	12.97
Year Ended October 31, 2013	12.01		0.38		0.57			0.95			(0.40		)	(0.40		)	12.56
Year Ended October 31, 2012	11.38		0.28		0.61			0.89			(0.26		)	(0.26		)	12.01
Year Ended October 31, 2011	11.41		0.26		(0.03		)	0.23			(0.26		)	(0.26		)	11.38
Year Ended October 31, 2010	10.19		0.17		1.25			1.42			(0.20		)	(0.20		)	11.41

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

215

Aberdeen Diversified Income Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	7.10	%	$	7,542	0.51	%	3.06	%	1.08	%	29.19	%
Year Ended October 31, 2013	7.69	%	8,357		0.53	%	2.82	%	1.00	%	37.01	%
Year Ended October 31, 2012	7.73	%(g)	10,538		0.53	%	2.15	%	1.00	%	65.34	%
Year Ended October 31, 2011	1.71	%	9,220		0.53	%	1.99	%	0.92	%	26.55	%
Year Ended October 31, 2010	13.74	%	12,744		0.51	%	1.66	%	0.88	%	41.21	%
Class C Shares
Year Ended October 31, 2014	6.34	%(g)	14,906		1.25	%	2.31	%	1.82	%	29.19	%
Year Ended October 31, 2013	6.96	%(g)	17,824		1.25	%	2.09	%	1.72	%	37.01	%
Year Ended October 31, 2012	7.01	%(g)	22,488		1.25	%	1.45	%	1.72	%	65.34	%
Year Ended October 31, 2011	1.01	%	20,388		1.25	%	1.27	%	1.65	%	26.55	%
Year Ended October 31, 2010	12.94	%	25,853		1.25	%	0.86	%	1.61	%	41.21	%
Class R Shares
Year Ended October 31, 2014	6.66	%	408		0.97	%	2.58	%	1.54	%	29.19	%
Year Ended October 31, 2013	7.29	%	387		0.96	%	2.39	%	1.43	%	37.01	%
Year Ended October 31, 2012	7.20	%	384		0.99	%	1.63	%	1.46	%	65.34	%
Year Ended October 31, 2011	1.26	%	410		0.87	%	1.77	%	1.27	%	26.55	%
Year Ended October 31, 2010	13.51	%	1,205		0.78	%	0.97	%	1.15	%	41.21	%
Institutional Service Class Shares
Year Ended October 31, 2014	7.32	%(g)	12		0.25	%	3.31	%	0.82	%	29.19	%
Year Ended October 31, 2013	8.10	%(g)	11		0.25	%	3.10	%	0.72	%	37.01	%
Period from September 24, 2012 through October 31, 2012(h)(i)	(0.41	)%(g)	10		0.25	%	2.52	%	0.72	%	65.34	%
Period from November 1, 2008 through April 22, 2009(h)(j)	(1.99	)%	1		0.25	%	1.50	%	0.95	%	32.11	%
Institutional Class Shares
Year Ended October 31, 2014	7.40	%	2,339		0.25	%	3.32	%	0.82	%	29.19	%
Year Ended October 31, 2013	8.01	%	1,953		0.25	%	3.10	%	0.72	%	37.01	%
Year Ended October 31, 2012	7.95	%	1,756		0.25	%	2.39	%	0.72	%	65.34	%
Year Ended October 31, 2011	2.00	%	1,027		0.25	%	2.25	%	0.64	%	26.55	%
Year Ended October 31, 2010	14.03	%	1,447		0.25	%	1.58	%	0.54	%	41.21	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(h) There were no shareholders in the class for the period from April 23, 2009 through September 23, 2012. The financial highlights information presented is for two separate periods of time when shareholders were invested in the class.

(i) For the period from September 24, 2012 (commencement of operations) through October 31, 2012.

(j) See Note 5 for Financial Highlights information prior to year ended October 31, 2009.

216

Aberdeen Dynamic Allocation Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	12.51	$	0.20	$	0.80		$	1.00		$	(0.21	)	$	(0.21	)	$	13.30
Year Ended October 31, 2013	11.52		0.17		1.01			1.18			(0.19		)	(0.19		)	12.51
Year Ended October 31, 2012	10.87		0.21		0.64			0.85			(0.20		)	(0.20		)	11.52
Year Ended October 31, 2011	10.88		0.20		(0.03		)	0.17			(0.18		)	(0.18		)	10.87
Year Ended October 31, 2010	9.50		0.12		1.37			1.49			(0.11		)	(0.11		)	10.88
Class C Shares
Year Ended October 31, 2014	12.28		0.11		0.78			0.89			(0.11		)	(0.11		)	13.06
Year Ended October 31, 2013	11.32		0.08		1.00			1.08			(0.12		)	(0.12		)	12.28
Year Ended October 31, 2012	10.69		0.13		0.62			0.75			(0.12		)	(0.12		)	11.32
Year Ended October 31, 2011	10.72		0.12		(0.03		)	0.09			(0.12		)	(0.12		)	10.69
Year Ended October 31, 2010	9.37		0.05		1.35			1.40			(0.05		)	(0.05		)	10.72
Class R Shares
Year Ended October 31, 2014	12.45		0.15		0.78			0.93			(0.15		)	(0.15		)	13.23
Year Ended October 31, 2013	11.47		0.12		1.02			1.14			(0.16		)	(0.16		)	12.45
Year Ended October 31, 2012	10.83		0.15		0.66			0.81			(0.17		)	(0.17		)	11.47
Year Ended October 31, 2011	10.83		0.14		0.01			0.15			(0.15		)	(0.15		)	10.83
Year Ended October 31, 2010	9.45		0.09		1.38			1.47			(0.09		)	(0.09		)	10.83
Institutional Service Class Shares
Year Ended October 31, 2014	12.46		0.24		0.78			1.02			(0.24		)	(0.24		)	13.24
Year Ended October 31, 2013	11.47		0.20		1.02			1.22			(0.23		)	(0.23		)	12.46
Period from September 24, 2012 through October 31, 2012(h)(i)	11.58		0.01		(0.12		)	(0.11		)	—			—			11.47
Period from November 1, 2008 through April 22, 2009(h)(j)	8.16		0.03		(0.45		)	(0.42		)	(0.06		)	(0.06		)	7.68
Institutional Class Shares
Year Ended October 31, 2014	12.46		0.24		0.78			1.02			(0.24		)	(0.24		)	13.24
Year Ended October 31, 2013	11.47		0.19		1.03			1.22			(0.23		)	(0.23		)	12.46
Year Ended October 31, 2012	10.83		0.19		0.68			0.87			(0.23		)	(0.23		)	11.47
Year Ended October 31, 2011	10.92		0.20		(0.08		)	0.12			(0.21		)	(0.21		)	10.83
Year Ended October 31, 2010	9.50		0.15		1.41			1.56			(0.14		)	(0.14		)	10.92

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

217

Aberdeen Dynamic Allocation Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	8.03	%	$	9,506	0.52	%	1.58	%	1.16	%	52.34	%
Year Ended October 31, 2013	10.35	%	9,937		0.52	%	1.44	%	1.07	%	67.49	%
Year Ended October 31, 2012	7.93	%(g)	11,682		0.53	%	1.90	%	1.08	%	60.45	%
Year Ended October 31, 2011	1.67	%	10,755		0.54	%	1.83	%	1.00	%	20.14	%
Year Ended October 31, 2010	15.81	%	12,684		0.53	%	1.15	%	0.99	%	56.29	%
Class C Shares
Year Ended October 31, 2014	7.28	%	12,939		1.25	%	0.85	%	1.89	%	52.34	%
Year Ended October 31, 2013	9.58	%	15,123		1.25	%	0.71	%	1.80	%	67.49	%
Year Ended October 31, 2012	7.10	%	16,890		1.25	%	1.18	%	1.80	%	60.45	%
Year Ended October 31, 2011	0.95	%	15,009		1.25	%	1.12	%	1.72	%	20.14	%
Year Ended October 31, 2010	15.03	%	17,300		1.25	%	0.48	%	1.71	%	56.29	%
Class R Shares
Year Ended October 31, 2014	7.52	%	454		0.95	%	1.15	%	1.59	%	52.34	%
Year Ended October 31, 2013	9.99	%	406		0.92	%	1.02	%	1.47	%	67.49	%
Year Ended October 31, 2012	7.55	%	288		0.89	%	1.38	%	1.44	%	60.45	%
Year Ended October 31, 2011	1.42	%	28		0.79	%	1.23	%	1.26	%	20.14	%
Year Ended October 31, 2010	15.68	%	18		0.75	%	0.89	%	1.22	%	56.29	%
Institutional Service Class Shares
Year Ended October 31, 2014	8.36	%	12		0.25	%	1.85	%	0.89	%	52.34	%
Year Ended October 31, 2013	10.72	%	11		0.25	%	1.68	%	0.80	%	67.49	%
Period from September 24, 2012 through October 31, 2012(h)(i)	(0.95	)%	10		0.25	%	1.13	%	0.80	%	60.45	%
Period from November 1, 2008 through April 22, 2009(h)(j)	(5.19	)%	1		0.25	%	1.54	%	1.19	%	27.48	%
Institutional Class Shares
Year Ended October 31, 2014	8.28	%	1,506		0.25	%	1.86	%	0.89	%	52.34	%
Year Ended October 31, 2013	10.72	%	1,223		0.25	%	1.62	%	0.80	%	67.49	%
Year Ended October 31, 2012	8.18	%	596		0.25	%	1.65	%	0.80	%	60.45	%
Year Ended October 31, 2011	1.40	%	8		0.25	%	1.83	%	0.72	%	20.14	%
Year Ended October 31, 2010	16.18	%	2		0.25	%	1.46	%	0.70	%	56.29	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(i) For the period from September 24, 2012 (commencement of operations) through October 31, 2012.

(j) See Note 5 for Financial Highlights information prior to year ended October 31, 2009.

218

Aberdeen Diversified Alternatives Fund

			Investment Activities									Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Tax Return of Capital			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	12.63	$	0.05		$	0.79		$	0.84		$	(0.15	)	$	—		$	(0.15	)	$	13.32
Year Ended October 31, 2013	11.64		0.12			1.01			1.13			(0.14		)	—			(0.14		)	12.63
Year Ended October 31, 2012	10.93		0.18			0.70			0.88			(0.17		)	—			(0.17		)	11.64
Year Ended October 31, 2011	11.31		0.21			(0.38		)	(0.17		)	(0.21		)	—			(0.21		)	10.93
Year Ended October 31, 2010	9.89		0.13			1.42			1.55			(0.12		)	(0.01		)	(0.13		)	11.31
Class C Shares
Year Ended October 31, 2014	12.22		(0.05		)	0.77			0.72			(0.05		)	—			(0.05		)	12.89
Year Ended October 31, 2013	11.33		0.03			0.97			1.00			(0.11		)	—			(0.11		)	12.22
Year Ended October 31, 2012	10.67		0.10			0.68			0.78			(0.12		)	—			(0.12		)	11.33
Year Ended October 31, 2011	11.03		0.14			(0.37		)	(0.23		)	(0.13		)	—			(0.13		)	10.67
Year Ended October 31, 2010	9.66		0.04			1.39			1.43			(0.05		)	(0.01		)	(0.06		)	11.03
Class R Shares
Year Ended October 31, 2014	12.56		0.02			0.78			0.80			(0.11		)	—			(0.11		)	13.25
Year Ended October 31, 2013	11.61		0.06			1.01			1.07			(0.12		)	—			(0.12		)	12.56
Year Ended October 31, 2012	10.90		0.14			0.71			0.85			(0.14		)	—			(0.14		)	11.61
Year Ended October 31, 2011	11.26		0.21			(0.42		)	(0.21		)	(0.15		)	—			(0.15		)	10.90
Year Ended October 31, 2010	9.85		0.09			1.42			1.51			(0.09		)	(0.01		)	(0.10		)	11.26
Institutional Service Class Shares
Year Ended October 31, 2014	12.75		0.09			0.80			0.89			(0.20		)	—			(0.20		)	13.44
Year Ended October 31, 2013	11.73		0.15			1.02			1.17			(0.15		)	—			(0.15		)	12.75
Period from September 24, 2012 through October 31, 2012(h)(i)	11.81		0.01			(0.09		)	(0.08		)	—			—			—			11.73
Period from November 1, 2008 through April 22, 2009(h)(j)	8.50		0.01			(0.66		)	(0.65		)	(0.03		)	—			(0.03		)	7.82
Institutional Class Shares
Year Ended October 31, 2014	12.75		0.08			0.80			0.88			(0.20		)	—			(0.20		)	13.43
Year Ended October 31, 2013	11.73		0.15			1.02			1.17			(0.15		)	—			(0.15		)	12.75
Year Ended October 31, 2012	11.00		0.22			0.71			0.93			(0.20		)	—			(0.20		)	11.73
Year Ended October 31, 2011	11.38		0.25			(0.39		)	(0.14		)	(0.24		)	—			(0.24		)	11.00
Year Ended October 31, 2010	9.96		0.12			1.45			1.57			(0.14		)	(0.01		)	(0.15		)	11.38

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

219

Aberdeen Diversified Alternatives Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income (Loss) to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	6.70	%	$	21,608	0.52	%	0.36	%	0.88	%	54.26	%
Year Ended October 31, 2013	9.76	%	6,135		0.52	%	1.02	%	1.20	%	47.20	%
Year Ended October 31, 2012	8.14	%	6,418		0.52	%	1.65	%	1.14	%	51.62	%
Year Ended October 31, 2011	(1.52	)%	7,624		0.51	%	1.85	%	1.03	%	26.76	%
Year Ended October 31, 2010	15.73	%	7,919		0.51	%	1.21	%	1.02	%	60.00	%
Class C Shares
Year Ended October 31, 2014	5.91	%	15,565		1.25	%	(0.36	)%	1.61	%	54.26	%
Year Ended October 31, 2013	8.91	%	12,467		1.25	%	0.26	%	1.93	%	47.20	%
Year Ended October 31, 2012	7.39	%	13,368		1.25	%	0.93	%	1.87	%	51.62	%
Year Ended October 31, 2011	(2.14	)%	16,828		1.25	%	1.27	%	1.77	%	26.76	%
Year Ended October 31, 2010	14.84	%	23,495		1.25	%	0.42	%	1.76	%	60.00	%
Class R Shares
Year Ended October 31, 2014	6.37	%(g)	348		0.83	%	0.14	%	1.19	%	54.26	%
Year Ended October 31, 2013	9.32	%(g)	371		0.88	%	0.51	%	1.56	%	47.20	%
Year Ended October 31, 2012	7.85	%(g)	277		0.91	%	1.22	%	1.53	%	51.62	%
Year Ended October 31, 2011	(1.77	)%	254		0.79	%	1.80	%	1.32	%	26.76	%
Year Ended October 31, 2010	15.43	%	400		0.75	%	0.91	%	1.26	%	60.00	%
Institutional Service Class Shares
Year Ended October 31, 2014	7.02	%	12		0.25	%	0.65	%	0.61	%	54.26	%
Year Ended October 31, 2013	10.03	%	11		0.25	%	1.22	%	0.93	%	47.20	%
Period from September 24, 2012 through October 31, 2012(h)(i)	(0.68	)%	10		0.25	%	0.56	%	0.87	%	51.62	%
Period from November 1, 2008 through April 22, 2009(h)(j)	(7.67	)%	1		0.25	%	0.17	%	1.39	%	7.39	%
Institutional Class Shares
Year Ended October 31, 2014	6.94	%	66,073		0.25	%	0.58	%	0.61	%	54.26	%
Year Ended October 31, 2013	10.03	%	3,261		0.25	%	1.19	%	0.93	%	47.20	%
Year Ended October 31, 2012	8.54	%(g)	2,970		0.25	%	1.95	%	0.87	%	51.62	%
Year Ended October 31, 2011	(1.17	)%	3,032		0.25	%	2.15	%	0.77	%	26.76	%
Year Ended October 31, 2010	15.90	%	3,200		0.25	%	1.13	%	0.76	%	60.00	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(i) For the period from September 24, 2012 (commencement of operations) through October 31, 2012.

(j) See Note 5 for Financial Highlights information prior to year ended October 31, 2009.

220

Aberdeen Asia Bond Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	10.43	$	0.35	$	(0.12	)	$	0.23		$	(0.14	)	$	(0.33	)	$	(0.47	)	$	—	$	10.19
Year Ended October 31, 2013	11.26		0.34		(0.85		)	(0.51		)	(0.25		)	(0.07		)	(0.32		)	—		10.43
Period Ended October 31, 2012(g)	10.92		0.23		0.29			0.52			(0.18		)	—			(0.18		)	—		11.26
Class C Shares
Year Ended October 31, 2014	10.37		0.28		(0.11		)	0.17			(0.11		)	(0.33		)	(0.44		)	—		10.10
Year Ended October 31, 2013	11.24		0.26		(0.86		)	(0.60		)	(0.20		)	(0.07		)	(0.27		)	—		10.37
Period Ended October 31, 2012(g)	10.92		0.17		0.31			0.48			(0.16		)	—			(0.16		)	—		11.24
Class R Shares
Year Ended October 31, 2014	10.42		0.33		(0.12		)	0.21			(0.14		)	(0.33		)	(0.47		)	—		10.16
Year Ended October 31, 2013	11.27		0.31		(0.86		)	(0.55		)	(0.23		)	(0.07		)	(0.30		)	—		10.42
Period Ended October 31, 2012(g)	10.92		0.22		0.29			0.51			(0.16		)	—			(0.16		)	—		11.27
Institutional Service Class Shares
Year Ended October 31, 2014	10.43		0.35		(0.10		)	0.25			(0.15		)	(0.33		)	(0.48		)	—		10.20
Year Ended October 31, 2013	11.27		0.34		(0.86		)	(0.52		)	(0.25		)	(0.07		)	(0.32		)	—		10.43
Year Ended October 31, 2012	10.99		0.35		0.38			0.73			(0.45		)	—			(0.45		)	—		11.27
Year Ended October 31, 2011	11.44		0.39		0.03			0.42			(0.87		)	—			(0.87		)	—		10.99
Period Ended October 31, 2010(i)	10.36		0.37		0.86			1.23			(0.15		)	—			(0.15		)	—		11.44
Institutional Class Shares
Year Ended October 31, 2014	10.45		0.38		(0.12		)	0.26			(0.16		)	(0.33		)	(0.49		)	—		10.22
Year Ended October 31, 2013	11.27		0.36		(0.84		)	(0.48		)	(0.27		)	(0.07		)	(0.34		)	—		10.45
Year Ended October 31, 2012	11.00		0.38		0.36			0.74			(0.47		)	—			(0.47		)	—		11.27
Year Ended October 31, 2011	11.44		0.42		0.03			0.45			(0.89		)	—			(0.89		)	—		11.00
Year Ended October 31, 2010	10.04		0.42		1.13			1.55			(0.15		)	—			(0.15		)	—		11.44

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

221

Aberdeen Asia Bond Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	2.41	%	$	824	0.95	%	3.52	%	1.05	%	57.03	%
Year Ended October 31, 2013	(4.64	)%	1,807		0.95	%	3.18	%	1.03	%	77.93	%
Period Ended October 31, 2012(g)	4.87	%	1,275		0.92	%	3.14	%	0.99	%	62.96	%
Class C Shares
Year Ended October 31, 2014	1.76	%(h)	598		1.70	%	2.77	%	1.80	%	57.03	%
Year Ended October 31, 2013	(5.46	)%(h)	637		1.70	%	2.39	%	1.78	%	77.93	%
Period Ended October 31, 2012(g)	4.44	%	393		1.67	%	2.31	%	1.74	%	62.96	%
Class R Shares
Year Ended October 31, 2014	2.14	%	10		1.20	%	3.25	%	1.31	%	57.03	%
Year Ended October 31, 2013	(5.04	)%	10		1.20	%	2.84	%	1.28	%	77.93	%
Period Ended October 31, 2012(g)	4.76	%	11		1.17	%	2.97	%	1.24	%	62.96	%
Institutional Service Class Shares
Year Ended October 31, 2014	2.54	%(h)	11,377		0.94	%	3.52	%	1.04	%	57.03	%
Year Ended October 31, 2013	(4.74	)%	11,083		0.95	%	3.09	%	1.03	%	77.93	%
Year Ended October 31, 2012	6.93	%	12,449		0.93	%	3.21	%	0.97	%	62.96	%
Year Ended October 31, 2011	3.75	%	9,059		0.91	%	3.57	%	0.92	%	71.15	%
Period Ended October 31, 2010(i)	12.20	%	1,654		0.65	%	4.02	%	0.80	%	42.77	%
Institutional Class Shares
Year Ended October 31, 2014	2.72	%	224,989		0.70	%	3.77	%	0.80	%	57.03	%
Year Ended October 31, 2013	(4.40	)%(h)	232,639		0.70	%	3.27	%	0.78	%	77.93	%
Year Ended October 31, 2012	7.07	%(h)	467,668		0.69	%	3.46	%	0.72	%	62.96	%
Year Ended October 31, 2011	3.97	%	646,246		0.66	%	3.84	%	0.67	%	71.15	%
Year Ended October 31, 2010	15.55	%	536,080		0.65	%	3.88	%	0.71	%	42.77	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from February 27, 2012 (commencement of operations) through October 31, 2012.

(h) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(i) For the period from January 5, 2010 (commencement of operations) through October 31, 2010.

222

Aberdeen Asia-Pacific (ex-Japan) Equity Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	12.01	$	0.14	$	0.15		$	0.29		$	(0.15	)	$	(0.07	)	$	(0.22	)	$	—	$	12.08
Year Ended October 31, 2013	11.73		0.17		0.54			0.71			(0.27		)	(0.16		)	(0.43		)	—		12.01
Period Ended October 31, 2012(g)	11.26		0.01		0.46			0.47			—			—			—			—		11.73
Class C Shares
Year Ended October 31, 2014	12.00		0.05		0.15			0.20			(0.08		)	(0.07		)	(0.15		)	—		12.05
Year Ended October 31, 2013	11.66		0.13		0.50			0.63			(0.13		)	(0.16		)	(0.29		)	—		12.00
Period Ended October 31, 2012(g)	11.26		0.12		0.28			0.40			—			—			—			—		11.66
Class R Shares
Year Ended October 31, 2014	12.02		0.05		0.20			0.25			(0.13		)	(0.07		)	(0.20		)	—		12.07
Year Ended October 31, 2013	11.70		0.18		0.51			0.69			(0.21		)	(0.16		)	(0.37		)	—		12.02
Period Ended October 31, 2012(g)	11.26		0.15		0.29			0.44			—			—			—			—		11.70
Institutional Service Class Shares
Year Ended October 31, 2014	12.03		0.17		0.14			0.31			(0.17		)	(0.07		)	(0.24		)	—		12.10
Year Ended October 31, 2013	11.73		0.16		0.58			0.74			(0.28		)	(0.16		)	(0.44		)	—		12.03
Year Ended October 31, 2012	11.34		0.22		0.96			1.18			(0.23		)	(0.56		)	(0.79		)	—		11.73
Year Ended October 31, 2011	11.81		0.23		(0.60		)	(0.37		)	(0.09		)	(0.01		)	(0.10		)	—		11.34
Period Ended October 31, 2010(h)	10.00		0.21		1.60			1.81			—			—			—			—		11.81
Institutional Class Shares
Year Ended October 31, 2014	12.04		0.16		0.16			0.32			(0.18		)	(0.07		)	(0.25		)	—		12.11
Year Ended October 31, 2013	11.74		0.19		0.56			0.75			(0.29		)	(0.16		)	(0.45		)	—		12.04
Year Ended October 31, 2012	11.34		0.22		0.97			1.19			(0.23		)	(0.56		)	(0.79		)	—		11.74
Year Ended October 31, 2011	11.82		0.24		(0.62		)	(0.38		)	(0.09		)	(0.01		)	(0.10		)	—		11.34
Period Ended October 31, 2010(h)	10.00		0.23		1.59			1.82			—			—			—			—		11.82

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

223

Aberdeen Asia-Pacific (ex-Japan) Equity Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	2.43	%	$	1,173	1.50	%	1.21	%	1.52	%	36.48	%
Year Ended October 31, 2013	6.12	%	1,328		1.50	%	1.43	%	1.51	%	3.33	%
Period Ended October 31, 2012(g)	4.17	%	327		1.45	%	0.19	%	1.46	%	21.73	%
Class C Shares
Year Ended October 31, 2014	1.67	%	288		2.25	%	0.46	%	2.27	%	36.48	%
Year Ended October 31, 2013	5.47	%	146		2.25	%	1.09	%	2.26	%	3.33	%
Period Ended October 31, 2012(g)	3.55	%	10		2.18	%	1.56	%	2.19	%	21.73	%
Class R Shares
Year Ended October 31, 2014	2.06	%	11		1.76	%	0.40	%	1.78	%	36.48	%
Year Ended October 31, 2013	5.97	%	36		1.75	%	1.50	%	1.76	%	3.33	%
Period Ended October 31, 2012(g)	3.91	%	10		1.69	%	2.05	%	1.70	%	21.73	%
Institutional Service Class Shares
Year Ended October 31, 2014	2.59	%	3,950		1.30	%	1.45	%	1.32	%	36.48	%
Year Ended October 31, 2013	6.44	%	3,841		1.28	%	1.35	%	1.29	%	3.33	%
Year Ended October 31, 2012	11.83	%	3,717		1.24	%	2.00	%	1.25	%	21.73	%
Year Ended October 31, 2011	(3.20	)%	2,584		1.23	%	1.95	%	1.23	%	25.31	%
Period Ended October 31, 2010(h)	18.10	%	2,989		1.23	%	1.94	%	1.76	%	1.15	%
Institutional Class Shares
Year Ended October 31, 2014	2.64	%	1,069,989		1.25	%	1.32	%	1.27	%	36.48	%
Year Ended October 31, 2013	6.48	%	1,004,859		1.25	%	1.59	%	1.26	%	3.33	%
Year Ended October 31, 2012	11.92	%	617,471		1.22	%	2.01	%	1.23	%	21.73	%
Year Ended October 31, 2011	(3.28	)%	434,567		1.23	%	2.04	%	1.23	%	25.31	%
Period Ended October 31, 2010(h)	18.20	%	351,085		1.24	%	2.23	%	1.30	%	1.15	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from February 27, 2012 (commencement of operations) through October 31, 2012.

(h) For the period from November 16, 2009 (commencement of operations) through October 31, 2010.

224

Aberdeen Asia-Pacific Smaller Companies Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	11.88	$	0.11	$	(0.04	)	$	0.07		$	(0.17	)	$	(1.65	)	$	(1.82	)	$	—	$	10.13
Year Ended October 31, 2013	11.01		0.24		1.00			1.24			(0.28		)	(0.09		)	(0.37		)	—		11.88
Year Ended October 31, 2012	8.95		0.15		1.93			2.08			—			(0.02		)	(0.02		)	—		11.01
Period Ended October 31, 2011(g)	10.00		0.01		(1.06		)	(1.05		)	—			—			—			—		8.95
Class C Shares
Year Ended October 31, 2014	11.76		0.05		(0.05		)	—			(0.10		)	(1.65		)	(1.75		)	—		10.01
Year Ended October 31, 2013	10.90		0.11		1.03			1.14			(0.19		)	(0.09		)	(0.28		)	—		11.76
Year Ended October 31, 2012	8.93		0.06		1.93			1.99			—			(0.02		)	(0.02		)	—		10.90
Period Ended October 31, 2011(g)	10.00		0.01		(1.08		)	(1.07		)	—			—			—			—		8.93
Class R Shares
Year Ended October 31, 2014	11.84		0.08		(0.05		)	0.03			(0.08		)	(1.65		)	(1.73		)	—		10.14
Year Ended October 31, 2013	10.98		0.05		1.09			1.14			(0.19		)	(0.09		)	(0.28		)	—		11.84
Year Ended October 31, 2012	8.94		0.05		2.01			2.06			—			(0.02		)	(0.02		)	—		10.98
Period Ended October 31, 2011(g)	10.00		0.02		(1.08		)	(1.06		)	—			—			—			—		8.94
Institutional Service Class Shares
Year Ended October 31, 2014	12.04		0.14		(0.04		)	0.10			(0.19		)	(1.65		)	(1.84		)	—		10.30
Year Ended October 31, 2013	11.05		0.24		1.16			1.40			(0.32		)	(0.09		)	(0.41		)	—		12.04
Year Ended October 31, 2012	8.96		0.16		1.96			2.12			(0.01		)	(0.02		)	(0.03		)	—		11.05
Period Ended October 31, 2011(g)	10.00		0.04		(1.08		)	(1.04		)	—			—			—			—		8.96
Institutional Class Shares
Year Ended October 31, 2014	11.91		0.13		(0.03		)	0.10			(0.19		)	(1.65		)	(1.84		)	—		10.17
Year Ended October 31, 2013	11.05		0.23		1.04			1.27			(0.32		)	(0.09		)	(0.41		)	—		11.91
Year Ended October 31, 2012	8.96		0.18		1.94			2.12			(0.01		)	(0.02		)	(0.03		)	—		11.05
Period Ended October 31, 2011(g)	10.00		0.04		(1.08		)	(1.04		)	—			—			—			—		8.96

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

225

Aberdeen Asia-Pacific Smaller Companies Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	1.78	%	$	1,341	1.79	%	1.12	%	2.69	%	51.86	%
Year Ended October 31, 2013	11.43	%	1,389		1.77	%	2.08	%	2.41	%	58.61	%
Year Ended October 31, 2012	23.41	%	173		1.95	%	1.49	%	2.83	%	9.52	%
Period Ended October 31, 2011(g)	(10.50	)%	123		1.95	%	0.43	%	19.61	%	1.68	%
Class C Shares
Year Ended October 31, 2014	1.16	%	61		2.50	%	0.50	%	3.39	%	51.86	%
Year Ended October 31, 2013	10.58	%	61		2.54	%	0.96	%	3.16	%	58.61	%
Year Ended October 31, 2012	22.38	%(h)	11		2.70	%	0.65	%	3.58	%	9.52	%
Period Ended October 31, 2011(g)	(10.70	)%	9		2.70	%	0.19	%	20.48	%	1.68	%
Class R Shares
Year Ended October 31, 2014	1.41	%	13		2.07	%	0.81	%	2.96	%	51.86	%
Year Ended October 31, 2013	10.48	%	36		2.28	%	0.45	%	2.86	%	58.61	%
Year Ended October 31, 2012	23.16	%	67		2.39	%	0.48	%	3.26	%	9.52	%
Period Ended October 31, 2011(g)	(10.60	)%	9		2.20	%	0.69	%	19.98	%	1.68	%
Institutional Service Class Shares
Year Ended October 31, 2014	2.09	%	55		1.50	%	1.38	%	2.39	%	51.86	%
Year Ended October 31, 2013	12.85	%	33		1.54	%	2.00	%	2.16	%	58.61	%
Year Ended October 31, 2012	23.77	%(h)	13		1.70	%	1.65	%	2.58	%	9.52	%
Period Ended October 31, 2011(g)	(10.40	)%	9		1.70	%	1.19	%	19.48	%	1.68	%
Institutional Class Shares
Year Ended October 31, 2014	2.12	%	29,502		1.50	%	1.23	%	2.39	%	51.86	%
Year Ended October 31, 2013	11.63	%	25,960		1.56	%	1.92	%	2.16	%	58.61	%
Year Ended October 31, 2012	23.77	%	29,292		1.70	%	1.78	%	2.58	%	9.52	%
Period Ended October 31, 2011(g)	(10.40	)%	1,434		1.70	%	1.19	%	19.48	%	1.68	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from June 28, 2011 (commencement of operations) through October 31, 2011.

(h) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

226

Aberdeen Emerging Markets Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	15.30	$	0.16	$	(0.37	)	$	(0.21	)	$	(0.21	)	$	—		$	(0.21	)	$	—	$	14.88
Year Ended October 31, 2013	15.00		0.17		0.36			0.53			(0.23		)	—			(0.23		)	—		15.30
Period Ended October 31, 2012(g)	13.07		0.09		1.84			1.93			—			—			—			—		15.00
Class C Shares
Year Ended October 31, 2014	15.23		0.05		(0.36		)	(0.31		)	(0.13		)	—			(0.13		)	—		14.79
Year Ended October 31, 2013	14.95		0.09		0.34			0.43			(0.15		)	—			(0.15		)	—		15.23
Period Ended October 31, 2012(g)	13.07		0.05		1.83			1.88			—			—			—			—		14.95
Class R Shares
Year Ended October 31, 2014	15.27		0.11		(0.38		)	(0.27		)	(0.17		)	—			(0.17		)	—		14.83
Year Ended October 31, 2013	14.98		0.14		0.35			0.49			(0.20		)	—			(0.20		)	—		15.27
Period Ended October 31, 2012(g)	13.07		0.08		1.83			1.91			—			—			—			—		14.98
Institutional Service Class Shares
Year Ended October 31, 2014	15.30		0.13		(0.33		)	(0.20		)	(0.21		)	—			(0.21		)	—		14.89
Year Ended October 31, 2013	14.99		0.19		0.35			0.54			(0.23		)	—			(0.23		)	—		15.30
Year Ended October 31, 2012	13.68		0.18		1.40			1.58			(0.15		)	(0.12		)	(0.27		)	—		14.99
Year Ended October 31, 2011	14.29		0.22		(0.70		)	(0.48		)	(0.13		)	—			(0.13		)	—		13.68
Period Ended October 31, 2010(h)	11.65		0.08		2.78			2.86			(0.22		)	—			(0.22		)	—		14.29
Institutional Class Shares
Year Ended October 31, 2014	15.31		0.20		(0.35		)	(0.15		)	(0.26		)	—			(0.26		)	—		14.90
Year Ended October 31, 2013	15.02		0.22		0.36			0.58			(0.29		)	—			(0.29		)	—		15.31
Year Ended October 31, 2012	13.70		0.22		1.40			1.62			(0.18		)	(0.12		)	(0.30		)	—		15.02
Year Ended October 31, 2011	14.28		0.26		(0.71		)	(0.45		)	(0.13		)	—			(0.13		)	—		13.70
Year Ended October 31, 2010	10.92		0.21		3.37			3.58			(0.22		)	—			(0.22		)	—		14.28

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

227

Aberdeen Emerging Markets Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	(1.37	)%	$	341,483	1.41	%	1.05	%	1.43	%	5.00	%
Year Ended October 31, 2013	3.50	%	417,896		1.43	%	1.13	%	1.43	%	2.79	%
Period Ended October 31, 2012(g)	14.77	%	274,047		1.40	%	1.46	%	1.40	%	1.14	%
Class C Shares
Year Ended October 31, 2014	(2.04	)%	45,077		2.10	%	0.36	%	2.12	%	5.00	%
Year Ended October 31, 2013	2.85	%	49,826		2.10	%	0.60	%	2.10	%	2.79	%
Period Ended October 31, 2012(g)	14.38	%	19,328		2.09	%	0.77	%	2.09	%	1.14	%
Class R Shares
Year Ended October 31, 2014	(1.76	)%	31,720		1.79	%	0.76	%	1.81	%	5.00	%
Year Ended October 31, 2013	3.26	%	22,968		1.74	%	0.90	%	1.74	%	2.79	%
Period Ended October 31, 2012(g)	14.61	%	8,811		1.64	%	1.19	%	1.64	%	1.14	%
Institutional Service Class Shares
Year Ended October 31, 2014	(1.29	)%	234,846		1.34	%	0.90	%	1.36	%	5.00	%
Year Ended October 31, 2013	3.61	%	443,469		1.35	%	1.22	%	1.35	%	2.79	%
Year Ended October 31, 2012	11.94	%	298,472		1.29	%	1.31	%	1.29	%	1.14	%
Year Ended October 31, 2011	(3.41	)%	248,725		1.21	%	1.55	%	1.29	%	1.51	%
Period Ended October 31, 2010(h)	25.04	%	145,837		0.95	%	0.65	%	1.04	%	1.03	%
Institutional Class Shares
Year Ended October 31, 2014	(1.01	)%	9,389,216		1.10	%	1.35	%	1.12	%	5.00	%
Year Ended October 31, 2013	3.86	%	11,114,896		1.10	%	1.43	%	1.10	%	2.79	%
Year Ended October 31, 2012	12.25	%	7,651,960		1.05	%	1.59	%	1.05	%	1.14	%
Year Ended October 31, 2011	(3.14	)%	4,562,269		0.95	%	1.87	%	1.03	%	1.51	%
Year Ended October 31, 2010	33.20	%	2,742,864		0.95	%	1.70	%	1.05	%	1.03	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from May 21, 2012 (commencement of operations) through October 31, 2012.

(h) For the period from November 24, 2009 (commencement of operations) through October 31, 2010.

228

Aberdeen Emerging Markets Debt Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	9.54	$	0.42	$	0.11		$	0.53		$	(0.34	)	$	(0.34	)	$	9.73
Year Ended October 31, 2013	10.00		0.35		(0.59		)	(0.24		)	(0.22		)	(0.22		)	9.54
Class C Shares
Year Ended October 31, 2014	9.53		0.34		0.11			0.45			(0.26		)	(0.26		)	9.72
Year Ended October 31, 2013	10.00		0.27		(0.59		)	(0.32		)	(0.15		)	(0.15		)	9.53
Class R Shares
Year Ended October 31, 2014	9.54		0.39		0.11			0.50			(0.31		)	(0.31		)	9.73
Year Ended October 31, 2013	10.00		0.32		(0.58		)	(0.26		)	(0.20		)	(0.20		)	9.54
Institutional Service Class Shares
Year Ended October 31, 2014	9.55		0.44		0.11			0.55			(0.36		)	(0.36		)	9.74
Year Ended October 31, 2013	10.00		0.37		(0.58		)	(0.21		)	(0.24		)	(0.24		)	9.55
Institutional Class Shares
Year Ended October 31, 2014	9.54		0.47		0.08			0.55			(0.36		)	(0.36		)	9.73
Year Ended October 31, 2013	10.00		0.37		(0.59		)	(0.22		)	(0.24		)	(0.24		)	9.54

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

229

Aberdeen Emerging Markets Debt Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		Portfolio Turnover (d)
Class A Shares
Year Ended October 31, 2014	5.64	%	$	10	1.15	%	4.35	%	1.85	%	60.31	%
Year Ended October 31, 2013	(2.43	)%	10		1.15	%	3.58	%	2.57	%	55.26	%
Class C Shares
Year Ended October 31, 2014	4.83	%(e)	10		1.89	%	3.60	%	2.60	%	60.31	%
Year Ended October 31, 2013	(3.20	)%(e)	10		1.90	%	2.83	%	3.32	%	55.26	%
Class R Shares
Year Ended October 31, 2014	5.37	%	10		1.40	%	4.10	%	2.10	%	60.31	%
Year Ended October 31, 2013	(2.66	)%	10		1.40	%	3.34	%	2.82	%	55.26	%
Institutional Service Class Shares
Year Ended October 31, 2014	5.80	%(e)	10		0.90	%	4.60	%	1.60	%	60.31	%
Year Ended October 31, 2013	(2.11	)%(e)	10		0.90	%	3.83	%	2.32	%	55.26	%
Institutional Class Shares
Year Ended October 31, 2014	5.91	%	31,173		0.90	%	4.79	%	1.60	%	60.31	%
Year Ended October 31, 2013	(2.21	)%	9,742		0.90	%	3.81	%	2.32	%	55.26	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(e) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

230

Aberdeen Emerging Markets Debt Local Currency Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Tax Return of Capital			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	9.15	$	0.50	$	(0.82	)	$	(0.32	)	$	(0.10	)	$	—		$	—		$	(0.10	)	$	8.73
Year Ended October 31, 2013	9.65		0.44		(0.79		)	(0.35		)	(0.15		)	—			—			(0.15		)	9.15
Year Ended October 31, 2012	9.30		0.49		0.15			0.64			(0.05		)	(0.10		)	(0.14		)	(0.29		)	9.65
Period Ended October 31, 2011(g)	10.00		0.21		(0.77		)	(0.56		)	(0.07		)	(0.03		)	(0.04		)	(0.14		)	9.30
Class C Shares
Year Ended October 31, 2014	9.11		0.44		(0.83		)	(0.39		)	(0.09		)	—			—			(0.09		)	8.63
Year Ended October 31, 2013	9.63		0.37		(0.78		)	(0.41		)	(0.11		)	—			—			(0.11		)	9.11
Year Ended October 31, 2012	9.28		0.42		0.14			0.56			(0.01		)	(0.10		)	(0.10		)	(0.21		)	9.63
Period Ended October 31, 2011(g)	10.00		0.18		(0.77		)	(0.59		)	(0.06		)	(0.03		)	(0.04		)	(0.13		)	9.28
Class R Shares
Year Ended October 31, 2014	9.13		0.47		(0.84		)	(0.37		)	(0.09		)	—			—			(0.09		)	8.67
Year Ended October 31, 2013	9.64		0.40		(0.78		)	(0.38		)	(0.13		)	—			—			(0.13		)	9.13
Year Ended October 31, 2012	9.30		0.44		0.18			0.62			(0.04		)	(0.10		)	(0.14		)	(0.28		)	9.64
Period Ended October 31, 2011(g)	10.00		0.20		(0.77		)	(0.57		)	(0.06		)	(0.03		)	(0.04		)	(0.13		)	9.30
Institutional Service Class Shares
Year Ended October 31, 2014	9.17		0.53		(0.84		)	(0.31		)	(0.11		)	—			—			(0.11		)	8.75
Year Ended October 31, 2013	9.65		0.47		(0.79		)	(0.32		)	(0.16		)	—			—			(0.16		)	9.17
Year Ended October 31, 2012	9.30		0.51		0.15			0.66			(0.06		)	(0.10		)	(0.15		)	(0.31		)	9.65
Period Ended October 31, 2011(g)	10.00		0.22		(0.77		)	(0.55		)	(0.08		)	(0.03		)	(0.04		)	(0.15		)	9.30
Institutional Class Shares
Year Ended October 31, 2014	9.17		0.53		(0.84		)	(0.31		)	(0.11		)	—			—			(0.11		)	8.75
Year Ended October 31, 2013	9.65		0.47		(0.79		)	(0.32		)	(0.16		)	—			—			(0.16		)	9.17
Year Ended October 31, 2012	9.31		0.51		0.14			0.65			(0.06		)	(0.10		)	(0.15		)	(0.31		)	9.65
Period Ended October 31, 2011(g)	10.00		0.23		(0.77		)	(0.54		)	(0.08		)	(0.03		)	(0.04		)	(0.15		)	9.31

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

231

Aberdeen Emerging Markets Debt Local Currency Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	(3.53	)%	$	148	1.19	%	5.70	%	1.65	%	46.26	%
Year Ended October 31, 2013	(3.77	)%	678		1.22	%	4.61	%	1.63	%	86.05	%
Year Ended October 31, 2012	7.05	%	528		1.17	%	5.25	%	2.10	%	74.49	%
Period Ended October 31, 2011(g)	(5.60	)%	76		1.15	%	4.50	%	2.07	%	34.36	%
Class C Shares
Year Ended October 31, 2014	(4.28	)%	204		1.90	%	5.03	%	2.37	%	46.26	%
Year Ended October 31, 2013	(4.38	)%	331		1.90	%	3.88	%	2.31	%	86.05	%
Year Ended October 31, 2012	6.13	%	274		1.90	%	4.49	%	2.83	%	74.49	%
Period Ended October 31, 2011(g)	(5.94	)%	344		1.90	%	3.80	%	2.80	%	34.36	%
Class R Shares
Year Ended October 31, 2014	(4.04	)%	2,443		1.65	%	5.34	%	2.11	%	46.26	%
Year Ended October 31, 2013	(4.06	)%	2,521		1.63	%	4.26	%	2.04	%	86.05	%
Year Ended October 31, 2012	6.79	%	1,292		1.65	%	4.67	%	2.58	%	74.49	%
Period Ended October 31, 2011(g)	(5.73	)%	9		1.40	%	4.11	%	2.33	%	34.36	%
Institutional Service Class Shares
Year Ended October 31, 2014	(3.36	)%	9		0.90	%	6.00	%	1.37	%	46.26	%
Year Ended October 31, 2013	(3.39	)%	10		0.90	%	4.87	%	1.31	%	86.05	%
Year Ended October 31, 2012	7.26	%	10		0.90	%	5.49	%	1.83	%	74.49	%
Period Ended October 31, 2011(g)	(5.54	)%	9		0.90	%	4.60	%	1.83	%	34.36	%
Institutional Class Shares
Year Ended October 31, 2014	(3.36	)%(h)	28,229		0.90	%	6.01	%	1.37	%	46.26	%
Year Ended October 31, 2013	(3.39	)%(h)	48,763		0.90	%	4.91	%	1.31	%	86.05	%
Year Ended October 31, 2012	7.15	%(h)	28,411		0.90	%	5.49	%	1.83	%	74.49	%
Period Ended October 31, 2011(g)	(5.54	)%	30,325		0.90	%	4.67	%	1.82	%	34.36	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from May 2, 2011 (commencement of operations) through October 31, 2011.

(h) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

232

Aberdeen Global Fixed Income Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	10.37	$	0.24	$	(0.23	)	$	0.01		$	(0.26	)	$	(0.26	)	$	—	$	10.12
Year Ended October 31, 2013	10.61		0.14		(0.38		)	(0.24		)	—			—			—		10.37
Year Ended October 31, 2012	10.50		0.17		0.19			0.36			(0.25		)	(0.25		)	—		10.61
Year Ended October 31, 2011	10.89		0.22		(0.10		)	0.12			(0.51		)	(0.51		)	—		10.50
Year Ended October 31, 2010	10.42		0.23		0.53			0.76			(0.29		)	(0.29		)	—		10.89
Class C Shares
Year Ended October 31, 2014	10.23		0.16		(0.23		)	(0.07		)	(0.09		)	(0.09		)	—		10.07
Year Ended October 31, 2013	10.55		0.06		(0.38		)	(0.32		)	—			—			—		10.23
Year Ended October 31, 2012	10.44		0.09		0.21			0.30			(0.19		)	(0.19		)	—		10.55
Year Ended October 31, 2011	10.84		0.14		(0.10		)	0.04			(0.44		)	(0.44		)	—		10.44
Year Ended October 31, 2010	10.38		0.15		0.54			0.69			(0.23		)	(0.23		)	—		10.84
Institutional Service Class Shares
Year Ended October 31, 2014	10.39		0.25		(0.24		)	0.01			(0.28		)	(0.28		)	—		10.12
Year Ended October 31, 2013	10.62		0.15		(0.38		)	(0.23		)	—			—			—		10.39
Year Ended October 31, 2012	10.51		0.18		0.19			0.37			(0.26		)	(0.26		)	—		10.62
Year Ended October 31, 2011	10.90		0.24		(0.09		)	0.15			(0.54		)	(0.54		)	—		10.51
Year Ended October 31, 2010	10.44		0.26		0.52			0.78			(0.32		)	(0.32		)	—		10.90
Institutional Class Shares
Year Ended October 31, 2014	10.43		0.27		(0.24		)	0.03			(0.31		)	(0.31		)	—		10.15
Year Ended October 31, 2013	10.64		0.17		(0.38		)	(0.21		)	—			—			—		10.43
Year Ended October 31, 2012	10.52		0.17		0.23			0.40			(0.28		)	(0.28		)	—		10.64
Year Ended October 31, 2011	10.91		0.25		(0.10		)	0.15			(0.54		)	(0.54		)	—		10.52
Year Ended October 31, 2010	10.45		0.24		0.53			0.77			(0.31		)	(0.31		)	—		10.91

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

233

Aberdeen Global Fixed Income Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		Portfolio Turnover (d)
Class A Shares
Year Ended October 31, 2014	0.05	%(e)	$	1,183	1.10	%	2.27	%	1.71	%	183.14	%
Year Ended October 31, 2013	(2.26	)%	1,888		1.16	%	1.32	%	1.64	%	208.61	%
Year Ended October 31, 2012	3.56	%	2,781		1.21	%	1.61	%	1.51	%	135.98	%
Year Ended October 31, 2011	1.34	%	3,172		1.22	%	2.13	%	1.38	%	199.69	%
Year Ended October 31, 2010	7.53	%	4,053		1.20	%	2.22	%	1.69	%	256.30	%
Class C Shares
Year Ended October 31, 2014	(0.70	)%	378		1.85	%	1.54	%	2.46	%	183.14	%
Year Ended October 31, 2013	(3.03	)%	518		1.89	%	0.59	%	2.37	%	208.61	%
Year Ended October 31, 2012	2.90	%	967		1.95	%	0.86	%	2.25	%	135.98	%
Year Ended October 31, 2011	0.51	%	1,060		1.95	%	1.38	%	2.11	%	199.69	%
Year Ended October 31, 2010	6.76	%	1,237		1.95	%	1.44	%	2.45	%	256.30	%
Institutional Service Class Shares
Year Ended October 31, 2014	0.07	%	16,724		1.01	%	2.39	%	1.62	%	183.14	%
Year Ended October 31, 2013	(2.17	)%	19,547		1.05	%	1.44	%	1.53	%	208.61	%
Year Ended October 31, 2012	3.64	%	25,168		1.13	%	1.69	%	1.42	%	135.98	%
Year Ended October 31, 2011	1.58	%	31,156		0.99	%	2.33	%	1.31	%	199.69	%
Year Ended October 31, 2010	7.66	%	36,649		0.95	%	2.47	%	1.44	%	256.30	%
Institutional Class Shares
Year Ended October 31, 2014	0.25	%	2,717		0.85	%	2.63	%	1.46	%	183.14	%
Year Ended October 31, 2013	(1.97	)%	1,556		0.87	%	1.65	%	1.37	%	208.61	%
Year Ended October 31, 2012	3.93	%	850		0.95	%	1.68	%	1.25	%	135.98	%
Year Ended October 31, 2011	1.60	%	38		0.95	%	2.35	%	1.11	%	199.69	%
Year Ended October 31, 2010	7.64	%	26		0.95	%	2.29	%	1.47	%	256.30	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(e) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

234

Aberdeen Global Small Cap Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities		Net Investment Income			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	28.71	$	0.19		$	1.32		$	1.51	$	(0.27	)	$	(0.31	)	$	(0.58	)	$	—	$	29.64
Year Ended October 31, 2013	25.95		0.17			2.65			2.82		(0.07		)	—			(0.07		)	0.01		28.71
Year Ended October 31, 2012	21.68		0.14			4.48			4.62		(0.35		)	—			(0.35		)	—		25.95
Year Ended October 31, 2011	21.67		0.31			(0.14		)	0.17		(0.16		)	—			(0.16		)	—		21.68
Year Ended October 31, 2010	15.73		0.16			5.78			5.94		—			—			—			—		21.67
Class C Shares
Year Ended October 31, 2014	26.97		(0.01		)	1.24			1.23		(0.08		)	(0.31		)	(0.39		)	—		27.81
Year Ended October 31, 2013	24.50		0.02			2.46			2.48		(0.02		)	—			(0.02		)	0.01		26.97
Year Ended October 31, 2012	20.46		(0.04		)	4.27			4.23		(0.19		)	—			(0.19		)	—		24.50
Year Ended October 31, 2011	20.47		0.17			(0.16		)	0.01		(0.02		)	—			(0.02		)	—		20.46
Year Ended October 31, 2010	14.97		0.02			5.48			5.50		—			—			—			—		20.47
Class R Shares
Year Ended October 31, 2014	27.68		0.09			1.30			1.39		(0.19		)	(0.31		)	(0.50		)	—		28.57
Year Ended October 31, 2013	25.06		0.15			2.51			2.66		(0.05		)	—			(0.05		)	0.01		27.68
Year Ended October 31, 2012	20.95		0.06			4.34			4.40		(0.29		)	—			(0.29		)	—		25.06
Year Ended October 31, 2011	20.98		0.24			(0.13		)	0.11		(0.14		)	—			(0.14		)	—		20.95
Year Ended October 31, 2010	15.26		0.09			5.63			5.72		—			—			—			—		20.98
Institutional Service Class Shares
Year Ended October 31, 2014	28.72		0.23			1.31			1.54		(0.31		)	(0.31		)	(0.62		)	—		29.64
Year Ended October 31, 2013	25.95		0.31			2.56			2.87		(0.11		)	—			(0.11		)	0.01		28.72
Year Ended October 31, 2012	21.74		0.16			4.47			4.63		(0.42		)	—			(0.42		)	—		25.95
Year Ended October 31, 2011	21.60		0.24			0.11			0.35		(0.21		)	—			(0.21		)	—		21.74
Year Ended October 31, 2010	15.74		0.20			5.66			5.86		—			—			—			—		21.60
Institutional Class Shares
Year Ended October 31, 2014	28.74		0.29			1.32			1.61		(0.38		)	(0.31		)	(0.69		)	—		29.66
Year Ended October 31, 2013	25.98		0.25			2.66			2.91		(0.16		)	—			(0.16		)	0.01		28.74
Year Ended October 31, 2012	21.72		0.20			4.48			4.68		(0.42		)	—			(0.42		)	—		25.98
Year Ended October 31, 2011	21.69		0.38			(0.14		)	0.24		(0.21		)	—			(0.21		)	—		21.72
Year Ended October 31, 2010	15.75		0.21			5.73			5.94		—			—			—			—		21.69

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

Amounts listed as “–” are $0 or round to $0.

235

Aberdeen Global Small Cap Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets		Ratio of Net Investment Income (Loss) to Average Net Assets		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (c)		Portfolio Turnover (d)
Class A Shares
Year Ended October 31, 2014	5.32	%	$	64,189	1.60	%	0.65	%	1.73	%	12.93	%
Year Ended October 31, 2013	10.91	%	80,191		1.61	%	0.63	%	1.76	%	34.85	%
Year Ended October 31, 2012	21.77	%	60,672		1.59	%	0.62	%	2.04	%	22.21	%
Year Ended October 31, 2011	0.76	%	50,797		1.56	%	1.38	%	2.04	%	21.77	%
Year Ended October 31, 2010	37.76	%	55,746		1.55	%	0.88	%	2.35	%	36.05	%
Class C Shares
Year Ended October 31, 2014	4.60	%	1,646		2.30	%	(0.03	)%	2.43	%	12.93	%
Year Ended October 31, 2013	10.17	%	2,208		2.30	%	0.08	%	2.45	%	34.85	%
Year Ended October 31, 2012	20.92	%	521		2.30	%	(0.17	)%	2.75	%	22.21	%
Year Ended October 31, 2011	0.04	%	240		2.30	%	0.79	%	2.74	%	21.77	%
Year Ended October 31, 2010	36.74	%	171		2.30	%	0.13	%	3.09	%	36.05	%
Class R Shares
Year Ended October 31, 2014	5.07	%	866		1.86	%	0.32	%	1.99	%	12.93	%
Year Ended October 31, 2013	10.67	%	1,749		1.82	%	0.55	%	1.97	%	34.85	%
Year Ended October 31, 2012	21.44	%	499		1.86	%	0.25	%	2.31	%	22.21	%
Year Ended October 31, 2011	0.53	%	184		1.85	%	1.09	%	2.34	%	21.77	%
Year Ended October 31, 2010	37.48	%	153		1.80	%	0.50	%	2.60	%	36.05	%
Institutional Service Class Shares
Year Ended October 31, 2014	5.41	%	2,201		1.54	%	0.78	%	1.67	%	12.93	%
Year Ended October 31, 2013	11.11	%	1,803		1.47	%	1.10	%	1.62	%	34.85	%
Year Ended October 31, 2012	21.88	%	45		1.54	%	0.69	%	1.99	%	22.21	%
Year Ended October 31, 2011	0.98	%	34		1.30	%	1.11	%	1.80	%	21.77	%
Year Ended October 31, 2010	38.06	%	1		1.30	%	1.13	%	2.02	%	36.05	%
Institutional Class Shares
Year Ended October 31, 2014	5.67	%	189,864		1.30	%	0.99	%	1.43	%	12.93	%
Year Ended October 31, 2013	11.29	%	212,642		1.30	%	0.91	%	1.45	%	34.85	%
Year Ended October 31, 2012	22.13	%	24,276		1.30	%	0.87	%	1.75	%	22.21	%
Year Ended October 31, 2011	1.03	%	3,210		1.30	%	1.70	%	1.74	%	21.77	%
Year Ended October 31, 2010	37.78	%	25		1.30	%	1.09	%	2.15	%	36.05	%

(c) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(d) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

236

Aberdeen Tax-Free Income Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	10.24	$	0.32	$	0.29		$	0.61		$	(0.32	)	$	(0.15	)	$	(0.47	)	$	10.38
Year Ended October 31, 2013	10.86		0.32		(0.53		)	(0.21		)	(0.32		)	(0.09		)	(0.41		)	10.24
Year Ended October 31, 2012	10.32		0.34		0.55			0.89			(0.34		)	(0.01		)	(0.35		)	10.86
Year Ended October 31, 2011	10.37		0.35		(0.03		)	0.32			(0.35		)	(0.02		)	(0.37		)	10.32
Year Ended October 31, 2010	10.06		0.39		0.27			0.66			(0.35		)	—			(0.35		)	10.37
Class C Shares
Year Ended October 31, 2014	10.23		0.24		0.29			0.53			(0.24		)	(0.15		)	(0.39		)	10.37
Year Ended October 31, 2013	10.85		0.25		(0.54		)	(0.29		)	(0.24		)	(0.09		)	(0.33		)	10.23
Year Ended October 31, 2012	10.31		0.26		0.55			0.81			(0.26		)	(0.01		)	(0.27		)	10.85
Year Ended October 31, 2011	10.34		0.27		(0.01		)	0.26			(0.27		)	(0.02		)	(0.29		)	10.31
Year Ended October 31, 2010	10.04		0.30		0.27			0.57			(0.27		)	—			(0.27		)	10.34
Class R Shares
Year Ended October 31, 2014	10.25		0.30		0.30			0.60			(0.30		)	(0.15		)	(0.45		)	10.40
Period Ended October 31, 2013(g)	10.72		0.20		(0.47		)	(0.27		)	(0.20		)	—			(0.20		)	10.25
Institutional Service Class Shares
Year Ended October 31, 2014	10.25		0.35		0.30			0.65			(0.35		)	(0.15		)	(0.50		)	10.40
Period Ended October 31, 2013(g)	10.72		0.23		(0.47		)	(0.24		)	(0.23		)	—			(0.23		)	10.25
Institutional Class Shares(h)
Year Ended October 31, 2014	10.25		0.35		0.30			0.65			(0.35		)	(0.15		)	(0.50		)	10.40
Year Ended October 31, 2013	10.87		0.35		(0.53		)	(0.18		)	(0.35		)	(0.09		)	(0.44		)	10.25
Year Ended October 31, 2012	10.33		0.37		0.55			0.92			(0.37		)	(0.01		)	(0.38		)	10.87
Year Ended October 31, 2011	10.37		0.37		(0.02		)	0.35			(0.37		)	(0.02		)	(0.39		)	10.33
Year Ended October 31, 2010	10.06		0.41		0.27			0.68			(0.37		)	—			(0.37		)	10.37

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

237

Aberdeen Tax-Free Income Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	6.12	%	$	9,379	0.87	%	3.14	%	1.00	%	5.58	%
Year Ended October 31, 2013	(1.93	)%	9,477		0.88	%	3.07	%	0.98	%	6.11	%
Year Ended October 31, 2012	8.74	%	11,416		0.94	%	3.18	%	0.94	%	13.27	%
Year Ended October 31, 2011	3.20	%	10,200		0.94	%	3.44	%	0.94	%	11.48	%
Year Ended October 31, 2010	6.64	%	9,879		0.93	%	3.43	%	0.94	%	15.29	%
Class C Shares
Year Ended October 31, 2014	5.34	%	643		1.62	%	2.39	%	1.75	%	5.58	%
Year Ended October 31, 2013	(2.66	)%	788		1.62	%	2.31	%	1.73	%	6.11	%
Year Ended October 31, 2012	7.95	%	2,410		1.68	%	2.43	%	1.68	%	13.27	%
Year Ended October 31, 2011	2.64	%	2,069		1.68	%	2.69	%	1.68	%	11.48	%
Year Ended October 31, 2010	5.77	%	2,854		1.68	%	2.70	%	1.69	%	15.29	%
Class R Shares
Year Ended October 31, 2014	5.96	%	10		1.12	%	2.89	%	1.25	%	5.58	%
Period Ended October 31, 2013(g)	(2.53	)%	10		1.12	%	2.82	%	1.27	%	6.11	%
Institutional Service Class Shares
Year Ended October 31, 2014	6.49	%	17		0.62	%	3.39	%	0.75	%	5.58	%
Period Ended October 31, 2013(g)	(2.19	)%	10		0.62	%	3.32	%	0.77	%	6.11	%
Institutional Class Shares(h)
Year Ended October 31, 2014	6.49	%	89,924		0.62	%	3.38	%	0.75	%	5.58	%
Year Ended October 31, 2013	(1.67	)%	93,692		0.62	%	3.32	%	0.72	%	6.11	%
Year Ended October 31, 2012	9.02	%	104,318		0.68	%	3.43	%	0.68	%	13.27	%
Year Ended October 31, 2011	3.57	%	102,304		0.68	%	3.69	%	0.68	%	11.48	%
Year Ended October 31, 2010	6.91	%	110,180		0.68	%	3.68	%	0.69	%	15.29	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from February 25, 2013 (commencement of operations) through October 31, 2013.

(h) Formerly Class D shares.

238

Aberdeen Ultra-Short Duration Bond Fund

			Investment Activities							Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities		Net Investment Income			Net Realized Gains			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	9.98	$	0.03	$	(0.01	)	$	0.02	$	(0.03	)	$	(0.02	)	$	(0.05	)	$	9.95
Year Ended October 31, 2013	10.09		0.04		(0.03		)	0.01		(0.04		)	(0.08		)	(0.12		)	9.98
Period Ended October 31, 2012(g)	10.00		0.05		0.09			0.14		(0.04		)	(0.01		)	(0.05		)	10.09
Institutional Service Class Shares
Year Ended October 31, 2014	9.97		0.05		(0.02		)	0.03		(0.06		)	(0.02		)	(0.08		)	9.92
Year Ended October 31, 2013	10.07		0.07		(0.02		)	0.05		(0.07		)	(0.08		)	(0.15		)	9.97
Period Ended October 31, 2012(h)	10.00		0.06		0.07			0.13		(0.06		)	—			(0.06		)	10.07
Institutional Class Shares
Year Ended October 31, 2014	9.97		0.05		(0.02		)	0.03		(0.06		)	(0.02		)	(0.08		)	9.92
Year Ended October 31, 2013	10.08		0.07		(0.03		)	0.04		(0.07		)	(0.08		)	(0.15		)	9.97
Year Ended October 31, 2012	10.00		0.07		0.09			0.16		(0.07		)	(0.01		)	(0.08		)	10.08
Period Ended October 31, 2011(j)	10.00		0.05		(0.01		)	0.04		(0.04		)	—			(0.04		)	10.00

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

239

Aberdeen Ultra-Short Duration Bond Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Asset (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	0.22	%	$	110	0.65	%	0.30	%	1.38	%	81.59	%
Year Ended October 31, 2013	0.16	%	466		0.65	%	0.44	%	1.25	%	93.60	%
Period Ended October 31, 2012(g)	1.40	%	374		0.65	%	0.51	%	1.05	%	166.04	%
Institutional Service Class Shares
Year Ended October 31, 2014	0.27	%	19		0.40	%	0.55	%	1.13	%	81.59	%
Year Ended October 31, 2013	0.51	%	26		0.40	%	0.71	%	1.00	%	93.60	%
Period Ended October 31, 2012(h)	1.28	%(i)	26		0.40	%	0.75	%	0.80	%	166.04	%
Institutional Class Shares
Year Ended October 31, 2014	0.27	%	10,130		0.40	%	0.54	%	1.13	%	81.59	%
Year Ended October 31, 2013	0.41	%(i)	13,509		0.40	%	0.69	%	1.00	%	93.60	%
Year Ended October 31, 2012	1.60	%(i)	17,927		0.40	%	0.72	%	0.80	%	166.04	%
Period Ended October 31, 2011(j)	0.54	%	35,173		0.40	%	0.52	%	0.74	%	166.41	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from November 22, 2011 (commencement of operations) through October 31, 2012.

(h) For the period from January 20, 2012 (commencement of operations) through October 31, 2012.

(i) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

(j) For the period from November 30, 2010 (commencement of operations) to October 31, 2011.

240

Aberdeen High Yield Fund

			Investment Activities							Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities		Net Investment Income			Net Realized Gains			Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	10.38	$	0.60	$	(0.44	)	$	0.16	$	(0.61	)	$	(0.73	)	$	(1.34	)	$	9.20
Year Ended October 31, 2013	10.16		0.66		0.33			0.99		(0.66		)	(0.11		)	(0.77		)	10.38
Period Ended October 31, 2012(g)	10.00		0.49		0.12			0.61		(0.45		)	—			(0.45		)	10.16
Class C Shares
Year Ended October 31, 2014	10.38		0.53		(0.44		)	0.09		(0.55		)	(0.73		)	(1.28		)	9.19
Year Ended October 31, 2013	10.15		0.57		0.36			0.93		(0.59		)	(0.11		)	(0.70		)	10.38
Period Ended October 31, 2012(g)	10.00		0.43		0.13			0.56		(0.41		)	—			(0.41		)	10.15
Class R Shares
Year Ended October 31, 2014	10.39		0.58		(0.45		)	0.13		(0.59		)	(0.73		)	(1.32		)	9.20
Year Ended October 31, 2013	10.17		0.63		0.34			0.97		(0.64		)	(0.11		)	(0.75		)	10.39
Period Ended October 31, 2012(g)	10.00		0.46		0.14			0.60		(0.43		)	—			(0.43		)	10.17
Institutional Service Class Shares
Year Ended October 31, 2014	10.39		0.63		(0.44		)	0.19		(0.64		)	(0.73		)	(1.37		)	9.21
Year Ended October 31, 2013	10.16		0.68		0.36			1.04		(0.70		)	(0.11		)	(0.81		)	10.39
Period Ended October 31, 2012(g)	10.00		0.49		0.14			0.63		(0.47		)	—			(0.47		)	10.16
Institutional Class Shares
Year Ended October 31, 2014	10.39		0.62		(0.43		)	0.19		(0.64		)	(0.73		)	(1.37		)	9.21
Year Ended October 31, 2013	10.16		0.68		0.36			1.04		(0.70		)	(0.11		)	(0.81		)	10.39
Period Ended October 31, 2012(g)	10.00		0.50		0.13			0.63		(0.47		)	—			(0.47		)	10.16

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

241

Aberdeen High Yield Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	1.65	%	$	389	1.09	%	6.15	%	2.16	%	74.39	%
Year Ended October 31, 2013	10.01	%	170		1.15	%	6.37	%	1.97	%	130.94	%
Period Ended October 31, 2012(g)	6.28	%	71		1.05	%	7.30	%	2.09	%	80.40	%
Class C Shares
Year Ended October 31, 2014	0.83	%	123		1.80	%	5.45	%	2.87	%	74.39	%
Year Ended October 31, 2013	9.44	%	144		1.80	%	5.58	%	2.62	%	130.94	%
Period Ended October 31, 2012(g)	5.71	%	57		1.80	%	6.35	%	2.84	%	80.40	%
Class R Shares
Year Ended October 31, 2014	1.33	%	18		1.30	%	5.92	%	2.38	%	74.39	%
Year Ended October 31, 2013	9.86	%	12		1.30	%	6.06	%	2.12	%	130.94	%
Period Ended October 31, 2012(g)	6.20	%	11		1.30	%	6.83	%	2.34	%	80.40	%
Institutional Service Class Shares
Year Ended October 31, 2014	1.92	%	12		0.80	%	6.44	%	1.87	%	74.39	%
Year Ended October 31, 2013	10.54	%	12		0.80	%	6.57	%	1.62	%	130.94	%
Period Ended October 31, 2012(g)	6.45	%	11		0.80	%	7.33	%	1.84	%	80.40	%
Institutional Class Shares
Year Ended October 31, 2014	1.92	%	9,243		0.80	%	6.39	%	1.88	%	74.39	%
Year Ended October 31, 2013	10.54	%	12,127		0.80	%	6.57	%	1.62	%	130.94	%
Period Ended October 31, 2012(g)	6.45	%	16,907		0.80	%	7.40	%	1.84	%	80.40	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from February 27, 2012 (commencement of operations) through October 31, 2012.

242

Aberdeen U.S. Equity Fund

			Investment Activities							Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (Loss) (a)			Net Realized and Unrealized Gains on Investments		Total from Investment Activities		Net Investment Income (a)			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	12.41	$	0.12		$	1.09	$	1.21	$	(0.13	)	$	(0.09	)	$	(0.22	)	$	—	$	13.40
Year Ended October 31, 2013	9.97		0.11			2.43		2.54		(0.10		)	—			(0.10		)	—		12.41
Year Ended October 31, 2012	9.04		0.08			0.91		0.99		(0.06		)	—			(0.06		)	—		9.97
Year Ended October 31, 2011	8.64		(0.01		)	0.41		0.40		—			—			—			—		9.04
Year Ended October 31, 2010	7.60		(0.01		)	1.05		1.04		—			—			—			—		8.64
Class C Shares
Year Ended October 31, 2014	11.40		0.02			1.00		1.02		(0.04		)	(0.09		)	(0.13		)	—		12.29
Year Ended October 31, 2013	9.18		0.02			2.23		2.25		(0.03		)	—			(0.03		)	—		11.40
Year Ended October 31, 2012	8.34		0.01			0.84		0.85		(0.01		)	—			(0.01		)	—		9.18
Year Ended October 31, 2011	8.02		(0.06		)	0.38		0.32		—			—			—			—		8.34
Year Ended October 31, 2010	7.10		(0.05		)	0.97		0.92		—			—			—			—		8.02
Class R Shares
Year Ended October 31, 2014	11.91		0.09			1.04		1.13		(0.10		)	(0.09		)	(0.19		)	—		12.85
Year Ended October 31, 2013	9.58		0.08			2.32		2.40		(0.07		)	—			(0.07		)	—		11.91
Year Ended October 31, 2012	8.67		0.05			0.89		0.94		(0.03		)	—			(0.03		)	—		9.58
Year Ended October 31, 2011	8.31		(0.01		)	0.37		0.36		—			—			—			—		8.67
Year Ended October 31, 2010	7.32		(0.02		)	1.01		0.99		—			—			—			—		8.31
Institutional Service Class Shares
Year Ended October 31, 2014	12.93		0.15			1.14		1.29		(0.15		)	(0.09		)	(0.24		)	—		13.98
Year Ended October 31, 2013	10.38		0.14			2.53		2.67		(0.12		)	—			(0.12		)	—		12.93
Year Ended October 31, 2012	9.40		0.11			0.95		1.06		(0.08		)	—			(0.08		)	—		10.38
Period Ended October 31, 2011(g)	8.61		—			0.79		0.79		—			—			—			—		9.40
Institutional Class Shares
Year Ended October 31, 2014	12.94		0.16			1.15		1.31		(0.17		)	(0.09		)	(0.26		)	—		13.99
Year Ended October 31, 2013	10.38		0.14			2.54		2.68		(0.12		)	—			(0.12		)	—		12.94
Year Ended October 31, 2012	9.40		0.11			0.95		1.06		(0.08		)	—			(0.08		)	—		10.38
Year Ended October 31, 2011	8.96		0.03			0.41		0.44		—			—			—			—		9.40
Year Ended October 31, 2010	7.85		0.03			1.08		1.11		—			—			—			—		8.96

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

243

Aberdeen U.S. Equity Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income (Loss) to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	9.87	%	$	276,861	1.17	%	0.92	%	1.25	%	20.60	%
Year Ended October 31, 2013	25.54	%	282,602		1.15	%	0.94	%	1.23	%	19.53	%
Year Ended October 31, 2012	11.03	%	187,216		1.15	%	0.85	%	1.28	%	27.95	%
Year Ended October 31, 2011	4.63	%	196,095		1.41	%	(0.07	)%	1.70	%	48.65	%
Year Ended October 31, 2010	13.68	%	23,810		1.56	%	(0.06	)%	1.73	%	29.02	%
Class C Shares
Year Ended October 31, 2014	9.07	%	8,469		1.90	%	0.19	%	1.98	%	20.60	%
Year Ended October 31, 2013	24.60	%	9,637		1.90	%	0.20	%	1.95	%	19.53	%
Year Ended October 31, 2012	10.23	%	7,899		1.90	%	0.10	%	2.00	%	27.95	%
Year Ended October 31, 2011	3.99	%	9,364		2.19	%	(0.65	)%	2.44	%	48.65	%
Year Ended October 31, 2010	12.96	%	11,179		2.21	%	(0.71	)%	2.37	%	29.02	%
Class R Shares
Year Ended October 31, 2014	9.62	%	351		1.40	%	0.69	%	1.48	%	20.60	%
Year Ended October 31, 2013	25.16	%	405		1.40	%	0.73	%	1.45	%	19.53	%
Year Ended October 31, 2012	10.91	%	416		1.40	%	0.56	%	1.50	%	27.95	%
Year Ended October 31, 2011	4.33	%	865		1.70	%	(0.15	)%	1.95	%	48.65	%
Year Ended October 31, 2010	13.52	%	986		1.71	%	(0.23	)%	1.88	%	29.02	%
Institutional Service Class Shares
Year Ended October 31, 2014	10.13	%	128,283		0.96	%	1.12	%	1.07	%	20.60	%
Year Ended October 31, 2013	25.84	%	128,368		0.90	%	1.21	%	1.05	%	19.53	%
Year Ended October 31, 2012	11.37	%	115,150		0.90	%	1.10	%	1.11	%	27.95	%
Period Ended October 31, 2011(g)	9.18	%	123,074		0.90	%	0.00	%	1.13	%	48.65	%
Institutional Class Shares
Year Ended October 31, 2014	10.23	%	3,437		0.90	%	1.18	%	0.98	%	20.60	%
Year Ended October 31, 2013	26.00	%	3,867		0.90	%	1.21	%	0.95	%	19.53	%
Year Ended October 31, 2012	11.37	%	2,584		0.90	%	1.13	%	1.00	%	27.95	%
Year Ended October 31, 2011	4.91	%	3,330		1.19	%	0.35	%	1.44	%	48.65	%
Year Ended October 31, 2010	14.14	%	3,446		1.21	%	0.32	%	1.37	%	29.02	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from October 7, 2011 (commencement of operations) through October 31, 2011.

244

Aberdeen European Equity Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains			Total Distributions			Redemption Fees		Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	10.87	$	0.19	$	(0.58	)	$	(0.39	)	$	(0.24	)	$	(0.02	)	$	(0.26	)	$	—	$	10.22
Period Ended October 31, 2013(g)	10.00		0.08		0.91			0.99			(0.12		)	—			(0.12		)	—		10.87
Class C Shares
Year Ended October 31, 2014	10.85		0.09		(0.57		)	(0.48		)	(0.16		)	(0.02		)	(0.18		)	—		10.19
Period Ended October 31, 2013(g)	10.00		0.08		0.87			0.95			(0.10		)	—			(0.10		)	—		10.85
Class R Shares
Year Ended October 31, 2014	10.87		0.16		(0.58		)	(0.42		)	(0.20		)	(0.02		)	(0.22		)	—		10.23
Period Ended October 31, 2013(g)	10.00		0.12		0.86			0.98			(0.11		)	—			(0.11		)	—		10.87
Institutional Service Class Shares
Year Ended October 31, 2014	10.88		0.22		(0.58		)	(0.36		)	(0.26		)	(0.02		)	(0.28		)	—		10.24
Period Ended October 31, 2013(g)	10.00		0.15		0.86			1.01			(0.13		)	—			(0.13		)	—		10.88
Institutional Class Shares
Year Ended October 31, 2014	10.88		0.21		(0.57		)	(0.36		)	(0.26		)	(0.02		)	(0.28		)	—		10.24
Period Ended October 31, 2013(g)	10.00		0.15		0.86			1.01			(0.13		)	—			(0.13		)	—		10.88

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

245

Aberdeen European Equity Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (f)
Class A Shares
Year Ended October 31, 2014	(3.80	)%	$	387	1.35	%	1.74	%	3.43	%	7.75	%
Period Ended October 31, 2013(g)	10.00	%	63		1.35	%	1.28	%	4.69	%	3.35	%(c)
Class C Shares
Year Ended October 31, 2014	(4.56	)%(h)	10		2.10	%	0.84	%	4.18	%	7.75	%
Period Ended October 31, 2013(g)	9.61	%(h)	11		2.10	%	1.29	%	5.43	%	3.35	%(c)
Class R Shares
Year Ended October 31, 2014	(4.06	)%(h)	11		1.60	%	1.44	%	3.68	%	7.75	%
Period Ended October 31, 2013(g)	9.94	%(h)	11		1.60	%	1.92	%	4.94	%	3.35	%(c)
Institutional Service Class Shares
Year Ended October 31, 2014	(3.54	)%	11		1.10	%	1.94	%	3.18	%	7.75	%
Period Ended October 31, 2013(g)	10.16	%	11		1.10	%	2.42	%	4.44	%	3.35	%(c)
Institutional Class Shares
Year Ended October 31, 2014	(3.53	)%	5,730		1.10	%	1.94	%	3.18	%	7.75	%
Period Ended October 31, 2013(g)	10.16	%	5,926		1.10	%	2.38	%	4.44	%	3.35	%(c)

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from March 25, 2013 (commencement of operations) through October 31, 2013.

(h) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

246

Aberdeen Latin American Equity Fund

			Investment Activities								Distributions
	Net Asset Value, Beginning of Period		Net Investment Income (a)		Net Realized and Unrealized Gains (Losses) on Investments			Total from Investment Activities			Net Investment Income			Net Realized Gains		Total Distributions			Net Asset Value, End of Period
Class A Shares
Year Ended October 31, 2014	$	9.18	$	0.12	$	(1.24	)	$	(1.12	)	$	(0.13	)	$	—	$	(0.13	)	$	7.93
Period Ended October 31, 2013(g)	10.00		0.05		(0.83		)	(0.78		)	(0.04		)	—		(0.04		)	9.18
Class C Shares
Year Ended October 31, 2014	9.16		0.06		(1.23		)	(1.17		)	(0.08		)	—		(0.08		)	7.91
Period Ended October 31, 2013(g)	10.00		0.04		(0.86		)	(0.82		)	(0.02		)	—		(0.02		)	9.16
Class R Shares
Year Ended October 31, 2014	9.18		0.11		(1.25		)	(1.14		)	(0.11		)	—		(0.11		)	7.93
Period Ended October 31, 2013(g)	10.00		0.06		(0.85		)	(0.79		)	(0.03		)	—		(0.03		)	9.18
Institutional Service Class Shares
Year Ended October 31, 2014	9.19		0.15		(1.24		)	(1.09		)	(0.16		)	—		(0.16		)	7.94
Period Ended October 31, 2013(g)	10.00		0.09		(0.86		)	(0.77		)	(0.04		)	—		(0.04		)	9.19
Institutional Class Shares
Year Ended October 31, 2014	9.19		0.15		(1.24		)	(1.09		)	(0.16		)	—		(0.16		)	7.94
Period Ended October 31, 2013(g)	10.00		0.09		(0.86		)	(0.77		)	(0.04		)	—		(0.04		)	9.19

(a) Net investment income (loss) is based on average shares outstanding during the period.

(b) Excludes sales charge.

(d) Annualized for periods less than one year.

Amounts listed as “–” are $0 or round to $0.

247

Aberdeen Latin American Equity Fund (concluded)

			Ratios/Supplemental Data
	Total Return (b)(c)		Net Assets at End of Period (000’s)		Ratio of Expenses to Average Net Assets (d)		Ratio of Net Investment Income to Average Net Assets (d)		Ratio of Expenses (Prior to Reimbursements) to Average Net Assets (d)(e)		Portfolio Turnover (c)(f)
Class A Shares
Year Ended October 31, 2014	(12.22	)%	$	57	1.55	%	1.47	%	4.63	%	3.79	%
Period Ended October 31, 2013(g)	(7.82	)%	28		1.55	%	1.00	%	6.20	%	5.04	%
Class C Shares
Year Ended October 31, 2014	(12.83	)%	25		2.31	%	0.65	%	5.38	%	3.79	%
Period Ended October 31, 2013(g)	(8.21	)%	9		2.30	%	0.67	%	6.96	%	5.04	%
Class R Shares
Year Ended October 31, 2014	(12.48	)%(h)	8		1.77	%	1.26	%	4.85	%	3.79	%
Period Ended October 31, 2013(g)	(7.90	)%(h)	9		1.80	%	1.17	%	6.45	%	5.04	%
Institutional Service Class Shares
Year Ended October 31, 2014	(11.99	)%	8		1.29	%	1.75	%	4.36	%	3.79	%
Period Ended October 31, 2013(g)	(7.68	)%	9		1.30	%	1.67	%	5.96	%	5.04	%
Institutional Class Shares
Year Ended October 31, 2014	(11.99	)%	4,051		1.30	%	1.73	%	4.36	%	3.79	%
Period Ended October 31, 2013(g)	(7.68	)%	4,589		1.30	%	1.67	%	5.96	%	5.04	%

(e) During the period, certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.

(f) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.

(g) For the period from March 25, 2013 (commencement of operations) through October 31, 2013.

(h) The total return shown above includes the impact of financial statement rounding of the NAV per share and/or financial statement adjustments.

248

Information from Aberdeen Funds

Please read this Prospectus before you invest, and keep it with your records. The following documents — which may be obtained free of charge — contain additional information about the Funds:

· Statement of Additional Information (incorporated by reference into this Prospectus)

· Annual Reports (which contain discussions of the market conditions and investment strategies that significantly affected the Funds’ performance)

· Semi-Annual Reports

To obtain any of the above documents free of charge, to request other information about the Funds, or to make other shareholder inquiries, contact us at the address or number listed below. You can also access and download the annual and semi-annual reports (when available) and the Statement of Additional Information at the Funds’ website www.aberdeen-asset.us.

To reduce the volume of mail you receive, only one copy of financial reports, prospectuses, other regulatory materials and other communications will be mailed to your household (if you share the same last name and address). You can call us at 866-667-9231, or write to us at the address listed below, to request (1) additional copies free of charge, or (2) that we discontinue our practice of mailing regulatory materials together.

If you wish to receive regulatory materials and/or account statements electronically, you can sign-up for our free e-delivery service. Please visit the Funds’ website at www.aberdeen-asset.us or call 866-667-9231 for additional information.

For Additional Information Contact:

By Regular Mail:

Aberdeen Funds

P.O. Box 55930

Boston, MA 02205-5930

By Overnight Mail:

Aberdeen Funds

c/o Boston Financial Data Services

30 Dan Rd

Canton, MA 02021

For 24-hour Access:

866-667-9231 (toll free)

Customer Service Representatives are available 8 a.m.-9 p.m. Eastern Time, Monday through Friday. Call after 7 p.m. Eastern Time for closing share prices.

Also, visit the Funds’ website at www.aberdeen-asset.us.

Information from the Securities and Exchange Commission (SEC)

You can obtain information about the Funds, including the SAI from the SEC:

· on the SEC’s EDGAR database via the Internet at www.sec.gov;

· by electronic request to publicinfo@sec.gov (the SEC charges a fee for this service);

· in person at the SEC’s Public Reference Room in Washington, D.C. (for their hours of operation, call 202-551-8090); or

· by mail by sending your request to Securities and Exchange Commission Public Reference Section, Washington, D.C. 20549-1520 (the SEC charges a fee to copy any documents).

THE TRUST’S INVESTMENT COMPANY ACT FILE NO.: 811-22132

249

STATEMENT OF ADDITIONAL INFORMATION

February 27, 2015

ABERDEEN FUNDS

Aberdeen Equity Long-Short Fund

Class A — MLSAX · Class C — MLSCX · Class R — GLSRX · Institutional Class — GGUIX · Institutional Service Class — AELSX

Aberdeen Global Natural Resources Fund

Class A — GGNAX · Class C — GGNCX · Class R — GGNRX · Institutional Class — GGNIX · Institutional Service Class — GGNSX

Aberdeen Small Cap Fund

Class A — GSXAX · Class C —GSXCX · Class R — GNSRX · Institutional Class — GSCIX · Institutional Service Class — GSXIX

Aberdeen China Opportunities Fund

Class A — GOPAX · Class C — GOPCX · Class R — GOPRX · Institutional Class — GOPIX · Institutional Service Class — GOPSX

Aberdeen International Equity Fund

Class A — GIGAX · Class C — GIGCX · Class R — GIRRX · Institutional Class — GIGIX · Institutional Service Class — GIGSX

Aberdeen Global Equity Fund

Class A — GLLAX · Class C — GLLCX · Class R — GWLRX · Institutional Class — GWLIX · Institutional Service Class — GLLSX

Aberdeen Diversified Income Fund

Class A — GMAAX · Class C — GMACX · Class R — GMRRX · Institutional Class — GMAIX · Institutional Service Class — GAMSX

Aberdeen Dynamic Allocation Fund

Class A — GMMAX · Class C — GMMCX · Class R — GAGRX · Institutional Class — GMMIX · Institutional Service Class — GAASX

Aberdeen Diversified Alternatives Fund

Class A — GASAX · Class C — GAMCX · Class R — GASRX · Institutional Class — GASIX · Institutional Service Class — GAISX

Aberdeen Asia Bond Fund

Class A — AEEAX · Class C — AEECX · Class R — AEERX · Institutional Class — CSABX · Institutional Service Class — ABISX

Aberdeen Asia-Pacific (ex-Japan) Equity Fund

Class A — APJAX · Class C — APJCX · Class R — APJRX · Institutional Class — AAPIX · Institutional Service Class — AAPEX

Aberdeen Asia-Pacific Smaller Companies Fund

Class A — APCAX · Class C — APCCX · Class R — APCRX · Institutional Class — APCIX · Institutional Service Class — APCSX

Aberdeen Emerging Markets Fund

Class A — GEGAX · Class C — GEGCX · Class R — GEMRX · Institutional Class — ABEMX · Institutional Service Class — AEMSX

Aberdeen Emerging Markets Debt Fund

Class A — AKFAX · Class C — AKFCX · Class R — AKFRX · Institutional Class — AKFIX · Institutional Service Class — AKFSX

Aberdeen Emerging Markets Debt Local Currency Fund

Class A — ADLAX · Class C — ADLCX · Class R — AECRX · Institutional Class — AEDSX · Institutional Service Class — AEDIX

Aberdeen Global Fixed Income Fund

Class A — CUGAX · Class C — CGBCX · Class R — AGCRX · Institutional Class — AGCIX · Institutional Service Class — CGFIX

Aberdeen Global Small Cap Fund

Class A — WVCCX · Class C — CPVCX · Class R — WPVAX · Institutional Class — ABNIX · Institutional Service Class — AGISX

Aberdeen Tax-Free Income Fund

Class A — NTFAX · Class C — GTICX · Class R — ABERX · Institutional Class — ABEIX · Institutional Service Class — ABESX

Aberdeen Ultra-Short Duration Bond Fund

Class A — AUDAX · Class C — AUSCX · Class R — AUSRX · Institutional Class — AUDIX · Institutional Service Class — AUSIX

Aberdeen High Yield Fund

Class A — AUYAX · Class C — AUYCX · Class R — AUYRX · Institutional Class — AUYIX · Institutional Service Class — AUYSX

Aberdeen U.S. Equity Fund

Class A — GXXAX · Class C — GXXCX · Class R — GGLRX · Institutional Class — GGLIX · Institutional Service Class — GXXIX

Aberdeen European Equity Fund

Class A — AEUAX · Class C — AEUCX · Class R — AERUX · Institutional Class — AEUIX · Institutional Service Class — AEUSX

Aberdeen Latin American Equity Fund

Class A — ALEAX · Class C — ALECX · Class R — ALREX · Institutional Class — ALIEX · Institutional Service Class — ALESX

Aberdeen Funds (the “Trust”) is a registered open-end investment company consisting of 23 series as of the date hereof. This Statement of Additional Information (“SAI”) relates to the series of the Trust listed above (each, a “Fund” and collectively, the “Funds”). This SAI is not a prospectus but is incorporated by reference into the Prospectus for the Funds. It contains information in addition to and more detailed than that set forth in the Prospectus and should be read in conjunction with the Prospectus for the Funds dated February 27, 2015.

Terms not defined in this SAI have the meanings assigned to them in the Prospectus. You can order copies of the Prospectus without charge by writing to Boston Financial Data Services (“BFDS”) at 30 Dan Road, Canton, MA 02021 or calling (toll-free) 866-667-9231.

The Funds’ audited financial statements for the fiscal year ended October 31, 2014, and the related report of KPMG LLP (“KPMG”), independent registered public accounting firm for the Funds, which are contained in the Funds’ October 31, 2014 Annual Report, are incorporated herein by reference in the section “Financial Statements.” No other parts of the Annual Report are incorporated by reference herein. A copy of the Annual Report may be obtained upon request and without charge by writing to or by calling 866-667-9231.

TABLE OF CONTENTS

	PAGE
GENERAL INFORMATION	1
ADDITIONAL INFORMATION ON PORTFOLIO INSTRUMENTS AND INVESTMENT POLICIES	4
INVESTMENT RESTRICTIONS	102
DISCLOSURE OF PORTFOLIO HOLDINGS	107
BOARD OF TRUSTEES AND OFFICERS OF THE TRUST	109
INVESTMENT ADVISORY AND OTHER SERVICES	120
BROKERAGE ALLOCATION	144
ADDITIONAL INFORMATION ON PURCHASES AND SALES	150
VALUATION OF SHARES	159
SYSTEMATIC INVESTMENT STRATEGIES	160
INVESTOR PRIVILEGES	161
INVESTOR SERVICES	163
ADDITIONAL INFORMATION	164
ADDITIONAL GENERAL TAX INFORMATION FOR ALL FUNDS	166
MAJOR SHAREHOLDERS	184
FINANCIAL STATEMENTS	221
APPENDIX A - PORTFOLIO MANAGERS	A-1
APPENDIX B - DEBT RATINGS	B-1
APPENDIX C - PROXY VOTING POLICIES AND PROCEDURES	C-1

GENERAL INFORMATION

The Trust is an open-end management investment company formed as a statutory trust under the laws of the state of Delaware by a Certificate of Trust filed on September 27, 2007. The Trust currently consists of 23 separate series, each with its own investment objective.

Certain Funds in this SAI were created to acquire the assets and liabilities of the corresponding Fund of the Nationwide Mutual Funds (each, a “Nationwide Predecessor Fund,” collectively, the “Nationwide Predecessor Funds”) as shown in the chart below.

Fund		Corresponding Predecessor Fund

*Aberdeen Global Equity Fund (“Global Equity Fund”)*		Nationwide Worldwide Leaders Fund

*Aberdeen China Opportunities Fund (“China Opportunities Fund”)*		Nationwide China Opportunities Fund

*Aberdeen International Equity Fund (“International Equity Fund”)*		Nationwide International Growth Fund

*Aberdeen Equity Long-Short Fund (“Equity Long-Short Fund”)*		Nationwide U.S. Growth Leaders Long-Short Fund

*Aberdeen Global Natural Resources Fund (“Global Natural Resources Fund”)*		Nationwide Natural Resources Fund

*Aberdeen Dynamic Allocation Fund (“Dynamic Allocation Fund”)*		Nationwide Optimal Allocations Fund: Moderate Growth

*Aberdeen Diversified Income Fund (“Diversified Income Fund”)*		Nationwide Optimal Allocations Fund: Moderate

*Aberdeen Diversified Alternatives Fund (“Diversified Alternatives Fund”)*		Nationwide Optimal Allocations Fund: Specialty

*Aberdeen Small Cap Fund (“Small Cap Fund”)*		Nationwide Small Cap Fund

*Aberdeen Tax-Free Income Fund (“Tax-Free Income Fund”)*		Nationwide Tax-Free Income Fund

The Nationwide Predecessor Funds, for purposes of the relevant reorganization, are considered the accounting survivors and accordingly, certain financial history of the Nationwide Predecessor Funds is included in this SAI.

Certain Funds in this SAI were created to acquire the assets and liabilities of the corresponding Fund of the Credit Suisse Funds (each a “Credit Suisse Predecessor Fund,” collectively, the “Credit Suisse Predecessor Funds”) as shown in the chart below.

Fund		Corresponding Predecessor Fund
*Aberdeen Asia Bond Fund (“Asia Bond Fund”)*		Asia Bond Portfolio, a series of Credit Suisse Institutional Fund, Inc.

*Aberdeen Global Fixed Income Fund (“Global Fixed Income Fund”)*		Credit Suisse Global Fixed Income Fund

Aberdeen Global Small Cap Fund (“Global Small Cap Fund”)

Credit Suisse Global Small Cap Fund

The Credit Suisse Predecessor Funds, for purposes of the relevant reorganization, are considered the accounting survivors and accordingly, certain financial history of the Credit Suisse Predecessor Funds is included in this SAI.

Certain Funds in this SAI acquired the assets and liabilities of the corresponding Fund, of the Pacific Capital Funds (each a “Pacific Capital Predecessor Fund,” collectively, the “Pacific Capital Predecessor Funds”), as shown in the chart below.

Surviving Fund		Acquired Fund

Aberdeen Asia-Pacific (ex-Japan) Equity Fund (“Asia-Pacific (ex-Japan) Equity Fund”)		Pacific Capital New Asia Growth Fund
Institutional Service Class Shares Institutional Class Shares		Class A, B and C Shares Class Y Shares
Aberdeen Small Cap Fund		Pacific Capital Small Cap Fund
Class A Shares Class C Shares Institutional Class Shares		Class A and B Shares Class C Shares Class Y Shares

The Aberdeen Ultra-Short Duration Bond Fund (“Ultra-Short Duration Bond Fund”) commenced operations on November 30, 2010.

The Aberdeen Emerging Markets Fund (“Emerging Markets Fund”) was created to acquire the assets and liabilities of a former Aberdeen Emerging Markets Fund, which was a series of The Advisors’ Inner Circle Fund II (the “Emerging Markets Predecessor Fund”). On May 21, 2012, the Emerging Markets Fund acquired the assets of the Aberdeen Emerging Markets Fund (the “Acquired Fund”), another series of the Trust, which had Class A, C and R Shares. The Emerging Markets Predecessor Fund, for purposes of the reorganization, is considered the accounting survivor and accordingly, certain financial history of the Emerging Markets Predecessor Fund is included in this SAI.

The Aberdeen Emerging Markets Debt Fund (“Emerging Markets Debt Fund”) commenced operations on November 1, 2012.

The Aberdeen Emerging Markets Debt Local Currency Fund (“Emerging Markets Debt Local Currency Fund”) commenced operations on May 2, 2011.

The Aberdeen Asia-Pacific Smaller Companies Fund (“Asia-Pacific Smaller Companies Fund”) commenced operations on June 28, 2011.

The Aberdeen High Yield Fund (“High Yield Fund”) commenced operations on February 27, 2012.

Aberdeen U.S. Equity Fund (“U.S. Equity Fund”) was created to acquire the assets and liabilities of the Credit Suisse Large Cap Blend Fund, Inc., a Maryland corporation,

and a former series of the Trust with a U.S. equity strategy (“Aberdeen U.S. Equity Predecessor Fund”). The Aberdeen U.S. Equity Predecessor Fund , for purposes of the reorganization, is considered the accounting survivor and accordingly, certain financial history of the Aberdeen U.S. Equity Predecessor Fund is included in this SAI. On February 25, 2013, the U.S. Equity Fund acquired the assets of the Aberdeen U.S. Equity II Fund, another series of the Trust, which offered Class A, Class C, Class R, Institutional Class and Institutional Service Class Shares. The U.S. Equity Fund, for purposes of the reorganization, is considered the accounting survivor.

The Aberdeen European Equity Fund (“European Equity Fund”) commenced operations on March 25, 2013.

The Aberdeen Latin American Equity Fund (“Latin American Equity Fund”) commenced operations on March 25, 2013.

Each of the Funds, except the Asia Bond Fund, the Emerging Markets Debt Local Currency Fund, the Emerging Markets Debt Fund, the European Equity Fund and the Latin American Equity Fund, is a diversified open-end management investment company as defined in the Investment Company Act of 1940, as amended (the “1940 Act”). Each of the Asia Bond Fund, the Emerging Markets Debt Local Currency Fund, the Emerging Markets Debt Fund, the European Equity Fund and the Latin American Equity Fund is a non-diversified open-end management investment company as defined in the 1940 Act.

ADDITIONAL INFORMATION ON PORTFOLIO INSTRUMENTS AND INVESTMENT POLICIES

The Funds invest in a variety of securities and employ a number of investment techniques that involve certain risks. The Prospectus for the Funds highlights the principal investment strategies, investment techniques and risks. This SAI contains additional information regarding both the principal and non-principal investment strategies of the Funds. The following tables set forth additional information concerning permissible investments and techniques for each of the Funds. A “ · ” in the table indicates that the Fund may invest in the corresponding instrument or technique. An empty box indicates that the Fund does not intend to invest in the corresponding instrument or follow the corresponding technique.

With respect to the Aberdeen Diversified Income Fund, Aberdeen Dynamic Allocation Fund and Aberdeen Diversified Alternatives Fund (the “Funds-of-Funds”), this SAI, like the Prospectus, uses the term “Fund” to include the underlying funds in which each of the Funds-of-Funds will invest (the “Underlying Funds”). A “ · ” in the table for the Funds-of-Funds indicates an investment strategy for an Underlying Fund.

Please review the discussions in the Prospectus for further information regarding the investment objective and policies of each Fund.

References to the “Adviser” in this section also include the subadviser(s), as applicable.

TYPES OF
INVESTMENT OR
TECHNIQUE

U.S.
EQUITY
FUND

GLOBAL
EQUITY
FUND

CHINA
OPPORTUNITIES
FUND

EQUITY
LONG-
SHORT
FUND

GLOBAL

NATURAL
RESOURCES
FUND

SMALL
CAP FUND

EMERGING
MARKETS
FUND

EUROPEAN
EQUITY
FUND

LATIN
AMERICAN
EQUITY
FUND

Adjustable, Floating and Variable Rate Instruments

Asset-Backed Securities

Bank Obligations

Borrowing

Brady Bonds

CFTC Exclusion

Common Stock

Convertible Securities

Currency Transactions

Cyber Security Risk

Debt Securities

Depositary Receipts

Derivatives

Emerging Markets Securities

Exchange-Traded Funds

Foreign Commercial Paper

Foreign Currencies

Foreign Government Securities

TYPES OF
INVESTMENT OR
TECHNIQUE

U.S.
EQUITY
FUND

GLOBAL
EQUITY
FUND

CHINA
OPPORTUNITIES
FUND

EQUITY
LONG-
SHORT
FUND

GLOBAL

NATURAL
RESOURCES
FUND

SMALL
CAP FUND

EMERGING
MARKETS
FUND

EUROPEAN
EQUITY
FUND

LATIN
AMERICAN
EQUITY
FUND

Foreign Securities (including Developing Countries)

Futures

Illiquid Securities

Impact of Large Redemptions and Purchases of Fund Shares

Indexed Securities

Initial Public Offerings

Interests in Publicly Traded Limited Partnerships

Lending of Portfolio Securities

Loan Participations and Assignments

Market Events Risk

Medium Company, Small Company and Emerging Growth Stocks

Money Market Instruments

Natural Resources Industries

Options

Preferred Stock

Real Estate Investment Trusts

TYPES OF
INVESTMENT OR
TECHNIQUE

U.S.
EQUITY
FUND

GLOBAL
EQUITY
FUND

CHINA
OPPORTUNITIES
FUND

EQUITY
LONG-
SHORT
FUND

GLOBAL

NATURAL
RESOURCES
FUND

SMALL
CAP FUND

EMERGING
MARKETS
FUND

EUROPEAN
EQUITY
FUND

LATIN
AMERICAN
EQUITY
FUND

Real Estate Related Securities

Repurchase Agreements

Restricted Securities

Reverse Repurchase Agreements

Rights Issues and Warrants

Securities Backed by Guarantees

Securities of Investment Companies

Short Sales

Special Situation Companies

Strategic Transactions, Derivatives and Synthetic Investments

Swaps, Caps, Floors and Collars

Temporary Investments

U.S. Government Securities

When-Issued Securities and Delayed-Delivery

TYPES OF
INVESTMENT OR
TECHNIQUE

DYNAMIC
ALLOCATION
FUND

DIVERSIFIED
INCOME
FUND

DIVERSIFIED
ALTERNATIVES
FUND

TAX-FREE
INCOME
FUND

EMERGING
MARKETS
DEBT FUND

EMERGING
MARKETS DEBT
LOCAL
CURRENCY
FUND

HIGH YIELD
FUND

ULTRA-
SHORT
DURATION
BOND
FUND

Adjustable, Floating and Variable Rate Instruments

Advance Refunded Bonds

Asset-Backed Securities

Bank Loans

Bank Obligations

Bonds with Warrants Attached

Borrowing

Brady Bonds

Catastrophe Bond

CFTC Exclusion

Collateralized Mortgage Obligations

Common Stock

Convertible Securities

Corporate Obligations

Credit Linked Notes

Currency Transactions

Cyber Security Risk

TYPES OF
INVESTMENT OR
TECHNIQUE

DYNAMIC
ALLOCATION
FUND

DIVERSIFIED
INCOME
FUND

DIVERSIFIED
ALTERNATIVES
FUND

TAX-FREE
INCOME
FUND

EMERGING
MARKETS
DEBT FUND

EMERGING
MARKETS DEBT
LOCAL
CURRENCY
FUND

HIGH YIELD
FUND

ULTRA-
SHORT
DURATION
BOND
FUND

Debt Securities

Delayed Funding Loans and Revolving Credit Facilities

Depositary Receipts

Derivatives

Direct Debt Instruments

Dollar Roll Transactions

Emerging Markets Securities

Eurodollar Instruments

European Sovereign Debt

Exchange-Traded Funds

External Debt

Foreign Commercial Paper

Foreign Currencies

Foreign Fixed Income Securities

Foreign Government Securities

Foreign Securities (including Developing Countries)

Futures

Illiquid Securities

· (Rule 144A Securities

only)

TYPES OF
INVESTMENT OR
TECHNIQUE

DYNAMIC
ALLOCATION
FUND

DIVERSIFIED
INCOME
FUND

DIVERSIFIED
ALTERNATIVES
FUND

TAX-FREE
INCOME
FUND

EMERGING
MARKETS
DEBT FUND

EMERGING
MARKETS DEBT
LOCAL
CURRENCY
FUND

HIGH YIELD
FUND

ULTRA-
SHORT
DURATION
BOND
FUND

Impact of Large Redemptions and Purchases of Fund Shares

Income Deposit Securities

Indexed Securities

Initial Public Offerings

Interests in Publicly Traded Limited Partnerships

Inverse Floating Rate Instruments

Lending of Portfolio Securities

Loan Participations and Assignments

Loans

Market Events Risk

Medium Company, Small Company and Emerging Growth Stocks

Money Market Instruments

Mortgage-Related Securities

Municipal Securities

Natural Resources Industries

Non-Deliverable Forwards

TYPES OF
INVESTMENT OR
TECHNIQUE

DYNAMIC
ALLOCATION
FUND

DIVERSIFIED
INCOME
FUND

DIVERSIFIED
ALTERNATIVES
FUND

TAX-FREE
INCOME
FUND

EMERGING
MARKETS
DEBT FUND

EMERGING
MARKETS DEBT
LOCAL
CURRENCY
FUND

HIGH YIELD
FUND

ULTRA-
SHORT
DURATION
BOND
FUND

Options

Participation Interests

Pay-In-Kind Bonds and Deferred Payment Securities

Preferred Stock

Privatization Vouchers

Put Bonds

Real Estate Investment Trusts

Real Estate Related Securities

Repurchase Agreements

Restricted Securities

· (Rule 144A Securities only)

Reverse Repurchase Agreements

Rights Issues and Warrants

Securities Backed by Guarantees

Securities of Investment Companies

Short Sales

Special Situation Companies

Standby Commitment Agreements

TYPES OF
INVESTMENT OR
TECHNIQUE

DYNAMIC
ALLOCATION
FUND

DIVERSIFIED
INCOME
FUND

DIVERSIFIED
ALTERNATIVES
FUND

TAX-FREE
INCOME
FUND

EMERGING
MARKETS
DEBT FUND

EMERGING
MARKETS DEBT
LOCAL
CURRENCY
FUND

HIGH YIELD
FUND

ULTRA-
SHORT
DURATION
BOND
FUND

Strategic Transactions, Derivatives and Synthetic Investments

Strip Bonds

Stripped Mortgage Securities

Stripped Zero Coupon Securities/Custodial Receipts

Structured Notes

Structured Securities

Supranational Entities

Swaps, Caps, Floors and Collars

Temporary Investments

To-Be-Announced Instruments

Trust Preferred Securities

U.S. Government Securities

Variable Rate Instruments

When-Issued Securities and Delayed-Delivery

TYPES OF INVESTMENT OR
TECHNIQUE

ASIA BOND
FUND

GLOBAL
FIXED
INCOME
FUND

GLOBAL
SMALL
CAP FUND

INTERNATIONAL
EQUITY FUND

ASIA-
PACIFIC
(EX-JAPAN)
EQUITY
FUND

ASIA-
PACIFIC
SMALLER
COMPANIES
FUND

Adjustable, Floating and Variable Rate Instruments

Advance Refunded Bonds

Asset-Backed Securities

Bank Loans

Bank Obligations

Bonds with Warrants Attached

Borrowing

Brady Bonds

Catastrophe Bond

CFTC Exclusion

Collateralized Mortgage Obligations

Common Stock

Convertible Securities

Corporate Obligations

Credit Linked Notes

Currency Transactions

Cyber Security Risk

Delayed Funding Loans and Revolving Credit Facilities

Depositary Receipts

Derivatives

Direct Debt Instruments

TYPES OF INVESTMENT OR
TECHNIQUE

ASIA BOND
FUND

GLOBAL
FIXED
INCOME
FUND

GLOBAL
SMALL
CAP FUND

INTERNATIONAL
EQUITY FUND

ASIA-
PACIFIC
(EX-JAPAN)
EQUITY
FUND

ASIA-
PACIFIC
SMALLER
COMPANIES
FUND

Dollar Roll Transactions

Emerging Markets Securities

Eurodollar Instruments

European Sovereign Debt

Exchange-Traded Funds

External Debt

Foreign Commercial Paper

Foreign Currencies

Foreign Fixed Income Securities

Foreign Government Securities

Foreign Securities (including Developing Countries)

Futures

Illiquid Securities

Impact of Large Redemptions and Purchases of Fund Shares

Indexed Securities

Initial Public Offerings

Interests in Publicly Traded Limited Partnerships

Inverse Floating Rate Instruments

Lending of Portfolio Securities

Loan Participations and Assignments

TYPES OF INVESTMENT OR
TECHNIQUE

ASIA BOND
FUND

GLOBAL
FIXED
INCOME
FUND

GLOBAL
SMALL
CAP FUND

INTERNATIONAL
EQUITY FUND

ASIA-
PACIFIC
(EX-JAPAN)
EQUITY
FUND

ASIA-
PACIFIC
SMALLER
COMPANIES
FUND

Loans

Market Events Risk

Medium Company, Small Company and Emerging Growth Stocks

Money Market Instruments

Mortgage-Related Securities

Municipal Securities

Non-Deliverable Forwards

Options

Participation Interests

Pay-In-Kind Bonds and Deferred Payment Securities

Preferred Stock

Put Bonds

Real Estate Investment Trusts

Real Estate Related Securities

Repurchase Agreements

Restricted Securities

Reverse Repurchase Agreements

Rights Issues and Warrants

Securities Backed by Guarantees

Securities of Investment Companies

TYPES OF INVESTMENT OR
TECHNIQUE

ASIA BOND
FUND

GLOBAL
FIXED
INCOME
FUND

GLOBAL
SMALL
CAP FUND

INTERNATIONAL
EQUITY FUND

ASIA-
PACIFIC
(EX-JAPAN)
EQUITY
FUND

ASIA-
PACIFIC
SMALLER
COMPANIES
FUND

Short Sales

Special Situation Companies

Standby Commitment Agreements

Strategic Transactions, Derivatives and Synthetic Investments

Stripped Mortgage Securities

Stripped Zero Coupon Securities/Custodial Receipts

Structured Notes

Structured Securities

Supranational Entities

Swaps, Caps, Floors and Collars

Temporary Investments

To-Be-Announced Instruments

Trust Preferred Securities

U.S. Government Securities

Variable Rate Instruments

When-Issued Securities and Delayed-Delivery

General Information about the Funds’ Portfolio Instruments and Investment Policies

Funds-of-Funds

Each of the Diversified Income Fund, Dynamic Allocation Fund and the Diversified Alternatives Fund is a “fund of funds,” which means that each such Fund invests primarily in other funds, including mutual funds and exchange-traded funds (“ETFs”). The Prospectus discusses the investment objectives and strategies for the Funds-of-Funds and explains the types of underlying funds (the “Underlying Funds”) and other instruments in which each Fund may invest. Underlying Funds invest in stocks, bonds and other securities and reflect varying amounts of potential investment risk and reward. Each Fund-of-Funds allocates its assets among different Underlying Funds and other investments. Periodically, each Fund-of-Funds will adjust its asset allocation target ranges to maintain diversification and/or reflect changes in outlook or market conditions.

The following is a description of various types of securities, instruments and techniques that may be purchased and/or used by the Funds as well as certain risks to which the Funds are subject.

Adjustable, Floating and Variable Rate Instruments . Floating, adjustable rate or variable rate obligations bear interest at rates that are not fixed, but vary with changes in specified market rates or indices, such as the prime rate, or at specified intervals. The interest rate on floating-rate securities varies with changes in the underlying index (such as the Treasury bill rate), while the interest rate on variable or adjustable rate securities changes at preset times based upon an underlying index. Certain of the floating or variable rate obligations that may be purchased by a Fund may carry a demand feature that would permit the holder to tender them back to the issuer of the instrument or to a third party at par value prior to maturity.

The interest rates paid on the adjustable rate securities in which a Fund may invest generally are readjusted at intervals of one year or less to an increment over some predetermined interest rate index. There are three main categories of indices: those based on U.S. Treasury securities, those derived from a calculated measure such as a cost of funds index and those based on a moving average of mortgage rates. Commonly used indices include the one-year, three-year and five-year constant maturity Treasury rates, the three-month Treasury bill rate, the 180-day Treasury bill rate, rates on longer-term Treasury securities, the 11th District Federal Home Loan Bank Cost of Funds, the National Median Cost of Funds, the one-month, three-month, six-month or one-year London Interbank Offered Rate (“LIBOR”), the prime rate of a specific bank or commercial paper rates. Some indices, such as the one-year constant maturity Treasury rate, closely mirror changes in market interest rate levels. Others, such as the 11th Federal District Home Loan Bank Cost of Funds index, tend to lag behind changes in market rate levels and tend to be somewhat less volatile.

Auction rate securities are variable rate bonds whose interest rates are reset at specified intervals through a “Dutch” auction process. A “Dutch” auction is a competitive bidding process designed to determine a single uniform clearing rate that enables purchases and sales of the auction rate securities to take place at par. All accepted bids and holders of the auction rate securities receive the same rate. Auction rate securities holders rely on the liquidity generated by the auction. There is a risk that an auction will fail due to insufficient demand for the securities. If an auction fails, an auction rate security may become illiquid until a subsequent successful auction is conducted, the issuer redeems the issue, or a secondary market develops. See “Municipal Securities” below for more information about auction rate securities.

Demand Instruments. Some of the demand instruments purchased by a Fund may not be traded in a secondary market and derive their liquidity solely from the ability of the holder to demand repayment from the issuer or third party providing credit support. If a demand instrument is not traded in a secondary market, a Fund will nonetheless treat the instrument as “readily marketable” for the purposes of its investment restriction limiting investments in illiquid securities unless the demand feature has a notice period of more than seven days in which case the instrument will be characterized as “not readily marketable” and therefore illiquid. Such obligations include variable rate master demand notes, which are unsecured instruments issued pursuant to an agreement between the issuer and the holder that permit the indebtedness thereunder to vary and to provide for periodic adjustments in the interest rate. A Fund will limit its purchases of floating and variable rate obligations to those of the same quality as it is otherwise allowed to purchase. The Adviser will monitor on an ongoing basis the ability of an issuer of a demand instrument to pay principal and interest on demand. A Fund’s right to obtain payment at par on a demand instrument could be affected by events occurring between the date the Fund elects to demand payment and the date payment is due that may affect the ability of the issuer of the instrument or third party providing credit support to make payment when due, except when such demand instruments permit same day settlement. To facilitate settlement, these same day demand instruments may be held in book entry form at a bank other than a Fund’s custodian subject to a sub-custodian agreement approved by the Fund between that bank and the Fund’s custodian.

Advance Refunded Bonds (or pre-refunded bonds) . Advance refunded bonds are municipal securities that are subsequently refunded by the issuance and delivery of a new issue of bonds prior to the date on which the outstanding issue of bonds can be redeemed or paid. The proceeds from the new issue of bonds are typically placed in an escrow fund consisting of U.S. Government obligations that are used to pay the interest, principal and call premium on the issue being refunded. A Fund may also purchase municipal securities that have been refunded prior to purchase by the Fund.

Asset-Backed Securities . Asset-backed securities, issued by trusts and special purpose corporations, are pass-through securities, meaning that principal and interest payments, net of expenses, made by the borrower on the underlying asset (such as credit card or automobile loan receivables) are passed to a Fund. Asset-backed securities may include pools of loans, receivables or other assets. Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities. Asset-backed securities present certain risks that are not presented by mortgage-backed securities. Primarily, these securities may not have the benefit of any security interest in the related assets. Credit card receivables are generally unsecured and the debtors are entitled to the protection of a number of state and federal consumer credit laws, many of

which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. There is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. To lessen the effect of failures by obligors on underlying assets to make payments, the securities may contain elements of credit support which fall into two categories: (i) liquidity protection, and (ii) protection against losses resulting from ultimate default by an obligor on the underlying assets. Liquidity protection refers to the provision of advances, generally by the entity administering the pool of assets, to ensure that the receipt of payments on the underlying pool occurs in a timely fashion. Protection against losses results from payment of the insurance obligations on at least a portion of the assets in the pool. This protection may be provided through guarantees, policies or letters of credit obtained by the issuer or sponsor from third parties, through various means of structuring the transaction or through a combination of such approaches. A Fund will not pay any additional or separate fees for credit support. The degree of credit support provided for each issue is generally based on historical information respecting the level of credit risk associated with the underlying assets. Delinquency or loss in excess of that anticipated or failure of the credit support could adversely affect the return on an investment in such a security. The availability of asset-backed securities may be affected by legislative or regulatory developments. It is possible that such developments may require the Fund to dispose of any then existing holdings of such securities. Additionally, the risk of default by borrowers is greater during periods of rising interest rates and/or unemployment rates. In addition, instability in the markets for asset-backed securities may affect the liquidity of such securities, which means a Fund may be unable to sell such securities at an advantageous time and price. As a result, the value of such securities may decrease and a Fund may incur greater losses on the sale of such securities than under more stable market conditions. Furthermore, instability and illiquidity in the market for lower-rated asset-backed securities may affect the overall market for such securities thereby impacting the liquidity and value of higher-rated securities.

Several types of asset-backed securities have been offered to investors, including Certificates of Automobile Receivables SM (“CARS SM ”). CARS SM represent undivided fractional interests in a trust whose assets consist of a pool of motor vehicle retail installment sales contracts and security interests in the vehicles securing the contracts. Payments of principal and interest on CARS SM are passed through monthly to certificate holders, and are guaranteed up to certain amounts and for a certain time period by a letter of credit issued by a financial institution unaffiliated with the trustee or originator of the trust. An investor’s return on CARS SM may be affected by early prepayment of principal on the underlying vehicle sales contracts. If the letter of credit is exhausted, the trust may be prevented from realizing the full amount due on a sales contract because of state law requirements and restrictions relating to foreclosure sales of vehicles and the obtaining of deficiency judgments following such sales or because of depreciation, damage or loss of a vehicle, the application of federal and state bankruptcy and insolvency laws, or other factors. As a result, certificate holders may experience delays in payments or losses if the letter of credit is exhausted.

A Fund may also invest in residual interests in asset-backed securities. In the case of asset-backed securities issued in a pass-through structure, the cash flow generated by the underlying assets is applied to make required payments on the securities and to pay related administrative expenses. The residual in an asset-backed security pass-through structure represents the interest in

any excess cash flow remaining after making the foregoing payments. The amount of residual cash flow resulting from a particular issue of asset-backed securities will depend on, among other things, the characteristics of the underlying assets, the coupon rates on the securities, prevailing interest rates, the amount of administrative expenses and the actual prepayment experience on the underlying assets. Asset-backed security residuals not registered under the Securities Act of 1933, as amended (the “Securities Act”) may be subject to certain restrictions on transferability. In addition, there may be no liquid market for such securities.

Asset-backed securities present certain risks. For instance, in the case of credit card receivables, these securities may not have the benefit of any security interest in the related collateral. Credit card receivables are generally unsecured and the debtors are entitled to the protection of a number of state and federal consumer credit laws, many of which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. Most issuers of automobile receivables permit the servicers to retain possession of the underlying obligations. If the servicer were to sell these obligations to another party, there is a risk that the purchaser would acquire an interest superior to that of the holders of the related automobile receivables. In addition, because of the large number of vehicles involved in a typical issuance and technical requirements under state laws, the trustee for the holders of the automobile receivables may not have a proper security interest in all of the obligations backing such receivables. Therefore, there is the possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. The underlying assets (e.g., loans) are also subject to prepayments, which shorten the securities’ weighted average life and may lower their return.

Bank Loans . Bank Loans include floating and fixed-rate debt obligations. Floating rate loans are debt obligations issued by companies or other entities with floating interest rates that reset periodically. Bank loans may include, but are not limited to, term loans, delayed funding loans, bridge loans and revolving credit facilities. Loan interests will primarily take the form of assignments purchased in the primary or secondary market, but may include participations. Floating rate loans are secured by specific collateral of the borrower and are senior to most other securities of the borrower (e.g., common stock or debt instruments) in the event of bankruptcy. Floating rate loans are often issued in connection with recapitalizations, acquisitions, leveraged buyouts, and refinancings. Floating rate loans are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the floating rate loan. Floating rate loans may be acquired directly through the agent, as an assignment from another lender who holds a direct interest in the floating rate loan, or as a participation interest in another lender’s portion of the floating rate loan.

A Fund generally invests in floating rate loans directly through an agent, by assignment from another holder of the loan, or as a participation interest in another holder’s portion of the loan. Assignments and participations involve credit, interest rate, and liquidity risk. Interest rates on floating rate loans adjust periodically and are tied to a benchmark lending rate such as the London Interbank Offered Rate (“LIBOR”). LIBOR, which is a short-term interest rate that banks charge one another and that is generally representative of the most competitive and current cash rates. The lending rate could also be tied to the prime rate offered by one or more major U.S. banks or the rate paid on large certificates of deposit traded in the secondary markets. If the benchmark lending rate changes, the rate payable to lenders under the loan will change at the next scheduled adjustment date specified in the loan agreement. Investing in floating rate loans with longer interest rate reset periods may increase fluctuations in a Fund’s net asset value (“NAV”) as a result of changes in interest rates.

When a Fund purchases an assignment, it generally assumes all the rights and obligations under the loan agreement and will generally become a “lender” for purposes of the particular loan agreement. The rights and obligations acquired by a Fund under an assignment may be different, and be more limited, than those held by an assigning lender. Subject to the terms of a loan agreement, the Fund may enforce compliance by a borrower with the terms of the loan agreement and may have rights with respect to any funds acquired by other lenders through set-off. If a loan is foreclosed, the Fund may become part owner of any collateral securing the loan, and may bear the costs and liabilities associated with owning and disposing of any collateral. The Fund could be held liable as a co-lender. In addition, there is no assurance that the liquidation of any collateral from a secured loan would satisfy a borrower’s obligations or that any collateral could be liquidated.

If a Fund purchases a participation interest, it typically will have a contractual relationship with the lender and not with the borrower. The Fund may only be able to enforce its rights through the lender and may assume the credit risk of both the borrower and the lender, or any other intermediate participant. The Fund may have the right to receive payments of principal, interest, and any fees to which it is entitled only from the lender and only upon receipt by the lender of the payments from the borrower. The failure by the Fund to receive scheduled interest or principal payments may adversely affect the income of the Fund and may likely reduce the value of its assets, which would be reflected by a reduction in the Fund’s NAV.

In the cases of a Fund’s investments in floating rate loans through participation interests, it may be more susceptible to the risks of the financial services industries. The Fund may also be subject to greater risks and delays than if the Fund could assert its rights directly against the borrower. In the event of the insolvency of an intermediate participant who sells a participation interest to a Fund, it may be subject to loss of income and/or principal. Additionally, a Fund may not have any right to vote on whether to waive any covenants breached by a borrower and may not benefit from any collateral securing a loan. Parties through which the Fund may have to enforce its rights may not have the same interests as the Fund.

The borrower of a loan in which a Fund holds an assignment or participation interest may, either at its own election or pursuant to the terms of the loan documentation, prepay amounts of the loan from time to time. There is no assurance that the Fund will be able to reinvest the proceeds of any loan prepayment at the same interest rate or on the same terms as those of the original loan participation. This may result in a Fund realizing less income on a particular investment and replacing the loan with a less attractive security, which may provide less return to the Fund.

The secondary market on which floating rate loans are traded may be less liquid than the market for investment grade securities or other types of income producing securities. Therefore, a Fund may have difficulty trading assignments and participations to third parties. There is also a potential that there is no active market to trade floating rate loans. There may be restrictions on transfer and only limited opportunities may exist to sell such securities in secondary markets. As a result, the Fund may be unable to sell assignments or participations at the desired time or only at a price less than fair market value. The secondary market may also be subject to irregular trading activity, wide price spreads, and extended trade settlement periods. The lack of a liquid secondary market may have an adverse impact on the market price of the security.

Assignments and participations of bank loans also may be less liquid at times because of potential delays in the settlement process. Settlement risk is heightened for bank loans in certain foreign markets, which differ significantly and may be less established from those in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as delays in payment for or delivery of securities) not typically generated by the settlement of U.S. loans and other debt securities. Communications between the United States and emerging market countries may be unreliable, increasing the risk of delayed settlements. If a Fund cannot settle or there is a delay in settling a purchase of a loan or other security, that Fund may miss attractive investment opportunities and certain assets may be uninvested with no return earned thereon for some period. In addition, that Fund may lose money if the value of the security then declines or, if there is a contract to sell the security to another party, the Fund could be liable to that party for any losses incurred. Furthermore, some foreign markets in which a Fund may invest in loans may not operate with the concept of delayed compensation, or a pricing adjustment payable by the parties to a secondary loan trade that settles after an established time intended to assure that neither party derives an economic advantage from the delay (established in the U.S. as T+7 and T+20 for par/near par trades and distressed trades, respectively). Where there is no delayed compensation, one party will typically bear the risk of the other's delaying settlement for economic gain.

Bank Obligations . Bank obligations are obligations issued or guaranteed by U.S. or foreign banks. Bank obligations, including without limitation, time deposits, bankers’ acceptances and certificates of deposit, may be general obligations of the parent bank or may be limited to the issuing branch by the terms of the specific obligations or by government regulations. Banks are subject to extensive but different governmental regulations which may limit both the amount and types of loans which may be made and interest rates which may be charged. General economic conditions as well as exposure to credit losses arising from possible financial difficulties of borrowers play an important part in the operation of the banking industry.

Certificates of deposit are receipts issued by a depository institution in exchange for the deposit of funds. The issuer agrees to pay the amount deposited plus interest to the bearer of the receipt on the date specified on the certificate. The certificate usually can be traded in the secondary market prior to maturity. Bankers’ acceptances typically arise from short-term credit arrangements designed to enable businesses to obtain funds to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then “accepted” by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an earning asset or it may be sold in the secondary market at the going rate of discount for a specific maturity. Although maturities for acceptances can be as long as 270 days, most acceptances have maturities of six months or less.

A Fund may also invest in certificates of deposit issued by banks and savings and loan institutions which had, at the time of their most recent annual financial statements, total assets of less than $1 billion, provided that (i) the principal amounts of such certificates of deposit are insured by an agency of the U.S. Government, (ii) at no time will a Fund hold more than $100,000 principal amount of certificates of deposit of any one such bank, and (iii) at the time of acquisition, no more than 10% of a Fund’s assets (taken at current value) are invested in certificates of deposit of such banks having total assets not in excess of $1 billion.

Bankers’ acceptances are credit instruments evidencing the obligations of a bank to pay a draft drawn on it by a customer. These instruments reflect the obligation both of the bank and of the drawer to pay the face amount of the instrument upon maturity.

Time deposits are non-negotiable deposits maintained in a banking institution for a specified period of time at a stated interest rate. Time deposits which may be held by a Fund will not benefit from insurance from the Bank Insurance Fund or the Savings Association Insurance Fund administered by the Federal Deposit Insurance Corporation. Fixed time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties that vary with market conditions and the remaining maturity of the obligation. Fixed time deposits subject to withdrawal penalties maturing in more than seven calendar days are subject to a Fund’s limitation on investments in illiquid securities.

Bonds with Warrants Attached . Bonds with warrants attached are bonds issued as a unit with warrants. A Fund may dispose of the common stock received upon conversion of a convertible security or exercise of a warrant as promptly as it can and in a manner that it believes reduces the risk to the Fund of a loss in connection with the sale. A Fund does not intend to retain in its portfolio any warrant acquired as a unit with bonds if the warrant begins to trade separately from the related bond.

Borrowing . Each Fund, to the extent permitted by its fundamental investment restrictions, may borrow money from banks. Each Fund will limit borrowings to amounts not in excess of 33 1 / 3 % of the value of the Fund’s total assets less liabilities (other than borrowings), unless a Fund’s fundamental investment restrictions set forth a lower limit. Any borrowings that exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1 / 3 % limitation or fundamental investment restriction. Each Fund will borrow money only as a temporary measure for defensive or emergency purposes in order to meet redemption requests without immediately selling any portfolio securities. No Fund will borrow from banks for leverage purposes. Investments in mortgage dollar roll and reverse repurchase agreements are not considered a form of borrowing where the Fund covers its exposure by segregating or earmarking liquid assets.

Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that observance of such covenants would impede the Adviser from managing the Fund’s portfolio in accordance with the Fund’s investment objective(s) and policies. However, a breach of any such covenants not cured within the specified cure period may result in acceleration of outstanding indebtedness and require a Fund to dispose of portfolio investments at a time when it may be disadvantageous to do so.

Brady Bonds . Brady Bonds are debt securities, generally denominated in U.S. Dollars, issued under the framework of the Brady Plan. The Brady Plan is an initiative announced by former U.S. Treasury Secretary Nicholas F. Brady in 1989 as a mechanism for debtor nations to restructure their outstanding external commercial bank indebtedness. In restructuring its external debt under the Brady Plan framework, a debtor nation negotiates with its existing bank lenders as well as multilateral institutions such as the International Bank for Reconstruction and Development (the “World Bank”) and the International Monetary Fund (“IMF”). The Brady Plan framework, as it has developed, contemplates the exchange of external commercial bank debt for newly issued bonds known as “Brady Bonds.” Brady Bonds may also be issued in respect of new money being advanced by existing lenders in connection with the debt restructuring. The World Bank and/or the IMF support the restructuring by providing funds pursuant to loan agreements or other arrangements that enable the debtor nation to collateralize the new Brady Bonds or to repurchase outstanding bank debt at a discount. Under these arrangements with the World Bank and/or the IMF, debtor nations have been required to agree to the implementation of certain domestic monetary and fiscal reforms. Such reforms have included the liberalization of trade and foreign investment, the privatization of state-owned enterprises and the setting of targets for public spending and borrowing. These policies and programs seek to promote the debtor country’s economic growth and development. Investors should also recognize that the Brady Plan only sets forth general guiding principles for economic reform and debt reduction, emphasizing that solutions must be negotiated on a case-by-case basis between debtor nations and their creditors. The Adviser may believe that economic reforms undertaken by countries in connection with the issuance of Brady Bonds may make the debt of countries which have issued or have announced plans to issue Brady Bonds an attractive opportunity for investment. However, there can be no assurance that the Adviser’s expectations with respect to Brady Bonds will be realized.

Agreements implemented under the Brady Plan to date are designed to achieve debt and debt-service reduction through specific options negotiated by a debtor nation with its creditors. As a result, the financial packages offered by each country differ. The types of options have included the exchange of outstanding commercial bank debt for bonds issued at 100% of face value of such debt which carry a below-market stated rate of interest (generally known as par bonds), bonds issued at a discount from the face value of such debt (generally known as discount bonds), bonds bearing an interest rate which increases over time and bonds issued in exchange for the advancement of new money by existing lenders. Regardless of the stated face amount and stated interest rate of the various types of Brady Bonds, a Fund will purchase Brady Bonds in secondary markets, as described below, in which the price and yield to the investor reflect market conditions at the time of purchase. Certain sovereign bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute supplemental interest payments but generally are not collateralized. Certain Brady Bonds have been collateralized as to principal due date at maturity (typically 30 years from the date of issuance) by U.S. Treasury zero coupon bonds with a maturity equal to the final maturity of such Brady Bonds. The U.S. Treasury bonds purchased as collateral for such Brady Bonds are financed by the IMF, the World Bank and the debtor nations’ reserves. In addition, interest payments on certain types of Brady Bonds may be collateralized by cash or high-grade securities in amounts that typically represent between 12 and 18 months of interest accruals on these instruments with the balance of the interest accruals being uncollateralized. In the event of a default with respect to collateralized Brady Bonds as a result of which the payment obligations of the issuer are accelerated, the U.S. Treasury zero coupon obligations held as collateral for the payment of principal will not be distributed to investors, nor will such obligations be sold and the proceeds distributed. The collateral will be held by the collateral agent to the scheduled maturity of the defaulted Brady Bonds, which will continue to be outstanding, at which time the face amount of the collateral will equal the principal payments that would have then been due on the Brady Bonds in the normal course. However, in light of the residual risk of the Brady Bonds and, among other factors, the history of default with respect to commercial bank loans by public and private entities of countries issuing Brady Bonds, investments in Brady Bonds are considered speculative. A Fund may purchase Brady Bonds with no or limited collateralization, and, for payment of interest and (except in the case of principal collateralized Brady Bonds) principal, will be relying primarily on the willingness and ability of the foreign government to make payment in accordance with the terms of the Brady Bonds.

Investments in Brady Bonds, which are sovereign debt securities, involve special risks. Foreign governmental issuers of debt or the governmental authorities that control the repayment of the debt may be unable or unwilling to repay principal or pay interest when due. In the event of default, there may be limited or no legal recourse in that, generally, remedies for defaults must be pursued in the courts of the defaulting party. Political conditions, especially a sovereign entity’s willingness to meet the terms of its fixed income securities, are of considerable significance. Also, there can be no assurance that the holders of commercial bank loans to the same sovereign entity may not contest payments to the holders of sovereign debt in the event of default under commercial bank loan agreements. In addition, there is no bankruptcy proceeding with respect to sovereign debt on which a sovereign has defaulted, and the Fund may be unable to collect all or any part of its investment in a particular issue. Foreign investment in certain sovereign debt is restricted or controlled to varying degrees, including requiring governmental approval for the repatriation of income, capital or proceeds of sales by foreign investors. These restrictions or controls may at times

limit or preclude foreign investment in certain sovereign debt or increase the costs and expenses of the Fund. Sovereign debt may be issued as part of debt restructuring and such debt is to be considered speculative. There is a history of defaults with respect to commercial bank loans by public and private entities issuing Brady Bonds. All or a portion of the interest payments and/or principal repayment with respect to Brady Bonds may be uncollateralized.

Catastrophe Bond . A catastrophe bond (“cat bond”) is a high-yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophe such as a hurricane or earthquake. If an “issuer,” such as an insurance company or reinsurance company (a company that insures insurance companies), wants to transfer some or all of the risk it assumes in insuring a catastrophe, it can set up a separate legal structure—commonly known as a special purpose vehicle (“SPV”). Foreign governments and private companies also have sponsored cat bonds as a hedge against natural disasters.

The SPV issues cat bonds and typically invests the proceeds from the bond issuance in low-risk securities, such as in investment grade money market or treasury funds, which are those rated Aaa by Moody’s Investor Services (“Moody’s”) or AAA by Fitch, Inc. (“Fitch”) or a comparable rating by another nationally recognized statistical rating organization (“NRSRO”) (the collateral). The earnings on these low-risk securities, as well as insurance premiums paid to the issuer, are used to make periodic, variable rate interest payments to investors. The interest rate typically is based on the LIBOR plus a promised margin, or “spread,” above that.

As long as the natural disaster covered by the bond does not occur during the time investors own the bond, investors will receive their interest payments and, when the bond matures, their principal back from the collateral. Most cat bonds generally mature in three years, although terms range from one to five years, depending on the bond.

If the event does occur, however, the issuer’s right to the collateral is “triggered.” This means the issuer receives the collateral, instead of investors receiving it when the bond matures, causing investors to lose most—or all—of their principal and unpaid interest payments. You may hear this described as a “credit cliff.” When this happens, the SPV might also have the right to extend the maturity of the bonds to verify that the trigger did occur or to process and audit insurance claims. Depending on the bond, the extension can last anywhere from three months to two years or more. In some cases, cat bonds cover multiple events to reduce the chances that investors will lose all of their principal.

Each cat bond has its own triggering event(s), which is(are) spelled out in the bond’s offering documents. These documents typically are only available to purchasers or potential purchasers, however, because cat bonds are not subject to the Securities and Exchange Commission’s (“SEC”) registration and disclosure requirements. A number of different types of triggers have developed. The question of whether a triggering event occurred—or the true meaning of a triggering event—can be complex and could wind up being litigated and require a ruling from a court. This in turn may add additional uncertainty to the way these securities perform.

Because cat bond holders face potentially huge losses, cat bonds are typically rated BB, or “non-investment grade” by credit rating agencies such as Fitch, Moody’s and S&P. Non-investment grade bonds are also known as “high yield” or “junk” bonds. These ratings agencies, as well as sponsors and underwriters of cat bonds, rely heavily on a handful of firms that specialize in modeling natural disasters. These “risk modeling” firms employ meteorologists, seismologists,

statisticians, and other experts who use large databases of historical or simulated data to estimate the probabilities and potential financial damage of natural disasters.

The potential advantages of cat bonds are that they are not closely linked with the stock market or economic conditions and offer significant attractions to investors. For example, for the same level of risk, investors can usually obtain a higher yield with cat bonds relative to alternative investments. Another potential benefit is that the insurance risk securitization of cat bonds shows no correlation with equities or corporate bonds, meaning they may provide a good diversification of risks.

As with any financial instrument, cat bonds also present risks, which include the following:

Credit Cliff : A cat bond can cause the investor rapidly to lose most or all of his or her principal and any unpaid interest if a triggering event occurs. The high yield will not make investors whole if the triggering event actually occurs.

Modeling Risk : Prices, yields and ratings of cat bonds rely almost exclusively on complex computer modeling techniques, which in turn are extremely sensitive to the data used in the models. The quality and quantity of data vary depending on the catastrophe.

Liquidity Risk : Secondary trading for cat bonds is very limited, so in a pinch an investor may not be able to sell. In addition, the secondary transactions that do occur are privately negotiated, so pricing information is not generally available to the public. In addition, as noted, the maturity of some cat bonds can be extended during the worst possible time—when a trigger may have occurred, which can cause the bonds’ value to plummet, potentially making them even harder to sell.

Unregistered Investments : Most cat bonds are issued in offerings pursuant to Rule 144A under the Securities Act (“Rule 144A”), which are available only to large institutional investors and are not subject to the SEC’s registration and disclosure requirements. As a result, many of the normal investor protections that are common to most traditional registered investments are missing. For example, issuers of cat bonds are not required to file a registration statement or periodic reports with the SEC, unlike issuers of registered bonds. While general prohibitions against securities fraud apply to Rule 144A offerings, the lack of public disclosure may make it difficult to obtain and evaluate the information used to price and structure cat bonds.

CFTC Exclusion . The Adviser has claimed an exclusion from the definition of commodity pool operator under Commodity Futures Trading Commission (“CFTC”) Rule 4.5 for each Fund, except the Funds-of-Funds, and therefore the Funds and the Adviser (with respect to the Funds) are not currently subject to registration, disclosure, and regulatory requirements under applicable CFTC rules. The Funds have to reaffirm annually their eligibility for this exclusion. The Adviser intends to continue to operate each Fund, except the Funds-of-Funds, in a manner to maintain its exclusion under CFTC Rule 4.5. The Funds-of-Funds currently rely on time-limited no-action relief that delays any obligation for the Adviser to register with the CFTC as a commodity pool operator with respect to the Funds-of-Funds until six months from the date the CFTC staff issues revised guidance on the application to funds-of-funds of the de minimus thresholds in the exclusion from the definition of commodity pool operator under CFTC Rule 4.5.

Collateralized Mortgage Obligations (“CMOs”) . CMOs are hybrids between mortgage-backed bonds and mortgage pass-through securities. Similar to a bond, interest and prepaid principal are paid, in most cases, semiannually. CMOs may be collateralized by whole mortgage loans but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed by Government National Mortgage Association (“GNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), or Federal National Mortgage Association (“FNMA”), and their income streams.

CMOs are structured into multiple classes, each bearing a different stated maturity. Actual maturity and average life will depend upon the prepayment experience of the collateral. CMOs provide for a modified form of call protection through a de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to investors holding the shortest maturity class. Investors holding the longer maturity classes receive principal only after the first class has been retired. An investor is partially guarded against a sooner than desired return of principal because of the sequential payments. The prices of certain CMOs, depending on their structure and the rate of prepayments, can be volatile. Some CMOs may also not be as liquid as other securities.

In a typical CMO transaction, a corporation issues multiple series (e.g., A, B, C, Z) of CMO bonds (“Bonds”). Proceeds of the Bond offering are used to purchase mortgages or mortgage pass-through certificates (“Collateral”). The Collateral is pledged to a third party trustee as security for the Bonds. Principal and interest payments from the Collateral are used to pay principal on the Bonds in the order A, B, C, Z. The Series A, B, and C bonds all bear current interest. Interest on the Series Z Bond is accrued and added to principal and a like amount is paid as principal on the Series A, B, or C Bond currently being paid off. When the Series A, B, and C Bonds are paid in full, interest and principal on the Series Z Bond begins to be paid currently. With some CMOs, the issuer serves as a conduit to allow loan originators (primarily builders or savings and loan associations) to borrow against their loan portfolios.

The principal risk of CMOs results from the rate of prepayments on underlying mortgages serving as collateral and from the structure of the deal. An increase or decrease in prepayment rates will affect the yield, average life and price of CMOs.

A Fund may also invest in, among others, parallel pay CMOs and Planned Amortization Class CMOs (“PAC Bonds”). Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which, as with other CMO structures, must be retired by its stated maturity date or a final distribution date but may be retired earlier. PAC Bonds are a type of CMO tranche or series designed to provide relatively predictable payments of principal provided that, among other things, the actual prepayment experience on the underlying mortgage loans falls within a predefined range. If the actual prepayment experience on the underlying mortgage loans is at a rate faster or slower than the predefined range or if deviations from other assumptions occur, principal payments on the PAC Bond may be earlier or later than predicted. The magnitude of the predefined range varies from one PAC Bond to another; a narrower range increases the risk that prepayments on the PAC Bond will be greater or smaller than predicted. Because of these features, PAC Bonds generally are less subject to the risks of prepayment than are other types of mortgage-backed securities.

Common Stock . Common stock is issued by companies to raise cash for business purposes and represents a proportionate interest in the issuing companies. Therefore, a Fund participates in the success or failure of any company in which it holds stock. The market value of common stock can fluctuate significantly, reflecting the business performance of the issuing company, investor perception and general economic or financial market movements. Smaller companies are especially sensitive to these factors and may even become valueless. Despite the risk of price volatility, however, common stocks also offer a greater potential for gain on investment, compared to other classes of financial assets such as bonds or cash equivalents. A Fund may also receive common stock as proceeds from a defaulted debt security held by the Fund or from a convertible bond converting to common stock. In such situations, a Fund will hold the common stock at the Adviser’s discretion.

Convertible Securities . Convertible securities are bonds, notes, debentures, preferred stocks and other securities which are convertible into common stock. Investments in convertible securities can provide an opportunity for capital appreciation and/or income through interest and dividend payments by virtue of their conversion or exchange features.

The convertible securities in which a Fund may invest are either fixed income or zero coupon debt securities which may be converted or exchanged at a stated or determinable exchange ratio into underlying shares of common stock. The exchange ratio for any particular convertible security may be adjusted from time to time due to stock splits, dividends, spin-offs, other corporate distributions or scheduled changes in the exchange ratio. Convertible debt securities and convertible preferred stocks, until converted, have general characteristics similar to both debt and equity securities. Although to a lesser extent than with debt securities generally, the market value of convertible securities tends to decline as interest rates increase and, conversely, tends to increase as interest rates decline. In addition, because of the conversion or exchange feature, the market value of convertible securities typically changes as the market value of the underlying common stock changes, and, therefore, also tends to follow movements in the general market for equity securities. A unique feature of convertible securities is that as the market price of the underlying common stock declines, convertible securities tend to trade increasingly on a yield basis, and so may not experience market value declines to the same extent as the underlying common stock. When the market price of the underlying common stock increases, the prices of the convertible securities tend to rise as a reflection of the value of the underlying common stock, although typically not as much as the underlying common stock. While no securities investments are without risk, investments in convertible securities generally entail less risk than investments in common stock of the same issuer.

As debt securities, convertible securities are investments which provide for a stream of income (or in the case of zero coupon securities, accretion of income) with generally higher yields than common stocks. Convertible securities generally offer lower yields than non-convertible securities of similar quality because of their conversion or exchange features.

Like all debt securities, there can be no assurance of income or principal payments because the issuers of the convertible securities may default on their obligations.

Convertible securities generally are subordinated to other similar but non-convertible securities of the same issuer, although convertible bonds, as corporate debt obligations, enjoy seniority in right of payment to all equity securities, and convertible preferred stock is senior to common stock, of the same issuer. However, because of the subordination feature, convertible bonds and convertible preferred stock typically have lower ratings than similar non-convertible

securities. Convertible securities may be issued as fixed income obligations that pay current income or as zero coupon notes and bonds, including Liquid Yield Option Notes (“LYONs”™).

Zero coupon convertible securities are debt securities which are issued at a discount to their face amount and do not entitle the holder to any periodic payments of interest prior to maturity. Rather, interest earned on zero coupon convertible securities accretes at a stated yield until the security reaches its face amount at maturity. Zero coupon convertible securities are convertible into a specific number of shares of the issuer’s common stock. In addition, zero coupon convertible securities usually have put features that provide the holder with the opportunity to sell the securities back to the issuer at a stated price before maturity. Generally, the prices of zero coupon convertible securities may be more sensitive to market interest rate fluctuations than conventional convertible securities.

Contingent Convertible Securities. Certain Funds may invest in contingent convertible securities, or “CoCos”. These securities are usually deeply subordinated instruments with long maturities that contain a conversion mechanism that is governed by the issuer’s ability to meet certain minimum financial and accounting ratios as promulgated by statutory regulatory authorities such as banking regulators or macro prudential regulatory authorities. If the issuer triggers the CoCo’s conversion mechanism, the contingent convertible security’s principal may be (1) permanently written off in total, (2) temporarily written off in total or in part with principal reinstatement contingent upon the issuer re-attaining compliance with statutorily required financial and accounting ratios, or (3) converted into common equity or into a security ranking junior to the contingent convertible security. In any or all of these circumstances, the CoCo’s value may be partially or completely impaired either temporarily or permanently.

Many, but not all, contingent convertible securities are rated as speculative or ‘High Yield’ by NRSROs. Like many other fixed income securities, the contingent convertible security’s market value tends to decline as interest rates rise and tends to rise as interest rates fall. Because of the CoCo’s subordinated status within the issuer’s capital structure, market value fluctuations may be greater than for other more senior securities issued by the issuer. Also the contingent convertible security’s value may fluctuate more closely with the issuer’s equity than with its debt given the CoCo’s subordination and given the embedded conversion mechanism. Because most CoCo conversion mechanisms are triggered by the issuer failing to meet minimum financial and accounting thresholds due to financial stress, unforeseen economic conditions, or unforeseen regulatory changes (among others), there is risk that the contingent convertible security will lose most if not all of its value upon conversion.

In addition, some such instruments have a set stock conversion rate that would cause an automatic write-down of capital if the price of the stock is below the conversion price on the conversion date. In another version of a security with loss absorption characteristics, the liquidation value of the security may be adjusted downward to below the original par value under certain circumstances similar to those that would trigger a CoCo. The write down of the par value would occur automatically and would not entitle the holders to seek bankruptcy of the company. In certain versions of the instruments, the notes will write down to zero under certain circumstances and investors could lose everything, even as the issuer remains in business.

Corporate Obligations . Investment in corporate debt obligations involves credit and interest rate risk. The value of fixed income investments will fluctuate with changes in interest rates

and bond market conditions, tending to rise as interest rates decline and to decline as interest rates rise. Corporate debt obligations generally offer less current yield than securities of lower quality, but lower-quality securities generally have less liquidity, greater credit and market risk, and as a result, more price volatility. Longer term bonds are, however, generally more volatile than bonds with shorter maturities.

Credit Linked Notes . Credit linked securities are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order to provide exposure to certain fixed income markets. For instance, credit linked securities may be used as a cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more traditional income producing securities are not available.

Like an investment in a bond, investments in credit linked securities represent the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the security. However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of payments over the term of the swap agreements provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay the counterparty the par value (or other agreed upon value) of the referenced debt obligation. This, in turn, would reduce the amount of income and principal that the Fund would receive. The Fund’s investments in these instruments are indirectly subject to the risks associated with derivative instruments, including, among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and management risk. It is also expected that the securities will be exempt from registration under the Securities Act. Accordingly, there may be no established trading market for the securities and they may constitute illiquid investments.

Currency Transactions . A Fund may engage in currency transactions with counterparties primarily in order to hedge, or manage the risk of the value of portfolio holdings denominated in particular currencies against fluctuations in relative value. Currency transactions include forward currency contracts, exchange listed currency futures, exchange listed and OTC options on currencies, and currency swaps. A Fund may enter into currency transactions with counterparties which have received (or the guarantors of the obligations which have received) a credit rating of A-1 or P-1 by Standard & Poor’s Ratings Group (“Standard & Poor’s”) or Moody’s, respectively, or that have an equivalent rating from an NRSRO or (except for OTC currency options) are determined to be of equivalent credit quality by the Adviser.

Forward Currency Contracts . A forward currency contract involves an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. These contracts are entered into in the interbank market conducted directly between currency traders (usually large commercial banks) and their customers.

At or before the maturity of a forward currency contract, a Fund may either sell a portfolio security and make delivery of the currency, or retain the security and fully or partially offset its contractual obligation to deliver the currency by purchasing a second contract. If a Fund

retains the portfolio security and engages in an offsetting transaction, the Fund, at the time of execution of the offsetting transaction, will incur a gain or a loss to the extent that movement has occurred in forward currency contract prices.

The precise matching of forward currency contract amounts and the value of the securities involved generally will not be possible because the value of such securities, measured in the foreign currency, will change after the foreign currency contract has been established. Thus, a Fund might need to purchase or sell foreign currencies in the spot (cash) market to the extent such foreign currencies are not covered by forward currency contracts. The projection of short-term currency market movements is extremely difficult, and the successful execution of a short-term hedging strategy is highly uncertain.

In general, the Funds cover their daily obligation requirements for outstanding forward foreign currency contracts by earmarking or segregating liquid portfolio securities. To the extent that a Fund is not able to cover its forward currency positions with underlying portfolio securities, the Fund segregates cash. If the value of the securities used to cover a position or the value of segregated assets declines, a Fund will find alternative cover or segregate additional cash or other liquid assets on a daily basis so that the value of the ear-marked or segregated assets will be equal to the amount of such Fund’s commitments with respect to such contracts.

A Fund’s dealings in forward currency contracts and other currency transactions such as futures, options, options on futures and swaps generally will be limited to hedging involving either specific transactions or portfolio positions except as described below. Transaction hedging is entering into a currency transaction with respect to specific assets or liabilities of a Fund, which will generally arise in connection with the purchase or sale of its portfolio securities or the receipt of income therefrom. Position hedging is entering into a currency transaction with respect to portfolio security positions denominated or generally quoted in that currency.

A Fund generally will not enter into a transaction to hedge currency exposure to an extent greater, after netting all transactions intended wholly or partially to offset other transactions, than the aggregate market value (at the time of entering into the transaction) of the securities held in its portfolio that are denominated or generally quoted in or currently convertible into such currency, other than with respect to proxy hedging or cross hedging as described below.

Cross Hedge . If a particular currency is expected to decrease against another currency, a Fund may sell the currency expected to decrease and purchase a currency which is expected to increase against the currency sold in an amount approximately equal to the lesser of some or all of the Fund’s portfolio holdings denominated in or exposed to the currency sold.

Proxy-Hedge . A Fund may also enter into a position hedge transaction in a currency other than the currency being hedged (a “proxy hedge”). A Fund may enter into a proxy hedge if the Adviser believes there is a correlation between the currency being hedged and the currency in which the proxy hedge is denominated. Proxy hedging is often used when the currency to which a Fund’s portfolio is exposed is difficult to hedge or to hedge against the dollar. This type of hedging entails an additional risk beyond a direct position hedge because it is dependent on a stable relationship between two currencies paired as proxies. Overall risk to a Fund may increase or decrease as a consequence of the use of proxy hedges.

Currency Hedging . While the value of forward currency contracts, currency options, currency futures and options on futures may be expected to correlate with exchange rates, they will

not reflect other factors that may affect the value of a Fund’s investments. A currency hedge, for example, should protect a yen-denominated bond against a decline in the yen, but will not protect a Fund against price decline if the issuer’s creditworthiness deteriorates. Because the value of a Fund’s investments denominated in foreign currency will change in response to many factors other than exchange rates, a currency hedge may not be entirely successful in mitigating changes in the value of the Fund’s investments denominated in that currency over time.

A decline in the dollar value of a foreign currency in which a Fund’s securities are denominated will reduce the dollar value of the securities, even if their value in the foreign currency remains constant. The use of currency hedges does not eliminate fluctuations in the underlying prices of the securities, but it does establish a rate of exchange that can be achieved in the future. In order to protect against such diminutions in the value of securities it holds, a Fund may purchase put options on the foreign currency. If the value of the currency does decline, a Fund will have the right to sell the currency for a fixed amount in dollars and will thereby offset, in whole or in part, the adverse effect on its securities that otherwise would have resulted. Conversely, if a rise in the dollar value of a currency in which securities to be acquired are denominated is projected, thereby potentially increasing the cost of the securities, a Fund may purchase call options on the particular currency. The purchase of these options could offset, at least partially, the effects of the adverse movements in exchange rates. Although currency hedges limit the risk of loss due to a decline in the value of a hedged currency, at the same time, they also limit any potential gain that might result should the value of the currency increase.

A Fund may enter into foreign currency exchange transactions to hedge its currency exposure in specific transactions or portfolio positions. Transaction hedging is the purchase or sale of forward currency contracts with respect to specific receivables or payables of a Fund generally accruing in connection with the purchase or sale of its portfolio securities. Position hedging is the sale of forward currency contracts with respect to portfolio security positions. A Fund may not position hedge to an extent greater than the aggregate market value (at the time of making such sale) of the hedged securities.

The currencies of certain emerging market countries have experienced devaluations relative to the U.S. Dollar, and future devaluations may adversely affect the value of assets denominated in such currencies. In addition, currency hedging techniques may be unavailable in certain emerging market countries. Many emerging market countries have experienced substantial, and in some periods extremely high, rates of inflation or deflation for many years, and future inflation may adversely affect the economies and securities markets of such countries.

Position Hedge. A Fund may hedge some or all of its investments denominated in a foreign currency or exposed to foreign currency fluctuations against a decline in the value of that currency relative to the U.S. Dollar by entering into forward foreign currency contracts to sell an amount of that currency approximating the value of some or all of its portfolio securities denominated in or exposed to that currency and buying U.S. Dollars or by participating in options or future contracts with respect to the currency. Such transactions do not eliminate fluctuations caused by changes in the local currency prices of security investments, but rather, establish an exchange rate at a future date. Although such contracts are intended to minimize the risk of loss due to a decline in the value of the hedged currencies, at the same time they tend to limit any potential gain which might result should the value of such currencies increase. The Adviser may from time to time seek to

reduce foreign currency risk by hedging some or all of a Fund’s foreign currency exposure back into the U.S. Dollar.

Currency Futures . A Fund may also seek to enhance returns or hedge against the decline in the value of a currency through use of currency futures or options thereon. Currency futures are similar to forward foreign exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign exchange transactions are traded in the OTC market. Currency futures involve currency risk equivalent to currency forwards.

Currency Options . A Fund that invests in foreign currency-denominated securities may buy or sell put and call options on foreign currencies either on exchanges or in the OTC market. A put option on a foreign currency gives the purchaser of the option the right to sell a foreign currency at the exercise price until the option expires. A call option on a foreign currency gives the purchaser of the option the right to purchase the currency at the exercise price until the option expires. A Fund may also write covered options on foreign currencies. For example, to hedge against a potential decline in the U.S. Dollar value of foreign currency denominated securities due to adverse fluctuations in exchange rates, a Fund could, instead of purchasing a put option, write a call option on the relevant currency. If the expected decline occurs, the option will most likely not be exercised and the decline in value of portfolio securities will be offset by the amount of the premium received. Currency options traded on U.S. or other exchanges may be subject to position limits which may limit the ability of a Fund to reduce foreign currency risk using such options. OTC options differ from exchange traded options in that they are two-party contracts with price and other terms negotiated between buyer and seller, and generally do not have as much market liquidity as exchange-traded options.

The CFTC has begun to regulate certain forward currency contracts, which may in the future limit the Funds’ ability or desire to utilize them.

Currency hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency transactions can result in losses to a Fund if the currency being hedged fluctuates in value to a degree or in a direction that is not anticipated. Further, there is the risk that the perceived correlation between various currencies may not be present or may not be present during the particular time that a Fund is engaging in proxy hedging. If a Fund enters into a currency hedging transaction, the Fund will comply with the asset segregation requirements described below under “Use of Segregated and Other Special Accounts.”

Risks of Currency Transactions . Currency transactions are subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be negatively affected by government exchange controls, blockages, and manipulations or exchange restrictions imposed by governments. These can result in losses to a Fund if it is unable to deliver or receive currency or funds in settlement of obligations and could also cause hedges it has entered into to be rendered useless, resulting in full currency exposure as well as incurring transaction costs. Buyers and sellers of currency futures are subject to the same risks that apply to the use of futures generally. Further, settlement of a currency futures contract for the purchase of most currencies must occur at a bank based in the issuing nation. Trading options on currency futures is relatively new, and the ability to establish and close out positions on such options

is subject to the maintenance of a liquid market which may not always be available. Currency exchange rates may fluctuate based on factors extrinsic to that country’s economy.

Risk Factors in Hedging Foreign Currency Risks . Hedging transactions involving currency instruments involve substantial risks, including correlation risk. While an objective of a Fund’s use of currency instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s shares, the NAV of the Fund’s shares will fluctuate. Moreover, although currency instruments will be used with the intention of hedging against adverse currency movements, transactions in currency instruments involve the risk that such currency movements may not occur and that the Fund’s hedging strategies may be ineffective. To the extent that a Fund hedges against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return as the result of its hedging transactions. Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging activities when movements in currency exchange rates occur.

In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers are not required to continue to make markets in such contracts. There have been periods during which certain banks or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell. Governmental imposition of credit controls might limit any such forward contract trading. With respect to its trading of forward contracts, if any, a Fund may be subject to the risk of bank or dealer failure and the inability of, or refusal by, a bank or dealer to perform with respect to such contracts. Any such default would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the then market price and could result in a loss to the Fund. It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a market with respect to which currency instruments are not available and it is not possible to engage in effective foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as the currencies involved, the length of the contract period and the market conditions then prevailing. In addition, a Fund may not always be able to enter into forward contracts at attractive prices and may be limited in its ability to use these contracts to hedge Fund assets. Since transactions in foreign currency exchanges usually are conducted on a principal basis, no fees or commissions are involved.

New regulations governing certain OTC derivatives may also increase the costs of using these types of instruments or make them less effective, as described under “Strategic Transactions, Derivatives and Synthetic Investments — Risks of Strategic Transactions Inside the U.S.”

See “CFTC Exclusion” for additional information about the Funds’ use of derivatives in connection with CFTC exclusions.

Cyber Security Risk . The Funds, like all companies, may be susceptible to operational and information security risks. Breaches in cyber security include, among other behaviors, stealing or corrupting data maintained online or digitally, denial of service attacks on websites, the unauthorized release of confidential information or various other forms of cyber attacks. Cyber security failures or breaches of the Funds or their service providers or the issuers of securities in which the Funds invest have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, the inability of Fund shareholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs. The Funds and their shareholders could be negatively impacted as a result. While the Funds’ service providers have established business continuity plans in the event of, and risk management systems to prevent, such cyber incidents, there are inherent limitations in such plans and systems, including the possibility that certain risks have not been identified.

Debt Securities

Debt Securities Generally .

The principal risks involved with investments in debt securities include interest rate risk, credit risk and pre-payment risk. Interest rate risk refers to the likely decline in the value of bonds as interest rates rise. Generally, longer-term securities are more susceptible to changes in value as a result of interest-rate changes than are shorter-term securities. Credit risk refers to the risk that an issuer of a bond may default with respect to the payment of principal and interest. The lower a bond is rated, the more it is considered to be a speculative or risky investment. Pre-payment risk is commonly associated with pooled debt securities, such as mortgage-backed securities and asset-backed securities, but may affect other debt securities as well. When the underlying debt obligations are prepaid ahead of schedule, the return on the security will be lower than expected. Pre-payment rates usually increase when interest rates are falling.

Lower-rated securities are more likely to react to developments affecting these risks than are more highly rated securities, which react primarily to movements in the general level of interest rates. Although the fluctuation in the price of debt securities is normally less than that of common stocks, in the past there have been extended periods of cyclical increases in interest rates that have caused significant declines in the price of debt securities in general and have caused the effective maturity of securities with prepayment features to be extended, thus effectively converting short or intermediate term securities (which tend to be less volatile in price) into long term securities (which tend to be more volatile in price).

Ratings as Investment Criteria . High-quality, medium-quality and non-investment grade debt obligations are characterized as such based on their ratings by NRSROs, such as Standard & Poor’s or Moody’s. In general, the ratings of NRSROs represent the opinions of these agencies as to the quality of securities that they rate. Such ratings, however, are relative and subjective, and are not absolute standards of quality and do not evaluate the market value risk of the securities. These ratings are used by a Fund as initial criteria for the selection of portfolio securities, but a Fund also relies upon the independent advice of the Adviser to evaluate potential investments. This is particularly important for lower-quality securities. Among the factors that will be considered is the long-term ability of the issuer to pay principal and interest and general economic trends, as well as

an issuer’s capital structure, existing debt and earnings history. Appendix B to this SAI contains further information about the rating categories of NRSROs and their significance.

In the event that a security receives different ratings from different NRSROs, unless specific disclosure in a Fund’s prospectus provides otherwise, the Adviser will treat the security as being rated in the highest rating category received from an NRSRO.

Subsequent to its purchase by a Fund, an issuer of securities may cease to be rated or its rating may be reduced below the minimum required for purchase by such Fund. In addition, it is possible that an NRSRO might not change its rating of a particular issuer to reflect subsequent events. None of these events generally will require sale of such securities, but the Adviser will consider such events in its determination of whether the Fund should continue to hold the securities. In addition, to the extent that the ratings change as a result of changes in an NRSRO or its rating systems, or due to a corporate reorganization, a Fund will attempt to use comparable ratings as standards for its investments in accordance with its investment objective and policies.

Investment Grade Debt Securities . The Funds may purchase “investment grade” bonds, which are those rated Aaa, Aa, A or Baa by Moody’s or AAA, AA, A or BBB by Standard & Poor’s or Fitch or a comparable rating by another NRSRO; or, if unrated, judged to be of equivalent quality as determined by the Adviser. For the avoidance of doubt, bonds rated Baa3 by Moody’s or BBB- by S&P or BBB- by Fitch are considered to be investment grade. In general, but not always, investments in securities rated in the BBB category tend to have more risk than securities in the A, AA or AAA categories due to greater exposure to, among other things: adverse economic conditions; higher levels of debt; or more volatile industry performance. Securities within the BBB category can also experience greater market value fluctuations over time. To the extent that a Fund invests in higher-grade securities, the Fund may not be able to avail itself of opportunities for higher income that may be available at lower grades.

Lower Quality (High-Risk) Debt Securities . Non-investment grade debt or lower quality/rated securities, commonly known as junk bonds or high yield securities (hereinafter referred to as “lower-quality securities”) include (i) bonds rated below Baa3 by Moody’s or below BBB- by Standard & Poor’s or Fitch, (ii) commercial paper rated at or below C by Standard & Poor’s, Not Prime by Moody’s or Fitch 4 by Fitch; and (iii) unrated debt securities of comparable quality as determined by the Adviser. The lower the ratings of such lower-quality securities, the more their risks render them like equity securities. Securities rated D may be in default with respect to payment of principal or interest. Lower-quality securities, while generally offering higher yields than investment grade securities with similar maturities, involve greater risks, including a higher possibility of default or bankruptcy. There is more risk associated with these investments because of reduced creditworthiness and increased risk of default. Lower-quality securities generally involve greater volatility of price and risk to principal and income, and may be less liquid, than securities in the higher rating categories. Under NRSRO guidelines, lower-quality securities and comparable unrated securities will likely have some quality and protective characteristics that are outweighed by large uncertainties or major risk exposures to adverse conditions.

Lower-quality securities are also considered to be at risk of, among other things: failing to attain improved credit quality and NRSRO investment grade rating status; having a current identifiable vulnerability to default or to be in default; not having the capacity to make required interest payments and repay principal when due in the event of adverse business, financial or economic conditions; or, being in default or not current in the payment of interest or principal. They

are regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal.

Issuers of lower-quality securities often are highly leveraged and may not have available to them more traditional methods of financing. Therefore, the risk associated with acquiring the securities of such issuers generally is greater than is the case with higher rated securities. For example, during an economic downturn or a sustained period of rising interest rates, highly leveraged issuers of lower-quality securities may experience financial stress. During such periods, such issuers may not have sufficient revenues to meet their interest payment obligations. The issuer’s ability to service its debt obligations may also be adversely affected by specific corporate developments, or the issuer’s inability to meet specific projected business forecasts, or the unavailability of additional financing. The risk of loss from default by the issuer is significantly greater for the holders of high yield securities because such securities are generally unsecured and are often subordinated to other creditors of the issuer. Prices and yields of high yield securities will fluctuate over time and, during periods of economic uncertainty, volatility of high yield securities may adversely affect a Fund’s NAV. In addition, investments in high yield zero coupon or pay-in-kind bonds, rather than income-bearing high yield securities, may be more speculative and may be subject to greater fluctuations in value due to changes in interest rates.

A Fund may have difficulty disposing of certain lower-quality securities because they may have a thin trading market. Because not all dealers maintain markets in all high yield securities, a Fund anticipates that such securities could be sold only to a limited number of dealers or institutional investors. The lack of a liquid secondary market may have an adverse effect on the market price and a Fund’s ability to dispose of particular issues and may also make it more difficult for the Fund to obtain accurate market quotations for purposes of valuing the Fund’s assets. Market quotations generally are available on many lower-quality issues only from a limited number of dealers and may not necessarily represent firm bids of such dealers or prices for actual sales. Adverse publicity and investor perceptions may decrease the values and liquidity of high-yield securities. These securities may also involve special registration responsibilities, liabilities and costs, and liquidity and valuation difficulties.

Credit quality in the lower-quality securities market can change suddenly and unexpectedly, and even recently-issued credit ratings may not fully reflect the actual risks posed by a particular high-yield security. For these reasons, it is generally the policy of the Adviser not to rely exclusively on ratings issued by established credit rating agencies, but to supplement such ratings with its own independent and on-going review of credit quality. The achievement of a Fund’s investment objective by investment in such securities may be more dependent on the Adviser’s credit analysis than is the case for higher quality bonds. Should the rating of a portfolio security be downgraded, the Adviser will determine whether it is in the best interests of a Fund to retain or dispose of such security.

Prices for lower-quality securities may be affected by legislative and regulatory developments. Also, Congress has from time to time considered legislation which would restrict or eliminate the corporate tax deduction for interest payments on these securities and regulate corporate restructurings. Such legislation may significantly depress the prices of outstanding securities of this type.

A portion of the lower-quality securities acquired by a Fund may be purchased upon issuance, which may involve special risks because the securities so acquired are new issues. In such

instances, a Fund may be a substantial purchaser of the issue and therefore have the opportunity to participate in structuring the terms of the offering. Although this may enable a Fund to seek to protect itself against certain of such risks, the considerations discussed herein would nevertheless remain applicable.

Information Concerning Duration . Duration is a measure of the average life of a fixed income security that was developed as a more precise alternative to the concepts of “term to maturity” or “average dollar weighted maturity” as measures of “volatility” or “risk” associated with changes in interest rates. Duration incorporates a security’s yield, coupon interest payments, final maturity and call features into one measure.

Most debt obligations provide interest (“coupon”) payments in addition to final (“par”) payment at maturity. Some obligations also have call provisions. Depending on the relative magnitude of these payments and the nature of the call provisions, the market values of debt obligations may respond differently to changes in interest rates.

Traditionally, a debt security’s “term-to-maturity” has been used as a measure of the sensitivity of the security’s price to changes in interest rates (which is the “interest rate risk” or “volatility” of the security). However, “term-to-maturity” measures only the time until a debt security provides its final payment, taking no account of the pattern of the security’s payments prior to maturity. Average dollar weighted maturity is calculated by averaging the terms of maturity of each debt security held with each maturity “weighted” according to the percentage of assets that it represents. Duration is a measure of the expected life of a debt security on a present value basis and reflects both principal and interest payments. Duration takes the length of the time intervals between the present time and the time that the interest and principal payments are scheduled or, in the case of a callable security, expected to be received, and weights them by the present values of the cash to be received at each future point in time. For any debt security with interest payments occurring prior to the payment of principal, duration is ordinarily less than maturity. In general, all other factors being the same, the lower the stated or coupon rate of interest of a debt security, the longer the duration of the security; conversely, the higher the stated or coupon rate of interest of a debt security, the shorter the duration of the security.

There are some situations where the standard duration calculation does not properly reflect the interest rate exposure of a security. For example, floating and variable rate securities often have final maturities of ten or more years; however, their interest rate exposure corresponds to the frequency of the coupon reset. Another example where the interest rate exposure is not properly captured by duration is the case of mortgage pass-through securities. The stated final maturity of such securities is generally 30 years, but current prepayment rates are more critical in determining the securities’ interest rate exposure. In these and other similar situations, the Funds’ will use more sophisticated analytical techniques to project the economic life of a security and estimate its interest rate exposure. Since the computation of duration is based on predictions of future events rather than known factors, there can be no assurance that a Fund will at all times achieve its targeted portfolio duration.

The change in market value of U.S. Government fixed income securities is largely a function of changes in the prevailing level of interest rates. When interest rates are falling, a portfolio with a shorter duration generally will not generate as high a level of total return as a portfolio with a longer duration. When interest rates are stable, shorter duration portfolios generally will not generate as high a level of total return as longer duration portfolios (assuming that long-term

interest rates are higher than short-term rates, which is commonly the case). When interest rates are rising, a portfolio with a shorter duration will generally outperform longer duration portfolios. With respect to the composition of a fixed income portfolio, the longer the duration of the portfolio, generally, the greater the anticipated potential for total return, with, however, greater attendant interest rate risk and price volatility than for a portfolio with a shorter duration.

Delayed Funding Loans and Revolving Credit Facilities . Delayed funding loans and revolving credit facilities are borrowings in which the Fund agrees to make loans up to a maximum amount upon demand by the borrowing issuer for a specified term. A revolving credit facility differs from a delayed funding loan in that as the borrowing issuer repays the loan, an amount equal to the repayment is again made available to the borrowing issuer under the facility. The borrowing issuer may at any time borrow and repay amounts so long as, in the aggregate, at any given time the amount borrowed does not exceed the maximum amount established by the loan agreement. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest.

There are a number of risks associated with an investment in delayed funding loans and revolving credit facilities including, credit, interest rate and liquidity risk and the risks of being a lender. There may be circumstances under which the borrowing issuer’s credit risk may be deteriorating and yet a Fund may be obligated to make loans to the borrowing issuer as the borrowing issuer’s credit continues to deteriorate, including at a time when the borrowing issuer’s financial condition makes it unlikely that such amounts will be repaid.

Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, a Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value. These risks could cause a Fund to lose money on its investment, which in turn could affect a Fund’s returns. A Fund may treat delayed funding loans and revolving credit facilities for which there is no readily available market as illiquid for purposes of the Fund’s limitation on illiquid investments.

Depositary Receipts . Depositary receipts include American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”) and Global Depositary Receipts (“GDRs”) or other securities convertible into securities of issuers based in foreign countries. These securities may not necessarily be denominated in the same currency as the securities into which they may be converted. Generally, ADRs, in registered form, are denominated in U.S. Dollars and are designed for use in the U.S. securities markets, GDRs, in bearer form, are issued and designed for use outside the United States and EDRs (also referred to as Continental Depositary Receipts (“CDRs”)), in bearer form, may be denominated in other currencies and are designed for use in European securities markets. ADRs are receipts typically issued by a U.S. bank or trust company evidencing ownership of the underlying securities. EDRs are European receipts evidencing a similar arrangement. GDRs are receipts typically issued by non-U.S. banks and trust companies that evidence ownership of either foreign or domestic securities. For purposes of a Fund’s investment policies, ADRs, GDRs and EDRs are deemed to have the same classification as the underlying securities they represent. Thus, an ADR, GDR or EDR representing ownership of common stock will be treated as common stock.

A Fund may invest in depositary receipts through “sponsored” or “unsponsored” facilities. While ADRs issued under these two types of facilities are in some respects similar, there are distinctions between them relating to the rights and obligations of ADR holders and the practices of market participants.

A depositary may establish an unsponsored facility without participation by (or even necessarily the acquiescence of) the issuer of the deposited securities, although typically the depositary requests a letter of non-objection from such issuer prior to the establishment of the facility. Holders of unsponsored ADRs generally bear all the costs of such facilities. The depositary usually charges fees upon the deposit and withdrawal of the deposited securities, the conversion of dividends into U.S. Dollars, the disposition of non-cash distributions, and the performance of other services. The depositary of an unsponsored facility frequently is under no obligation to pass through voting rights to ADR holders in respect of the deposited securities. In addition, an unsponsored facility is generally not obligated to distribute communications received from the issuer of the deposited securities or to disclose material information about such issuer in the U.S. and thus there may not be a correlation between such information and the market value of the depositary receipts. Unsponsored ADRs tend to be less liquid than sponsored ADRs.

Sponsored ADR facilities are created in generally the same manner as unsponsored facilities, except that the issuer of the deposited securities enters into a deposit agreement with the depositary. The deposit agreement sets out the rights and responsibilities of the issuer, the depositary, and the ADR holders. With sponsored facilities, the issuer of the deposited securities generally will bear some of the costs relating to the facility (such as dividend payment fees of the depositary), although ADR holders continue to bear certain other costs (such as deposit and withdrawal fees). Under the terms of most sponsored arrangements, depositaries agree to distribute notices of shareholder meetings and voting instructions, and to provide shareholder communications and other information to the ADR holders at the request of the issuer of the deposited securities.

Derivatives . Derivatives are financial instruments whose values are derived from another security, a commodity (such as gold or oil), an index or a currency (a measure of value or rates, such as the S&P 500 Index or the prime lending rate). A Fund typically uses derivatives as a substitute for taking a position or reducing exposure to underlying assets. A Fund may invest in derivative instruments including the purchase or sale of futures contracts, swaps (including credit default swaps), options (including options on futures and options on swaps), forward contracts, structured notes, and other equity-linked derivatives. A Fund may use derivative instruments for hedging (offset risks associated with an investment) purposes. A Fund may also use derivatives for non-hedging purposes to seek to enhance returns. When a Fund invests in a derivative for non-hedging purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be greater than the derivative’s cost. No Fund may use any derivative to gain exposure to an asset or class of assets that it would be prohibited by its investment restrictions from purchasing directly. Investments in derivatives in general are subject to market risks that may cause their prices to fluctuate over time. Investments in derivatives may not correctly correlate with the price movements of the underlying instrument. As a result, the use of derivatives may expose a Fund to additional risks that it would not be subject to if it invested directly in the securities underlying those derivatives. The use of derivatives may result in larger losses or smaller gains than otherwise would be the case. A Fund may increase its use of derivatives in response to unusual market conditions.

Derivatives can be volatile and may involve significant risks, including:

Accounting risk — the accounting treatment of derivative instruments, including their initial recording, income recognition, and valuation, may require detailed analysis of relevant accounting guidance as it applies to the specific instrument structure.

Correlation risk — if the value of a derivative does not correlate well with the particular market or other asset class the derivative is intended to provide exposure to, the derivative may not have the anticipated effect.

Counterparty risk — the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable to honor its financial obligation to the Fund.

Currency risk — the risk that changes in the exchange rate between currencies will adversely affect the value (in U.S. Dollar terms) of an investment.

Index risk — if the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to below what the Fund paid. Certain indexed securities may create leverage, to the extent that they increase or decrease in value at a rate that is a multiple of the changes in the applicable index.

Leverage risk — the risk associated with certain types of leveraged investments or trading strategies pursuant to which relatively small market movements may result in large changes in the value of an investment. Certain investments or trading strategies that involve leverage can result in losses that greatly exceed the amount originally invested.

Liquidity risk — the risk that certain securities may be difficult or impossible to sell at the time that the seller would like or at the price that the seller believes the security is currently worth.

Operational risk — derivatives may require customized, manual processing and documentation of transactions and may not fit within existing automated systems for confirmations, reconciliations and other operational processes used for (traditional) securities.

Tax risk — derivatives raise issues under Subchapter M of the Internal Revenue Code requirements for qualifications as a regulated investment company.

Valuation risk — depending on their structure, some categories of derivatives may present special valuation challenges.

Derivatives may generally be traded OTC or on an exchange. OTC derivatives, such as structured notes, are agreements that are individually negotiated between parties and can be tailored to meet a purchaser’s needs. OTC derivatives are not guaranteed by a clearing agency and may be subject to increased credit risk. The CFTC and the SEC continue to review the current regulatory requirements applicable to derivatives, and it is not certain at this time how the regulators

may change these requirements. Any such changes may, among various possible effects, increase the cost of entering into certain derivatives transactions, require more assets of a Fund to be used for collateral in support of those derivatives than is currently the case, or restrict the ability of the Fund to enter into certain types of derivative transactions.

See “CFTC Exclusion” for additional information about the Funds’ use of derivatives in connection with CFTC exclusions.

Direct Debt Instruments . Direct debt instruments are interests in amounts owed by a corporate, governmental or other borrower to lenders (direct loans), to suppliers of goods or services (trade claims or other receivables) or to other parties.

When a Fund participates in a direct loan it will be lending money directly to an issuer. Direct loans generally do not have an underwriter or agent bank, but instead, are negotiated between a company’s management team and a lender or group of lenders. Direct loans typically offer better security and structural terms than other types of high yield securities. Direct debt obligations are often the most senior-obligations in an issuer’s capital structure or are well-collateralized so that overall risk is lessened.

Trade claims are unsecured rights of payment arising from obligations other than borrowed funds. Trade claims include vendor claims and other receivables that are adequately documented and available for purchase from high yield broker-dealers. Trade claims typically may sell at a discount. In addition to the risks otherwise associated with low-quality obligations, trade claims have other risks, including the possibility that the amount of the claim may be disputed by the obligor. Trade claims normally would be considered illiquid and pricing can be volatile.

Direct debt instruments involve a risk of loss in case of default or insolvency of the borrower. A Fund will rely primarily upon the creditworthiness of the borrower and/or the collateral for payment of interest and repayment of principal. The value of a Fund’s investments may be adversely affected if scheduled interest or principal payments are not made. Because most direct loans will be secured, there will be a smaller risk of loss with direct loans than with an investment in unsecured high yield bonds or trade claims. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness or may pay only a small fraction of the amount owed. Investments in direct debt instruments also involve interest rate risk and liquidity risk. However, interest rate risk is lessened by the generally short-term nature of direct debt instruments and their interest rate structure, which typically floats. To the extent the direct debt instruments in which a Fund invests are considered illiquid, the lack of a liquid secondary market (1) will have an adverse impact on the value of such instruments, (2) will have an adverse impact on the Fund’s ability to dispose of them when necessary to meet the Fund’s liquidity needs or in response to a specific economic event, such as a decline in creditworthiness of the issuer, and (3) may make it more difficult for the Fund to assign a value of these instruments for purposes of valuing the Fund’s portfolio and calculating its NAV. In order to lessen liquidity risk, a Fund anticipates investing primarily in direct debt instruments that are quoted and traded in the high yield market and will not invest in these instruments if it would cause more than 15% of the Fund’s net assets to be illiquid. Trade claims may also present a tax risk to the Fund.

A Fund will not invest in trade claims if it affects the Fund’s qualification as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code” or the “Internal Revenue Code”).

Dollar Roll Transactions . Dollar roll transactions consist of the sale by a Fund to a bank or broker/dealer (the “counterparty”) of GNMA certificates or other mortgage-backed securities together with a commitment to purchase from the counterparty similar, but not identical, securities at a future date, at the same price. The counterparty receives all principal and interest payments, including prepayments, made on the security while it is the holder. A Fund receives a fee from the counterparty as consideration for entering into the commitment to purchase. Dollar rolls may be renewed over a period of several months with a different purchase and repurchase price fixed and a cash settlement made at each renewal without physical delivery of securities. Moreover, the transaction may be preceded by a firm commitment agreement pursuant to which a Fund agrees to buy a security on a future date. A Fund will segregate cash or other liquid assets in an amount sufficient to meet its purchase obligations under the transactions. Depending on whether the segregated assets are cash equivalent or some other type of security, entering into dollar rolls may subject a Fund to additional interest rate sensitivity. If the segregated assets are cash equivalents that mature prior to the dollar roll settlement, there is little likelihood that the sensitivity will increase; however, if the segregated assets are subject to interest rate risk because they settle later, then the Fund’s interest rate sensitivity could increase.

Dollar rolls may be treated for purposes of the 1940 Act as borrowings of a Fund (see “Borrowing”) because they involve the sale of a security coupled with an agreement to repurchase. Like all borrowings, a dollar roll involves costs to a Fund. For example, while a Fund receives a fee as consideration for agreeing to repurchase the security, the Fund forgoes the right to receive all principal and interest payments while the counterparty holds the security. These payments to the counterparty may exceed the fee received by a Fund, thereby effectively charging the Fund interest on its borrowing. Further, although a Fund can estimate the amount of expected principal prepayment over the term of the dollar roll, a variation in the actual amount of prepayment could increase or decrease the cost of the Fund’s borrowing.

Dollar rolls may be used as arbitrage transactions in which a Fund will maintain an offsetting position in investment grade debt obligations or repurchase agreements that mature on or before the settlement date on the related dollar roll or reverse repurchase agreements. Since a Fund will receive interest on the securities or repurchase agreements in which it invests the transaction proceeds, such transactions may involve leverage.

The entry into dollar rolls involves potential risks of loss that are different from those related to the securities underlying the transactions. For example, if the counterparty becomes insolvent, a Fund’s right to purchase from the counterparty might be restricted. Additionally, the value of such securities may change adversely before a Fund is able to purchase them. Similarly, a Fund may be required to purchase securities in connection with a dollar roll at a higher price than may otherwise be available on the open market. Since, as noted above, the counterparty is required to deliver a similar, but not identical security to a Fund, the security that the Fund is required to buy under the dollar roll may be worth less than an identical security. Finally, there can be no assurance that a Fund’s use of the cash that it receives from a dollar roll will provide a return that exceeds borrowing costs.

Emerging Markets Securities . Investing in emerging markets can involve unique risks in addition to and greater than those generally associated with investing in developed markets. The securities markets of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the U.S. and developed markets. The risks of investing in emerging markets include greater political and economic uncertainties than in developed markets, the risk of the imposition of economic sanctions against a country, the risk of nationalization of industries and expropriation of assets, social instability and war, currency transfer restrictions, risks that governments may substantially restrict foreign investing in their capital markets or in certain industries, impose punitive taxes, trade barriers and other protectionist or retaliatory measures. In the event of nationalization, default, debt restructuring, capital controls, expropriation or other confiscation, a Fund could lose its entire investment in foreign securities. Adverse conditions in a certain region can adversely affect securities of other countries whose economies appear to be unrelated. To the extent that a Fund invests a significant portion of its assets in a specific geographic region, the Fund will generally have more exposure to regional economic risks associated with foreign investments. Emerging market economies are often dependent upon a few commodities or natural resources that may be significantly adversely affected by volatile price movements against those commodities or natural resources. Emerging market countries may experience high levels of inflation and currency devaluation and have a more limited number of potential buyers for investments. A market swing in one or more emerging market countries or regions where a Fund has invested a significant amount of its assets may have a greater effect on a Fund’s performance than it would in a more geographically diversified portfolio.

The securities markets and legal systems in emerging market countries may only be in a developmental stage and may provide few, or none, of the advantages and protections of markets or legal systems available in more developed countries. Legal remedies available to investors in some foreign countries are less extensive than those available to investors in the U.S. There could be difficulties in enforcing favorable legal judgments in foreign courts. Foreign markets may have different securities clearance and settlement procedures. In certain securities markets, settlements may not keep pace with the volume of securities transactions. If this occurs, settlement may be delayed and the Funds’ assets may be uninvested and may not be earning returns. A Fund also may miss investment opportunities or not be able to sell an investment because of these delays. Some investments in emerging markets can be considered speculative, and the value of those investments can be more volatile than investments in more developed foreign markets.

Eurodollar Instruments . Eurodollar instruments are U.S. Dollar-denominated futures contracts or options thereon which are linked to LIBOR, although foreign currency-denominated instruments are available from time to time. Eurodollar futures contracts enable purchasers to obtain a fixed rate for the lending of funds and sellers to obtain a fixed rate for borrowings. A Fund may invest in Eurodollar instruments for hedging purposes or to enhance potential gain. A Fund might use Eurodollar futures contracts and options thereon to hedge against changes in LIBOR, to which many interest rate swaps and fixed income instruments are linked. Additionally, Eurodollar instruments are subject to certain sovereign risks and other risks associated with foreign investments. One such risk is the possibility that a sovereign country might prevent capital, in the form of dollars, from flowing across its borders. Other risks include: adverse political and economic developments; the extent and quality of government regulation of financial markets and institutions; the imposition of foreign withholding taxes; and the expropriation or nationalization of foreign issues.

Eurodollar and Yankee Obligations . Eurodollar bank obligations are dollar-denominated certificates of deposit and time deposits issued outside the U.S. capital markets by foreign branches of U.S. banks and by foreign banks. Yankee bank obligations are dollar-denominated obligations issued in the U.S. capital markets by foreign banks.

Eurodollar and Yankee bank obligations are subject to the same risks that pertain to domestic issues, notably credit risk, market risk and liquidity risk. Additionally, Eurodollar (and to a limited extent, Yankee) bank obligations are subject to certain sovereign risks and other risks associated with foreign investments. One such risk is the possibility that a sovereign country might prevent capital, in the form of dollars, from flowing across its borders. Other risks include: adverse political and economic developments; the extent and quality of government regulation of financial markets and institutions; the imposition of foreign withholding taxes, and the expropriation or nationalization of foreign issues. However, Eurodollar and Yankee bank obligations held in a Fund will undergo the same credit analysis as domestic issuers in which the Fund invests, and will have at least the same financial strength as the domestic issuers approved for the Fund.

European Sovereign Debt . European banks have historically held significant investments in the sovereign debt of European countries. Since late 2009, concern has been rising about the escalating government debt levels in certain European countries. More recently, the ratings agencies initiated a series of downgrades of the sovereign debt of various European countries. Troubled economies in Europe coupled with the European debt downgrades have increased concerns about the possibility of default. A government’s default on its debt could cause the value of securities held by the Funds to decline significantly.

Exchange-Traded Funds . ETFs are regulated as registered investment companies under the 1940 Act. Investments in certain ETFs may be made in excess of the 1940 Act limitations on investments in investment companies in reliance on, and subject to certain terms and conditions set forth in an exemptive order issued by the SEC to the ETF. However, to the extent that a Fund cannot rely on an exemptive order for investments in the ETF, the purchases of ETFs would be subject to 1940 Act investment limits, as described in “Securities of Investment Companies,” and would be aggregated with other types of investment companies in calculating limitations. ETFs generally acquire and hold stocks of all companies, or a representative sampling of companies, that are components of a particular index. ETFs are intended to provide investment results that, before expenses, generally correspond to the price and yield performance of the corresponding market index, and the value of their shares should, under normal circumstances, closely track the value of the index’s underlying component stocks. Because an ETF has operating expenses and transaction costs, while a market index does not, ETFs that track particular indices typically will be unable to match the performance of the index exactly; however one cannot invest directly in an index. ETF shares may be purchased and sold in the secondary trading market on a securities exchange, in lots of any size, at any time during the trading day. A Fund will bear its proportionate share of an ETF’s operating and transaction costs. As a result, an investment by a Fund in an ETF could cause the Fund’s operating expenses to be higher and, in turn, performance to be lower than if it were to invest directly in the securities underlying the ETF.

The shares of an ETF may be assembled in a block (typically 50,000 shares) known as a creation unit and redeemed in kind for a portfolio of the underlying securities (based on the ETF’s NAV) together with a cash payment generally equal to accumulated dividends as of the date of redemption. Conversely, a creation unit may be purchased from the ETF by depositing a

specified portfolio of the ETF’s underlying securities, as well as a cash payment generally equal to accumulated dividends of the securities (net of expenses) up to the time of deposit. Although a Fund, like most other investors in ETFs, intends to purchase and sell ETF shares primarily in the secondary trading market, a Fund may redeem creation units for the underlying securities (and any applicable cash), and may assemble a portfolio of the underlying securities and use it (and any required cash) to purchase creation units, if the Adviser believes it is in the Fund’s best interest to do so.

An investment in an ETF also is subject to all of the risks of investing in the securities held by the ETF. In addition, the market value of the ETF shares may differ from their NAV because the supply and demand in the market for ETF shares at any point in time is not always identical to the supply and demand in the market for the underlying basket of securities. Because of the ability of large market participants to arbitrage price differences by purchasing or redeeming creation units, the difference between the market value and the NAV of ETF shares should in most cases be small. Under certain circumstances, an ETF could be terminated. Should termination occur, the ETF might have to liquidate its portfolio securities at a time when the prices for those securities are falling.

External Debt . External debt is often longer maturity (up to 30 years) fixed income securities, registered in London or globally, that are generally issued in U.S. Dollars, but are increasingly issued in euros and occasionally yen. The external debt that a Fund will purchase may be issued by government and corporate issuers in Europe. External debt is typically issued in bearer form, carries a fixed or floating rate of interest, and amortizes principal through a bullet payment with semiannual interest payments in currency in which the bond was issued. External debt is subject to the same risks that pertain to domestic issuers, notably credit risk, market risk and liquidity risk. However, external debt is also subject to certain sovereign risks. One such risk is the possibility that a sovereign country might prevent capital from flowing across its borders. Other risks include adverse political and economic developments; the extent and quality of government regulation of financial markets and institutions; the imposition of foreign withholding taxes; and the expropriation or nationalization of foreign issuers.

Foreign Commercial Paper . Commercial paper is indexed to certain specific foreign currency exchange rates. The terms of such commercial paper provide that its principal amount is adjusted upwards or downwards (but not below zero) at maturity to reflect changes in the exchange rate between two currencies while the obligation is outstanding. A Fund will purchase such commercial paper with the currency in which it is denominated and, at maturity, will receive interest and principal payments thereon in that currency, but the amount or principal payable by the issuer at maturity will change in proportion to the change (if any) in the exchange rate between two specified currencies between the date the instrument is issued and the date the instrument matures. While such commercial paper entails the risk of loss of principal, the potential for realizing gains as a result of changes in foreign currency exchange rate enables a Fund to hedge or cross-hedge against a decline in the U.S. Dollar value of investments denominated in foreign currencies while providing an attractive money market rate of return. A Fund will purchase such commercial paper for hedging purposes only, not for speculation. A Fund believes that such investments do not involve the creation of a senior security, but nevertheless will establish a segregated account with respect to its investments in this type of commercial paper and maintain in such account cash not available for

investment or other liquid assets having a value equal to the aggregate principal amount of outstanding commercial paper of this type.

Foreign Currencies . Because investments in foreign securities usually will involve currencies of foreign countries, and because a Fund may hold foreign currencies and forward contracts, futures contracts and options on foreign currencies and foreign currency futures contracts, the value of the assets of the Fund as measured in U.S. Dollars may be affected favorably or unfavorably by changes in foreign currency exchange rates and exchange control regulations, and the Fund may incur costs and experience conversion difficulties and uncertainties in connection with conversions between various currencies. Fluctuations in exchange rates may also affect the earning power and asset value of the foreign entity issuing the security.

The strength or weakness of the U.S. Dollar against these currencies is responsible for part of a Fund’s investment performance. If the U.S. Dollar falls in value relative to the Japanese yen, for example, the U.S. Dollar value of a Japanese stock held by a Fund will rise even though the price of the stock remains unchanged. Conversely, if the U.S. Dollar rises in value relative to the Japanese yen, the U.S. Dollar value of the Japanese stock will fall. Many foreign currencies have experienced significant devaluation relative to the U.S. Dollar.

Although a Fund values its assets daily in terms of U.S. Dollars, it does not intend to convert its holdings of foreign currencies into U.S. Dollars on a daily basis. It will do so from time to time, and investors should be aware of the costs of currency conversion. Although foreign exchange dealers typically do not charge a fee for conversion, they do realize a profit based on the difference (the “spread”) between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency to a Fund at one rate, while offering a lesser rate of exchange should the Fund desire to resell that currency to the dealer. A Fund will conduct its foreign currency exchange transactions (“FX transactions”) either on a spot ( i.e. , cash) basis at the spot rate prevailing in the foreign currency exchange market, or through entering into options or forward or futures contracts to purchase or sell foreign currencies.

In general, the FX transactions executed for the Funds are divided into two main categories: (1) FX transactions in restricted markets (“Restricted Market FX”) and (2) FX transactions in unrestricted markets (“Unrestricted Market FX”). Restricted Market FX are required to be executed by a local bank in the applicable market. Unrestricted Market FX are not required to be executed by a local bank. The Adviser executes Unrestricted Market FX relating to trading decisions. The Funds’ custodian executes all Restricted Market FX because it has local banks or relationships with local banks in each of the restricted markets where custodial client accounts hold securities. Unrestricted Market FX relating to the repatriation of dividends and/or income/expense items not directly relating to trading may be executed by the Adviser or by the Funds’ custodian due to the small currency amount and lower volume of such transactions. The Funds and the Adviser have limited ability to negotiate prices at which certain FX transactions are customarily executed by the Funds’ custodian, i.e., transactions in Restricted Market FX and repatriation transactions.

Foreign Fixed Income Securities . Most foreign fixed income securities are rated, however, some are not. Therefore, if a Fund invests in unrated foreign fixed income securities, it will do so based on the Adviser’s analysis. To the extent that a Fund includes significant unrated securities, achievement of the Fund’s goals may depend more upon the abilities of the Adviser than would otherwise be the case.

The value of the foreign fixed income securities held by a Fund, and thus the NAV of the Fund’s shares, generally will fluctuate with (a) changes in the perceived creditworthiness of the issuers of those securities, (b) movements in interest rates, and (c) changes in the relative values of the currencies in which a Fund’s investments in fixed income securities are denominated with respect to the U.S. Dollar. The extent of the fluctuation will depend on various factors, such as the average maturity of a Fund’s investments in foreign fixed income securities, and the extent to which the Fund hedges its interest rate, credit and currency exchange rate risks. A longer average maturity generally is associated with a higher level of volatility in the market value of such securities in response to changes in market conditions.

Privatized Enterprises . Investments in foreign securities may include securities issued by enterprises that have undergone or are currently undergoing privatization. The governments of certain foreign countries have, to varying degrees, embarked on privatization programs contemplating the sale of all or part of their interests in state enterprises. A Fund’s investments in the securities of privatized enterprises may include privately negotiated investments in a government or state-owned or controlled company or enterprise that has not yet conducted an initial equity offering, investments in the initial offering of equity securities of a state enterprise or former state enterprise and investments in the securities of a state enterprise following its initial equity offering.

In certain jurisdictions, the ability of foreign entities, such as the Funds, to participate in privatizations may be limited by local law, or the price or terms on which a Fund may be able to participate may be less advantageous than for local investors. Moreover, there can be no assurance that governments that have embarked on privatization programs will continue to divest their ownership of state enterprises, that proposed privatizations will be successful or that governments will not re-nationalize enterprises that have been privatized.

In the case of the enterprises in which a Fund may invest, large blocks of the stock of those enterprises may be held by a small group of stockholders, even after the initial equity offerings by those enterprises. The sale of some portion or all of those blocks could have an adverse effect on the price of the stock of any such enterprise.

Prior to making an initial equity offering, most state enterprises or former state enterprises go through an internal reorganization or management. Such reorganizations are made in an attempt to better enable these enterprises to compete in the private sector. However, certain reorganizations could result in a management team that does not function as well as an enterprise’s prior management and may have a negative effect on such enterprise. In addition, the privatization of an enterprise by its government may occur over a number of years, with the government continuing to hold a controlling position in the enterprise even after the initial equity offering for the enterprise.

Prior to privatization, most of the state enterprises in which a Fund may invest enjoy the protection of and receive preferential treatment from the respective sovereigns that own or control them. After making an initial equity offering, these enterprises may no longer have such protection or receive such preferential treatment and may become subject to market competition from which they were previously protected. Some of these enterprises may not be able to operate effectively in a competitive market and may suffer losses or experience bankruptcy due to such competition.

Foreign Government Securities . Investment in debt issued by foreign governments can involve a high degree of risk. Debt securities issued by a foreign government are often supported by the full faith and credit of that foreign government. These foreign governments may permit their subdivisions, agencies or instrumentalities to have the full faith and credit of the foreign governments. The governmental entity that controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt service burden to the economy as a whole, the governmental entity’s policy toward the IMF, and the political constraints to which a governmental entity may be subject. Periods of economic uncertainty may result in the illiquidity and increased price volatility of a foreign government’s debt securities. A foreign government’s default on its debt securities may cause the value of securities held by a Fund to decline significantly. A Fund may have limited recourse to compel payment in the event of a default.

Governmental entities may also be dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and others to make such disbursements may be conditioned on a governmental entity’s implementation of economic reforms and/or economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or willingness to service its debts in a timely manner. Consequently, governmental entities may default on their sovereign debt. Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further loans to governmental entities. There is no bankruptcy proceeding by which sovereign debt on which governmental entities have defaulted may be collected in whole or in part.

To the extent that a Fund invests in obligations issued by emerging market governments, these investments involve additional risks. Sovereign obligors in emerging market countries are among the world’s largest debtors to commercial banks, other governments, international financial organizations and other financial institutions. These obligors have in the past experienced substantial difficulties in servicing their external debt obligations, which led to defaults on certain obligations and the restructuring of certain indebtedness. Restructuring arrangements have included, among other things, reducing and rescheduling interest and principal payments by negotiating new or amended credit agreements or converting outstanding principal and unpaid interest to Brady Bonds, and obtaining new credit for finance interest payments. Holders of certain foreign sovereign debt securities may be requested to participate in the restructuring of such obligations and to extend further loans to their issuers. There can be no assurance that the foreign sovereign debt securities in which a Fund may invest will not be subject to similar restructuring arrangements or to requests for new credit which may adversely affect a Fund’s holdings.

Foreign Securities (including Developing Countries) . Investing in foreign securities (including through the use of depositary receipts) involves certain special considerations which typically are not associated with investing in United States securities. Since investments in foreign companies will frequently be denominated in the currencies of foreign countries (these

securities are translated into U.S. Dollars on a daily basis in order to value a Fund’s shares), and since a Fund may hold securities and funds in foreign currencies, a Fund may be affected favorably or unfavorably by changes in currency rates and in exchange control regulations, if any, and may incur costs in connection with conversions between various currencies. There may be less information publicly available about a foreign issuer than about a U.S. issuer, and foreign issuers may not be subject to accounting, auditing and financial reporting standards and practices comparable to those in the U.S. Most foreign stock markets, while growing in volume of trading activity, have less volume than the New York Stock Exchange, and securities of some foreign companies are less liquid and more volatile than securities of comparable domestic companies. Similarly, volume and liquidity in most foreign bond markets are less than in the United States and, at times, volatility of price can be greater than in the United States. Fixed commissions on foreign securities exchanges are generally higher than negotiated commissions on United States exchanges, although each Fund endeavors to achieve the most favorable net results on its portfolio transactions. There is generally less government supervision and regulation of securities exchanges, brokers and listed companies in foreign countries than in the United States. Foreign settlement procedures and trade regulations may involve certain risks (such as delay in payment or delivery of securities or in the recovery of a Fund’s assets held abroad) and expenses not present in the settlement of investments in U.S. markets. Payment for securities without delivery may be required in certain foreign markets.

In addition, foreign securities may be subject to the risk of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of foreign currency, confiscatory taxation, political or financial instability and diplomatic developments which could affect the value of a Fund’s investments in certain foreign countries. Governments of many countries have exercised and continue to exercise substantial influence over many aspects of the private sector through the ownership or control of many companies, including some of the largest in these countries. As a result, government actions in the future could have a significant effect on economic conditions which may adversely affect prices of certain portfolio securities. Foreign securities may be subject to foreign government taxes, higher custodian fees, higher brokerage costs and dividend collection fees which could reduce the yield on such securities.

Foreign economies may differ favorably or unfavorably from the U.S. economy in various respects, including growth of gross domestic product, rates of inflation, currency depreciation, capital reinvestment, resource self-sufficiency, and balance of payments positions. Many foreign securities are less liquid and their prices more volatile than comparable U.S. securities. From time to time, foreign securities may be difficult to liquidate rapidly without adverse price effects.

Legal remedies available to investors in certain foreign countries may be more limited than those available with respect to investments in the U.S. or in other foreign countries. The laws of some foreign countries may limit a Fund’s ability to invest in securities of certain issuers organized under the laws of those foreign countries.

Of particular importance, many foreign countries are heavily dependent upon exports, particularly to developed countries, and, accordingly, have been and may continue to be adversely affected by trade barriers, managed adjustments in relative currency values, and other protectionist measures imposed or negotiated by the U.S. and other countries with which they trade. These economies also have been and may continue to be negatively impacted by economic conditions in

the U.S. and other trading partners, which can lower the demand for goods produced in those countries.

Investment in Companies in Developing Countries . Investments may be made from time to time in companies in developing countries as well as in developed countries. Although there is no universally accepted definition, a developing country is generally considered to be a country which is in the initial stages of industrialization. Shareholders should be aware that investing in the equity and fixed income markets of developing countries involves exposure to unstable governments, economies based on only a few industries, and securities markets which trade a small number of securities. Securities markets of developing countries tend to be more volatile than the markets of developed countries; however, such markets have in the past provided the opportunity for higher rates of return to investors.

The value and liquidity of investments in developing countries may be affected favorably or unfavorably by political, economic, fiscal, regulatory or other developments in the particular countries or neighboring regions. The extent of economic development, political stability and market depth of different countries varies widely. Such investments typically involve greater potential for gain or loss than investments in securities of issuers in developed countries.

The securities markets in developing countries are substantially smaller, less liquid and more volatile than the major securities markets in the United States. A high proportion of the shares of issuers in developing countries may be held by a limited number of persons and financial institutions, which may limit the number of shares available for investment by a Fund. The small size, limited trading volume and relative inexperience of the securities markets in these countries may make investments in securities traded in emerging markets less liquid and more volatile than investments in securities traded in more developed countries. For example, limited market size may cause prices to be unduly influenced by traders who control large positions. A limited number of issuers in developing countries’ securities markets may represent a disproportionately large percentage of market capitalization and trading volume. The limited liquidity of securities markets in developing countries may also affect a Fund’s ability to acquire or dispose of securities at the price and time it wishes to do so. Accordingly, during periods of rising securities prices in the more illiquid securities markets, a Fund’s ability to participate fully in such price increases may be limited by its investment policy of investing not more than 15% of its total net assets in illiquid securities. Conversely, a Fund’s inability to dispose fully and promptly of positions in declining markets could cause the Fund’s NAV to decline as the value of the unsold positions is marked to lower prices. In addition, a Fund may be required to establish special custodial or other arrangements before making investments in securities traded in emerging markets. There may be little financial or accounting information available with respect to issuers of emerging market securities, and it may be difficult as a result to assess the value of prospects of an investment in such securities.

Political and economic structures in many such countries may be undergoing significant evolution and rapid development, and such countries may lack the social, political and

economic stability characteristics of the United States. In addition, unanticipated political or social developments may affect the value of investments in emerging markets and the availability of additional investments in these markets. Any change in the leadership or politics of emerging market countries, or the countries that exercise a significant influence over those countries, may halt the expansion of or reverse the liberalization of foreign investment policies now occurring and adversely affect existing investment opportunities. Certain countries have in the past failed to recognize private property rights and have at times nationalized or expropriated the assets of private companies. As a result, the risks described above, including the risks of nationalization or expropriation of assets, may be heightened.

Economies of developing countries may differ favorably or unfavorably from the United States’ economy in such respects as rate of growth of gross national product, rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position. Certain developing countries do not have comprehensive systems of laws, although substantial changes have occurred in many such countries in this regard in recent years. Laws regarding fiduciary duties of officers and directors and the protection of shareholders may not be well developed. Even where adequate law exists in such developing countries, it may be impossible to obtain swift and equitable enforcement of such law, or to obtain enforcement of the judgment by a court of another jurisdiction.

The risk also exists that an emergency situation may arise in one or more emerging markets as a result of which trading of securities may cease or may be substantially curtailed and prices for a Fund’s securities in such markets may not be readily available. A Fund may suspend redemption of its shares for any period during which an emergency exists, as determined by the SEC. Accordingly if a Fund believes that appropriate circumstances exist, it will promptly apply to the SEC for a determination that an emergency is present. During the period commencing from a Fund’s identification of such condition until the date of the SEC action, a Fund’s securities in the affected markets will be valued at fair value determined in good faith by or under the direction of the Fund’s Board.

Certain of the foregoing risks may also apply to some extent to securities of U.S. issuers that are denominated in foreign currencies or that are traded in foreign markets, or securities of U.S. issuers having significant foreign operations.

Trading in futures contracts on foreign commodity exchanges may be subject to the same or similar risks as trading in foreign securities.

Asian Risk . Certain Funds may invest their assets in Asian securities, and those Funds may be subject to general economic and political conditions in Asia. Certain Funds may invest a significant portion of their assets in Asian securities, and those Funds may be more volatile than a fund which is broadly diversified geographically. Additional factors relating to Asia that an investor should consider include the following:

Political, Social and Economic Factors. Some parts of the Asian region may be subject to a greater degree of economic, political and social instability than is the case in the United States and Europe. Such instability may result from, among other things, the following: (i) authoritarian governments or military involvement in political and economic decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and (v) ethnic, religious and racial disaffection.

Such social, political and economic instability could significantly disrupt the principal financial markets in which the Funds invest and adversely affect the value of the Funds’ assets.

Some Asian economies are reliant on exports in varying degrees as a major contribution to economic growth and as such may be affected by developments in the economies of their principal trading partners. These economies may be accordingly affected by protective trade barriers and the economic conditions of their trading partners, principally, the United States, Japan, China and the European Union. The enactment by the United States or other principal trading partners of protectionist trade legislation, reduction of foreign investment in local economies and general declines in the international securities markets could have a significant adverse effect upon the securities markets of Asia.

Some Asian economies have limited natural resources, resulting in dependence on foreign sources for certain raw materials and economic vulnerability to global fluctuations of price and supply. Other economies such as Indonesia and Malaysia, for example, are commodity exporters susceptible to world prices for their commodity exports, including crude oil.

Some governments in the Asian region are authoritarian in nature and influenced by security forces. For example, during the course of the last twenty-five years, certain governments in the region have been installed or removed as a result of military coups while others have periodically demonstrated their repressive police state nature. Disparities of wealth, among other factors, have also led to social unrest in some Asian countries accompanied, in certain cases, by violence and labor unrest. Ethnic, religious and racial disaffection, as evidenced in India, Pakistan and Sri Lanka, have created social, economic and political problems.

Several Asian countries have or in the past have had hostile relationships with neighboring nations or have experienced internal insurgency. For example, Thailand experienced border battles with Laos and India is engaged in border disputes with several of its neighbors, including China and Pakistan. An uneasy truce exists between North Korea and South Korea and the two countries technically remain in a state of war. In addition, North Korea’s nuclear weapons program has caused an increased level of risk of military conflict in the area.

There may be the possibility of expropriations, confiscatory taxation, political, economic or social instability or diplomatic developments which would adversely affect assets of the Funds held in foreign countries. Governments in certain Asian countries participate to a significant degree, through ownership interests or regulation, in their respective economies. Action by these governments could have a significant adverse effect on market prices of a Fund’s securities and its share price.

Market Characteristics. Most of the securities markets of Asia have substantially less volume than the NYSE, and equity securities of most companies in Asia are less liquid and more volatile than equity securities of U.S. companies of comparable size. Some of the stock exchanges in Asia, such as those in China, are in the early stages of their development. Many companies traded on securities markets in Asia are smaller, newer and less seasoned than companies whose securities are traded on securities markets in the United States. In some Asian countries, there is no established secondary market for securities. Therefore, liquidity in these countries is generally low and transaction costs high. Reduced liquidity often creates higher volatility, as well as difficulties in obtaining accurate market quotations for financial reporting purposes and for calculating NAVs, and sometimes also an inability to buy and sell securities. Market quotations on

many securities may only be available from a limited number of dealers and may not necessarily represent firm bids from those dealers or prices for actual sales. Additionally, market making and arbitrage activities are generally less extensive in such markets, which may contribute to increased volatility and reduced liquidity of such markets. Investments in smaller companies involve greater risk than is customarily associated with investing in larger companies. Smaller companies may have limited product lines, markets or financial or managerial resources and may be more susceptible to losses and risks of bankruptcy. Accordingly, each of these markets may be subject to greater influence by adverse events generally affecting the market, and by large investors trading significant blocks of securities, than is usual in the U.S. To the extent that any of the Asian countries experiences rapid increases in its money supply and investment in equity securities for speculative purposes, the equity securities traded in any such country may trade at price-earning multiples higher than those of comparable companies trading on securities markets in the United States, which may not be sustainable.

Brokerage commissions and other transaction costs on securities exchanges in Asia are generally higher than in the U.S. Settlement procedures in certain Asian countries are less developed and reliable than those in the U.S. and in other developed markets, and a Fund may experience settlement delays or other material difficulties. Securities trading in certain Asian securities markets may be subject to risks due to a lack of experience of securities brokers, a lack of modern technology and a possible lack of sufficient capital to expand market operations. The foregoing factors could impede the ability of a Fund to effect portfolio transactions on a timely basis and could have an adverse effect on the NAV of shares of the Fund.

There is also less government supervision and regulation of foreign securities exchanges, brokers, and listed companies in the Asian countries than exists in the United States. In addition, existing laws and regulations are often inconsistently applied. As legal systems in Asian countries develop, foreign investors may be adversely affected by new laws and regulations, changes to existing laws and regulations and preemption of local laws and regulations by national laws. In circumstances where adequate laws exist, it may not be possible to obtain swift and equitable enforcement of the law. Less information will, therefore, be available to a Fund than in respect of investments in the U.S. Further, in certain Asian countries, less information may be available to a Fund than to local market participants. Brokers in Asian countries may not be as well capitalized as those in the U.S., so that they are more susceptible to financial failure in times of market, political, or economic stress.

In addition, accounting and auditing standards applied in certain Asian countries frequently do not conform with the generally accepted accounting principles (“GAAP”) used in the United States. The use of some accounting policies, such as the constant purchasing power method, can cause distortion in some cases. Also, substantially less financial information is generally publicly available about issuers in Asian countries and, where available, may not be independently verifiable.

Energy. Asia has historically depended on oil for most of its energy requirements. Almost all of its oil is imported. In the past, oil prices have had a major impact on Asian economies.

Natural Disasters. The Asian region has in the past experienced earthquakes, mud slides and tidal waves of varying degrees of severity (e.g., tsunamis), and the risks of such phenomena, and the damage resulting from natural disasters, continue to exist. The long-term

economic effects of such geological factors on the Asian economy as a whole, and on a Fund’s investments and share price, cannot be predicted.

Investing in China . In addition to the risks listed above under “Foreign Securities,” “Investment in Companies in Developing Countries” and “Asian Risk,” investing in China presents additional risks. Investing in China involves a high degree of risk and special considerations not typically associated with investing in other more established economies or securities markets. Such risks may include: (a) the risk of nationalization or expropriation of assets or confiscatory taxation; (b) greater social, economic and political uncertainty (including the risk of war and social unrest); (c) dependency on exports and the corresponding importance of international trade; (d) the increasing competition from Asia’s other low-cost emerging economies; (e) greater price volatility and significantly smaller market capitalization of securities markets; (f) substantially less liquidity, particularly of certain share classes of Chinese securities; (g) currency exchange rate fluctuations and the lack of available currency hedging instruments; (h) higher rates of inflation; (i) controls on foreign investment and limitations on repatriation of invested capital and on a Fund’s ability to exchange local currencies for U.S. Dollars; (j) greater governmental involvement in and control over the economy; (k) the risk that the Chinese government may decide not to continue to support the economic reform programs implemented since 1978 and could return to the prior, completely centrally planned, economy; (l) the fact that China companies, particularly those located in China, may be smaller, less seasoned and newly-organized; (m) the difference in, or lack of, auditing and financial reporting standards which may result in unavailability of material information about issuers, particularly in China; (n) the fact that statistical information regarding the economy of China may be inaccurate or not comparable to statistical information regarding the U.S. or other economies; (o) the less extensive, and still developing, regulation of the securities markets, business entities and commercial transactions; (p) the fact that the settlement period of securities transactions in foreign markets may be longer; (q) the willingness and ability of the Chinese government to support the Chinese and Hong Kong economies and markets is uncertain; (r) the risk that it may be more difficult, or impossible, to obtain and/or enforce a judgment than in other countries; and (s) the rapidity and erratic nature of growth, particularly in China, resulting in efficiencies and dislocations.

Investment in China is subject to certain political risks. Following the establishment of the People’s Republic of China by the Communist Party in 1949, the Chinese government renounced various debt obligations incurred by China’s predecessor governments, which obligations remain in default, and expropriated assets without compensation. There can be no assurance that the Chinese government will not take similar action in the future. The political reunification of China and Taiwan is a highly problematic issue and is unlikely to be settled in the near future. This situation poses a threat to Taiwan’s economy and could negatively affect its stock market.

Hong Kong reverted to Chinese sovereignty on July 1, 1997 as a Special Administrative Region of the People’s Republic of China under the principle of “one country, two systems.” Although China is obligated to maintain the current capitalist economic and social system of Hong Kong through June 30, 2047, the continuation of economic and social freedoms enjoyed in Hong Kong is dependent on the government of China. Any attempt by China to tighten its control over Hong Kong’s political, economic, legal or social policies may result in an adverse effect on Hong Kong’s markets. Uncertainty over Hong Kong’s political future arising from interactions with China has resulted in social unrest, which could in turn cause uncertainty in the markets. In addition, the Hong Kong dollar trades at a fixed exchange rate in relation to (or, is “pegged” to) the U.S. dollar, which has contributed to the growth and stability of the Hong Kong economy. However, it is

uncertain how long the currency peg will continue or what effect the establishment of an alternative exchange rate system would have on the Hong Kong economy. Because the Funds’ NAV is denominated in U.S. dollars, the establishment of an alternative exchange rate system could result in a decline in a Fund’s NAV.

The Chinese economy has grown rapidly during the past several years but there is no assurance that this growth rate will be maintained. In fact, the Chinese economy may experience a significant slowdown as a result of, among other things, a deterioration in global demand for Chinese exports, as well as contraction in spending on domestic goods by Chinese consumers. In addition, China may experience substantial rates of inflation or economic recessions, which would have a negative effect on the economy and securities market. Delays in enterprise restructuring, slow development of well-functioning financial markets and widespread corruption have also hindered performance of the Chinese economy. China continues to receive substantial pressure from trading partners to liberalize official currency exchange rates.

Historically, investments in stocks, bonds, and warrants listed and traded on a Mainland China stock exchange, investment companies, and other financial instruments (collectively referred to as “China Securities”) approved by the China Securities Regulatory Commission (“CSRC”) were not eligible for investment by non-Chinese investors. However, the CSRC may grant qualified foreign institutional investor (“QFII”) licenses that allow non-Chinese investors to invest in China securities. Each QFII is authorized to invest in China Securities only up to a specified quota established by the Chinese State Administration of Foreign Exchange (“SAFE”). Aberdeen Asset Management Asia Limited (“AAMAL”), a subadviser to some of the Funds, has received a QFII license and a specified quota to be invested in China Securities (the “Quota”). A portion of the China Opportunities Fund and Asia Bond Fund (the “China Investor Funds”) are invested in China Securities as part of the Quota granted to AAMAL.

The Quota for investment in China Securities is measured by AAMAL’s investments across all accounts that it manages that are invested in China Securities. Once the entire Quota is invested China Securities, aggregate investment capital and profits may not be repatriated for a minimum of one year. As long as this limitation applies, the China Securities will be subject to the China Investor Funds’ limits on investing in illiquid securities. Despite this limitation, individual China Securities held by the China Investor Funds may be bought and sold, as long as the aggregate amount invested in China Securities by AAMAL clients, including the China Investor Funds, at least equals the Quota. Because the amount invested by the China Investor Funds in China Securities is subject to a lock-up period (at least for the first year and possibly thereafter), the China Securities will be considered illiquid and subject to the China Investor Funds’ limits on illiquid investments.

Under the current regulatory regime, the China Investor Funds would generally be permitted to repatriate profits after the expiration of the one-year lockup period. There can be no guarantee that SAFE will not extend this one-year period. Net realized profits for any financial year may not currently be repatriated until the completion of an audit by a registered accountant in China, payment of all applicable taxes and approval by SAFE. Repatriation of principal is treated differently and would generally result in a reduction in the Quota, with no new injections of principal for QFII client accounts permitted without the QFII applying for and obtaining a new Quota, which cannot be guaranteed. After the first year, AAMAL has discretion to withdraw principal and net realized profits from investment in China Securities.

Although China law permits the use of nominee accounts for clients of investment managers who are QFIIs, the Chinese regulators require the securities trading and settlement accounts to be maintained in the name of the QFII. As a result, there is a risk that creditors of AAMAL may assert that AAMAL, and not the individual fund, is the legal owner of the securities and other assets in the accounts. AAMAL has obtained a legal opinion from Chinese counsel confirming that, as a matter of Chinese law, AAMAL as QFII has no ownership interest in the assets in the Fund accounts held as nominee accounts and the Funds will be ultimately and exclusively entitled to ownership of the assets in such nominee accounts. Nonetheless, if a court upholds a creditor’s assertion that the QFII assets belong to AAMAL as license-holder, then creditors of AAMAL could seek payment from the China Investor Funds’ investments in China Securities.

Latin America . The economies in Latin America are considered emerging market economies. As a result, investing in Latin America imposes risks greater than, or in addition to, the risks of investing in more developed foreign markets. Most economies in Latin America have historically been characterized by high levels of inflation, including, in some cases, hyperinflation and currency devaluations. In the past, these conditions have led to high interest rates, extreme measures by governments to limit inflation, and limited economic growth. Although inflation in many countries has lessened, the economies of the Latin American region continue to be volatile and characterized by high interest rates and unemployment. In addition, the economies of many Latin American countries are sensitive to fluctuations in commodities prices because exports of agricultural products, minerals and metals represent a significant percentage of Latin American exports.

The economies of many Latin American countries are heavily dependent on international trade and can be adversely affected by trade barriers, exchange controls and other measures imposed or negotiated by the countries with which they trade. Since the early 1990s most governments in the Latin American region have transitioned from protectionist policies to policies that promote regional and global exposure. Many countries in the Latin American region have reduced trade barriers and are parties to trade agreements, although there is no guarantee that this trend will continue. Many countries in the Latin American region are dependent on the United States economy, and any declines in the United States economy are likely to affect the economies throughout the Latin American region. Mexico is particularly vulnerable to fluctuations in the United States economy because the majority of its exports are directed to the United States. In addition, China is a major buyer of Latin America’s commodities and a key investor in South America, and therefore, conditions in China may significantly impact the economy of the Latin American region. The Latin American region experienced a significant decline in economic activity at the end of 2008 and in 2009 as a result of the global recession. While the Latin American region’s economy had subsequently experienced solid economic growth as a result of favorable commodity prices, the Latin American region has experienced an economic slowdown since the end of 2011 as a result of uncertainties in the global economy.

Many Latin American countries are dependent on foreign loans from developed countries and several Latin American countries are among the largest debtors among emerging market economies. To the extent that there are rising interest rates, some countries may be forced to

restructure loans or risk default on their obligations, which may adversely affect securities markets. Some central banks have recently eased their monetary policies in response to liquidity shortages, but Latin American countries continue to face significant economic difficulties as a result of their high level of indebtedness and dependence on foreign credit.

Political and social instabilities in the Latin American region, including military intervention in civilian and economic spheres and political corruption, may result in significant economic downturns, increased volatility in the economies of countries in the Latin American region, and disruption in the securities markets in the Latin American region. Social inequality and poverty also contribute to political and economic instability in the Latin American region. Many of the Latin American region’s governments continue to exercise considerable influence on their respective economies and, as a result, companies in the Latin American region may be subject to government interference and nationalization.

Futures . Futures are generally bought and sold on the commodities exchanges where they are listed with payment of initial and variation margin as described below. A Fund may enter into futures contracts or purchase or sell put and call options on such futures as a hedge against anticipated interest rate, currency or equity market changes, and for duration management, risk management and return enhancement purposes.

The sale of a futures contract creates a firm obligation by a Fund, as seller, to deliver to the buyer the specific type of financial instrument called for in the contract at a specific future time for a specified price (or, with respect to index futures and Eurodollar instruments, the net cash amount). Options on futures contracts are similar to options on securities except that an option on a futures contract gives the purchaser the right in return for the premium paid to assume a position in a futures contract and obligates the seller to deliver such position.

Futures and options on futures may be entered into for bona fide hedging, risk management (including duration management) or other portfolio and return enhancement management purposes to the extent consistent with the exclusion from commodity pool operator registration. Typically, maintaining a futures contract or selling an option thereon requires a Fund to deposit with a financial intermediary as security for its obligations an amount of cash or other specified assets (initial margin) which initially is typically 1% to 10% of the face amount of the contract (but may be higher in some circumstances). Additional cash or assets (variation margin) may be required to be deposited thereafter on a daily basis as the marked to market value of the contract fluctuates. The purchase of an option on financial futures involves payment of a premium for the option without any further obligation on the part of a Fund. If a Fund exercises an option on a futures contract it will be obligated to post initial margin (and potential subsequent variation margin) for the resulting futures position just as it would for any position. Futures contracts and options thereon are generally settled by entering into an offsetting transaction but there can be no assurance that the position can be offset prior to settlement at an advantageous price, or that delivery will occur.

Under certain circumstances, futures exchanges may establish daily limits on the amount that the price of a future or option on a futures contract can vary from the previous day’s settlement price; once that limit is reached, no trades may be made that day at a price beyond the limit. Daily price limits do not limit potential losses because prices could move to the daily limit for several consecutive days with little or no trading, thereby preventing liquidation of unfavorable positions.

If a Fund were unable to liquidate a futures or option on a futures contract position due to the absence of a liquid secondary market or the imposition of price limits, it could incur substantial losses, because it would continue to be subject to market risk with respect to the position. In addition, except in the case of purchased options, a Fund would continue to be required to make daily variation margin payments and might be required to maintain the position being hedged by the future or option or to maintain cash or securities in a segregated account.

Certain characteristics of the futures market might increase the risk that movements in the prices of futures contracts or options on futures contracts might not correlate perfectly with movements in the prices of the investments being hedged. For example, all participants in the futures and options on futures contracts markets are subject to daily variation margin calls and might be compelled to liquidate futures or options on futures contracts positions whose prices are moving unfavorably to avoid being subject to further calls. These liquidations could increase price volatility of the instruments and distort the normal price relationship between the futures or options and the investments being hedged. Also, because initial margin deposit requirements in the futures markets are less onerous than margin requirements in the securities markets, there might be increased participation by speculators in the future markets. This participation also might cause temporary price distortions. In addition, activities of large traders in both the futures and securities markets involving arbitrage, “program trading” and other investment strategies might result in temporary price distortions.

A Fund will not enter into a futures contract or related option (except for closing transactions) if, immediately thereafter, the sum of the amount of its initial margin and premiums on open futures contracts and options thereon would exceed 5% of such Fund’s total assets (taken at current value); however, in the case of an option that is in-the-money at the time of the purchase, the in-the-money amount may be excluded in calculating the 5% limitation. The segregation requirements with respect to futures contracts and options thereon are described under “Use of Segregated and Other Special Accounts.”

See “CFTC Exclusion” for additional information about the Funds’ use of derivatives in connection with CFTC exclusions.

Illiquid Securities . Each Fund may not invest more than 15% of its net assets in illiquid securities. An illiquid security is generally any security which may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which a Fund has valued the investment. Illiquid securities include repurchase agreements which have a maturity of longer than seven days, time deposits maturing in more than seven days, and securities with a contractual restriction on resale (“restricted securities”) or other factors limiting the marketability of the security. Repurchase agreements subject to demand are deemed to have a maturity equal to the notice period. If a change in NAV or other external events cause a Fund’s investments in illiquid securities to exceed the limit set forth above for a Fund’s investment in illiquid securities, the Fund will act to cause the aggregate amount of such securities to come within such limit as soon as reasonably practicable. In such event, however, a Fund would not be required to liquidate any portfolio securities where the Fund would suffer a loss on the sale of such securities.

A Fund may purchase securities that are not subject to legal or contractual restrictions on resale, but that are deemed illiquid. Such securities may be illiquid, for example, because there is a limited trading market for them. A Fund may be unable to sell a restricted or illiquid security. In

addition, it may be more difficult to determine a market value for restricted or illiquid securities. Moreover, if adverse market conditions were to develop during the period between a Fund’s decision to sell a restricted or illiquid security and the point at which the Fund is permitted or able to sell such security, the Fund might obtain a price less favorable than the price that prevailed when it decided to sell. This investment practice, therefore, could have the effect of decreasing the level of liquidity of such Fund.

Impact of Large Redemptions and Purchases of Fund Shares . From time to time, shareholders of a Fund (which may include affiliated and/or non-affiliated registered investment companies that invest in a Fund) may make relatively large redemptions or purchases of Fund shares. These transactions may cause a Fund to have to sell securities or invest additional cash, as the case may be. While it is impossible to predict the overall impact of these transactions over time, there could be adverse effects on a Fund’s performance to the extent that the Fund may be required to sell securities or invest cash at times, or in odd-lot amounts, when it would not otherwise do so. These transactions could also accelerate the realization of taxable income if sales of securities resulted in capital gains or other income and could also increase transaction costs, which may impact a Fund’s expense ratio. In addition, large redemption requests may exceed the cash balance of a Fund and result in credit line borrowing fees or overdraft charges to the Fund until the sales of portfolio securities necessary to cover the redemption request settle, which is typically a few days.

Income Deposit Securities (“IDS”) . IDS consist of two securities, common shares and subordinated notes of the issuer, which are “clipped” together. Holders of IDS receive dividends on the common shares and interest at a fixed rate on the subordinated notes to produce a blended yield. The distribution policies of IDS issuers are similar to those of real estate investment trusts (“REITs”), master limited partnerships and income trusts, which distribute a significant portion of their free cash flow. IDS are listed on a stock exchange, but initially the underlying securities are not. However, in time (typically in the range of 45 to 90 days after the closing of the offering), holders may unclip the components of the IDS and trade the common shares and subordinated notes separately.

Indexed Securities . Indexed securities differ from other types of debt securities in which a Fund may invest in several respects. First, the interest rate or, unlike other debt securities, the principal amount payable at maturity of an indexed security may vary based on changes in one or more specified reference instruments (defined below), such as an interest rate compared with a fixed interest rate or the currency exchange rates between two currencies (neither of which need be the currency in which the instrument is denominated). The reference instrument need not be related to the terms of the indexed security. For example, the principal amount of a U.S. Dollar denominated indexed security may vary based on the exchange rate of two foreign currencies. The value of indexed securities is linked to currencies, interest rates, commodities, indices or other financial indicators (“reference instruments”). An indexed security may be positively or negatively indexed; that is, its value may increase or decrease if the value of the reference instrument increases. Further, the change in the principal amount payable or the interest rate of an indexed security may be a multiple of the percentage change (positive or negative) in the value of the underlying reference instrument(s).

Investment in indexed securities involves certain risks. In addition to the credit risk of the security’s issuer and the normal risks of price changes in response to changes in interest rates, the principal amount of indexed securities may decrease as a result of changes in the value of

reference instruments. Further, in the case of certain indexed securities in which the interest rate is linked to a reference instrument, the interest rate may be reduced to zero, and any further declines in the value of the security may then reduce the principal amount payable on maturity. Finally, indexed securities may be more volatile than the reference instruments underlying the indexed securities.

Initial Public Offerings (“IPOs”) . An IPO is a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company. IPOs are used by companies to raise expansion capital, to possibly monetize the investments of early private investors, and to become publicly traded enterprises. A company selling shares is never required to repay the capital to its public investors. The availability of IPOs may be limited and a Fund may not be able to buy any shares at the offering price, or may not be able to buy as many shares at the offering price as it would like. Further, IPO prices often are subject to greater and more unpredictable price changes than more established stocks.

Interests in Publicly Traded Limited Partnerships . Publicly traded limited partnerships represent equity interests in the assets and earnings of the partnership’s trade or business. Unlike common stock in a corporation, limited partnership interests or units have limited or no voting rights. However, many of the risks of investing in common stocks are still applicable to investments in limited partnership interests. In addition, limited partnership interests are subject to risks not present in common stock. For example, non-investment income generated from limited partnerships deemed not to be “publicly traded” will not be considered “qualifying income” under the Internal Revenue Code and may trigger adverse tax consequences. Also, since publicly traded limited partnerships are a less common form of organizational structure than corporations, the limited partnership units may be less liquid than publicly traded common stock. Also, because of the difference in organizational structure, the fair value of limited partnership units in a Fund’s portfolio may be based either upon the current market price of such units, or if there is no current market price, upon the pro rata value of the underlying assets of the partnership. Limited partnership units also have the risk that the limited partnership might, under certain circumstances, be treated as a general partnership, giving rise to broader liability exposure to the limited partners for activities of the partnership. Further, the general partners of a limited partnership may be able to significantly change the business or asset structure of a limited partnership without the limited partners having any ability to disapprove any such changes. In certain limited partnerships, limited partners may also be required to return distributions previously made in the event that excess distributions have been made by the partnership, or in the event that the general partners, or their affiliates, are entitled to indemnification.

Inverse Floating Rate Instruments (“Inverse Floaters”) . An Inverse Floater is a type of bond or other type of debt instrument used in finance whose coupon rate has an inverse relationship to short-term interest rates (or its reference rate). The interest rate on an Inverse Floater resets in the opposite direction from the market rate of interest to which the Inverse Floater is indexed. An inverse floating rate security may exhibit greater price volatility than a fixed rate obligation of similar credit quality.

A floater may be considered to be leveraged to the extent that its interest rate varies by a magnitude that exceeds the magnitude of the change in the index rate of interest. The higher degree of leverage inherent in some floaters is associated with greater volatility in their market values.

With respect to purchasable variable and floating rate instruments, the Adviser will consider the earning power, cash flows and liquidity ratios of the issuers and guarantors of such instruments and, if the instruments are subject to a demand feature, will monitor their financial status to meet payment on demand. Such instruments may include variable amount master demand notes that permit the indebtedness thereunder to vary in addition to providing for periodic adjustments in the interest rate. The absence of an active secondary market with respect to particular variable and floating rate instruments could make it difficult for a Fund to dispose of a variable or floating rate note if the issuer defaulted on its payment obligation or during periods that the Fund is not entitled to exercise its demand rights, and the Fund could, for these or other reasons, suffer a loss with respect to such instruments. In determining average-weighted portfolio maturity, an instrument will be deemed to have a maturity equal to either the period remaining until the next interest rate adjustment or the time the Fund involved can recover payment of principal as specified in the instrument, depending on the type of instrument involved.

Lending of Portfolio Securities . A Fund may lend its portfolio securities to brokers, dealers and other financial institutions, provided it receives collateral, with respect to each loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and, with respect to each loan of non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned, and at all times thereafter shall require the borrower to mark to market such collateral on a daily basis so that the market value of such collateral does not fall below 100% of the market value of the portfolio securities so loaned. By lending its portfolio securities, a Fund can increase its income through the investment of the collateral. For the purposes of this policy, a Fund considers collateral consisting of cash, U.S. Government securities or letters of credit issued by banks whose securities meet the standards for investment by the Fund to be the equivalent of cash. From time to time, a Fund may return to the borrower or a third party which is unaffiliated with it, and which is acting as a “placing broker,” a part of the interest earned from the investment of collateral received for securities loaned.

The SEC currently requires that the following conditions must be met whenever portfolio securities are loaned: (1) the fund must receive from the borrower collateral equal to at least 100% of the value of the portfolio securities loaned; (2) the borrower must increase such collateral whenever the market value of the securities loaned rises above the level of such collateral; (3) the fund must be able to terminate the loan at any time; (4) the fund must receive reasonable interest on the loan, as well as any dividends, interest or other distributions payable on the loaned securities, and any increase in market value; (5) the fund may pay only reasonable custodian fees in connection with the loan; and (6) while any voting rights on the loaned securities may pass to the borrower, the fund’s board of directors/trustees must be able to terminate the loan and regain the right to vote the securities if a material event adversely affecting the investment occurs. These conditions may be subject to future modifications.

Loan agreements involve certain risks in the event of default or insolvency of the other party including possible delays or restrictions upon a Fund’s ability to recover the loaned securities or dispose of the collateral for the loan. In addition, there is the possibility of losses resulting from the investment of collateral where the market value of the collateral falls below 100%. Such losses may include, but are not limited to, losses associated with deterioration in the credit of the investments of collateral. These losses generally would be borne by the Fund lending its portfolio securities, which would have a negative impact on the lending Fund’s performance.

Cash received as collateral through loan transactions may be invested in other securities eligible for purchase by the Fund. The investment of cash collateral subjects that investment, as well as the securities loaned, to market appreciation or depreciation. The Fund is obligated to return the collateral to the borrower at the termination of the loan. A Fund could suffer a loss in the event the Fund must return the cash collateral and there are losses on investments made with cash collateral. A Fund’s securities lending program may be temporarily suspended if a Board and/or the Adviser determine it to be in the best interests of a Fund’s shareholders.

The collateral received from a borrower as a result of a Fund’s securities lending activities will be used to purchase both fixed income securities and other securities with debt-like characteristics that are rated A1 or P1 (except as noted below) on a fixed rate or floating rate basis, including but not limited to: (a) bank obligations, such as bank bills, bank notes, certificates of deposit, commercial paper, deposit notes, loan participations, medium term notes, mortgage backed securities, structured liquidity notes, and time deposits; (b) corporate obligations, such as commercial paper, corporate bonds, investment agreements, funding agreements, or guaranteed investment contracts entered into with, or guaranteed by, an insurance company, loan participations, master notes, medium term notes, and second tier commercial paper (which must have a minimum rating of two of the following: A-2, P-2 and F-2); (c) sovereigns, such as commercial paper, U.S. Government securities (including securities issued or guaranteed as to principal and interest by the U.S. Government, its agencies, instrumentalities, establishments or the like), sovereign obligations of non-U.S. countries that are members of the Organization for Economic Co-operation and Development of the European Union (including securities issued or guaranteed as to principal and interest by the sovereign, its agencies, instrumentalities, establishments or the like) and supranational issuers; and (d) repurchase agreements, including reverse repurchase agreements (which permitted collateral, in most cases, must have an investment grade rating from at least two NRSROs). Except for the investment agreements, funding agreements or guaranteed investment contracts guaranteed by an insurance company, master notes, and medium term notes (which are described below), these types of investments are described elsewhere in the SAI. Collateral may also be invested in a money market mutual fund or short-term collective investment trust.

Investment agreements, funding agreements, or guaranteed investment contracts entered into with, or guaranteed by, an insurance company are agreements where an insurance company either provides for the investment of a Fund’s assets or provides for a minimum guaranteed rate of return to the investor.

Master notes are promissory notes issued usually with large, creditworthy broker-dealers on either a fixed rate or floating rate basis. Master notes may or may not be collateralized by underlying securities. If the master note is issued by an unrated subsidiary of a broker-dealer, then an unconditional guarantee is provided by the issuer’s parent.

Medium term notes are unsecured, continuously offered corporate debt obligations. Although medium term notes may be offered with a maturity from one to ten years, in the context of securities lending collateral the maturity of the medium term note will not generally exceed two years.

Loan Participations and Assignments . A participation in commercial loans may be secured or unsecured. Loan participations typically represent direct participation in a loan to a corporate borrower, and generally are offered by banks or other financial institutions or lending syndicates. A Fund may participate in such syndications, or can buy part of a loan, becoming a part

lender. Participations and assignments involve credit risk, interest rate risk, liquidity risk, and the risk of being a lender.

When purchasing loan participations, a Fund assumes the credit risk associated with the corporate borrower and may assume the credit risk associated with an interposed bank or other financial intermediary ; however, the Fund may only be able to enforce its rights through the lender. The participation interests in which a Fund invests may not be rated by any NRSRO.

A loan is often administered by an agent bank acting as agent for all holders. The agent bank administers the terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the collection of principal and interest payments from the corporate borrower and the apportionment of these payments to the credit of all institutions which are parties to the loan agreement. Unless, under the terms of the loan or other indebtedness, a Fund has direct recourse against the corporate borrower, the Fund may have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies against a corporate borrower.

A financial institution’s employment as agent bank might be terminated in the event that it fails to observe a requisite standard of care or becomes insolvent. A successor agent bank would generally be appointed to replace the terminated agent bank, and assets held by the agent bank under the loan agreement should remain available to holders of such indebtedness. However, if assets held by the agent bank for the benefit of a Fund were determined to be subject to the claims of the agent bank’s general creditors, the Fund might incur certain costs and delays in realizing payment on a loan or loan participation and could suffer a loss of principal and/or interest. In situations involving other interposed financial institutions (e.g., an insurance company or governmental agency) similar risks may arise.

Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the corporate borrower for payment of principal and interest. If a Fund does not receive scheduled interest or principal payments on such indebtedness, the Fund’s share price and yield could be adversely affected. Loans that are fully secured offer a Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated.

A Fund may invest in loan participations with credit quality comparable to that of issuers of its securities investments. Indebtedness of companies whose creditworthiness is poor involves substantially greater risks, and may be highly speculative. Some companies may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Consequently, when investing in indebtedness of companies with poor credit, a Fund bears a substantial risk of losing the entire amount invested.

For purposes of a Fund’s concentration limits, a Fund generally will treat the corporate borrower as the “issuer” of indebtedness held by the Fund. In the case of loan participations where a bank or other lending institution serves as a financial intermediary between a Fund and the corporate borrower, if the participation does not shift to the Fund the direct debtor-creditor relationship with the corporate borrower, SEC interpretations require the Fund to treat both the lending bank or other lending institution and the corporate borrower as “issuers.” Treating a financial intermediary as an issuer of indebtedness may restrict a Fund’s ability to invest in

indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries.

Loans and other types of direct indebtedness may not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of indebtedness may require weeks to complete. Consequently, some indebtedness may be difficult or impossible to dispose of readily at what the Adviser believes to be a fair price. In addition, valuation of illiquid indebtedness involves a greater degree of judgment in determining a Fund’s NAV than if that value were based on available market quotations, and could result in significant variations in a Fund’s daily share price. At the same time, some loan interests are traded among certain financial institutions and accordingly may be deemed liquid. As the market for different types of indebtedness develops, the liquidity of these instruments is expected to improve. In addition, each Fund currently intends to treat indebtedness for which there is no readily available market as illiquid for purposes of a Fund’s limitation on illiquid investments. Investments in loan participations are considered to be debt obligations for purposes of the Trust’s investment restriction relating to the lending of funds or assets by a Fund.

Investments in loans through a direct assignment of the financial institution’s interests with respect to the loan may involve additional risks to a Fund. For example, if a loan is foreclosed, a Fund could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a Fund could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections against fraud and misrepresentation. In the absence of definitive regulatory guidance, a Fund relies on the Adviser’s research in an attempt to avoid situations where fraud or misrepresentation could adversely affect the Fund.

A Fund may also enter into, or acquire participations in, delayed funding loans and revolving credit facilities. Delayed funding loans and revolving credit facilities are borrowing arrangements in which the lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. A revolving credit facility differs from a delayed funding loan in that as the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the revolving credit facility. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest. These commitments may have the effect of requiring a Fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that a Fund is committed to advance additional funds, it will at all times segregate or “earmark” assets, determined to be liquid by the Adviser in accordance with procedures established by the Board of Trustees, in an amount sufficient to meet such commitments.

A Fund may invest in delayed funding loans and revolving credit facilities with credit quality comparable to that of issuers of its securities investments. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, a Fund may be unable to sell such investments at an opportune time or may have to resell them at less than fair market value. The Funds currently intend to treat delayed funding loans and revolving credit facilities for which there is no readily available market as illiquid for purposes of a Fund’s limitation on illiquid investments. Participation interests

in revolving credit facilities will be subject to the limitations discussed above. Delayed funding loans and revolving credit facilities are considered to be debt obligations for purposes of the Trust’s investment restriction relating to the lending of funds or assets by a Fund.

Loans . Loans include floating or adjustable rate loans (“Loans”) made to U.S. and foreign borrowers that are corporations, partnerships, or other business entities (“Borrowers”). These Borrowers operate in a variety of industries and geographic regions. A Fund acquires Loans from lenders such as banks, insurance companies, finance companies, other investment companies, and private investment funds. The Loans are loans that are typically made to business borrowers to finance leveraged buy-outs, recapitalizations, mergers, stock repurchases, or internal growth. The Loans generally are negotiated between a Borrower and several financial institution lenders (“Lenders”) represented by one or more Lenders acting as agent of all the Lenders (“Agent”). The Agent is responsible for negotiating the loan agreement (the “Loan Agreement”) that establishes the terms and conditions of the Loan and the rights of the Borrower and the Lenders. A Fund may act as one of the group of original Lenders originating a Loan, may purchase assignments of portions of Loans from third parties and may invest in participations in Loans.

The Loans have the most senior position in a Borrower’s capital structure or share the senior position with other senior debt securities of the Borrower. This capital structure position generally gives holders of the Loans a priority claim on some or all of the Borrower’s assets in the event of default and therefore the Lenders will be paid before certain other creditors of the Borrower. The Loans also have contractual terms designed to protect Lenders. These covenants may include mandatory prepayment out of excess cash flows, restrictions on dividend payments, the maintenance of minimum financial ratios, limits on indebtedness and other financial tests. Breach of these covenants generally is an event of default and, if not waived by the Lenders, may give Lenders the right to accelerate principal and interest payments. The Funds generally acquire Loans of Borrowers that, among other things, in the Adviser’s judgment, can make timely payments on their Loans and that satisfy other credit standards established by the Adviser. The Adviser performs its own independent credit analysis of the Borrower and the collateral securing each loan in addition to utilizing information prepared and supplied by the Agent or other Lenders. The Loans are generally credit rated less than investment grade and may be subject to restrictions on resale. Below investment grade fixed income securities are securities rated BB/Ba or lower by Standard & Poor’s, Fitch, or Moody’s or similarly rated by another NRSRO.

Loans involve the risk that a Fund will not receive payment of principal, interest, and other amounts due in connection with these investments and will depend primarily on the financial condition of the borrower. Loans that are fully secured offer a Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal, although there is no assurance that the liquidation of collateral from a secured loan would satisfy the corporate borrower’s obligation, or that the collateral can be liquidated. Some loans or claims may be in default at the time of purchase. As a Fund may be required to rely upon another lending institution to collect and pass onto the Fund amounts payable with respect to the Loan and to enforce the Fund’s rights under the Loan, an insolvency, bankruptcy, or reorganization of the lending institution may delay or prevent the Fund from receiving such amounts. The highly leveraged nature of many such Loans may make such loans especially vulnerable to adverse changes in economic or market conditions.

Market Events Risk . The global financial crisis that began in 2008 has caused a

significant decline in the value and liquidity of many securities and unprecedented volatility in the markets. In response to the crisis, the U.S. Government and the Federal Reserve, as well as certain foreign governments and their central banks took steps to support financial markets, including by keeping interest rates low. More recently, the Federal Reserve has terminated certain of its market support activities. The withdrawal of this support could negatively affect financial markets generally as well as reduce the value and liquidity of certain securities. This environment could make identifying investment risks and opportunities especially difficult for the Adviser.

A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within and outside Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro, the common currency of the European Union, and/or withdraw from the European Union. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching. Whether or not a Fund invests in securities of issuers located in Europe or with significant exposure to European issuers or countries, these events could negatively affect the value and liquidity of the Fund’s investments.

Medium Company, Small Company and Emerging Growth Stocks . Investing in securities of medium-sized companies, small-sized, including micro-capitalization companies and emerging growth companies, may involve greater risks than investing in the stocks of larger, more established companies, including possible risk of loss. Also, because these securities may have limited marketability, their prices may be more volatile than securities of larger, more established companies or the market averages in general. Because medium-sized, small-sized and emerging growth companies normally have fewer shares outstanding than larger companies, it may be more difficult for a Fund to buy or sell significant numbers of such shares without an unfavorable impact on prevailing prices. Medium-sized, small-sized and emerging growth companies may have limited product lines, markets or financial resources and may lack management depth. In addition, medium-sized, small-sized and emerging growth companies are typically subject to wider variations in earnings and business prospects than are larger, more established companies. There is typically less publicly available information concerning medium sized, small-sized and emerging growth companies than for larger, more established ones.

Money Market Instruments . Each Fund may invest up to 20% of its net assets in short-term investment grade money market obligations at the time of purchase. Money market instruments may include the following types of instruments:

· obligations issued or guaranteed as to interest and principal by the U.S. Government, its agencies, or instrumentalities, or any federally chartered corporation, with remaining maturities of 397 days or less;

· obligations of sovereign foreign governments, their agencies, instrumentalities and political subdivisions, with remaining maturities of 397 days or less;

· obligations of municipalities and states, their agencies and political subdivisions with remaining maturities of 397 days or less;

· asset-backed commercial paper whose own rating or the rating of any guarantor is in one of the two highest categories of any NRSRO;

· repurchase agreements;

· bank or savings and loan obligations;

· commercial paper (including asset-backed commercial paper), which are short-term unsecured promissory notes issued by corporations in order to finance their current operations. It may also be issued by foreign governments, and states and municipalities. Generally the commercial paper or its guarantor will be rated within the top two rating categories by a NRSRO, or if not rated, is issued and guaranteed as to payment of principal and interest by companies which at the date of investment have a high quality outstanding debt issue;

· bank loan participation agreements representing obligations of corporations having a high quality short-term rating, at the date of investment, and under which a Fund will look to the creditworthiness of the lender bank, which is obligated to make payments of principal and interest on the loan, as well as to creditworthiness of the borrower;

· high quality short-term (maturity in 397 days or less) corporate obligations, rated within the top two rating categories by a NRSRO or, if not rated, deemed to be of comparable quality by the Adviser;

· extendable commercial notes, which differ from traditional commercial paper because the issuer can extend the maturity of the note up to 397 days with the option to call the note any time during the extension period; and

· unrated short-term (maturing in 397 days or less) debt obligations that are determined by the Adviser to be of comparable quality to the securities described above.

Mortgage-Related Securities . Mortgage-related securities are interests in pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Pools of mortgage loans are assembled as securities for sale to investors by various governmental, government-related and private organizations. The pools underlying mortgage pass-through securities consist of mortgage loans secured by mortgages or deeds of trust creating a first lien on commercial, residential, residential multi-family and mixed residential/commercial properties. Underlying mortgages may be of a

variety of types, including adjustable rate, conventional 30-year, graduated payment and 15-year. Most mortgage-related securities are pass-through securities, which means that investors receive payments consisting of a pro rata share of both principal and interest (less servicing and other fees). Additional payments are caused by repayments of principal resulting from the sale of the underlying property, refinancing or foreclosure, net of fees or costs which may be incurred.

Adjustable rate mortgage securities (“ARMs”) are a form of pass-through security representing interests in pools of mortgage loans, the interest rates of which are adjusted from time to time. The adjustments usually are determined in accordance with a predetermined interest rate index and may be subject to certain limits. The adjustment feature of ARMs tends to make their values less sensitive to interest rate changes. As the interest rates on the mortgages underlying ARMs are reset periodically, yields of such securities will gradually align themselves to reflect changes in market rates. Unlike fixed-rate mortgages, which generally decline in value during periods of rising interest rates, ARMs allow a Fund to participate in increases in interest rates through periodic adjustments in the coupons of the underlying mortgages, resulting in both higher current yields and low price fluctuations. A Fund will not benefit from increases in interest rates to the extent that interest rates rise to the point where they cause the current coupon of the underlying adjustable rate mortgages to exceed any maximum allowable annual or lifetime reset limits (or “cap rates”) for a particular mortgage. In this event, the value of the adjustable rate mortgage-backed securities in a Fund would likely decrease. Furthermore, if prepayments of principal are made on the underlying mortgages during periods of rising interest rates, the Fund may be able to reinvest such amounts in securities with a higher current rate of return. During periods of declining interest rates, of course, the coupon rates may readjust downward, resulting in lower yields to the Fund. Further, because of this feature, the values of ARMs are unlikely to rise during periods of declining interest rates to the same extent as fixed rate instruments.

Commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers also create pass-through pools of conventional residential mortgage loans. Such issuers may be the originators and/or servicers of the underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools created by such non-governmental issuers generally offer a higher rate of interest than government and government-related pools because there are no direct or indirect government or agency guarantees of payments in the former pools. However, timely payment of interest and principal of these pools may be supported by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities or private insurers. Such insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether a mortgage-related security meets minimum investment quality standards. There can be no assurance that the private insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements.

Due to the possibility of prepayments of the underlying mortgage instruments, mortgage-backed securities generally do not have a known maturity. In the absence of a known maturity, market participants generally refer to an estimated average life. An average life estimate is a function of an assumption regarding anticipated prepayment patterns, based upon current interest rates, current conditions in the relevant housing markets and other factors. The assumption is necessarily subjective, and thus different market participants can produce different average life estimates with regard to the same security. There can be no assurance that estimated average life will be a security’s actual average life. Like fixed income securities in general, mortgage-related

securities will generally decline in price when interest rates rise. Rising interest rates also tend to discourage refinancing of home mortgages, with the result that the average life of mortgage-related securities held by a fund may be lengthened. As average life extends, price volatility generally increases. For that reason, extension of average life causes the market price of the mortgage-related securities to decrease further when interest rates rise than if the average lives were fixed. Conversely, when interest rates fall, mortgages may not enjoy as large a gain in market value due to prepayment risk. Prepayments in mortgages tend to increase, average life tends to decline and increases in value are correspondingly moderated.

To the extent that such mortgage-backed securities are held by a Fund, the prepayment right will tend to limit to some degree the increase in NAV of the Fund because the value of the mortgage-backed securities held by the Fund may not appreciate as rapidly as the price of non-callable debt securities. Mortgage-backed securities are subject to the risk of prepayment and the risk that the underlying loans will not be repaid. Because principal may be prepaid at any time, mortgage-backed securities may involve significantly greater price and yield volatility than traditional debt securities.

Private lenders or government-related entities may also create mortgage loan pools offering pass-through investments where the mortgages underlying these securities may be alternative mortgage instruments, that is, mortgage instruments whose principal or interest payments may vary or whose terms to maturity may be shorter than was previously customary. As new types of mortgage-related securities are developed and offered to investors, a Fund, consistent with its investment objective and policies, may consider making investments in such new types of securities.

Impact of Sub-Prime Mortgage Market . Mortgage -backed, asset-backed and other fixed income securities’ value and liquidity may be adversely affected by the critical downturn in the sub-prime mortgage lending market in the U.S. sub-prime loans, which have higher interest rates, are made to borrowers with low credit ratings or other factors that increase the risk of default. Concerns about widespread defaults on sub-prime loans have also created heightened volatility and turmoil in the general credit markets. As a result, a Fund’s investments in certain fixed income securities may decline in value, its market value may be more difficult to determine, and the Fund may have more difficulty disposing of them.

Agency-Mortgage-Related Securities . The dominant issuers or guarantors of mortgage-related securities today are the Government National Mortgage Association (“GNMA” or “Ginnie Mae”), the Federal National Mortgage Association (“FNMA” or “Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“FHLMC” or “Freddie Mac”). GNMA creates pass-through securities from pools of U.S. Government guaranteed or insured (such as by the Federal Housing Authority or Veterans Administration) mortgages originated by mortgage bankers, commercial banks and savings associations. FNMA and FHLMC issue pass-through securities from pools of conventional and federally insured and/or guaranteed residential mortgages obtained from various entities, including savings associations, savings banks, commercial banks, credit unions and mortgage bankers.

Mortgage-backed securities either issued or guaranteed by GNMA, the FHLMC or FNMA (“Certificates”) are called pass-through Certificates because a pro rata share of both regular interest and principal payments (less GNMA’s, FHLMC’s or FNMA’s fees and any applicable loan servicing fees), as well as unscheduled early prepayments on the underlying mortgage pool, are passed through monthly to the holder of the Certificate ( i.e. , a Fund). The yields provided by these

mortgage-backed securities have historically exceeded the yields on other types of U.S. Government Securities with comparable maturities in large measure due to the prepayment risk discussed below.

In September 2008, the Federal Housing Finance Agency placed FNMA and FHLMC into conservatorship. FNMA and FHLMC are continuing to operate as going concerns while in conservatorship and each remain liable for all of its obligations, including its guaranty obligations, associated with its mortgage-backed securities. Although the U.S. Government has provided financial support to Fannie Mae and Freddie Mac, there can be no assurance that it will support these or other government-sponsored enterprises in the future.

Fannie Mae Securities . FNMA is a federally chartered and privately owned corporation established under the Federal National Mortgage Association Charter Act. FNMA provides funds to the mortgage market primarily by purchasing home mortgage loans from local lenders, thereby providing them with funds for additional lending. FNMA uses its funds to purchase loans from investors that may not ordinarily invest in mortgage loans directly, thereby expanding the total amount of funds available for housing.

Each FNMA pass-through security represents a proportionate interest in one or more pools of loans, including conventional mortgage loans (that is, mortgage loans that are not insured or guaranteed by any U.S. Government agency). The pools consist of one or more of the following types of loans: (1) fixed-rate level payment mortgage loans; (2) fixed-rate growing equity mortgage loans; (3) fixed-rate graduated payment mortgage loans; (4) variable rate mortgage loans; (5) other adjustable rate mortgage loans; and (6) fixed-rate mortgage loans secured by multifamily projects.

Pass-through securities issued by FNMA are guaranteed as to timely payment of principal and interest by FNMA but are not backed by the full faith and credit of the U.S. Government.

Federal Home Loan Mortgage Corporation Securities (FHLMC) . FHLMC is a corporate instrumentality of the U.S. Government and was created by Congress in 1970 for the purpose of increasing the availability of mortgage credit for residential housing. Its stock is owned by the twelve Federal Home Loan Banks. FHLMC issues Participation Certificates (“PCs”) which represent interests in conventional mortgages from FHLMC’s national portfolio. FHLMC guarantees the timely payment of interest and ultimate collection of principal, but PCs are not backed by the full faith and credit of the U.S. Government.

The operations of FHLMC currently consist primarily of the purchase of first lien, conventional, residential mortgage loans and participation interests in mortgage loans and the resale of the mortgage loans in the form of mortgage-backed securities.

The mortgage loans underlying FHLMC securities typically consist of fixed-rate or adjustable rate mortgage loans with original terms to maturity of between 10 to 30 years, substantially all of which are secured by first liens on one-to-four-family residential properties or multifamily projects. Each mortgage loan must be whole loans, participation interests in whole loans and undivided interests in whole loans or participation in another FHLMC security.

Government National Mortgage Association Securities . GNMA is a wholly-owned corporate instrumentality of the U.S. Government within the Department of Housing and Urban Development. GNMA is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely payment of principal and interest on securities issued by institutions

approved by GNMA (such as savings and loan institutions, commercial banks and mortgage bankers) and backed by pools of FHA-insured or VA-guaranteed mortgages. In order to meet its obligations under a guarantee, GNMA is authorized to borrow from the U.S. Treasury with no limitations as to amount. These guarantees, however, do not apply to the market value or yield of mortgage-backed securities or to the value of Fund shares. Also, GNMA securities often are purchased at a premium over the maturity value of the underlying mortgages. This premium is not guaranteed and will be lost if prepayment occurs.

GNMA pass-through securities may represent a proportionate interest in one or more pools of the following types of mortgage loans: (1) fixed-rate level payment mortgage loans; (2) fixed-rate graduated payment mortgage loans; (3) fixed-rate growing equity mortgage loans; (4) fixed-rate mortgage loans secured by manufactured (mobile) homes; (5) mortgage loans on multifamily residential properties under construction; (6) mortgage loans on completed multifamily projects; (7) fixed-rate mortgage loans as to which escrowed funds are used to reduce the borrower’s monthly payments during the early years of the mortgage loans (“buydown” mortgage loans); (8) mortgage loans that provide for adjustments on payments based on periodic changes in interest rates or in other payment terms of the mortgage loans; and (9) mortgage-backed serial notes.

The principal and interest on GNMA pass-through securities are guaranteed by GNMA and backed by the full faith and credit of the U.S. Government. FNMA guarantees full and timely payment of all interest and principal, while FHLMC guarantees timely payment of interest and ultimate collection of principal, of its pass-through securities. FNMA and FHLMC securities are not backed by the full faith and credit of the United States; however, they are generally considered to present minimal credit risks. The yields provided by these mortgage-related securities historically have exceeded the yields on other types of U.S. Government securities with comparable maturities in large measure due to the risks associated with prepayment.

Municipal Securities . Municipal securities include debt obligations issued by governmental entities to obtain funds for various public purposes, such as the construction of a wide range of public facilities, the refunding of outstanding obligations, the payment of general operating expenses, and the extension of loans to other public institutions and facilities. Private activity bonds that are issued by or on behalf of public authorities to finance various privately-operated facilities are deemed to be municipal securities, only if the interest paid thereon is exempt from federal taxes.

Other types of municipal securities include short-term General Obligation Notes, Tax Anticipation Notes, Bond Anticipation Notes, Revenue Anticipation Notes, Project Notes, Tax-Exempt Commercial Paper, Construction Loan Notes and other forms of short-term tax-exempt loans. Such instruments are issued with a short-term maturity in anticipation of the receipt of tax funds, the proceeds of bond placements or other revenues. In addition, the Tax-Free Income Fund may invest in other types of tax-exempt instruments, such as municipal bonds, private activity bonds, and pollution control bonds.

Project Notes are issued by a state or local housing agency and are sold by the Department of Housing and Urban Development. While the issuing agency has the primary obligation with respect to its Project Notes, they are also secured by the full faith and credit of the United States through agreements with the issuing authority which provide that, if required, the federal government will lend the issuer an amount equal to the principal of and interest on the Project Notes.

The two principal classifications of municipal securities consist of “general obligation” and “revenue” issues. Each Fund may also acquire “moral obligation” issues, which are normally issued by special purpose authorities. There are, of course, variations in the quality of municipal securities, both within a particular classification and between classifications, and the yields on municipal securities depend upon a variety of factors, including the financial condition of the issuer, general conditions of the municipal bond market, the size of a particular offering, the maturity of the obligation and the rating of the issue. Ratings represent the opinions of an NRSRO as to the quality of municipal securities. It should be emphasized, however, that ratings are general and are not absolute standards of quality, and municipal securities with the same maturity, interest rate and rating may have different yields, while municipal securities of the same maturity and interest rate with different ratings may have the same yield. Subsequent to purchase, an issue of municipal securities may cease to be rated or its rating may be reduced below the minimum rating required for purchase. The Adviser will consider such an event in determining whether the Fund should continue to hold the obligation.

Prices and yields on municipal bonds are dependent on a variety of factors, including general credit conditions, the financial condition of the issuer, general conditions of the municipal bond market, the size of a particular offering, the maturity of the obligation and the rating of the issue. A number of these factors, including the ratings of particular issues, are subject to change from time to time. Information about the financial condition of an issuer of municipal bonds may not be as extensive as that which is made available by corporations whose securities are publicly traded. The secondary market for municipal bonds typically has been less liquid than that for taxable debt/fixed income securities, and this may affect the Fund’s ability to sell particular municipal bonds at then-current market prices, especially in periods when other investors are attempting to sell the same securities.

An issuer’s obligations under its municipal securities are subject to the provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors, such as the federal bankruptcy code, and laws, if any, which may be enacted by Congress or state legislatures extending the time for payment of principal or interest, or both, or imposing other constraints upon the enforcement of such obligations or upon the ability of municipalities to levy taxes. The power or ability of an issuer to meet its obligations for the payment of interest on and principal of its municipal securities may be materially adversely affected by litigation or other conditions. Federal tax laws limit the types and amounts of tax-exempt municipal bonds issuable for certain purposes, especially industrial development bonds and private activity bonds. Such limits may affect the future supply and yields of these types of tax-exempt municipal securities. Further proposals limiting the issuance of tax-exempt municipal securities may well be introduced in the future. Shareholders should consult their tax advisers for the current law on tax-exempt bonds and securities.

A Fund may invest in certain tax-exempt municipal bonds. If the Internal Revenue Service or state tax authorities determine that an issuer of a tax-exempt municipal bond has not complied with applicable tax requirements, interest from the security could become taxable at the federal, state and/or local level and the security could decline significantly in value. Issuers or other parties generally enter into covenants requiring continuing compliance with federal tax requirements to preserve the tax-free status of interest payments over the life of the security. If at any time the covenants are not complied with, or if the Internal Revenue Service otherwise determines that the

issuer did not comply with relevant tax requirements, interest payments from a security could become taxable, possibly retroactively to the date the security was issued.

Private Activity and Industrial Development Bonds . Private activity and industrial development bonds are obligations issued by or on behalf of public authorities to raise money to finance various privately owned or operated facilities for business and manufacturing, housing, sports, and pollution control. These bonds are also used to finance public facilities such as airports, mass transit systems, ports, parking, and sewage and solid waste disposal facilities, as well as certain other facilities or projects. The payment of the principal and interest on such bonds is generally dependent solely on the ability of the facility’s user to meet its financial obligations and the pledge, if any, of real and personal property so financed as security for such payment.

Auction Rate Securities . Auction rate municipal securities are tax-exempt debt securities with coupons based on a rate set via a “Dutch” auction. The auction is held at regularly scheduled intervals as set forth in the indenture for a security. The auction sets the coupon rate, and investors may submit bids to buy, sell or hold securities in the auction. Provided that the auction mechanism is successful, auction rate securities permit the holder to sell the securities in an auction at par value. The coupon is reset via an auction in which bids are made by broker-dealers and other institutions on behalf of their investors for a certain amount of securities at a specified minimum yield. The rate set by the auction is the lowest interest rate that covers all securities available for sale. While this process is designed to permit auction rate securities to be traded at par value, there is a risk that an auction will fail due to insufficient demand for the securities. In the event an auction fails, the interest rate is set by a formula set forth in the indenture for a security. In certain recent market environments, auction failures have been more prevalent and the auctions have continued to fail for an extended period of time. Failed auctions may adversely affect the liquidity and price of auction rate securities. Although some issuers have redeemed such securities, the issuers are not obligated to do so and, therefore, there is no guarantee that a liquid market will exist for the Funds’ investments in auction rate securities at a time when the Funds wish to dispose of such securities. Moreover, between auctions, there may be no active secondary market for these securities, and sales conducted on a secondary market may not be on terms favorable to the seller. The Funds may purchase auction rate securities at par in situations where the auction mechanism is functioning normally, but generally will purchase them at a discount where the auctions have failed. In the latter case, the Funds could realize a gain if successful auctions resume at a later date or the issuer calls the security or tenders for the security rather than pay the rate required due to the failed auction. The Funds may treat an auction rate security as illiquid if it is or becomes subject to prices established as a result of a failed auction if reliable prices are not available. The Funds will use the time remaining until the next scheduled auction date for the purpose of determining the auction rate securities’ duration. In addition to liquidity and interest rate risk, the Funds’ investments in auction rate securities are subject to credit and market risk, as described in the Funds’ Prospectus. See “Additional Information about Investments, Investment Techniques and Risks.”

Natural Resources Industries . The Global Natural Resources Fund concentrates its investments in the natural resources industry, and therefore, the value of its shares may be more volatile than mutual funds that do not similarly concentrate their investments. Each Fund that invests in natural resources is vulnerable to the price movements of natural resources and factors that particularly affect the oil, gas, mining, energy, chemicals, paper, steel, agriculture or other natural resource related sectors. The natural resources industries can be significantly affected by events

relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, and tax and other government regulations. The securities of companies in the natural resources sector may experience more price volatility than securities of companies in other industries. Some of the commodities used as raw materials or produced by these companies are subject to broad price fluctuations as a result of industry wide supply and demand factors. As a result, companies in the natural resource sector often have limited pricing power over supplies or for the products they sell which can affect their profitability. Because certain Funds invest in companies with natural resource assets, there is the risk that the Funds will perform poorly during a downturn in natural resource prices.

Non-Deliverable Forwards . A non-deliverable forward (“NDF”) is an outright forward or futures contract in which counterparties settle the difference between the contracted NDF price or rate and the prevailing spot price or rate on an agreed notional amount. NDFs are used in various markets such as foreign exchange and commodities. NDFs are prevalent in some countries where forward contract trading has been banned by the government.

Options . Put options and call options typically have similar structural characteristics and operational mechanics regardless of the underlying instrument on which they are purchased or sold. Thus, the following general discussion relates to each of the particular types of options discussed in greater detail below. In addition, many Strategic Transactions involving options require segregation of fund assets in special accounts, as described under “Use of Segregated and Other Special Accounts.”

A put option gives the purchaser of the option, upon payment of a premium, the right to sell, and the writer the obligation to buy, the underlying security, commodity, index, currency or other instrument at the exercise price. For instance, a Fund’s purchase of a put option on a security might be designed to protect its holdings in the underlying instrument (or, in some cases, a similar instrument) against a substantial decline in the market value by giving the Fund the right to sell such instrument at the option exercise price. A call option, upon payment of a premium, gives the purchaser of the option the right to buy, and the seller the obligation to sell, the underlying instrument at the exercise price. A Fund’s purchase of a call option on a security, financial future, index, currency or other instrument might be intended to protect the Fund against an increase in the price of the underlying instrument that it intends to purchase in the future by fixing the price at which it may purchase such instrument. An American style put or call option may be exercised at any time during the option period while a European style put or call option may be exercised only upon expiration or during a fixed period prior thereto. A Fund is authorized to purchase and sell exchange listed options and OTC options. Exchange listed options are issued by a regulated intermediary such as the Options Clearing Corporation (“OCC”), which guarantees the performance of the obligations of the parties to such options. The discussion below uses the OCC as an example, but is also applicable to other financial intermediaries.

With certain exceptions, OCC-issued and exchange listed options generally settle by physical delivery of the underlying security or currency, although in the future cash settlement may become available. Index options and Eurodollar instruments are cash settled for the net amount, if any, by which the option is “in-the-money” ( i.e. , where the value of the underlying instrument exceeds, in the case of a call option, or is less than, in the case of a put option, the exercise price of the option) at the time the option is exercised. Frequently, rather than taking or making delivery of the underlying instrument through the process of exercising the option, listed options are closed by

entering into offsetting purchase or sale transactions that do not result in ownership of the new option.

A Fund’s ability to close out its position as a purchaser or seller of an OCC or exchange listed put or call option is dependent, in part, upon the liquidity of the option market. Among the possible reasons for the absence of a liquid option market on an exchange are: (i) insufficient trading interest in certain options; (ii) restrictions on transactions imposed by an exchange; (iii) trading halts, suspensions or other restrictions imposed with respect to particular classes or series of options or underlying securities including reaching daily price limits; (iv) interruption of the normal operations of the OCC or an exchange; (v) inadequacy of the facilities of an exchange or OCC to handle current trading volume; or (vi) a decision by one or more exchanges to discontinue the trading of options (or a particular class or series of options), in which event the relevant market for that option on that exchange would cease to exist, although outstanding options on that exchange would generally continue to be exercisable in accordance with their terms.

The hours of trading for listed options may not coincide with the hours during which the underlying financial instruments are traded. To the extent that the option markets close before the markets for the underlying financial instruments, significant price and rate movements can take place in the underlying markets that cannot be reflected in the option markets.

OTC options are purchased from or sold to securities dealers, financial institutions or other parties (“Counterparties”) through direct bilateral agreement with the Counterparty. In contrast to exchange listed options, which generally have standardized terms and performance mechanics, all the terms of an OTC option, including such terms as method of settlement, term, exercise price, premium, guarantees and security, are set by negotiation of the parties. A Fund will only sell OTC options (other than OTC currency options) that are subject to a buy-back provision permitting the Fund to require the Counterparty to sell the option back to the Fund at a formula price within seven days. A Fund expects generally to enter into OTC options that have cash settlement provisions, although it is not required to do so.

Unless the parties provide for it, there is no central clearing or guaranty function in an OTC option. As a result, if the Counterparty fails to make or take delivery of the security, currency or other instrument underlying an OTC option it has entered into with a Fund or fails to make a cash settlement payment due in accordance with the terms of that option, the Fund will lose any premium it paid for the option as well as any anticipated benefit of the transaction. Accordingly, the Adviser must assess the creditworthiness of each such Counterparty or any guarantor or credit enhancement of the Counterparty’s credit to determine the likelihood that the terms of the OTC option will be satisfied. The staff of the SEC currently takes the position that OTC options purchased by a Fund, and portfolio securities “covering” the amount of the Fund’s obligation pursuant to an OTC option sold by it (the cost of the sell-back plus the in-the-money amount, if any) are illiquid, and are subject to the Fund’s limitation on investing no more than 15% of its net assets in illiquid securities.

If a Fund sells a call option, the premium that it receives may serve as a partial hedge, to the extent of the option premium, against a decrease in the value of the underlying securities or instruments in its portfolio or will increase the Fund’s income. The sale of put options can also provide income.

A Fund may purchase and sell call options on securities including U.S. Treasury and agency securities, mortgage-backed securities, foreign sovereign debt, corporate debt securities,

equity securities (including convertible securities) and Eurodollar instruments that are traded on U.S. and foreign securities exchanges and in the OTC markets, and on securities indices, currencies and futures contracts. All calls sold by a Fund must be “covered” ( i.e. , the Fund must own the securities or futures contract subject to the call) or must meet the asset segregation requirements described below as long as the call is outstanding. Even though a Fund will receive the option premium to help protect it against loss, a call sold by the Fund exposes the Fund during the term of the option to possible loss of opportunity to realize appreciation in the market price of the underlying security or instrument and may require the Fund to hold a security or instrument which it might otherwise have sold.

A Fund may purchase and sell put options on securities including U.S. Treasury and agency securities, mortgage-backed securities, foreign sovereign debt, corporate debt securities, equity securities (including convertible securities) and Eurodollar instruments (whether or not it holds the above securities in its portfolio), and on securities indices, currencies and futures contracts other than futures on individual corporate debt and individual equity securities. A Fund will not sell put options if, as a result, more than 50% of the Fund’s total assets would be required to be segregated to cover its potential obligations under such put options other than those with respect to futures and options thereon. In selling put options, there is a risk that a Fund may be required to buy the underlying security at a disadvantageous price above the market price.

Options Transactions . A Fund may utilize up to 5% of its total assets at the time of purchase to purchase put options on securities and instruments in which it may invest and an additional 5% of its total assets to purchase call options on securities and instruments in which it may invest. The 5% limits on calls and puts are based on the daily market value of each option. Such options are traded on foreign or U.S. exchanges or in the OTC market. A Fund may write (sell) options to generate current income or as a hedge to reduce investment risk. A Fund will not write any call option or put option unless the option is covered and immediately thereafter the aggregate market value of all portfolio securities or currencies required to cover such options written by a Fund would not exceed 25% of its net assets at the time of purchase. A Fund realizes fees (referred to as “premiums”) for granting the rights evidenced by the call options it has written. A Fund may write straddles (combinations of put and call options on the same underlying security), which are generally a non-hedging technique used for purposes such as seeking to enhance return. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and unwind than individual options contracts. The straddle rules of the Internal Revenue Code require deferral of certain losses realized on positions of a straddle to the extent that a Fund has unrealized gains in offsetting positions at year end. The holding period of the securities comprising the straddle will be suspended until the straddle is terminated.

Options on Swaps (“Swaptions”) . The purchase and sale of put and call options on swap agreements are commonly referred to as swaptions. Swaptions are highly specialized investments and are not traded on or regulated by any securities exchange or regulated by the SEC or the CFTC. A Fund may enter into such transactions for hedging purposes or to seek to increase total return.

The buyer of a swaption pays a non-refundable premium for the option and obtains the right, but not the obligation, to enter into an underlying swap on agreed-upon terms. The seller of a swaption, in exchange for the premium, becomes obligated (if the option is exercised) to enter into an underlying swap on agreed-upon terms.

As with other options on securities, indices, or futures contracts, the price of any swaption will reflect both an intrinsic value component, which may be zero, and a time premium component. The intrinsic value component represents what the value of the swaption would be if it were immediately exercisable into the underlying interest rate swap. The intrinsic value component measures the degree to which an option is in-the-money, if at all. The time premium represents the difference between the actual price of the swaption and the intrinsic value.

The pricing and valuation terms of swaptions are not standardized and there is no clearinghouse whereby a party to the agreement can enter into an offsetting position to close out a contract. Swaptions must thus be regarded as inherently illiquid.

The use of swaptions, as the foregoing discussion suggests, is subject to risks and complexities beyond what might be encountered with investing directly in the securities and other traditional investments that are the referenced asset for the swap or other standardized, exchange traded options and futures contracts. Such risks include operational risks, valuation risks, credit risks, and/or counterparty risk (i.e., the risk that the counterparty cannot or will not perform its obligations under the agreement). In addition, at the time the swaption reaches its scheduled termination date, there is a risk that the Fund will not be able to obtain a replacement transaction or that the terms of the replacement will not be as favorable as on the expiring transaction. If this occurs, it could have a negative impact on the performance of the Fund.

While a Fund may utilize swaptions for hedging purposes or to seek to increase total return, their use might result in poorer overall performance for the Fund than if it had not engaged in any such transactions. If, for example, a Fund had insufficient cash, it might have to sell or pledge a portion of its underlying portfolio of securities in order to meet daily mark-to-market collateralization requirements at a time when it might be disadvantageous to do so. There may be an imperfect correlation between a Fund’s portfolio holdings and swaptions entered into by the Fund, which may prevent the Fund from achieving the intended hedge or expose the Fund to risk of loss. Further, a Fund’s use of swaptions to reduce risk involves costs and will be subject to the Adviser’s ability to predict correctly changes in interest rate relationships or other factors. No assurance can be given that the Adviser’s judgment in this respect will be correct.

Options on Futures Contracts . There are several risks relating to options on futures contracts. The ability to establish and close out positions on such options will be subject to the existence of a liquid market. In addition, the purchase of put or call options will be based upon predictions as to anticipated trends in interest rates, commodities and securities markets by a Fund’s Adviser, which could prove to be incorrect. Even if those expectations were correct, there may be an imperfect correlation between the change in the value of the options and of the portfolio securities hedged.

Options on Interest Rate Futures Contracts . A Fund may purchase and write put and call options on interest rate futures contracts that are traded on a U.S. or foreign exchange or board of trade. These transactions may be used as a hedge against changes in interest rates and market conditions. A Fund may enter into closing transactions with respect to such options to terminate existing positions. There is no guarantee that such closing transactions can be effected.

As contrasted with the direct investment in such a contract, the option gives the purchaser the right, in return for the premium paid, to assume a position in a fixed income or equity

security futures contract at a specified exercise price at any time prior to the expiration date of the option. Upon exercise of an option, the delivery of the futures position by the writer of the option to the holder of the option will be accompanied by delivery of the accumulated balance in the writer’s futures margin account, which represents the amount by which the market price of the futures contract exceeds for calls or is less than for puts the exercise price of the option on the futures contract. The potential loss related to the purchase of an option on futures contracts is limited to the premium paid for the option, plus transaction costs. Because the value of the option is fixed at the point of sale, there are no daily cash payments to reflect changes in the value of the underlying contract; however, the value of the option does change daily and that change would be reflected in the NAV of the Funds.

Options on Foreign Currency Futures Contracts . A Fund may purchase and write put and call options on foreign currency futures contracts that are traded on a U.S. exchange or board of trade. These transactions may be used as a hedge against changes in interest rates and market conditions. A Fund may enter into closing transactions with respect to such options to terminate existing positions. There is no guarantee that such closing transactions can be effected.

See “CFTC Exclusion” for additional information about the Funds’ use of derivatives in connection with CFTC exclusions.

Participation Interests . A Fund may purchase from financial institutions participation interests in securities in which a Fund may invest. A participation interest gives a Fund an undivided interest in the security in the proportion that the Fund’s participation interest bears to the principal amount of the security. These instruments may have fixed, floating or variable interest rates with remaining maturities of 397 days or less. If the participation interest is unrated, or has been given a rating below that which is permissible for purchase by a Fund, the participation interest will be backed by an irrevocable letter of credit or guarantee of a bank, or the payment obligation otherwise will be collateralized by U.S. Government securities, or, in the case of an unrated participation interest, determined by the Adviser to be of comparable quality to those instruments in which the Fund may invest. For certain participation interests, a Fund will have the right to demand payment, on not more than seven days’ notice, for all or any part of the Fund’s participation interests in the security, plus accrued interest. As to these instruments, a Fund generally intends to exercise its right to demand payment only upon a default under the terms of the security.

Pay-In-Kind Bonds (“PIK Bonds”) and Deferred Payment Securities . PIK Bonds pay all or a portion of their interest in the form of debt or equity securities. Deferred payment securities are securities that remain zero coupon securities until a predetermined date, at which time the stated coupon rate becomes effective and interest becomes payable at regular intervals. Deferred payment securities are often sold at substantial discounts from their maturity value.

PIK Bonds and deferred payment securities tend to be subject to greater price fluctuations in response to changes in interest rates than are ordinary interest-paying debt securities with similar maturities. PIK Bonds and deferred payment securities may be issued by a wide variety of corporate and governmental issuers. Although these instruments are generally not traded on a

national securities exchange, they are widely traded by brokers and dealers and, to such extent, will not be considered illiquid for the purposes of a Fund’s limitation on investments in illiquid securities.

Preferred Stock. Preferred stocks, like some debt obligations, are generally fixed income securities. Shareholders of preferred stocks normally have the right to receive dividends at a fixed rate when and as declared by the issuer’s board of directors, but do not participate in other amounts available for distribution by the issuing corporation. Dividends on the preferred stock may be cumulative, and all cumulative dividends usually must be paid prior to common shareholders of common stock receiving any dividends. Because preferred stock dividends must be paid before common stock dividends, preferred stocks generally entail less risk than common stocks. Upon liquidation, preferred stocks are entitled to a specified liquidation preference, which is generally the same as the par or stated value, and are senior in right of payment to common stock. Preferred stocks are, however, equity securities in the sense that they do not represent a liability of the issuer and, therefore, do not offer as great a degree of protection of capital or assurance of continued income as investments in corporate debt securities. Preferred stocks are generally subordinated in right of payment to all debt obligations and creditors of the issuer, and convertible preferred stocks may be subordinated to other preferred stock of the same issuer.

Privatization Vouchers . Privatization vouchers are a method where citizens are given or can inexpensively buy a book of vouchers that represent potential shares in any state-owned company. Voucher privatization has mainly been used in the early—to—mid 1990s in the transition economies of Central and Eastern Europe. Privatization vouchers may reflect distribution arrangements in which at least some shares of the ownership in state industrial enterprises could be transferred to private citizens for free. Organizations and enterprises may be prohibited from accepting privatization vouchers as instruments of payment for goods, services or work. However, privatization vouchers are otherwise negotiable instruments and they may be bought and sold on the market without restriction. At times, it also may be more difficult to determine the fair value of the vouchers for purposes of computing the NAV of these Funds

Put Bonds . “Put” bonds are securities (including securities with variable interest rates) that may be sold back to the issuer of the security at face value at the option of the holder prior to their stated maturity. The Adviser intends to purchase only those put bonds for which the put option is an integral part of the security as originally issued. The option to “put” the bond back to the issuer prior to the stated final maturity can cushion the price decline of the bond in a rising interest rate environment. However, the premium paid, if any, for an option to put will have the effect of reducing the yield otherwise payable on the underlying security.

Real Estate Investment Trusts . REITs are pooled investment vehicles which invest primarily in income-producing real estate or real estate related loans or interests. REITs are sometimes informally characterized as equity REITs, mortgage REITs and hybrid REITs. Equity REITs invest the majority of their assets directly in real property and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from the collection of interest payments. Hybrid REITs combine the investment strategies of equity REITs and mortgage REITs.

Investment in REITs may subject a Fund to risks associated with the direct ownership of real estate, such as decreases in real estate values, overbuilding, increased competition and other

risks related to local or general economic conditions, increases in operating costs and property taxes, changes in zoning laws, casualty or condemnation losses, possible environmental liabilities, regulatory limitations on rent and fluctuations in rental income. Equity REITs generally experience these risks directly through fee or leasehold interests, whereas mortgage REITs generally experience these risks indirectly through mortgage interests, unless the mortgage REIT forecloses on the underlying real estate. Changes in interest rates may also affect the value of a Fund’s investment in REITs. For instance, during periods of declining interest rates, certain mortgage REITs may hold mortgages that the mortgagors elect to prepay, which prepayment may diminish the yield on securities issued by those REITs.

Certain REITs have relatively small market capitalizations, which may tend to increase the volatility of the market price of their securities. Furthermore, REITs are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks inherent in operating and financing a limited number of projects. Like regulated investment companies such as the Funds, REITs are not taxed on income distributed to shareholders provided that they comply with certain requirements under the Internal Revenue Code (the “Code”). Each Fund will indirectly bear its proportionate share of any expenses paid by REITs in which it invests in addition to the expenses paid by the Fund. REITs are dependent upon management skills, are not diversified (except to the extent the Code requires), and are subject to the risks of financing projects and illiquid markets. REITs are also subject to heavy cash flow dependency, defaults by borrowers and the possibility of failing to qualify for tax-free pass-through of income under the Code, and to maintain exemption from the registration requirements of the 1940 Act. By investing in REITs indirectly through a Fund, a shareholder will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly, similar expenses of the REITs. In addition, REITs depend generally on their ability to generate cash flow to make distributions to shareholders. The management of a REIT may be subject to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.

Real Estate Related Securities . Although no Fund may invest directly in real estate, a Fund may invest in equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to certain risks associated with the ownership of real estate and with the real estate industry in general. These risks include, among others: possible declines in the value of real estate; risks related to general and local economic conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems; tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods, earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for rents; investment in developments that are not completed or that are subject to delays in completion; and changes in interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent. Investments by a Fund in securities of companies providing mortgage servicing may be subject to the risks associated with refinancings and their impact on

servicing rights. In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain its tax status as a regulated investment company because of certain income source requirements applicable to regulated investment companies under the Code.

Repurchase Agreements . In a repurchase agreement, a Fund acquires ownership of a security and simultaneously commits to resell that security to the seller, typically a bank or broker/dealer.

A repurchase agreement provides a means for a Fund to earn income on funds for periods as short as overnight. It is an arrangement under which the purchaser ( i.e. , a Fund) acquires a security (“Obligation”) and the seller agrees, at the time of sale, to repurchase the Obligation at a specified time and price. Repurchase agreements are considered by the staff of the SEC to be loans by a Fund. Securities subject to a repurchase agreement are held in a segregated account and, as described in more detail below, the value of such securities is kept at least equal to the repurchase price on a daily basis. The repurchase price may be higher than the purchase price, the difference being income to a Fund, or the purchase and repurchase prices may be the same, with interest at a stated rate due to the Fund together with the repurchase price upon repurchase. In either case, the income to a Fund is unrelated to the interest rate on the Obligation itself. Obligations will be held by the custodian or in the Federal Reserve Book Entry System.

It is not clear whether a court would consider the Obligation purchased by a Fund subject to a repurchase agreement as being owned by the Fund or as being collateral for a loan by the Fund to the seller. In the event of the commencement of bankruptcy or insolvency proceedings with respect to the seller of the Obligation before repurchase of the Obligation under a repurchase agreement, a Fund may encounter delay and incur costs before being able to sell the security. Delays may involve loss of interest or decline in price of the Obligation. If the court characterizes the transaction as a loan and a Fund has not perfected a security interest in the Obligation, the Fund may be required to return the Obligation to the seller’s estate and be treated as an unsecured creditor of the seller. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal and income involved in the transaction. As with any unsecured debt Obligation purchased for a Fund, the Adviser seeks to reduce the risk of loss through repurchase agreements by analyzing the creditworthiness of the obligor, in this case the seller of the Obligation. Apart from the risk of bankruptcy or insolvency proceedings, there is also the risk that the seller may fail to repurchase the Obligation, in which case a Fund may incur a loss if the proceeds to the Fund of the sale to a third party are less than the repurchase price. However, if the market value of the Obligation subject to the repurchase agreement becomes less than the repurchase price (including interest), a Fund will direct the seller of the Obligation to deliver additional securities so that the market value (including interest) of all securities subject to the repurchase agreement will equal or exceed the repurchase price.

Restricted Securities. Generally speaking, restricted securities may be sold (i) only to qualified institutional buyers; (ii) in a privately negotiated transaction to a limited number of purchasers; (iii) in limited quantities after they have been held for a specified period of time and other conditions are met pursuant to an exemption from registration; or (iv) in a public offering for which a registration statement is in effect under the Securities Act. Issuers of restricted securities

may not be subject to the disclosure and other investor protection requirements that would be applicable if their securities were publicly traded.

Restricted securities include securities that are privately placed (including private investments in public equity (PIPE) transactions), securities that are not registered under the Securities Act but that can be sold to “qualified institutional buyers” in accordance with the requirements stated in Rule 144A, the requirements of Regulation S under the Securities Act, sold pursuant to Section 4(a)(2) of the Securities Act, or sold pursuant to a court-allowed exemption that comprises a hybrid exemption under Sections 4(a)(1) and 4(a)(2) of the Securities Act, as applicable.

Issuers of restricted securities may not be subject to the disclosure and other investor protection requirements that would be applicable if their securities were publicly traded. Where a registration statement is required for the resale of restricted securities, a Fund may be required to bear all or part of the registration expenses. A Fund may be deemed to be an “underwriter” for purposes of the Securities Act when selling restricted securities to the public and, in such event, the Fund may be liable to purchasers of such securities if the registration statement prepared by the issuer is materially inaccurate or misleading.

Restricted securities are often illiquid, and in such case would be subject to a Fund’s limitations on illiquid securities. Restricted securities may also be deemed liquid pursuant to procedures adopted by the Board where the Adviser has determined such securities to be liquid because such securities are eligible for resale and are readily saleable. Disposing of illiquid investments may involve time-consuming negotiation and legal expenses, and it may be difficult or impossible for a Fund to sell them promptly at an acceptable price. A Fund may have to bear the extra expense of registering the securities for resale and the risk of substantial delay in effecting the registration. In addition, market quotations typically are less readily available for these securities.

Reverse Repurchase Agreements . Reverse repurchase agreements are repurchase agreements in which a Fund, as the seller of the securities, agrees to repurchase them at an agreed upon time and price. A Fund generally retains the right to interest and principal payments on the security. Since a Fund receives cash upon entering into a reverse repurchase agreement, it may be considered a borrowing (see “Borrowing”). When required by guidelines of the SEC, a Fund will segregate or earmark permissible liquid assets to secure its obligations to repurchase the security. At the time a Fund enters into a reverse repurchase agreement, it will establish and maintain segregated or earmarked liquid assets with an approved custodian having a value not less than the repurchase price (including accrued interest). The segregated or earmarked liquid assets will be marked-to-market daily and additional assets will be segregated or earmarked on any day in which the assets fall below the repurchase price (plus accrued interest). A Fund’s liquidity and ability to manage its assets might be affected when it sets aside cash or portfolio securities to cover such commitments. Reverse repurchase agreements involve the risk that the market value of the securities retained in lieu of sale may decline below the price of the securities a Fund has sold but is obligated to repurchase. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a Fund’s obligation to repurchase the securities, and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be restricted pending such determination. Reverse repurchase agreements are considered to be borrowings under the 1940 Act. A Fund will enter into reverse repurchase agreements only when the Adviser believes that the interest income to be earned from the investment of the proceeds of the transaction will be greater

than the interest expense of the transaction. Such transactions may increase fluctuation in the market value of Fund assets and their yields.

Rights Issues and Warrants . Rights Issues give the right, to existing shareholders, to buy a proportional number of additional securities at a given price (generally at a discount) within a fixed period (generally on a short term period) and are offered at the company’s discretion.

Warrants are securities that give the holder the right, but not the obligation, to subscribe for newly created equity issues (consisting of common and preferred stock, convertible preferred stock and warrants that themselves are only convertible into common, preferred or convertible preferred stock) of the issuing company or a related company at a fixed price either on a certain date or during a set period. Warrants are speculative and have no value if they are not exercised before the expiration date.

The equity issue underlying an equity warrant is outstanding at the time the equity warrant is issued or is issued together with the warrant. At the time a Fund acquires an equity warrant convertible into a warrant, the terms and conditions under which the warrant received upon conversion can be exercised will have been determined; the warrant received upon conversion will only be convertible into a common, preferred or convertible preferred stock. Equity warrants are generally issued in conjunction with an issue of bonds or shares, although they also may be issued as part of a rights issue or scrip issue. When issued with bonds or shares, they usually trade separately from the bonds or shares after issuance.

OTC equity warrants are usually traded only by financial institutions that have the ability to settle and clear these instruments. OTC warrants are instruments between the Fund and its counterparty (usually a securities dealer or bank) with no clearing organization guarantee. Thus, when the Fund purchases an OTC warrant, the Fund relies on the counterparty to fulfill its obligations to the Fund if the Fund decides to exercise the warrant.

Index warrants are rights created by an issuer, typically a financial institution, entitling the holder to purchase, in the case of a call, or sell, in the case of a put, an equity index at a certain level over a fixed period of time. Index warrant transactions settle in cash.

Covered warrants are rights created by an issuer, typically a financial institution, ordinarily entitling the holder to purchase from the issuer of the covered warrant outstanding securities of another company (or in some cases a basket of securities), which issuance may or may not have been authorized by the issuer or issuers of the securities underlying the covered warrants. In most cases, the holder of the covered warrant is entitled on its exercise to delivery of the underlying security, but in some cases the entitlement of the holder is to be paid in cash the difference between the value of the underlying security on the date of exercise and the strike price. The securities in respect of which covered warrants are issued are usually common stock, although they may entitle the holder to acquire warrants to acquire common stock. Covered warrants may be fully covered or partially covered. In the case of a fully covered warrant, the issuer of the warrant will beneficially own all of the underlying securities or will itself own warrants (which are typically issued by the issuer of the underlying securities in a separate transaction) to acquire the securities. The underlying securities or warrants are, in some cases, held by another member of the issuer’s group or by a

custodian or other fiduciary for the holders of the covered warrants.

Interest rate warrants are rights that are created by an issuer, typically a financial institution, entitling the holder to purchase, in the case of a call, or sell, in the case of a put, a specific bond issue or an interest rate index (Bond Index) at a certain level over a fixed time period. Interest rate warrants can typically be exercised in the underlying instrument or settle in cash.

Long term options operate much like covered warrants. Like covered warrants, long term options are call options created by an issuer, typically a financial institution, entitling the holder to purchase from the issuer outstanding securities of another issuer. Long-term options have an initial period of one year or more, but generally have terms between three and five years. Unlike U.S. options, long term European options do not settle through a clearing corporation that guarantees the performance of the counterparty. Instead, they are traded on an exchange and subject to the exchange’s trading regulations. A Fund may only acquire covered warrants, index warrants, interest rate warrants and long term options that are issued by entities deemed to be creditworthy by the Adviser. Investment in these instruments involves the risk that the issuer of the instrument may default on its obligation to deliver the underlying security or warrants to acquire the underlying security (or cash in lieu thereof) .

Securities Backed by Guarantees . Securities backed by guarantees are securities backed by guarantees from banks, insurance companies and other financial institutions. Changes in the credit quality of these institutions could have an adverse impact on securities they have guaranteed or backed, which could cause losses to a Fund.

Securities of Investment Companies . To the extent permitted by the 1940 Act, a Fund may generally invest up to 10% of its total assets, calculated at the time of investment, in the securities of other investment companies. No more than 5% of a Fund’s total assets may be invested in the securities of any one investment company nor may it acquire more than 3% of the voting securities of any other investment company. For purposes of these limitations, a Fund would aggregate its investments in any private placements (as described under “Restricted Securities” above) with its investment company holdings. However, as described above, the Funds-of-Funds may invest up to 100% of their assets in other investment companies in reliance on the 1940 Act and/or exemptive relief granted by the SEC.

To the extent a Fund invests in another investment company, the Fund indirectly will bear its proportionate share of any management fees paid by an investment company in which it invests in addition to the advisory fee paid by the Fund. Some of the countries in which a Fund may invest may not permit direct investment by outside investors. Investments in such countries may only be permitted through foreign government-approved or government-authorized investment vehicles, which may include other investment companies. Each Fund (except the Funds-of-Funds) may not acquire securities of registered open-end investment companies or registered unit investment trusts in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.

Short Sales . In a short sale of securities, a Fund sells stock which it does not own, making delivery with securities “borrowed” from a broker. A Fund is then obligated to replace the security borrowed by purchasing it at the market price at the time of replacement. This price may or may not be less than the price at which the security was sold by a Fund. Until the security is

replaced, a Fund is required to pay the lender any dividends or interest which accrue during the period of the loan. In order to borrow the security, a Fund may also have to pay a premium and/or interest which would increase the cost of the security sold. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. In addition, the broker may require the deposit of collateral (generally, up to 50% of the value of the securities sold short).

A Fund will incur a loss as a result of the short sale if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. A Fund will realize a gain if the security declines in price between those two dates. The amount of any gain will be decreased and the amount of any loss will be increased by any premium or interest a Fund may be required to pay in connection with the short sale. When a cash dividend is declared on a security for which a Fund has a short position, the Fund incurs the obligation to pay an amount equal to that dividend to the lender of the shorted security. However, any such dividend on a security sold short generally reduces the market value of the shorted security, thus increasing a Fund’s unrealized gain or reducing a Fund’s unrealized loss on its short-sale transaction. Whether a Fund will be successful in utilizing a short sale will depend, in part, on the Adviser’s or subadviser’s ability to correctly predict whether the price of a security it borrows to sell short will decrease.

In a short sale, the seller does not immediately deliver the securities sold and is said to have a short position in those securities until delivery occurs. A Fund must segregate or earmark an amount of cash or other liquid assets equal to the difference between (a) the market value of securities sold short at the time that they were sold short and (b) the value of the collateral deposited with the broker to meet margin requirements in connection with the short sale (not including the proceeds from the short sale). While the short position is open, a Fund must maintain on a daily basis segregated or earmarked liquid assets at such a level that the amount segregated or earmarked plus the amount of collateral deposited with the broker as margin equals the current market value of the securities sold short.

A Fund also may engage in short sales if at the time of the short sale the Fund owns or has the right to obtain without additional cost an equal amount of the security being sold short. This investment technique is known as a short sale “against the box.” The Funds do not intend to engage in short sales against the box for investment purposes. A Fund may, however, make a short sale as a hedge, when it believes that the price of a security may decline, causing a decline in the value of a security owned by the Fund (or a security convertible or exchangeable for such security), or when the Fund wants to sell the security at an attractive current price. In such case, any future losses in a Fund’s long position should be offset by a gain in the short position and, conversely, any gain in the long position should be reduced by a loss in the short position. The extent to which such gains or losses are reduced will depend upon the amount of the security sold short relative to the amount a Fund owns. There will be certain additional transaction costs associated with short sales against the box. For tax purposes a Fund that enters into a short sale “against the box” may be treated as having made a constructive sale of an “appreciated financial position” causing the Fund to realize a gain (but not a loss).

Special Situation Companies . Companies may experience “special situations,” which are unusual developments that could affect a company’s market value. Examples of “special situations” include mergers, acquisitions, reorganizations, consolidations, recapitalizations,

liquidations; distributions of cash, securities or other assets; tender or exchange offers; a breakup or workout of a holding company; or litigation.

Standby Commitment Agreements . Standby commitment agreements commit a Fund, for a stated period of time, to purchase a stated amount of fixed income securities that may be issued and sold to the Fund at the option of the issuer. The price and coupon of the security is fixed at the time of the commitment. At the time of entering into the agreement a Fund is paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund enters into such agreements for the purpose of investing in the security underlying the commitment at a yield and price that is considered advantageous to the Fund.

Strategic Transactions, Derivatives and Synthetic Investments . A Fund may, but is not required to, utilize various other investment strategies as described below for a variety of purposes, such as hedging various market risks, managing the effective maturity or duration of the fixed income securities in the Fund’s portfolio or enhancing potential gain. These strategies may be executed through the use of derivative contracts. In certain circumstances, a Fund may wish to obtain the price performance of a security without actually purchasing the security in circumstances where, for example, the security is illiquid, or is unavailable for direct investment or available only on less attractive terms. In such circumstances, a Fund may invest in synthetic or derivative alternative investments (“Synthetic Investments”) that are based upon or otherwise relate to the economic performance of the underlying securities. Synthetic Investments may include swap transactions, notes or units with variable redemption amounts, and other similar instruments and contracts. Synthetic Investments typically do not represent beneficial ownership of the underlying security, usually are not collateralized or otherwise secured by the counterparty and may or may not have any credit enhancements attached to them.

In the course of pursuing these investment strategies, a Fund may purchase and sell exchange-listed and OTC put and call options on securities, equity and fixed income indices and other instruments, purchase and sell futures contracts and options thereon, enter into various transactions such as swaps, caps, floors, collars, currency forward contracts, currency futures contracts, currency swaps or options on currencies, or currency futures and various other currency transactions (collectively, all the above are called “Strategic Transactions”). In addition, strategic transactions may also include new techniques, instruments or strategies that are permitted as regulatory changes occur. Strategic Transactions may be used subject to certain limits imposed by the 1940 Act to attempt to protect against possible changes in the market value of securities held in or to be purchased for a Fund’s portfolio resulting from securities markets or currency exchange rate fluctuations, to protect a Fund’s unrealized gains in the value of its portfolio securities, to facilitate the sale of such securities for investment purposes, to manage the effective maturity or duration of a Fund’s portfolio, or to establish a position in the derivatives markets as a substitute for purchasing or selling particular securities. Any or all of these investment techniques may be used at any time and in any combination, and there is no particular strategy that dictates the use of one technique rather than another, as use of any Strategic Transaction is a function of numerous variables including market conditions. The ability of a Fund to utilize these Strategic Transactions successfully will depend on the Adviser’s ability to predict pertinent market movements, which cannot be assured. A Fund will comply with applicable regulatory requirements when implementing these strategies, techniques and instruments. Strategic Transactions will not be used to alter fundamental investment purposes and characteristics of a Fund, and a Fund will segregate assets (or as provided by

applicable regulations, enter into certain offsetting positions) to cover its obligations under options, futures and swaps to limit leveraging of the Fund.

Strategic Transactions, including derivative contracts and Synthetic Investments, have risks associated with them including possible default by the other party to the transaction, illiquidity and, to the extent the Adviser’s view as to certain market movements is incorrect, the risk that the use of such Strategic Transactions could result in losses greater than if they had not been used. Synthetic Investments also involve exposure to the creditworthiness of the issuer of the underlying security, changes in exchange rates and future governmental actions taken by the jurisdiction in which the underlying security is issued, and counterparties involved. Use of put and call options may result in losses to a Fund, force the sale or purchase of portfolio securities at inopportune times or for prices higher than (in the case of put options) or lower than (in the case of call options) current market values, limit the amount of appreciation a Fund can realize on its investments or cause a Fund to hold a security it might otherwise sell. The use of currency transactions can result in a Fund incurring losses as a result of a number of factors including the imposition of exchange controls, suspension of settlements, or the inability to deliver or receive a specified currency. The use of options and futures transactions entails certain other risks. In particular, the variable degree of correlation between price movements of futures contracts and price movements in the related portfolio position of a Fund creates the possibility that losses on the hedging instrument may be greater than gains in the value of the Fund’s position. In addition, futures and options markets may not be liquid in all circumstances and certain OTC options may have no markets. As a result, in certain markets, a Fund might not be able to close out a transaction without incurring substantial losses, if at all. Although the use of futures and options transactions for hedging should tend to minimize the risk of loss due to a decline in the value of the hedged position, at the same time they tend to limit any potential gain which might result from an increase in value of such position. Finally, the daily variation margin requirements for futures contracts would create a greater ongoing potential financial risk than would purchases of options, where the exposure is limited to the cost of the initial premium. Losses resulting from the use of Strategic Transactions would reduce NAV, and possibly income, and such losses can be greater than if the Strategic Transactions had not been utilized.

Risks of Strategic Transactions Inside the U.S. It is possible that government regulation of various types of derivative instruments, including futures and swap agreements (such as the currency and interest rate transactions, credit default swaps and options described herein), may limit or prevent a Fund from using such instruments as part of its investment strategy, which could negatively impact a Fund. For example, the swaps market has been an evolving and largely unregulated market. It is possible that developments in the swaps market, including new regulatory requirements, could limit or prevent a Fund’s ability to utilize swap agreements or options on swaps as part of its investment strategy, terminate existing swap agreements or realize amounts to be received under such agreements, which could negatively affect the Funds. Some swaps currently are, and more in the future will be, centrally cleared, which affects how swaps are transacted.

In particular, the Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted on July 21, 2010 (the “Dodd-Frank Act”), has resulted in new clearing and exchange-trading requirements for swaps and other OTC derivatives. The Dodd-Frank Act also requires the CFTC and/or the SEC, in consultation with banking regulators, to establish capital requirements for swap dealers and major swap participants, as well as requirements for posting margin by counterparties

such as the Funds on cleared and uncleared derivatives, including swaps. In addition, some provisions of the Dodd-Frank Act impose business conduct, reporting and disclosure requirements on dealers, and recordkeeping and other obligations on counterparties such as the Funds.

If a Fund must centrally clear a transaction, the CFTC’s regulations may also require that the derivative be entered into over a market facility that is known as a “swap execution facility” or “SEF” and, in the future, the CFTC’s regulations may require that certain electronically-traded contracts be entered into over SEFs, even if those contracts are not subject to mandatory central clearing. Similar regulatory requirements will apply to contracts that are subject to the jurisdiction of the SEC, although the SEC has not yet finalized its regulations.

While some provisions of the Dodd-Frank Act have either already been implemented through rulemaking by the CFTC and/or the SEC or must be implemented through future rulemaking by those and other federal agencies, and any regulatory or legislative activity may not necessarily have a direct, immediate effect upon the Funds, it is possible that, when compliance with these rules is required, they could potentially limit or completely restrict the ability of a Fund to use certain derivatives as a part of its investment strategy, increase the cost of entering into derivatives transactions or require more assets of the Fund to be used for collateral in support of those derivatives than is currently the case. Limits or restrictions applicable to the counterparties with which a Fund engages in derivative transactions also could prevent the Funds from using derivatives or affect the pricing or other factors relating to these transactions, or may change the availability of certain derivatives.

The CFTC and the SEC continue to review the proposed and current regulatory requirements applicable to derivatives, including swaps. It is not certain at this time how the regulators may change these requirements and such proposals may create barriers to the Funds’ use of certain types of investments.

As described above, the Fund may also trade in forward currency contracts. There is less protection against defaults in the forward trading of currencies since such forward contracts are currently not guaranteed by an exchange or clearing house. The Dodd-Frank Act includes in the definition of “swaps” that are regulated by the CFTC most types of currency hedges including foreign currency forwards and therefore contemplates that certain of these contracts may be exchange-traded, cleared by a clearinghouse and otherwise regulated by the CFTC. Many of the final regulations already adopted by the CFTC in connection with its authority under Dodd-Frank will apply to such contracts. A limited category of forward currency contracts, however, are excluded from certain of the Dodd-Frank regulations by the Secretary of the Treasury, namely spot foreign currency exchange contracts. Therefore, with respect to trading in forward currency contracts excluded by the Secretary of the Treasury, the Fund is not afforded the protections provided by CFTC regulation, including segregation of funds.

Risks of Strategic Transactions Outside the U.S . When conducted outside the U.S., Strategic Transactions may not be regulated as rigorously as in the U.S. (which may depend on whether the Fund is executing trades with a CFTC or SEC registered dealer), may not involve a clearing mechanism and related guarantees, and are subject to the risk of governmental actions affecting trading in, or the prices of, foreign securities, currencies and other instruments. The value

of such positions also could be adversely affected by: (i) other complex foreign political, legal and economic factors, (ii) lesser availability than in the U.S. of data on which to make trading decisions, (iii) delays in a Fund’s ability to act upon economic events occurring in foreign markets during non-business hours in the U.S., (iv) the imposition of different exercise and settlement terms and procedures and margin requirements than in the U.S., and (v) lower trading volume and liquidity.

Use of Segregated and Other Special Accounts . Many Strategic Transactions, in addition to other requirements, require that a Fund segregate cash or liquid assets with its custodian to the extent fund obligations are not otherwise “covered” through ownership of the underlying security, financial instrument or currency. In general, either the full amount of any obligation by a Fund to pay or deliver securities or assets must be covered at all times by the securities, instruments or currency required to be delivered, or, subject to any regulatory restrictions, an amount of cash or liquid assets at least equal to the current amount of the obligation must be segregated with the custodian. The segregated assets cannot be sold or transferred unless equivalent assets are substituted in their place or it is no longer necessary to segregate them. For example, a call option written by a Fund will require the Fund to hold the securities subject to the call (or securities convertible into the needed securities without additional consideration) or to segregate cash or liquid assets sufficient to purchase and deliver the securities if the call is exercised. A call option sold by a Fund on an index will require the Fund to own portfolio securities which correlate with the index or to segregate cash or liquid assets equal to the excess of the index value over the exercise price on a current basis. A put option written by a Fund requires the Fund to segregate cash or liquid assets equal to the exercise price.

Except when a Fund enters into a forward contract for the purchase or sale of a security denominated in a particular currency, which requires no segregation, a currency contract which obligates the Fund to buy or sell currency will generally require the Fund to hold an amount of that currency or liquid assets denominated in that currency equal to the Fund’s obligations or to segregate cash or liquid assets equal to the amount of the Fund’s obligation.

OTC options entered into by a Fund, including those on securities, currency, financial instruments or indices and OCC-issued and exchange listed index options, will generally provide for cash settlement. As a result, when a Fund sells these instruments it will only segregate an amount of cash or liquid assets equal to its accrued net obligations, as there is no requirement for payment or delivery of amounts in excess of the net amount. These amounts will equal 100% of the exercise price in the case of a non cash-settled put, the same as an OCC guaranteed listed option sold by a Fund, or the in-the-money amount plus any sell-back formula amount in the case of a cash-settled put or call. In addition, when a Fund sells a call option on an index at a time when the in-the-money amount exceeds the exercise price, the Fund will segregate, until the option expires or is closed out, cash or cash equivalents equal in value to such excess. OCC-issued and exchange listed options sold by a Fund other than those above generally settle with physical delivery, or with an election of either physical delivery or cash settlement, and the Fund will segregate an amount of cash or liquid assets equal to the full value of the option. OTC options settling with physical delivery, or with an election of either physical delivery or cash settlement, will be treated the same as other options settling with physical delivery.

In the case of a futures contract or an option thereon, a Fund must deposit initial margin and possible daily variation margin in addition to segregating cash or liquid assets sufficient to meet its obligation to purchase or provide securities or currencies, or to pay the amount owed at

the expiration of an index-based futures contract. Such liquid assets may consist of cash, cash equivalents, liquid debt or equity securities or other acceptable assets.

With respect to swaps, a Fund will accrue the net amount of the excess, if any, of its obligations (including any pre-payment penalties and premium payments) over its entitlements with respect to each swap on a daily basis and will segregate an amount of cash or liquid assets having a value equal to the accrued excess. A Fund’s obligation to segregate the accrued excess of its obligations over its entitlements with respect to a CDS it buys (for example, the cost to the Fund to unwind the CDS, enter into an offsetting CDS, or pay a third-party to relieve the Fund of its obligation) may be equal to the notional value of the CDS. When the Fund is a seller of the CDS, the Fund will segregate the notional value of the CDS. Caps, floors and collars require segregation of assets with a value equal to the Fund’s net obligation, if any.

Strategic Transactions may be covered by other means when consistent with applicable regulatory policies. A Fund may also enter into offsetting transactions so that its combined position, coupled with any segregated assets, equals its net outstanding obligation in related options and Strategic Transactions. For example, a Fund could purchase a put option if the strike price of that option is the same or higher than the strike price of a put option sold by the Fund. Moreover, instead of segregating cash or liquid assets if a Fund held a futures or forward contract, it could purchase a put option on the same futures or forward contract with a strike price as high or higher than the price of the contract held. Other Strategic Transactions may also be offset in combinations. If the offsetting transaction terminates at the time of or after the primary transaction, no segregation is required, but if it terminates prior to such time, cash or liquid assets equal to any remaining obligation would need to be segregated.

Combined Transactions . A Fund may enter into multiple transactions, including multiple options transactions, multiple futures transactions, multiple currency transactions (including forward currency contracts) and multiple interest rate transactions and any combination of futures, options, currency and interest rate transactions (“component” transactions), instead of a single Strategic Transaction, as part of a single or combined strategy when, in the opinion of the Adviser, it is in the best interests of the Fund to do so. A combined transaction will usually contain elements of risk that are present in each of its component transactions. Although combined transactions are normally entered into based on the Adviser’s judgment that the combined strategies will reduce risk or otherwise more effectively achieve the desired portfolio management goal, it is possible that the combination will instead increase such risks or hinder achievement of the portfolio management objective.

Strip Bonds . Strip bonds are debt securities that are stripped of their interest (usually by a financial intermediary) after the securities are issued. The market value of these securities generally fluctuates more in response to changes in interest rates than interest paying securities of comparable maturity.

Stripped Mortgage Securities . Stripped mortgage securities are derivative multiclass mortgage securities. Stripped mortgage securities may be issued by agencies or instrumentalities of the U.S. Government, or by private originators of, or investors in, mortgage loans, including savings and loan associations, mortgage banks, commercial banks, investment banks and special purpose subsidiaries of the foregoing. Stripped mortgage securities have greater volatility than other types of mortgage securities. Although stripped mortgage securities are

purchased and sold by institutional investors through several investment banking firms acting as brokers or dealers, the market for such securities has not yet been fully developed. Accordingly, stripped mortgage securities are generally illiquid.

Stripped mortgage securities are structured with two or more classes of securities that receive different proportions of the interest and principal distributions on a pool of mortgage assets. A common type of stripped mortgage security will have at least one class receiving only a small portion of the interest and a larger portion of the principal from the mortgage assets, while the other class will receive primarily interest and only a small portion of the principal. In the most extreme case, one class will receive all of the interest (“IO” or interest-only), while the other class will receive the entire principal (“PO” or principal-only class). The yield to maturity on IOs, POs and other mortgage-backed securities that are purchased at a substantial premium or discount generally are extremely sensitive not only to changes in prevailing interest rates but also to the rate of principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of principal payments may have a material adverse effect on such securities’ yield to maturity. If the underlying mortgage assets experience greater than anticipated prepayments of principal, the Fund may fail to fully recoup its initial investment in these securities even if the securities have received the highest rating by a NRSRO.

In addition to the stripped mortgage securities described above, a Fund may invest in similar securities such as Super POs and Levered IOs which are more volatile than POs, IOs and IOettes. Risks associated with instruments such as Super POs are similar in nature to those risks related to investments in POs. IOettes represent the right to receive interest payments on an underlying pool of mortgages with similar risks as those associated with IOs. Unlike IOs, the owner of an IOette also has the right to receive a very small portion of the principal. Risks connected with Levered IOs and IOettes are similar in nature to those associated with IOs. The Fund may also invest in other similar instruments developed in the future that are deemed consistent with its investment objective, policies and restrictions. A Fund may also purchase stripped mortgage-backed securities for hedging purposes to protect the Fund against interest rate fluctuations. For example, since an IO will tend to increase in value as interest rates rise, it may be utilized to hedge against a decrease in value of other fixed income securities in a rising interest rate environment.

With respect to IOs, if the underlying mortgage securities experience greater than anticipated prepayments of principal, a Fund may fail to recoup fully its initial investment in these securities even if the securities are rated in the highest rating category by a NRSRO. Stripped mortgage-backed securities may exhibit greater price volatility than ordinary debt securities because of the manner in which their principal and interest are returned to investors. The market value of the class consisting entirely of principal payments can be extremely volatile in response to changes in interest rates. The yields on stripped mortgage-backed securities that receive all or most of the interest are generally higher than prevailing market yields on other mortgage-backed obligations because their cash flow patterns are also volatile and there is a greater risk that the initial investment will not be fully recouped. The market for collateralized mortgage obligations and other stripped mortgage-backed securities may be less liquid if these securities lose their value as a result of changes in interest rates; in that case, the Fund may have difficulty in selling such securities.

Stripped Zero Coupon Securities/Custodial Receipts . Zero coupon securities include securities issued directly by the U.S. Treasury, and U.S. Treasury bonds or notes and their unmatured interest coupons and receipts for their underlying principal (“coupons”) which have been

separated by their holder, typically a custodian bank or investment brokerage firm. A holder will separate the interest coupons from the underlying principal (the “corpus”) of the U.S. Treasury security. A number of securities firms and banks have stripped the interest coupons and receipts and then resold them in custodial receipt programs with a number of different names, including “Treasury Income Growth Receipts” (TIGRS™) and Certificate of Accrual on Treasuries (CATS™). The underlying U.S. Treasury bonds and notes themselves are held in book-entry form at the Federal Reserve Bank or, in the case of bearer securities ( i.e. , unregistered securities which are owned ostensibly by the bearer or holder thereof), in trust on behalf of the owners thereof. The U.S. Treasury has facilitated transfers of ownership of zero coupon securities by accounting separately for the beneficial ownership of particular interest coupon and corpus payments on Treasury securities through the Federal Reserve book-entry record keeping system. The Federal Reserve program as established by the Treasury Department is known as “STRIPS” or “Separate Trading of Registered Interest and Principal of Securities.” Under the STRIPS program, a Fund will be able to have its beneficial ownership of zero coupon securities recorded directly in the book-entry record-keeping system in lieu of having to hold certificates or other evidences of ownership of the underlying U.S. Treasury securities.

When U.S. Treasury obligations have been stripped of their unmatured interest coupons by the holder, the principal or corpus is sold at a deep discount because the buyer receives only the right to receive a future fixed payment on the security and does not receive any rights to periodic interest ( i.e., cash) payments. Once stripped or separated, the corpus and coupons may be sold separately. Typically, the coupons are sold separately or grouped with other coupons with like maturity dates and sold bundled in such form. Purchasers of stripped obligations acquire, in effect, discount obligations that are economically identical to the zero coupon securities that the Treasury sells itself.

Structured Notes . Structured notes are specially-designed derivative debt instruments in which the terms may be structured by the purchaser and the issuer of the note. The amount of principal repayments and/or interest payments is based upon the movement of one or more “factors.” These factors include, but are not limited to, currency and currency baskets, interest rates (such as the prime lending rate and LIBOR), a single security, basket of securities, indices (such as the S&P 500 Index) and precious metal-related instruments and other commodities. In some cases, the impact of the movements of these factors may increase or decrease through the use of multipliers or deflators. Structured notes may be designed to have particular quality and maturity characteristics and may vary from money market quality to below investment grade. Depending on the factor used and use of multipliers or deflators, however, changes in interest rates and movement of the factor may cause significant price fluctuations or may cause particular structured notes to become illiquid.

Structured Securities . A structured investment is a security whose value or performance is linked to an underlying index or other security or asset class. Structured investments involve the transfer of specified financial assets to a special purpose entity, generally a corporation or trust, or the deposit of financial assets with a custodian; and the issuance of securities or depository receipts backed by, or representing interests in those assets.

Some structured investments are individually negotiated agreements or are traded OTC. Structured investments may be organized and operated to restructure the investment characteristics of the underlying security. The cash flow on the underlying instruments may be

apportioned among the newly issued structured securities to create securities with different investment characteristics, such as varying maturities, payment priorities and interest rate provisions, and the extent of such payments made with respect to structured securities is dependent on the extent of the cash flow on the underlying instruments. Investments in structured securities generally involve a class of structured securities that is either subordinated or unsubordinated to the right of payment of another class. Subordinated structured securities typically have higher yields and present greater risks than unsubordinated structured securities. Structured securities are also subject to such risks as the inability or unwillingness of the issuers of the underlying securities to repay principal and interest, and requests by the issuers of the underlying securities to reschedule or restructure outstanding debt and to extend additional loan amounts.

Supranational Entities . Supranational entities are international organizations designated or supported by governmental entities to promote economic reconstruction or development and international banking institutions and related government agencies. Examples include the International Bank for Reconstruction and Development (the World Bank), the European Coal and Steel Community, The Asian Development Bank and the InterAmerican Development Bank. Obligations of supranational entities are backed by the guarantee of one or more foreign governmental parties which sponsor the entity.

Swaps, Caps, Floors and Collars . To the extent used by a Fund, total return equity, interest rate, credit default, currency, index and other swaps and the purchase or sale of related caps, floors and collars are expected to be used primarily to preserve a return or spread on a particular investment or portion of its portfolio, to protect against currency fluctuations, as a duration management technique or to protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund will not sell interest rate caps or floors where it does not own securities or other instruments providing the income stream the Fund may be obligated to pay.

A Fund will usually enter into swaps on a net basis, i.e. , the two payment streams are netted out in a cash settlement on the payment date or dates specified in the instrument, with the Fund receiving or paying, as the case may be, only the net amount of the two payments. Inasmuch as a Fund will segregate assets (or enter into offsetting positions) to cover its obligations under swaps, the Adviser and each Fund believe such obligations do not constitute senior securities under the 1940 Act and, accordingly, will not treat them as being subject to its borrowing restrictions. A Fund will not enter into any swap, cap, floor or collar transaction unless, at the time of entering into such transaction, the Counterparty meets the Adviser’s current creditworthiness standards. If there is a default by the Counterparty, a Fund may have contractual remedies pursuant to the agreements related to the transaction. The swap market has grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, the swap market has become relatively liquid. Caps, floors and collars are more recent innovations for which standardized documentation has not yet been fully developed and, accordingly, they are less liquid than swaps.

Total Return Swaps. A total return swap is a swap in which one party pays the total return of an asset, and the other party makes periodic interest payments. The total return is the capital gain or loss, plus any interest or dividend payments. If the total return is negative, then the party making periodic interest or dividend payments pays this amount to the other party. The parties have exposure to the return of the underlying stock or index, without having to hold the underlying

assets. The profit or loss of the party making periodic interest or dividend payments is the same as actually owning the underlying asset. An equity swap is a special type of total return swap, where the underlying asset is a stock, a basket of stocks, or a stock index. One party to an equity swap agrees to make periodic payments based on the change in market value of a specified equity security, basket of equity securities or equity index in return for periodic payments from the other party based on a fixed or variable interest rate or the change in market value of a different equity security, basket of equity securities or equity index. The parties to an equity swap do not make an initial payment and do not have any voting or other rights of a stockholder. An index swap is an agreement to swap cash flows on a notional amount based on changes in the values of the reference indices.

Interest Rate Swaps. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest, e.g., an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal. A currency swap is an agreement to exchange cash flows on a notional amount of two or more currencies based on the relative value differential among them and an index swap is an agreement to swap cash flows on a notional amount based on changes in the values of the reference indices. The purchase of a cap entitles the purchaser to receive payments on a notional principal amount from the party selling such cap to the extent that a specified index exceeds a predetermined interest rate or amount. The purchase of a floor entitles the purchaser to receive payments on a notional principal amount from the party selling such floor to the extent that a specified index falls below a predetermined interest rate or amount. A collar is a combination of a cap and a floor that preserves a certain return within a predetermined range of interest rates or values.

Credit Default Swaps . A credit default swap is a credit derivative contract between two counterparties. The buyer makes periodic payments to the seller, and in return receives protection if an underlying financial instrument defaults. A Fund might use credit default swap contracts to limit or to reduce risk exposure of the Fund to defaults of corporate and sovereign issuers ( i.e. , to reduce risk when the Fund owns or has exposure to such issuers). A Fund also might use credit default swap contracts to create direct or synthetic short or long exposure to domestic or foreign corporate debt securities or certain sovereign debt securities to which the Fund is not otherwise exposed.

As the seller in a credit default swap contract, a Fund would be required to pay the par (or other agreed-upon) value of a referenced debt obligation to the counterparty in the event of a default (or similar event) by a third party, such as a U.S. or foreign issuer, on the debt obligation. In return, a Fund would receive from the counterparty a periodic stream of payments over the term of the contract, provided that no event of default (or similar event) occurs. If no event of default (or similar event) occurs, a Fund would keep the stream of payments and would have no payment of obligations. As the seller in a credit default swap contract, a Fund effectively would add economic leverage to its portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap.

As the purchaser in a credit default swap contract, a Fund would function as the counterparty referenced in the preceding paragraph. This would involve the risk that the investment might expire worthless. It also would involve credit risk, which means that the seller may fail to satisfy its payment obligations to the Fund in the event of a default (or similar event). As the purchaser in a credit default swap contract, a Fund’s investment would generate income only in the event of an actual default (or similar event) by the issuer of the underlying obligation.

Currency Swaps . A currency swap is a foreign-exchange agreement between two institutions to exchange aspects (namely the principal and/or interest payments) of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency.

Index Swap . An index swap is a swap of a market index for some other asset, such as a stock-for-stock or debt-for-stock swap.

See “CFTC Exclusion” for additional information about the Funds’ use of derivatives in connection with CFTC exclusions.

Temporary Investments . Generally each Fund will be fully invested in accordance with its investment objective and strategies. However, pending investment of cash balances or for other cash management purposes, or if the Adviser believes that business, economic, political or financial conditions warrant, a Fund may invest, without limit, in cash or cash equivalents, including: (1) foreign money market instruments (such as bankers’ acceptances, certificates of deposit, commercial paper, short-term government and corporate obligations, and repurchase agreements); (2) obligations issued or guaranteed by the U.S. Government its agencies and instrumentalities; (3) certificates of deposit, bankers’ acceptances, and interest-bearing savings deposits of commercial banks; (4) prime quality commercial paper; (5) repurchase agreements covering any of the securities in which the Fund may invest directly; (6) money market instruments; (7) high quality debt securities without equity features; and (8) subject to the limits of the 1940 Act, shares of other investment companies that invest in securities in which the Fund may invest. Should this occur, a Fund will not be pursuing and may not achieve its investment objective or may miss potential market upswings.

To-Be-Announced Instruments (“TBAs” ). A Fund may invest in TBAs. TBA transactions are contracts used when purchasing or selling mortgage-backed securities that are delivered at a later date. The actual mortgage-backed security delivered to fulfill a TBA trade is not initially determined at the time of trade, but conforms to a predetermined set of stipulations. The actual mortgage pools are generally determined 48 hours prior to the established trade settlement date. In order to provide sufficient cover for its forward TBA obligations, a Fund will either earmark cash or liquid securities equal to or greater than the purchase price value of the mortgage-backed securities until settlement date or post collateral in a custody account with its custodian to secure its obligations to its counterparty in respect of the purchase price.

Trust Preferred Securities . Trust Preferred Securities are hybrid instruments issued by a special purpose trust (the “Special Trust”), the entire equity interest of which is owned by a single issuer. The proceeds of the issuance to a Fund of Trust Preferred Securities are typically used to purchase a junior subordinated debenture, and distributions from the Special Trust are funded by the payments of principal and interest on the subordinated debenture.

If payments on the underlying junior subordinated debentures held by the Special Trust are deferred by the debenture issuer, the debentures would be treated as original issue discount (“OID”) obligations for the remainder of their term. As a result, holders of Trust Preferred

Securities, such as the Funds, would be required to accrue daily for federal income tax purposes their share of the stated interest and the de minimis OID on the debentures (regardless of whether the Fund receives any cash distributions from the Special Trust), and the value of Trust Preferred Securities would likely be negatively affected. Interest payments on the underlying junior subordinated debentures typically may only be deferred if dividends are suspended on both common and preferred stock of the issuer. The underlying junior subordinated debentures generally rank slightly higher in terms of payment priority than both common and preferred securities of the issuer, but rank below other subordinated debentures and debt securities. Trust Preferred Securities may be subject to mandatory prepayment under certain circumstances. The market values of Trust Preferred Securities may be more volatile than those of conventional debt securities. Trust Preferred Securities may be issued in reliance on Rule 144A under the Securities Act, and, unless and until registered, are restricted securities; there can be no assurance as to the liquidity of Trust Preferred Securities and the ability of holders of Trust Preferred Securities, such as the Funds to sell their holdings.

U.S. Government Securities . There are two broad categories of U.S. Government-related debt instruments: (a) direct obligations of the U.S. Treasury, and (b) securities issued or guaranteed by U.S. Government agencies.

Examples of direct obligations of the U.S. Treasury are Treasury Bills, Notes, Bonds and other debt securities issued by the U.S. Treasury. These instruments are backed by the “full faith and credit” of the United States. They differ primarily in interest rates, the length of maturities and the dates of issuance. Treasury bills have original maturities of one year or less. Treasury notes have original maturities of one to ten years and Treasury bonds generally have original maturities of greater than ten years.

Some agency securities are backed by the full faith and credit of the United States (such as Maritime Administration Title XI Ship Financing Bonds and Agency for International Development Housing Guarantee Program Bonds) and others are backed only by the rights of the issuer to borrow from the U.S. Treasury (such as Federal Home Loan Bank Bonds and Federal National Mortgage Association Bonds), while still others, such as the securities of the Federal Farm Credit Bank, are supported only by the credit of the issuer. With respect to securities supported only by the credit of the issuing agency or by an additional line of credit with the U.S. Treasury, there is no guarantee that the U.S. Government will provide support to such agencies and such securities may involve risk of loss of principal and interest. U.S. Government Securities may include “zero coupon” securities that have been stripped by the U.S. Government of their unmatured interest coupons and collateralized obligations issued or guaranteed by a U.S. Government agency or instrumentality.

Interest rates on U.S. Government obligations may be fixed or variable. Interest rates on variable rate obligations are adjusted at regular intervals, at least annually, according to a formula reflecting then current specified standard rates, such as 91-day U.S. Treasury bill rates. These adjustments generally tend to reduce fluctuations in the market value of the securities.

The government guarantee of the U.S. Government Securities in a Fund’s portfolio does not guarantee the NAV of the shares of the Fund. There are market risks inherent in all investments in securities and the value of an investment in a Fund will fluctuate over time. Normally, the value of investments in U.S. Government Securities varies inversely with changes in interest rates. For example, as interest rates rise the value of investments in U.S. Government

Securities will tend to decline, and as interest rates fall the value of a Fund’s investments will tend to increase. In addition, the potential for appreciation in the event of a decline in interest rates may be limited or negated by increased principal prepayments with respect to certain mortgage-backed securities, such as GNMA Certificates. Prepayments of high interest rate mortgage-backed securities during times of declining interest rates will tend to lower the return of a Fund and may even result in losses to the Fund if some securities were acquired at a premium. Moreover, during periods of rising interest rates, prepayments of mortgage-backed securities may decline, resulting in the extension of a Fund’s average portfolio maturity. As a result, a Fund’s portfolio may experience greater volatility during periods of rising interest rates than under normal market conditions.

TIPS Bonds . TIPS are fixed income securities issued by the U.S. Treasury whose principal value is periodically adjusted according to the rate of inflation. The U.S. Treasury uses a structure that accrues inflation into the principal value of the bond. Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is possible that securities with other maturities will be issued in the future. TIPS bonds typically pay interest on a semi-annual basis, equal to a fixed percentage of the inflation-adjusted amount. For example, if a Fund purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).

If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the current market value of the bonds is not guaranteed and will fluctuate.

The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds.

While these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond’s inflation measure.

The periodic adjustment of U.S. inflation-indexed bonds is tied to the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. There can be no assurance that the CPI-U will accurately measure the real rate of inflation in the prices of goods and services.

Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even though investors do not receive their principal until maturity.

Variable Rate Instruments . Floating or variable rate obligations bear interest at rates that are not fixed, but vary with changes in specified market rates or indices and at specified intervals. Certain of these obligations may carry a demand feature that would permit the holder to tender them back to the issuer at par value prior to maturity. Such obligations include variable rate master demand notes, which are unsecured instruments issued pursuant to an agreement between the issuer and the holder that permit the indebtedness thereunder to vary and provide for periodic adjustments in the interest rate. Some of the demand instruments are not traded in a secondary market and derive their liquidity solely from the ability of the holder to demand repayment from the issuer or a third party providing credit support. If a demand instrument is not traded in the secondary market, the Funds will nonetheless treat the instrument as “readily marketable” for the purposes of its investment restriction limiting investments in illiquid securities unless the demand feature has a notice period of more than seven days, in which case the instrument will be characterized as “not readily marketable” and therefore illiquid. If an issuer of such instruments were to default on its payment obligations, the Fund might be unable to dispose of the instrument because of the absence of a secondary market and could, for this or other reasons, suffer a loss to the extent of the default.

When-Issued Securities and Delayed-Delivery . A Fund may purchase equity and debt securities on a “when-issued,” “delayed delivery” or “forward delivery” basis. The price of such securities, which may be expressed in yield terms, is fixed at the time the commitment to purchase is made, but delivery and payment for the securities takes place at a later date. During the period between purchase and settlement, no payment is made by a Fund to the issuer and no interest accrues to the Fund. When a Fund purchases such securities, it immediately assumes the risks of ownership, including the risk of price fluctuation. Failure to deliver a security purchased on this basis may result in a loss or missed opportunity to make an alternative investment.

To the extent that assets of a Fund are held in cash pending the settlement of a purchase of securities, the Fund would earn no income. While such securities may be sold prior to the settlement date, each Fund intends to purchase them with the purpose of actually acquiring them unless a sale appears desirable for investment reasons. At the time a Fund makes the commitment to purchase a security on this basis, it will record the transaction and reflect the value of the security in determining its NAV. The market value of the securities may be more or less than the purchase price. A Fund will establish a segregated account in which it will maintain cash and liquid assets equal in value to commitments for such securities.

When a Fund agrees to purchase when-issued or delayed-delivery securities, to the extent required by the SEC, its custodian will set aside permissible liquid assets equal to the amount of the commitment in a segregated account. Normally, the custodian will set aside portfolio securities to satisfy a purchase commitment, and in such a case a Fund may be required subsequently to place additional assets in the segregated account in order to ensure that the value of the account remains equal to the amount of the Fund’s commitment. It may be expected that a Fund’s net assets will fluctuate to a greater degree when it sets aside portfolio securities to cover such purchase commitments than when it sets aside cash. In addition, because a Fund will set aside cash or liquid assets to satisfy its purchase commitments in the manner described above, the Fund’s liquidity and the ability of the Adviser or subadviser to manage it might be affected in the event its commitments to purchase “when-issued” securities ever exceed 25% of the value of its total assets. Under normal

market conditions, however, a Fund’s commitment to purchase “when-issued” or “delayed-delivery” securities will not exceed 25% of the value of its total assets. When a Fund engages in when-issued or delayed-delivery transactions, it relies on the other party to consummate the trade. Failure of the seller to do so may result in a Fund incurring a loss or missing an opportunity to obtain a price considered to be advantageous.

When a Fund enters into a delayed delivery transaction, a when-issued transaction or a forward transaction, the Fund may be required to provide collateral to cover potential losses of the counterparty, due to changes in the value of the security, in the event that the event that the transaction is unable to settle (e.g., in the event of a default on the Fund). Similarly, the counterparty may be required to provide collateral to cover the potential losses of the Fund, due to changes in the value of the security, in the event that the transaction is unable to settle (e.g., the seller fails to deliver the security). A Fund may reduce the amount of liquid assets it will segregate to the extent it provides such collateral.

There can be no assurance that the securities subject to a standby commitment will be issued and the value of the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value of such security and may not benefit from appreciation in the value of the security during the commitment period if the security is not ultimately issued.

The purchase of a security subject to a standby commitment agreement and the related commitment fee will be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security will thereafter be reflected in the calculation of the Fund’s NAV. The cost basis of the security will be adjusted by the amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as income on the expiration date of the standby commitment.

Portfolio Turnover

The portfolio turnover rate for a Fund is calculated by dividing the lesser of purchases and sales of portfolio securities for the year by the monthly average value of the portfolio securities, excluding securities whose maturities at the time of purchase were one year or less. Portfolio turnover may involve the payment by a Fund of brokerage and other transaction costs, on the sale of securities, as well as on the investment of the proceeds in other securities. The greater the portfolio turnover, the greater the transaction costs to a Fund, which could have an adverse effect on the Fund’s total rate of return. In addition, funds with high portfolio turnover rates may be more likely than low-turnover funds to generate capital gains that must be distributed to shareholders as taxable income.

The table below shows the Funds’ portfolio turnover rates for the years ended October 31, 2014 and 2013.

Fund	2014		2013
China Opportunities Fund	30.61	%	14.51	%
Equity Long-Short Fund	31.13	%	41.95	%
Global Equity Fund	24.09	%	12.87	%

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Fund	2014		2013
Global Natural Resources Fund	2.02	%	12.50	%
Global Small Cap Fund	12.93	%	34.85	%
International Equity Fund	10.08	%	23.35	%
Small Cap Fund	29.32	%	39.71	%
U.S. Equity Fund	20.60	%	19.53	%
Emerging Markets Fund	5.00	%	2.79	%
Emerging Markets Debt Local Currency Fund	46.26	%	86.05	%
Global Fixed Income Fund	183.14	%	208.61	%
Tax-Free Income Fund	5.58	%	6.11	%
Ultra-Short Duration Bond Fund	81.59	%	93.60	%
Diversified Income Fund	29.19	%	37.01	%
Dynamic Allocation Fund	52.34	%	67.49	%
Diversified Alternatives Fund	54.26	%	47.20	%
Asia Bond Fund	57.03	%	77.93	%
Asia-Pacific (ex-Japan) Equity Fund	36.48	%	3.33	%
Asia-Pacific Smaller Companies Fund	51.86	%	58.61	%
High Yield Fund(1)	74.39	%	130.94	%
Emerging Markets Debt Fund	60.31	%	55.26	%
European Equity Fund(2)	7.75	%	3.35	%
Latin American Equity Fund(2)	3.79	%	5.04	%

(1) The 2014 portfolio turnover rate decreased as a result of routine portfolio management decisions.

(2) The 2013 portfolio turnover is for the period March 25, 2013 (commencement of operations) — October 31, 2013.

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INVESTMENT RESTRICTIONS

The following are fundamental investment restrictions of each Fund which cannot be changed without the vote of the majority of the outstanding shares of the Fund for which a change is proposed. The vote of the majority of the outstanding shares means the vote of (A) 67% or more of the voting securities present at a meeting, if the holders of more than 50% of the outstanding voting securities are present or represented by proxy or (B) a majority of the outstanding voting securities, whichever is less.

Each of the Funds :

· May not (except the Global Equity Fund, Global Natural Resources Fund, Asia Bond Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund and the Funds-of-Funds)(1) purchase securities of any one issuer, other than obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities, if, immediately after such purchase, more than 5% of the Fund’s total assets would be invested in such issuer or the Fund would hold more than 10% of the outstanding voting securities of the issuer, except that 25% or less of the Fund’s total assets may be invested without regard to such limitations. There is no limit to the percentage of assets that may be invested in U.S. Treasury bills, notes, or other obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities.

· May not borrow money or issue senior securities, except that each Fund may sell securities short, enter into reverse repurchase agreements and may otherwise borrow money and issue senior securities as and to the extent permitted by the 1940 Act or any rule, order or interpretation thereunder.

· May not act as an underwriter of another issuer’s securities, except to the extent that the Fund may be deemed an underwriter within the meaning of the Securities Act in connection with the purchase and sale of portfolio securities.

· May not purchase or sell commodities or commodities contracts, except to the extent disclosed in the current Prospectus or SAI of the Fund.

· May not (except the Global Natural Resources Fund) purchase the securities of any issuer if, as a result, 25% or more (taken at current value) of the Fund’s total assets would be invested in the securities of issuers, the principal activities of which are in the same industry. This limitation does not apply to securities issued by the U.S. Government or its agencies or instrumentalities or securities of other investment companies. The following industries are considered separate industries for purposes of this investment restriction: electric, natural gas distribution, natural gas pipeline, combined electric and natural gas, and telephone utilities, captive borrowing conduit, commercial mortgage, residential mortgage, equipment finance, premium finance, leasing finance, consumer finance and other finance; except that with respect to the Emerging Markets Debt Fund and the U.S. Equity Fund, commercial mortgage and residential mortgage are not

(1) Global Equity Fund and Global Natural Resources Fund were previously non-diversified, but are now diversified funds and comply with this restriction.

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considered separate industries.(1) For the Tax-Free Income Fund, this limitation does not apply to tax-exempt obligations issued by state, county or municipal governments.

· May not lend any security or make any other loan, except that each Fund may in accordance with its investment objective and policies (i) lend portfolio securities, (ii) purchase and hold debt securities or other debt instruments, including but not limited to loan participations and subparticipations, assignments, and structured securities, (iii) make loans secured by mortgages on real property, (iv) enter into repurchase agreements, and (v) make time deposits with financial institutions and invest in instruments issued by financial institutions, and enter into any other lending arrangement as and to the extent permitted by the 1940 Act or any rule, order or interpretation thereunder.

· May not purchase or sell real estate, except that each Fund may (i) acquire real estate through ownership of securities or instruments and sell any real estate acquired thereby, (ii) purchase or sell instruments secured by real estate (including interests therein), and (iii) purchase or sell securities issued by entities or investment vehicles that own or deal in real estate (including interests therein).

For purposes of the fundamental policy restricting investments in an issuer if, as a result, 25% or more of the Fund’s total assets would be invested in the securities of issuers, the principal activities of which are in the same industry, each of the Funds will, as a non-fundamental policy, consider commercial mortgage and residential mortgage to be a single industry (notwithstanding the statement defining separate industries contained in the policy). In addition, notwithstanding the statement defining separate industries contained in the policy, each of the Funds may elect to consider certain of such industries as part of the same industry to be consistent with a third party industry classification system (e.g., GICS or Barclays Live).

Concentration Policies. The Following Fund Has a Policy Regarding Concentrating its Investments in the Securities of Companies in the Same or Related Industries as Described Below:

The Global Natural Resources Fund:

· Will invest more than 25% of its total assets in securities of issuers in natural resources industries. These industries include: integrated oil; oil and gas exploration and production; gold and other precious metals; steel and iron ore production; energy services and technology; base metal production; forest products; farming products; paper products; chemicals; building materials; coal; alternative energy sources; and environmental services.

(1) The fundamental investment restriction for the Emerging Markets Debt Fund and the U.S. Equity Fund does not include this sentence with respect to certain industries being considered separate.

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For a Fund with a policy to concentrate in an industry or group of industries, such Fund will only concentrate in the industry or group of industries identified in its concentration policy, and will not concentrate in any other industries or group of industries.

The Following are the Non-Fundamental Operating Policies of the Funds Listed Below Which May Be Changed by the Board of Trustees of the Trust Without Shareholder Approval:

As a matter of non-fundamental policy, each Fund (except the Funds-of-Funds) will not:

· acquire securities of registered open-end investment companies or registered unit investment trusts in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.

As a matter of non-fundamental policy, each of the Asia Bond Fund, Global Fixed Income Fund, and Global Small Cap Fund (unless noted below) currently does not intend to:

· borrow money in an amount greater than 5% of its total assets except (i) for temporary or emergency purposes and (ii) by engaging in reverse repurchase agreements, dollar rolls, or other investments or transactions described in the Fund’s registration statement which may be deemed to be borrowings;

· purchase securities on margin or make short sales, except (i) short sales against the box, (ii) in connection with arbitrage transactions, (iii) for margin deposits in connection with futures contracts, options or other permitted investments, (iv) that transactions in futures contracts and options shall not be deemed to constitute selling securities short, and (v) that the Fund may obtain such short-term credits as may be necessary for the clearance of securities transactions;

· purchase options, unless the aggregate premiums paid on all such options held by the Fund at any time do not exceed 20% of its total assets; or sell put options, if as a result, the aggregate value of the obligations underlying such put options would exceed 50% of its total assets;

· enter into futures contracts or purchase options thereon unless immediately after the purchase, the value of the aggregate initial margin with respect to such futures contracts entered into on behalf of the Fund and the premiums paid for such options on futures contracts does not exceed 5% of the fair market value of the Fund’s total assets; provided that in the case of an option that is in-the-money at the time of purchase, the in-the-money amount may be excluded in computing the 5% limit;

· purchase warrants if as a result, such securities, taken at the lower of cost or market value, would represent more than 5% of the value of the Fund’s total assets (for this purpose, warrants acquired in units or attached to securities will be deemed to have no value);

· lend portfolio securities in an amount greater than 33 1/3% of its total assets;

· pledge, mortgage or hypothecate its assets, except to the extent necessary to secure permitted borrowings and to the extent related to the deposit of assets in escrow in connection with purchase of securities on a forward commitment or delayed-delivery basis and collateral and initial or variation margin arrangements with respect to currency transactions, options, futures contracts, and options on futures contracts (Global Fixed Income Fund and Global Small Cap Fund only). Additionally, the Asia Bond Fund may pledge, mortgage or hypothecate its assets except to secure permitted borrowings or as otherwise permitted under the 1940 Act. The Asia Bond Fund does not consider the segregation of assets in connection with any of their investment practices to be a mortgage, pledge or hypothecation of such assets;

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· make additional investments (including roll-overs) if the Fund’s borrowings exceed 5% of its net assets ( Global Fixed Income Fund and Global Small Cap Fund only ); and

· invest in oil, gas or mineral exploration or development programs, except that the Fund may invest in securities of companies that invest in or sponsor oil, gas or mineral exploration or development programs (Global Small Cap Fund only) .

Each of the Asia Bond Fund, Global Fixed Income Fund, Global Small Cap Fund and High Yield Fund will not purchase illiquid securities, including repurchase agreements maturing in more than seven days, if, as a result thereof, more than 15% of a Fund’s net assets, valued at the time of the transaction, would be invested in such securities.

As a matter of non-fundamental policy, the High Yield Fund currently does not intend to:

· lend portfolio securities in an amount greater than 33 1/3% of its total assets.

Each of the Equity Long-Short Fund, Global Natural Resources Fund, Small Cap Fund, China Opportunities Fund, International Equity Fund, Global Equity Fund, Diversified Income Fund, Dynamic Allocation Fund, Diversified Alternatives Fund, Asia-Pacific Smaller Companies Fund, Emerging Markets Debt Local Currency Fund, Tax-Free Income Fund, Ultra-Short Duration Bond Fund, High Yield Fund, U.S. Equity Fund, European Equity Fund and Latin American Equity Fund may not:

· Sell securities short (except for the U.S. Equity Fund and Equity Long-Short Fund), unless the Fund owns or has the right to obtain securities equivalent in kind and amount to the securities sold short or unless it covers such short sales as required by the current rules and positions of the SEC or its staff, and provided that short positions in forward currency contracts, options, futures contracts, options on futures contracts, or other derivative instruments are not deemed to constitute selling securities short. The U.S. Equity Fund may only sell securities short in accordance with the description contained in its Prospectus or in this SAI.

· Purchase securities on margin, except that the Funds may use margin to the extent necessary to engage in short sales and may obtain such short-term credits as are necessary for the clearance of transactions; and provided that margin deposits in connection with options, futures contracts, options on futures contracts, transactions in currencies or other derivative instruments shall not constitute purchasing securities on margin.

· Purchase or otherwise acquire any security if, as a result, more than 15% of its net assets would be invested in securities that are illiquid.

· Pledge, mortgage or hypothecate any assets owned by the Fund (except for the Equity Long-Short Fund) except as may be necessary in connection with permissible borrowings or investments and then such pledging, mortgaging or hypothecating may not exceed 33 1/3% of the Fund’s total assets at the time of such pledging, mortgaging or hypothecating.

If any percentage restriction or requirement described above is satisfied at the time of investment, a later increase or decrease in such percentage resulting from a change in NAV will not constitute a violation of such restriction or requirement. However, should a change in NAV or other external events cause a Fund’s investments in illiquid securities including repurchase agreements with maturities in excess of seven days, to exceed the limit set forth above for such Fund’s investment in illiquid securities, a Fund will act to cause the aggregate amount of such securities to

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come within such limit as soon as reasonably practicable. In such event, however, such Fund would not be required to liquidate any portfolio securities where a Fund would suffer a loss on the sale of such securities.

The investment objective of each Fund is not fundamental and may be changed by the Board of Trustees without shareholder approval.

Each of the U.S. Equity Fund, Global Equity Fund, China Opportunities Fund, International Equity Fund, Equity Long-Short Fund, Global Natural Resources Fund, Small Cap Fund, Asia-Pacific Smaller Companies Fund and Tax-Free Income Fund may not:

· Purchase securities of other investment companies except (a) in connection with a merger, consolidation, acquisition, reorganization or offer of exchange, or (b) to the extent permitted by the 1940 Act or any rules or regulations thereunder or pursuant to any exemptions therefrom, however, the Funds may not acquire securities of registered open-end investment companies or registered unit investment trusts in reliance on Sections 12(d)(1)(F) or 12(d)(1)(G) of the 1940 Act.

Internal Revenue Code Restrictions

In addition to the investment restrictions above, each Fund must be diversified according to Code requirements. Specifically, at each tax quarter end, each Fund’s holdings must be diversified so that (a) at least 50% of the market value of its total assets is represented by cash, cash items (including receivables), U.S. Government securities, securities of other U.S. regulated investment companies, and other securities, limited so that no one issuer has a value greater than 5% of the value of the Fund’s total assets and that the Fund holds no more than 10% of the outstanding voting securities of such issuer, and (b) not more than 25% of the value of the Fund’s assets is invested in the securities (other than those of the U.S. Government or other U.S. regulated investment companies) of any one issuer or of two or more issuers of which the Fund holds 20% or more of the voting stock and which are engaged in the same, similar, or related trades or businesses or the securities of one or more qualified publicly traded partnerships (defined as a partnership whose interests are traded on an established securities market or are readily tradable on a secondary market, unless 90% or more of such partnership’s gross income is derived from its business of investing in stock, securities or currencies).

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DISCLOSURE OF PORTFOLIO HOLDINGS

The Board of Trustees of the Trust has adopted a policy on selective disclosure of portfolio holdings in accordance with regulations that seek to ensure that disclosure of information about portfolio securities is in the best interest of Fund shareholders and to address the conflicts between the interests of Fund shareholders and its service providers. The policy provides that divulging non-public portfolio holdings information to selected parties is permissible only when a Fund has legitimate business purposes for doing so and the recipients are subject to a duty of confidentiality, including a duty not to trade on the non-public information. In addition, the disclosure of a Fund’s portfolio securities is permitted only where it is consistent with the anti-fraud provisions of the federal securities laws and the Trust’s or the Adviser’s or a subadviser’s fiduciary duties. The Trust, the Adviser, subadvisers or any agent, or any employee thereof (a “Fund Representative”) may not disclose a Fund’s portfolio holdings information to any person other than in accordance with the policy. For purposes of the policy, “portfolio holdings information” means a Fund’s actual portfolio holdings, as well as non-public information about its trading strategies or pending transactions. Neither a Fund nor a Fund Representative may solicit or accept any compensation or other consideration in connection with the disclosure of portfolio holdings information. A Fund Representative may provide portfolio holdings information to third parties if such information has been included in the Fund’s public filings with the SEC or is disclosed on the Funds’ publicly accessible website. The parties receiving such information may include ratings agencies, individual or institutional investors, or intermediaries that sell shares of a Fund.

Each Fund posts onto the Trust’s internet site its securities holdings and its top ten portfolio holdings as of the end of each month. Such portfolio holdings are available no earlier than 7 business days after the end of the previous month for equity funds and no earlier than 15 business days after the end of the previous month for fixed income funds. The Funds also disclose their complete portfolio holdings information to the SEC using Form N-Q within 60 days of the end of the first and third quarter ends of the Funds’ fiscal year and on Form N-CSR on the second and fourth quarter ends of the Funds’ fiscal year. Form N-Q is not required to be mailed to shareholders, but is made public through the SEC’s electronic filings. Shareholders receive either complete portfolio holdings information or summaries of Fund portfolio holdings with their annual and semi-annual reports.

If a Fund Representative seeks to disclose portfolio holdings information that is not publicly available to specific recipients pursuant to circumstances not specifically addressed by the policy, the Fund Representative must obtain approval from the Trust’s Chief Compliance Officer prior to such disclosure. Exceptions to the portfolio holdings release policy described above can only be authorized by the Trust’s Chief Compliance Officer and will be made only when:

· A Fund has a legitimate business purpose and it is in the best interest of the fund to release portfolio holdings information in advance of release to all shareholders or the general public; and

· The recipient of the information provides written assurances that the non-public portfolio holdings information will remain confidential and that persons with access to the information will be prohibited from trading based on the information.

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In connection with providing services to the Funds, the Funds’ service providers may receive portfolio holdings information in advance of general release on an as needed basis. The service providers that may receive portfolio holdings information include the Adviser and administrator (Aberdeen Asset Management Inc.); subadvisers (Aberdeen Asset Managers Limited and Aberdeen Asset Management Asia Limited); independent registered public accounting firm (KPMG); custodian, fund accountant, sub-administrator (State Street Bank and Trust Company); transfer agent ( BFDS); legal counsel (Willkie Farr & Gallagher LLP); legal counsel to the independent Trustees (Drinker Biddle & Reath LLP); financial printers (Merrill and RR Donnelly) and proxy voting service (if applicable). The service providers are subject to express or implied duties to keep all portfolio holdings information that is not publicly available confidential and not to trade on such information. In addition, non-public portfolio holdings information may be provided to mutual fund rating or ranking services or portfolio analytics services prior to such information becoming publicly available so long as (i) such disclosure is subject to confidentiality agreement and trading restrictions or (ii) the entity to which portfolio holdings information will be provided (a) has adopted policies and/or procedures that seek to ensure that such information will remain confidential and restrict the entity and its employees from trading on the information and (b) prior to disclosure, the Trust’s Chief Compliance Officer receives in writing a copy of such policies and/or procedures and determines they are acceptable.

The Trust’s Chief Compliance Officer conducts periodic reviews of compliance with the policy and provides annually a report to the Board of Trustees regarding the operation of the policy, exceptions and waivers granted under the policy and any material changes recommended as a result of such review. Additionally, the Trust’s Chief Compliance Officer will provide quarterly reports to the Board of Trustees listing persons or entities with whom the Trust or the Adviser has entered into Confidentiality Agreements with respect to Trust business during the quarter. The policy also provides that in the event of a violation of the policy, the Board will receive a report at its next quarterly meeting about any disclosures that were made concerning the Trust’s portfolio holdings which will describe to whom and under what circumstances such disclosure was made.

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BOARD OF TRUSTEES AND OFFICERS OF THE TRUST

TRUSTEES WHO ARE NOT INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE TRUST (“INDEPENDENT TRUSTEES”)

NAME, ADDRESS, AND YEAR OF BIRTH	POSITION(S) HELD, LENGTH OF TIME SERVED AND TERM OF OFFICE*	PRINCIPAL OCCUPATION DURING PAST 5 YEARS	NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE**	OTHER DIRECTORSHIPS HELD BY TRUSTEE DURING PAST 5 YEARS***
P. Gerald Malone**** Year of Birth: 1950	Trustee since December 2007 Chairman of the Board	Mr. Malone is, by profession, a solicitor of some 38 years standing. He has served as a Minister of State in the United Kingdom Government. Mr. Malone currently serves as Independent Chairman of a London AIM-listed company (healthcare software) and a UK based privately-owned pharmaceutical company. He is Chairman of the Board of Trustees of Aberdeen Funds, Chairman of the Board of Directors of Aberdeen Global Income Fund, Inc. and Aberdeen Asia-Pacific Income Fund, Inc. and serves on the boards of Aberdeen Australia Equity Fund, Inc. and Aberdeen Asia-Pacific Income Investment Company Limited.	26	None.
Richard H. McCoy**** Year of Birth: 1942	Trustee since December 2007	Prior to retiring in 2003, Mr. McCoy was Vice-Chairman, Investment Banking, at TD Securities Inc. He is currently a Director of Uranium Participation Corp. and Pizza Pizza Royalty Corp. and Chair of Chorus Aviation Inc. Mr. McCoy has also been Chairman of Aberdeen Asia-Pacific Income Investment Company Limited since 2010.	23	None.
Neville J. Miles Year of Birth: 1946	Trustee since December 2011	Mr. Miles is, and has been for over ten years, Chairman of Ballyshaw Pty. Ltd. (share trading, real estate development and investment). He is Chairman of the Board of Directors of Aberdeen Australia Equity Fund, Inc. He also is a non-executive director of a number of Australian and overseas companies.	26	None.
Peter D. Sacks**** Year of Birth: 1945	Trustee since December 2007	Mr. Sacks has been a Director and Founding Partner of Toron AMI International Asset Management (formerly, Toron Investment Management) (investment management) since 1988. He is also a Director and Investment Advisory Committee member	26	None.

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		of several private and public sector funds in Canada.
John T. Sheehy**** Year of Birth: 1942	Trustee since December 2007	Mr. Sheehy has been a Senior Managing Director of B.V. Murray and Company (investment banking) since 2001 and Director of Macquarie AIR-serv Holding, Inc. (automotive services) from 2006 to 2013. He was a Managing Member of Pristina Capital Partners, LLC (water purification technology development) from 2007 to 2011, a Director of Smarte Carte, Inc. (airport services) from 2007 to 2010, and Managing Member of The Value Group LLC (venture capital) from 1997 to 2009.	26	None.
Warren C. Smith**** Year of Birth: 1955	Trustee since December 2007	Mr. Smith has been a founding partner of MRB Partners Inc. (independent investment research and consultancy firm) since 2010. Mr. Smith was a Managing Editor with The Bank Credit Analyst Research Group (independent publishers of financial market research and publications, including The Bank Credit Analyst) from 1982 to 2009.	23	None.
John F. Solan, Jr.**** Year of Birth: 1939	Trustee since December 2007	Prior to retiring, Mr. Solan was Senior Vice President of Strategic Development at The Phoenix Companies, Inc. and Chairman of Phoenix Charter Oak Trust Company from 1998 until 2004. Mr. Solan served in several different positions with Ernst & Young from 1964 to 1998.	23	None.

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TRUSTEES WHO ARE INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE TRUST

(“INTERESTED TRUSTEES”)

NAME, ADDRESS, AND YEAR OF BIRTH		POSITION(S) HELD, LENGTH OF TIME SERVED AND TERM OF OFFICE*		PRINCIPAL OCCUPATION DURING PAST 5 YEARS		NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN BY TRUSTEE**		OTHER DIRECTORSHIPS HELD BY TRUSTEE DURING PAST 5 YEARS***
Martin Gilbert****† Year of Birth: 1955		Trustee since December 2007		Mr. Gilbert is a founding director and shareholder, and Chief Executive of Aberdeen Asset Management PLC, the holding company of the fund management group that was established in 1983 (“Aberdeen Group”). He was a Director (1991 — 2014) of Aberdeen Asset Management Asia Limited and a Director (2000 — 2014) of Aberdeen Asset Management Limited. He was a Director (1995 — 2014) and was President (September 2006 — 2014) of Aberdeen Asset Management Inc. Mr. Gilbert also serves as officer and/or director of various Aberdeen Group subsidiary companies, Aberdeen-managed investment trusts and funds’ boards.		27		None.

* Each Trustee holds office for an indefinite term until his successor is elected and qualified.

** The Aberdeen Fund Complex consists of the Trust which currently consists of 23 portfolios, Aberdeen Asia-Pacific Income Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Australia Equity Fund, Inc., Aberdeen Chile Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Indonesia Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., Aberdeen Singapore Fund, Inc., The Asia Tigers Fund, Inc., The India Fund, Inc., Aberdeen Greater China Fund, Inc., Aberdeen Japan Equity Fund, Inc. and Aberdeen Investment Funds.

*** Directorships held in (1) any other investment companies registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.

**** Each Trustee may be contacted by writing to the Trustee c/o Aberdeen Asset Management Inc., 1735 Market Street, 32 nd Floor, Philadelphia, Pennsylvania 19103, Attn: Alan Goodson.

† Mr. Gilbert is considered to be an “interested person” of the Trust as defined in the 1940 Act because of his affiliation with the Adviser.

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OFFICERS OF THE TRUST

NAME, ADDRESS, AND YEAR OF BIRTH	POSITION(S) HELD, LENGTH OF TIME SERVED AND TERM OF OFFICE*	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Bev Hendry** Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 Year of Birth: 1953	President, Chief Executive Officer and Principal Executive Officer (Since September 2014)	Currently, Co-Head of Americas and Chief Financial Officer for Aberdeen Asset Management Inc. since June 2014. He first joined Aberdeen in 1987 and helped establish Aberdeen’s business in the Americas in Fort Lauderdale. Mr. Hendry left Aberdeen in 2008 when the company moved to consolidate its headquarters in Philadelphia. Mr. Hendry re-joined Aberdeen from Hansberger Global Investors in Fort Lauderdale, Florida, where he worked for six years as Chief Operating Officer.
Jeffrey Cotton** Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 Year of Birth: 1977	Vice President and Chief Compliance Officer (Since March 2011)	Currently, Vice President and Head of Compliance — Americas for Aberdeen Asset Management Inc. Mr. Cotton joined Aberdeen in 2010. Prior to joining Aberdeen, Mr. Cotton was a Senior Compliance Officer at Old Mutual Asset Management (2009-2010) supporting its affiliated investment advisers and mutual fund platform. Mr. Cotton was also a Vice President and Senior Compliance Manager at Bank of America/Columbia Management (2006-2009).
Sofia Rosala ** Aberdeen Asset Management Inc. 1735 Market Street 32 nd Floor Philadelphia, PA 19103 Year of Birth: 1974	Vice President (since March 2014) and Deputy Chief Compliance Officer (Since December 2013)	Currently, Deputy Fund Chief Compliance Officer and U.S. Counsel for Aberdeen Asset Management Inc. (since July, 2012). Prior to joining Aberdeen, Ms. Rosala was Counsel for Vertex, Inc. from April 2011 to June 2012. She was also an Associate Attorney with Morgan, Lewis and Bockius from May 2008 — April 2011.
Andrea Melia** Aberdeen Asset Management Inc. 1735 Market Street 32 nd Floor Philadelphia, PA 19103 Year of Birth: 1969	Treasurer, Chief Financial Officer, and Principal Accounting Officer (Since September 2009)	Currently, Vice President and Head of Fund Administration for Aberdeen Asset Management Inc. (since 2009). Prior to joining Aberdeen, Ms. Melia was Director of Fund Administration and accounting oversight for Princeton Administrators LLC, a division of BlackRock Inc. and had worked with Princeton Administrators since 1992.
Megan Kennedy** Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 Year of Birth: 1974	Secretary and Vice President (Since September 2009)	Currently, Head of Product Management for Aberdeen Asset Management Inc. Ms. Kennedy joined Aberdeen Asset Management Inc. in 2005 as a Senior Fund Administrator. Ms. Kennedy was promoted to Assistant Treasurer Collective Funds/North American Mutual Funds in February 2008 and promoted to Treasurer Collective Funds/North American Mutual Funds in July 2008.

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Lucia Sitar** Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 Year of Birth: 1971	Vice President (Since December 2008)	Currently, Managing U.S. Counsel for Aberdeen Asset Management Inc. Ms. Sitar joined Aberdeen Asset Management Inc. in July 2007.
Brad Crombie Aberdeen Asset Management Bow Bells House 1 Bread Street London EC4M 9HH Year of Birth: 1970	Vice President (Since June 2013)	Currently, Global Head of Fixed Income for Aberdeen Asset Management PLC. Mr. Crombie re-joined Aberdeen in 2012. Prior to re-joining Aberdeen, Mr. Crombie was a Managing Director at Bank of America Merrill Lynch for the bank’s non-financial corporate and high yield credit research team for the Europe, Middle East and Africa region from 2003 to 2012.
Alan Goodson** Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 Year of Birth: 1974	Vice President (Since March 2009)	Currently, Head of Product — US, overseeing Product Management, Product Development and Investor Services for Aberdeen’s registered and unregistered investment companies in the US and Canada. Mr. Goodson is Vice President of Aberdeen Asset Management Inc. and joined Aberdeen in 2000.
Adam McCabe** Aberdeen Asset Management Asia Limited 21 Church Street #01-01 Capital Square Two Singapore 049480 Year of Birth: 1979	Vice President (Since March 2010)	Currently, Head of Asian Fixed Income on the Fixed Income - Asia Pacific desk, responsible for currency and interest rate strategies in Aberdeen’s Asian fixed income portfolios. Mr. McCabe joined Aberdeen in 2009 following the acquisition of certain asset management businesses from Credit Suisse. Mr. McCabe worked for Credit Suisse since 2001, where he was an investment manager responsible for the development and implementation of its Asian currency and interest rate strategies.
Jennifer Nichols** Aberdeen Asset Management Inc. 1735 Market Street 32nd Floor Philadelphia, PA 19103 Year of Birth: 1978	Vice President (Since December 2007)	Currently, Global Head of Legal for Aberdeen Asset Management PLC. Director and Vice President for Aberdeen Asset Management Inc. (since October 2006).
Hugh Young** Aberdeen Asset Management Asia Limited 21 Church Street #01-01 Capital Square	Vice President (Since June 2011)	Currently, Managing Director of Aberdeen Asset Management Asia Limited (since 1991) and member of the Executive Management Committee and Director of Aberdeen Asset Management PLC (since 1991 and 2011, respectively). Mr. Young joined Aberdeen in 1991.

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Two Singapore 049480 Year of Birth: 1958
Brian O’Neill** Aberdeen Asset Management Inc. 1735 Market Street 32 nd Floor Philadelphia, PA 19103 Year of Birth: 1968	Assistant Treasurer (Since September 2008)	Currently, Senior Fund Administration Manager - US for Aberdeen Asset Management Inc. Mr. O’Neill joined Aberdeen Asset Management Inc. in 2008. Prior to joining Aberdeen Asset Management Inc., Mr. O’Neill was a Director of Fund Accounting with Nationwide Funds Group (2002-2008).
Eric Olsen Aberdeen Asset Management Inc. 1735 Market Street 32 nd Floor Philadelphia, PA 19103 Year of Birth: 1970	Assistant Treasurer (Since December 2013)	Currently, Deputy Head of Fund Administration — US for Aberdeen Asset Management Inc. Mr. Olsen joined Aberdeen Asset Management Inc. in August 2013. Prior to joining Aberdeen Asset Management Inc., Mr. Olsen was a Director of Financial Reporting for BNY Mellon Asset Servicing and had worked with BNY Mellon since 1998.
Pamela Wade ** Aberdeen Asset Management Inc. 1735 Market Street 32 nd Floor Philadelphia, PA 19103 Year of Birth: 1971	Assistant Secretary (Since March 2013)	Currently, Senior Product Manager for Aberdeen Asset Management Inc. Ms. Wade joined Aberdeen Asset Management Inc. in 2012 as Senior Product Manager. Prior to joining Aberdeen Asset Management Inc., Ms. Wade was a Vice President and Assistant Counsel with BNY Mellon Asset Servicing (2007-2012).

* Each officer holds office for an indefinite term at the pleasure of the Board of Trustees and until his or her successor is elected and qualified.

** Mr. Hendry, Ms. Melia, Ms. Kennedy, Mr. Goodson, Ms. Nichols, Mr. Cotton, Mr. McCabe, Mr. Young, Ms. Sitar, Mr. O’Neill, Ms. Wade and Ms. Rosala hold officer position(s) in one or more of the following: Aberdeen Asia-Pacific Income Fund, Inc., Aberdeen Australia Equity Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Chile Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Indonesia Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., Aberdeen Singapore Fund, Inc., The Asia Tigers Fund, Inc., The India Fund, Inc., Aberdeen Greater China Fund, Inc., Aberdeen Japan Equity Fund, Inc. and Aberdeen Investment Funds, each of which may also be deemed to be a part of the same “Fund Complex” as the Trust.

Responsibilities of the Board of Trustees

The business and affairs of the Trust are managed under the direction of its Board of Trustees subject to the laws of the State of Delaware and the Trust’s Amended and Restated Agreement and Declaration of Trust. The Board of Trustees sets and reviews policies regarding the operation of the Trust, and directs the officers to perform the daily functions of the Trust.

Additional Information about the Board of Trustees

The Board believes that each Trustee’s experience, qualifications, attributes or skills

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on an individual basis and in combination with those of the other Trustees lead to the conclusion that the Trustee possesses the requisite experience, qualifications, attributes and skills to serve on the Board. The Board believes that the Trustees’ ability to review critically, evaluate, question and discuss information provided to them; to interact effectively with the Adviser, Subadvisers, other service providers, counsel and independent auditor; and to exercise effective business judgment in the performance of their duties, support this conclusion. The Board has also considered the contributions that each Trustee can make to the Board and the Funds. A Trustee’s ability to perform his duties effectively may have been attained through the Trustee’s executive, business, consulting, and/or legal positions; experience from service as a Trustee of the Trust and other funds/portfolios in the Aberdeen fund complex, other investment funds, public companies, or non-profit entities or other organizations; educational background or professional training or practice; and/or other life experiences. In this regard, the following specific experience, qualifications, attributes and/or skills apply as to each Trustee in addition to the information set forth in the table above: Mr. Gilbert, investment management experience as Chief Executive Officer and director roles within the Aberdeen complex, board experience with other public companies and investment trusts; Mr. Malone, legal background and public service leadership experience, board experience with other public and private companies, and executive and business consulting experience; Mr. McCoy, executive experience at investment banking and securities firms, as well as board experience with other public and private companies; Mr. Miles , financial services, investment management and executive experience and board experience with various Australian public and private companies; Mr. Sacks, accounting background (chartered accountant in Canada and South Africa), treasury experience in banking organizations, investment management and executive experience; Mr. Sheehy, executive experience at venture capital and investment banking firms, as well as board experience at several public and private companies; Mr. Smith, experience as managing editor and director of a financial publications firm; and Mr. Solan, accounting background and executive and board experience at a financial services company.

The Board believes that the significance of each Trustee’s experience, qualifications, attributes or skills is an individual matter (meaning that experience important for one Trustee may not have the same value for another) and that these factors are best evaluated at the Board level, with no single Trustee, or particular factor, being indicative of Board effectiveness. In its periodic self-assessment of the effectiveness of the Board, the Board considers the complementary individual skills and experience of the individual Trustees in the broader context of the Board’s overall composition so that the Board, as a body, possesses the appropriate (and appropriately diverse) skills and experience to oversee the business of the Trust. References to the qualifications, attributes and skills of Trustees are pursuant to requirements of the SEC, do not constitute holding out the Board or any Trustee as having any special expertise or experience, and shall not impose any greater responsibility or liability on any such person or on the Board by reason thereof.

Board and Committee Structure

The Board of Trustees is composed of seven Independent Trustees and one Interested Trustee, Martin J. Gilbert. The Board has appointed Mr. Malone, an Independent Trustee, as Chairman. The Chairman presides at meetings of the Trustees, participates in the preparation of the agenda for meetings of the Board, and acts as a liaison between the Independent Trustees and the Trust’s management between Board meetings. Except for any duties specified herein, the

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designation of the Chairman does not impose on such Trustee any duties, obligations or liability that is greater than the duties, obligations or liability imposed on such person as a member of the Board, generally.

The Board holds regular quarterly meetings each year to consider and address matters involving the Trust and its Funds. The Board also may hold special meetings to address matters arising between regular meetings. The Independent Trustees also meet outside the presence of management in executive session at least quarterly and have engaged separate, independent legal counsel to assist them in performing their oversight responsibilities.

The Board has established a committee structure that includes an Audit Committee, Nominating and Corporate Governance Committee, and Valuation Committee (each discussed in more detail below) to assist the Board in the oversight and direction of the business affairs of the Funds, and from time to time may establish informal ad hoc committees or working groups to review and address the practices of the Funds with respect to specific matters. The Committee system facilitates the timely and efficient consideration of matters by the Trustees, and facilitates effective oversight of compliance with legal and regulatory requirements and of the Funds’ activities and associated risks. The standing Committees currently conduct an annual review of their charters, which includes a review of their responsibilities and operations. The Nominating and Corporate Governance Committee and the Board as a whole also conduct an annual evaluation of the performance of the Board, including consideration of the effectiveness of the Board’s committee structure. Each Committee is comprised entirely of Independent Trustees. The Board reviews its structure regularly and believes that its leadership structure, including having a super-majority of Independent Trustees, coupled with an Independent Trustee as Chairman, is appropriate because it allows the Board to exercise informed and independent judgment over the matters under its purview and it allocates areas of responsibility among the Committees and the full Board in a manner that enhances efficient and effective oversight.

The Audit Committee is comprised of Messrs. Sacks, Smith and Solan. Mr. Solan serves as Chair of the Audit Committee as well as the Audit Committee Financial Expert. The purposes of the Audit Committee are to: (a) annually select, retain or terminate the Trust’s independent auditor and, in connection therewith, to evaluate the terms of the engagement and the qualifications and independence of the independent auditor; (b) review in advance, and consider approval of, any and all proposals by management or the Adviser that the Trust, Adviser or their affiliated persons, employ the independent auditor to render permissible non-audit services to the Trust and to consider whether such services are consistent with the independent auditor’s independence; (c) meet annually with the Trust’s independent auditor as necessary to consider, among other things, (i) the Trust’s annual audited financial statements and semi-annual financial statements, (ii) any matters of concern relating to the Trust’s financial statements; (iii) the performance of the independent auditor; and (iv) the independent auditor’s comments regarding the Trust’s financial policies, procedures and internal accounting controls and management’s responses thereto; (d) review and discuss policies with respect to risk assessment and risk management; (e) review annually with management and the independent auditor their separate evaluations of the adequacy and effectiveness of the Trust’s system of internal controls; (f) develop, establish and periodically review procedures for the receipt, retention and treatment of complaints received by the Trust from any source regarding accounting, internal accounting controls, or auditing matters; (g)

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review and resolve any disagreements between management and the independent auditor regarding financial reporting; and (h) investigate improprieties or suspected improprieties in Trust operations and other matters within the scope of its duties, as they are presented to the Committee or brought to the attention of the Committee. The function of the Audit Committee is oversight; it is management’s responsibility to maintain appropriate systems for accounting and internal control, and the independent auditor’s responsibility to plan and carry out a proper audit. The independent auditor is ultimately accountable to the Board and the Audit Committee, as representatives of the Trust’s shareholders. Each of the members have a working knowledge of basic finance and accounting matters and are not interested persons of the Trust, as defined in the 1940 Act. The Audit Committee met 3 times during the fiscal year ended October 31, 2014.

The Nominating and Corporate Governance Committee (“Nominating Committee”) is comprised of Messrs. Malone, McCoy and Sheehy. Mr. Malone serves as Chair of the Nominating Committee. The Nominating Committee has the following powers and responsibilities: (1) selection and nomination of all persons for election or appointment as Trustees of the Trust (provided that nominees for independent Trustee are recommended for selection and approval by all of the incumbent independent Trustees then serving on the Board); (2) periodic review of the composition of the Board to determine whether it may be appropriate to add individuals with different backgrounds or skills from those already on the Board; (3) implementing an annual evaluation of the performance of the Board and its committees; (4) periodic review of the compensation paid to the Board; (5) periodic review of Board governance procedures (including the Board’s effectiveness, Trustee retirement, Trustee investment in the Funds, the role of the independent trustees and committees and the relationship between the Board and management). The Nominating Committee reports to the full Board with recommendations of any appropriate changes to the Board.

The Nominating Committee will consider nominees recommended by shareholders. When considering whether to add additional or substitute Trustees to the Board of Trustees of the Trust, the Trustees take into account any proposals for candidates that are properly submitted to the Trust’s Secretary. Shareholders wishing to present one or more candidates for Trustee for consideration may do so by submitting a signed written request to the Trust’s Secretary at attn: Secretary, Aberdeen Funds, 1735 Market Street, 32 nd Floor, Philadelphia, Pennsylvania 19103, which includes the following information: (i) name and address of shareholder and, if applicable, name of broker or record holder; (ii) number of shares owned; (iii) name of Fund(s) in which shares are owned; (iv) whether the proposed candidate(s) consent to being identified in any proxy statement utilized in connection with the election of Trustees; (v) the name and background information of the proposed candidates and (vi) a representation that the candidate or candidates are willing to provide additional information about themselves, including assurances as to their independence. The Nominating Committee met 3 times during the fiscal year ended October 31, 2014.

The Valuation Committee is comprised of Messrs. Sheehy, Miles and Solan. Mr. Sheehy serves as Chair of the Valuation Committee. The purpose of the Valuation Committee is to oversee the implementation and operation of the Trust’s Valuation and Liquidity Procedures. The Valuation Committee has the following powers and responsibilities, among others, to: (a) review periodically the actions taken by the Adviser’s pricing committee including its determination regarding the fair value of securities for which market quotations are not readily available, not readily determinable or unreliable and the methodology for fair valuing portfolio securities; (b) recommend pricing services to the Board and periodically review the performance of pricing services; and (c) review pricing errors and the Trust’s Net Asset Value Error Correction Policy and

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recommend corrective action if necessary and appropriate. The Valuation Committee met 4 times during the fiscal year ended October 31, 2014.

The Funds are subject to a number of risks, including, among others, investment, compliance, operational and valuation risks. Risk oversight forms part of the Board’s general oversight of the Funds and is addressed as part of various Board and Committee activities. The Board has adopted, and periodically reviews, policies and procedures designed to address these risks. Different processes, procedures and controls are employed with respect to different types of risks. Day-to-day risk management functions are subsumed within the responsibilities of the Adviser, who carries out the Trust’s investment management and business affairs, and also by the Funds’ Subadvisers, as applicable, and other service providers in connection with the services they provide to the Funds. Each of the Adviser, Subadvisers and other service providers have their own, independent interest in risk management, and their policies and methods of risk management will depend on their functions and business models. As part of its regular oversight of the Trust, the Board, directly and/or through a Committee, interacts with and reviews reports from, among others, the Adviser, Subadvisers, and the Trust’s other service providers (including the Trust’s distributor and transfer agent), the Trust’s Chief Compliance Officer, the Trust’s independent registered public accounting firm, legal counsel to the Trust, and internal auditors, as appropriate, relating to the operations of the Trust. The Board also requires the Adviser to report to the Board on other matters relating to risk management on a regular and as-needed basis. The Board recognizes that it may not be possible to identify all of the risks that may affect the Trust or to develop processes and controls to eliminate or mitigate their occurrence or effects. The Board may, at any time and in its discretion, change the manner in which it conducts risk oversight.

Ownership of Shares of Aberdeen Funds

As of December 31, 2014, the Trustees held shares of the Funds as indicated below.

TRUSTEES WHO ARE NOT INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE TRUST

Name	Fund/Dollar Range of Fund Shares Owned	Aggregate Dollar Range of Shares Owned in Registered Investment Companies Overseen by Trustee in the Family of Investment Companies*
P. Gerald Malone	Aberdeen Dynamic Allocation Fund $1 - $10,000 Aberdeen Global Fixed Income Fund $1 - $10,000 Aberdeen China Opportunities Fund $1 - $10,000 Aberdeen U.S. Equity Fund $1 - $10,000 Aberdeen International Equity Fund $1 - $10,000	$10,001 - $50,000
Richard H. McCoy	Aberdeen International Equity Fund $1 - $10,000 Aberdeen Emerging Markets Fund $1 - $10,000	$10,001 - $50,000
Neville J. Miles	Aberdeen Emerging Markets Fund $10,001 - $50,000	$10,001 - $50,000
Peter D. Sacks	Aberdeen Global Fixed Income Fund $1 - $10,000 Aberdeen Small Cap Fund $1 - $10,000 Aberdeen Equity Long-Short Fund $1 - $10,000 Aberdeen International Equity Fund $1 - $10,000 Aberdeen Emerging Markets Fund $1 - $10,000	$10,001 - $50,000
John T. Sheehy	Aberdeen International Equity Fund $10,001 - $50,000	$10,001 - $50,000

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Warren C. Smith

Aberdeen Emerging Markets Fund $10,001 - $50,000

$10,001 - $50,000

John F. Solan, Jr.

Aberdeen Global Equity Fund $1 - $10,000

Aberdeen Equity Long-Short Fund $1 - $10,000

Aberdeen International Equity Fund $1 - $10,000

$10,001 - $50,000

TRUSTEES WHO ARE INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE TRUST

Name		Fund/Dollar Range of Fund Shares Owned		Aggregate Dollar Range of Shares Owned in Registered Investment Companies Overseen by Trustee in the Family of Investment Companies*
Martin Gilbert		Aberdeen Emerging Markets Fund $10,001 - $50,000		$10,001 - $50,000

* As of December 31, 2014, the Family of Investment Companies consisted of the Trust, which contained 24 portfolios and Aberdeen Investment Funds and Aberdeen Global Select Opportunities Fund Inc.; however, each Trustee did not serve on the Board of every fund in such Family of Investment Companies. Ownership information is provided with respect to only those Funds that each Trustee oversaw as of December 31, 2014.

As of January 31, 2015, the Officers and Trustees, as a group, owned of record and beneficially less than 1% of each Fund’s shares.

Compensation of Trustees

The Compensation Table below sets forth the total compensation that each Trustee received from the Trust and the Fund Complex (as defined below) for the fiscal year ended October 31, 2014.

INDEPENDENT TRUSTEES

Name of Trustee	Aggregate Compensation from the Trust		Pension Retirement Benefits Accrued as Part of Trust Expenses	Estimated Annual Benefits Upon Retirement	Total Compensation from the Fund Complex*
P. Gerald Malone	$	103,283	None	None	$	264,139
Richard H. McCoy	87,283		None	None	87,283
Peter D. Sacks	87,283		None	None	209,557
Neville Miles	87,283		None	None	226,439
John T. Sheehy	90,283		None	None	238,793
Warren C. Smith	90,283		None	None	90,283
Jack Solan	99,033		None	None	99,033

INTERESTED TRUSTEES

Name of Trustee		Aggregate Compensation from the Trust		Pension Retirement Benefits Accrued as Part of Trust Expenses		Estimated Annual Benefits Upon Retirement		Total Compensation from the Fund Complex*
Martin Gilbert		None		None		None		None

* As of October 31, 2014, the Aberdeen Fund Complex consisted of the Trust, which contained 24 portfolios, Aberdeen Asia-Pacific Income Fund, Inc., Aberdeen Global Income Fund, Inc., Aberdeen Australia Equity Fund, Inc., Aberdeen Chile Fund, Inc., Aberdeen Israel Fund, Inc., Aberdeen Indonesia Fund, Inc., Aberdeen Latin America Equity Fund, Inc., Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc., The Asia Tigers Fund, Inc., The India Fund, Inc., Aberdeen Singapore Fund, Inc., Aberdeen Greater China Fund, Inc., Aberdeen Japan Equity Fund, Inc. and Aberdeen Investment Funds and Aberdeen Global Select Opportunities Fund Inc.

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The Trust does not maintain any pension or retirement plans for the Officers or Trustees of the Trust.

Sales Loads

Class A shares may be sold at NAV without payment of any sales charge to Trustees and retired Trustees of the Trust and to directors, officers and employees (including retired directors, officers and employees and immediate family members of Aberdeen and its affiliates). The sales load waivers are due to the nature of the investors and the reduced sales effort and expenses that are needed to obtain such investment. See “Waiver of Class A Sales Charges” for more information.

Code of Ethics

Federal law requires the Trust, the Adviser and subadvisers and its principal underwriter to adopt codes of ethics which govern the personal securities transactions of their respective personnel. Accordingly, each such entity has adopted a Code of Ethics pursuant to which their respective personnel may invest in securities for their personal accounts (including securities that may be purchased or held by the Trust). Copies of these Codes of Ethics are on file with the SEC and are available to the public.

Proxy Voting Policies and Procedures

Regulations under the federal securities laws require the Trust, the Adviser and subadvisers to adopt procedures for voting proxies (“Proxy Voting Policies and Procedures”) and to provide a summary of those Proxy Voting Policies and Procedures used to vote the securities held by the Funds. The Trust has adopted proxy voting policies and procedures that delegate the responsibility for proxy voting to the Adviser and subadvisers, as applicable. The Adviser and subadvisers have adopted proxy voting policies and procedures, which have been reviewed and approved by the Funds’ Board, to ensure the proper and timely voting of the proxies on behalf of the Funds. Moreover, the Adviser will assist the Funds in the preparation of the Funds’ complete proxy voting record on Form N-PX for the twelve-month period ended June 30, which must be filed with the SEC by no later than August 31 of each year. Any material changes to the proxy voting policies and procedures of the Funds or the Adviser and subadvisers will be submitted to the Board for approval or review, as the case may be. For additional information, please see the summary of the Adviser’s and subadvisers’ proxy voting policies and procedures attached hereto as Appendix C.

Information about how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available after August 31 of the relevant year (1) without charge, upon request, by calling 866-667-9231 and (2) on the SEC’s website at http://www.sec.gov.

INVESTMENT ADVISORY AND OTHER SERVICES

Trust Expenses

The Trust pays the compensation of the Trustees who are not employees of Aberdeen Asset Management Inc. (“Aberdeen”, “AAMI” or the “Adviser”), or its affiliates, and all expenses (other than those assumed by the Adviser), including governmental fees, interest charges, taxes,

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membership dues in the Investment Company Institute allocable to the Trust; investment advisory fees and any Rule 12b-1 fees; fees under the Trust’s Fund Administration and Transfer Agency Agreements, which includes the expenses of calculating the Funds’ NAVs; fees and expenses of independent certified public accountants and legal counsel to the Trust and to the independent Trustees; expenses of preparing, printing, and mailing shareholder reports, notices, proxy statements, and reports to governmental offices and commissions; expenses connected with the execution, recording, and settlement of portfolio security transactions; short sale dividend expenses; insurance premiums; administrative services fees under an Administrative Services Plan; fees and expenses of the custodian for all services to the Trust; expenses of shareholder meetings; and expenses relating to the issuance, registration, and qualification of shares of the Trust. The Adviser may, from time to time, agree to voluntarily or contractually waive advisory fees, and if necessary reimburse expenses, in order to limit total operating expenses for each Fund and/or classes, as described below.

Investment Adviser

Under the Investment Advisory Agreement with the Trust, Aberdeen manages the Funds in accordance with the policies and procedures established by the Trustees.

Except as described below, the Adviser manages the day-to-day investments of the assets of the Funds. For certain Funds, the Adviser also provides investment management evaluation services in initially selecting and monitoring on an ongoing basis the performance of one or more subadvisers who manage the investment portfolio of a particular Fund. The Adviser is also authorized to select and place portfolio investments on behalf of such subadvised Funds; however, the Adviser does not intend to do so as a routine matter at this time.

Certain of the Funds are subadvised by Aberdeen Asset Managers Limited (“AAML”) and Aberdeen Asset Management Asia Limited (“AAMAL”) (together, the “Subadvisers”), affiliates of the Adviser. The Adviser and Subadvisers are each wholly-owned subsidiaries of Aberdeen Asset Management PLC (“Aberdeen PLC”), which is the parent company of an asset management group managing approximately $504.12 billion in assets as of December 31, 2014 for a range of pension funds, financial institutions, investment trusts, unit trusts, offshore funds, charities and private clients, in addition to U.S. registered investment companies. In rendering investment advisory services, the Adviser, AAMAL and AAML may use the resources of investment advisor subsidiaries of Aberdeen PLC. These affiliates have entered into a memorandum of understanding/personnel sharing procedures pursuant to which investment professionals from each affiliate may render portfolio management and research services to US clients of the Aberdeen PLC affiliates, including the Funds, as associated persons of the Adviser or Subadvisers. No remuneration is paid by the Funds with respect to the memorandum of understanding/personnel sharing arrangements.

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The following Funds are subadvised:

Aberdeen Global Equity Fund

Aberdeen China Opportunities Fund

Aberdeen International Equity Fund

Aberdeen Asia Bond Fund

Aberdeen Global Fixed Income Fund

Aberdeen Global Small Cap Fund

Aberdeen Asia-Pacific (ex-Japan) Equity Fund

Aberdeen Global Natural Resources Fund

Aberdeen Asia-Pacific Smaller Companies Fund

Aberdeen Emerging Markets Fund

Aberdeen Emerging Markets Debt Fund

Aberdeen Emerging Markets Debt Local Currency Fund

Aberdeen European Equity Fund

Aberdeen Latin American Equity Fund

Aberdeen Asset Management Inc.

Aberdeen pays the compensation of the officers of the Trust employed by Aberdeen. Aberdeen also furnishes, at its own expense, all necessary administrative services, office space, equipment, and clerical personnel for servicing the investments of the Trust and maintaining its investment advisory facilities, and executive and supervisory personnel for managing the investments and effecting the portfolio transactions of the Trust. In addition, Aberdeen pays, out of its legitimate profits, broker-dealers, trust companies, transfer agents and other financial institutions in exchange for their selling of shares of the Trust’s series or for recordkeeping or other shareholder related services.

The Investment Advisory Agreement also specifically provides that Aberdeen, including its directors, officers, and employees, shall not be liable for any error of judgment, or mistake of law, or for any loss arising out of any investment, or for any act or omission in the execution and management of the Trust, except for willful misfeasance, bad faith, or gross negligence in the performance of its duties, or by reason of reckless disregard of its obligations and duties under the Agreement. The Agreement continues in effect for an initial period of no more than two years, and thereafter shall continue automatically for successive annual periods provided such continuance is specifically approved at least annually by the Trustees, or by vote of a majority of the outstanding voting securities of the Trust, and, in either case, by a majority of the Trustees who are not parties to the Agreement or interested persons of any such party. The Agreement terminates automatically in the event of its “assignment,” as defined under the 1940 Act. It may be terminated as to a Fund without penalty by vote of a majority of the outstanding voting securities of that Fund, or by either party, on not less than 60 days’ written notice. The Agreement further provides that Aberdeen may render similar services to others.

Aberdeen, located at 1735 Market Street, 32 nd Floor, Philadelphia, Pennsylvania 19103, is wholly owned by Aberdeen PLC. Martin Gilbert, Trustee of the Trust, is the Chief Executive Officer of Aberdeen PLC.

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For services provided under the Investment Advisory Agreement, Aberdeen receives an annual fee paid monthly based on average daily net assets of the applicable Fund according to the following schedule:

Fund	Asset	Investment Advisory Fee
Aberdeen China Opportunities Fund	$0 up to $500 million	1.25	%
	$500 million up to $2 billion	1.20	%
	$2 billion and more	1.15	%
Aberdeen Equity Long-Short Fund	$0 up to $1 billion	1.15	%
	$1 billion and more	1.00	%
Aberdeen Global Equity Fund	$0 up to $500 million	0.90	%
	$500 million up to $2 billion	0.85	%
	$2 billion and more	0.80	%
Aberdeen Global Natural Resources Fund	$0 up to $500 million	0.70	%
	$500 million up to $2 billion	0.65	%
	$2 billion and more	0.60	%
Aberdeen Global Small Cap Fund	$0 up to $100 million	1.25	%
	$100 million or more	1.00	%
Aberdeen Small Cap Fund	$0 up to $100 million	0.95	%
	$100 million or more	0.80	%
Aberdeen U.S. Equity Fund	$0 up to $500 million	0.75	%
	$500 million up to $2 billion	0.70	%
	$2 billion and more	0.65	%
Aberdeen Asia Bond Fund	All Assets	0.50	%
Aberdeen Global Fixed Income Fund	$0 up to $500 million	0.60	%
	$500 million up to $1 billion	0.55	%
	$1 billion and more	0.50	%
Aberdeen Emerging Markets Fund	All Assets	0.90	%
Aberdeen Emerging Markets Debt Fund	$0 up to $500 million	0.75	%
	$500 million and more	0.70	%
Aberdeen Emerging Markets Debt Local Currency Fund	$0 up to $500 million	0.80	%
	$500 million and more	0.75	%
Aberdeen Tax-Free Income Fund	$0 up to $250 million	0.425	%
	$250 million up to $1 billion	0.375	%
	$1 billion and more	0.355	%
Aberdeen Ultra-Short Duration Bond Fund	All Assets	0.20	%
Aberdeen High Yield Fund	$0 up to $500 million	0.60	%
	$500 million and more	0.55	%
Aberdeen Dynamic Allocation Fund	All Assets	0.15	%

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Aberdeen Diversified Income Fund	All Assets	0.15	%
Aberdeen Diversified Alternatives Fund	All Assets	0.15	%
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	All Assets	1.00	%
Aberdeen Asia-Pacific Smaller Companies Fund	$0 up to $500 million	1.30	%
	$500 million up to $2 billion	1.25	%
	$2 billion and more	1.15	%
Aberdeen International Equity Fund	All Assets	0.80	%
Aberdeen European Equity Fund	$0 up to $500 million	0.90	%
	$500 million up to $2 billion	0.85	%
	$2 billion and more	0.80	%
Aberdeen Latin American Equity Fund	$0 up to $500 million	1.10	%
	$500 million up to $2 billion	1.05	%
	$2 billion and more	1.00	%

Limitation of Fund Expenses

In the interest of limiting the expenses of the Funds, Aberdeen may from time to time waive some or all of its investment advisory fee or reimburse other fees for any of the Funds. In this regard, Aberdeen has entered into a written expense limitation agreement with the Trust on behalf of the Funds (the “Expense Limitation Agreement”). Pursuant to the Expense Limitation Agreement, Aberdeen has agreed to waive or limit its fees and to assume other expenses to the extent necessary, subject to certain exclusions, to limit the total annual operating expenses of each Class of each such Fund to the limits described below. This limit excludes certain Fund expenses, including any taxes, interest, brokerage fees, short sale dividend expenses, Acquired Fund Fees and Expenses, 12b-1 fees, administrative services fees and extraordinary expenses for a Fund (prior to July 21, 2010, Global Small Cap Fund and Global Fixed Income Fund did not exclude administrative service fees and prior to February 28, 2014, U.S. Equity Fund did not exclude administrative service fees). Please note that the waiver of such fees will cause the total return and yield of a Fund to be higher than they would otherwise be in the absence of such a waiver.

Aberdeen may request and receive reimbursement from a Fund of the advisory fees waived and other expenses reimbursed pursuant to the Expense Limitation Agreement at a later date not to exceed three years from the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made for fees waived prior to March 1, 2011 (except for the Global Small Cap Fund, Asia Bond Fund and Global Fixed Income Fund, which is prior to July 20, 2011, and the Ultra-Short Duration Bond Fund, which is prior to December 1, 2011) unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. For fees waived after March 1, 2011 (July 20, 2011 for Global Small Cap Fund, Asia Bond Fund and Global Fixed Income Fund; December 1, 2011 for Ultra-Short Duration Bond Fund) no reimbursement will be made unless: (i) the total annual expense ratio of the class making such reimbursement is less than the limit set forth above; and (ii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis (the “Reimbursement Requirements”). If the Board approves any changes in the waiver terms or limitations, reimbursements are only permitted to the extent that the terms of the Expense

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Limitation Agreement that were in effect at the time of the waiver are met at the time that reimbursement is approved. Except as provided for in the Expense Limitation Agreement, reimbursement of amounts previously waived or assumed by Aberdeen is not permitted.

Until at least February 29, 2016* or the effective date of the 2016 annual update to the registration statement, whichever occurs first, AAMI has agreed contractually to waive advisory fees and, if necessary, reimburse expenses in order to limit total annual fund operating expenses, excluding any taxes, interest, brokerage fees, short sale dividend expenses, Acquired Fund Fees and Expenses, 12b-1 fees, administrative services fees and extraordinary expenses for certain Funds of the Trust as follows:

Name of Fund/Class	2015 Expense Limitation		2015 Expiration Date
Aberdeen China Opportunities Fund	1.62	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen International Equity Fund	1.10	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Equity Long-Short Fund	1.40	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Equity Fund	1.19	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Natural Resources Fund	1.16	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Small Cap Fund	1.15	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Tax-Free Income Fund	0.62	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Dynamic Allocation Fund	0.25	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Diversified Income Fund	0.25	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Diversified Alternatives Fund	0.25	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Asia Bond Fund	0.70	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Fixed Income Fund	0.85	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Small Cap Fund	1.30	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Emerging Markets Fund	1.10	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	1.25	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first

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Aberdeen Ultra-Short Duration Bond Fund	0.30	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Emerging Markets Debt Local Currency Fund	0.90	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Asia-Pacific Smaller Companies Fund	1.50	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen U.S. Equity Fund	0.90	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen High Yield Fund	0.80	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Emerging Markets Debt Fund	0.90	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen European Equity Fund	1.10	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Latin American Equity Fund	1.30	%	February 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first

* As most recently approved at the December 10, 2014 Board Meeting. The 2015 Expense Limitation is effective as of February 28, 2015 .

Predecessor Fund Advisers

As explained in the “General Information” section of this Statement of Additional Information, certain Funds in this SAI were created as part of the reorganizations of some of the Credit Suisse Funds and the Pacific Capital Funds into the Trust and as part of the reorganization of the Emerging Markets Predecessor Fund into the Trust. Prior to the reorganizations, investment advisory services for the Credit Suisse Predecessor Funds were provided by Credit Suisse Asset Management, LLC (“CSAM”), investment advisory services for the Pacific Capital Funds were provided by Asset Management Group of Bank of Hawaii (“BoH Asset Management Group”) and investment advisory services for the Emerging Markets Predecessor Fund were provided by Aberdeen and its affiliated subadvisers, per the below discussion. The Predecessor Funds were obligated to pay their respective predecessor investment adviser a monthly fee based on average daily net assets of the applicable Predecessor Fund. With the exception of the U.S. Equity Fund, the amount paid by the Predecessor Funds to their respective predecessor investment advisers is identical to the amount paid by the Funds to the Adviser.

The Aberdeen U.S. Equity Predecessor Fund paid CSAM an advisory fee computed daily and paid monthly at the annual rate of 0.90% of its average daily net assets up to $500 million; 0.80% of its average daily net assets from $500 million up to $2 billion and 0.75% of its average daily net assets of $2 billion and more.

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Investment Advisory Fees

The table below shows the investment advisory fees paid to and the fees waived, if any, by the Adviser for the fiscal years ended October 31, 2014, 2013 and 2012 (or for the life of the Fund if shorter).

	Year Ended October 31, 2014						Year Ended October 31, 2013						Year Ended October 31, 2012
Fund	Fees Paid		Fees Waived		Recoupment of Prior Fees Waived		Fees Paid		Fees Waived		Recoupment of Prior Fees Waived		Fees Paid		Fees Waived		Recoupment of Prior Fees Waived
China Opportunities Fund	$	413,711	$	134,971	$	0	$	491,305	$	114,509	$	0	$	507,323	$	93,681	$	0
Equity Long-Short Fund	6,669,954		23,669		0		7,027,491		0		28,949		6,052,940		28,949		132,553
Global Equity Fund	1,457,079		0		32,465		1,301,713		0		32,031		580,139		130,494		10,371
Global Natural Resources Fund	200,267		104,159		0		274,243		59,550		0		356,624		17,930		0
Small Cap Fund	1,223,193		163,603		0		1,276,250		161,028		0		1,431,267		125,721		0
International Equity Fund	7,705,466		0		0		8,331,669		0		0		5,855,299		0		183,176
Tax-Free Income Fund	429,529		134,346		0		474,319		111,413		12,363		498,803		0		66,504
U.S. Equity Fund	3,184,089		319,455		0		2,856,018		188,906		0		2,427,192		515,795		0
Dynamic Allocation Fund	38,176		162,128		0		42,215		153,911		0		36,856		134,356		0
Diversified Income Fund	39,805		151,342		0		49,117		153,325		0		45,044		141,760		0
Diversified Alternatives Fund	91,885		218,423		0		33,883		153,416		0		37,140		153,080		0
Asia Bond Fund	1,076,723		205,651		0		2,073,524		329,370		0		2,756,024		202,438		0
Asia-Pacific (ex-Japan) Equity Fund	8,647,190		170,934		0		8,056,878		58,037		30,219		4,651,605		30,219		32,568
Ultra-Short Duration Bond Fund	27,059		98,801		0		30,928		93,213		0		67,143		133,723		0
Asia-Pacific Smaller Companies Fund	293,760		201,689		0		463,895		216,390		0		224,402		152,030		0
Emerging Markets Debt Local Currency Fund	337,245		196,473		0		363,749		188,513		0		233,317		269,869		0
Global Fixed Income Fund	131,599		133,386		0		158,586		128,477		0		196,512		96,679		0
Global Small Cap Fund	3,087,368		365,671		0		2,314,462		314,856		0		726,367		262,698		0
High Yield Fund(1)	65,907		118,215		0		102,202		140,020		0		58,320		101,197		0
Emerging Markets Fund	95,753,396		1,699,198		0		95,893,822		0		0		57,844,967		89,836		0

127

	Year Ended October 31, 2014			Year Ended October 31, 2013			Year Ended October 31, 2012
Fund	Fees Paid	Fees Waived	Recoupment of Prior Fees Waived	Fees Paid	Fees Waived	Recoupment of Prior Fees Waived	Fees Paid	Fees Waived	Recoupment of Prior Fees Waived
Emerging Markets Debt Fund(2)	150,983	141,808	0	74,459	141,054	0	N/A	N/A	0
European Equity Fund(3)	57,579	133,233	0	28,864	107,240	0	N/A	N/A	0
Latin American Equity Fund(4)	47,594	132,985	0	30,655	129,774	0	N/A	N/A	0

(1) The High Yield Fund commenced operations on February 27, 2012.

(2) The Emerging Markets Debt Fund commenced operations on November 1, 2012.

(3) The European Equity Fund commenced operations on March 25, 2013.

(4) The Latin American Equity Fund commenced operations on March 25, 2013.

128

Subadvisers

The subadvisers for certain of the Funds advised by the Adviser are as follows:

FUND		SUBADVISER
Aberdeen Global Equity Fund		Aberdeen Asset Managers Limited (“AAML”)
Aberdeen China Opportunities Fund		Aberdeen Asset Management Asia Limited (“AAMAL”)
Aberdeen Global Small Cap Fund		AAML
Aberdeen International Equity Fund		AAML
Aberdeen Global Fixed Income Fund		AAML
Aberdeen Asia Bond Fund		AAMAL
Aberdeen Asia-Pacific (Ex-Japan) Equity Fund		AAMAL
Aberdeen Asia-Pacific Smaller Companies Fund		AAMAL
Aberdeen Emerging Markets Fund		AAML and AAMAL
Aberdeen Emerging Markets Debt Fund		AAML
Aberdeen Emerging Markets Debt Local Currency Fund		AAML
Aberdeen Global Natural Resources Fund		AAML
Aberdeen European Equity Fund		AAML
Aberdeen Latin American Equity Fund		AAML

On March 1, 2012, Aberdeen Asset Management Investment Services Limited (“AAMISL”), the previous subadviser to the Funds for which AAML now serves as subadviser, merged into AAML. AAML assumed the subadviser responsibilities of the Funds for which AAMISL was subadviser. There was no change to the portfolio management team or the level or nature of the services provided to the Funds for which AAMISL served as subadviser as a result of the merger and the same resources available to AAMISL for the management and compliance oversight of the Funds are available to AAML.

AAML, a Scottish corporation, and AAMAL, a Singapore corporation, each serve as subadviser to the Funds listed in the chart above. AAML and AAMAL are both affiliates of the Adviser. AAML is located at Bow Bells House, 1 Bread Street London, England EC4M9HH. AAMAL is located at 21 Church Street, #01-01 Capital Square Two, Singapore 049480.

Under the subadvisory agreements among the Trust, the Adviser and each subadviser, and subject to the supervision of the Adviser and the Trustees, each of the subadvisers manages the assets of the Fund listed above in accordance with the Fund’s investment objectives and policies. Each subadviser makes investment decisions for the Fund and in connection with such investment decisions places purchase and sell orders for securities. For the investment management services they provide to the Funds, the subadvisers are entitled to the percentage of the advisory fee received after fee waivers and expense reimbursements, if any, by the Adviser as detailed below:

	SUBADVISORY FEE
FUND	AAMAL		AAML
ABERDEEN GLOBAL EQUITY FUND	N/A		90	%
ABERDEEN CHINA OPPORTUNITIES FUND	90	%	N/A
ABERDEEN INTERNATIONAL	N/A		90	%

129

EQUITY FUND
ABERDEEN GLOBAL FIXED INCOME FUND	N/A		90	%
ABERDEEN GLOBAL SMALL CAP FUND	N/A		90	%
ABERDEEN ASIA BOND FUND	90	%	N/A
ABERDEEN ASIA PACIFIC (EX-JAPAN) EQUITY FUND	90	%	N/A
ABERDEEN ASIA-PACIFIC SMALLER COMPANIES FUND	90	%	N/A
ABERDEEN EMERGING MARKETS FUND	45	%	45	%
ABERDEEN EMERGING MARKETS DEBT FUND	N/A		90	%
ABERDEEN EMERGING MARKETS DEBT LOCAL CURRENCY FUND	N/A		90	%
ABERDEEN GLOBAL NATURAL RESOURCES FUND	N/A		90	%
ABERDEEN EUROPEAN EQUITY FUND	N/A		90	%
ABERDEEN LATIN AMERICAN EQUITY FUND	N/A		90	%

A discussion regarding the basis for the Board of Trustees’ approval of the investment advisory contracts of the Funds is available in the Funds’ Annual Reports to Shareholders for the period ended October 31, 2014.

SUBADVISORY FEES

The subadvisory fees for subadvised Funds are paid by the Adviser from the management fee it receives.

The following table sets forth the amount paid by the Adviser to the respective subadvisers of the Funds for the fiscal years ended October 31, 2014, 2013 and 2012 (unless otherwise noted).

Fund	Year Ended October 31, 2014		Year Ended October 31, 2013		Year Ended October 31, 2012
Asia-Pacific (ex-Japan) Equity Fund	$	5,620,674	$	5,236,971	$	3,023,543
Asia-Pacific Smaller Companies Fund	190,944		301,532		145,861
China Opportunities Fund	268,912		319,348		329,760
Emerging Markets Debt Fund(1)	98,139		48,399		N/A
Emerging Markets Debt Local Currency Fund	219,209		238,813		151,656

130

Emerging Markets Fund	62,239,708	62,330,984	1,041,898
European Equity Fund(2)	37,426	18,762	N/A
Global Equity Fund	947,102	846,113	380,314
Global Natural Resources Fund(3)	130,173	178,258	231,805
International Equity Fund	5,008,553	5,415,585	3,899,879
Latin American Equity Fund(4)	30,936	19,925	N/A
Tax-Free Income Fund	0	0	0
Asia Bond Fund	699,870	1,347,791	1,791,415
Global Fixed Income Fund	85,539	103,081	127,733
Global Small Cap Fund	2,006,789	1,504,400	472,138

(1) The Emerging Markets Debt Fund commenced operations on November 1, 2012. The table above shows the subadvisory fees paid by Aberdeen to AAML for the fiscal period ended October 31, 2013 and fiscal year ended October 31, 2014.

(2) The European Equity Fund commenced operations on March 25, 2013. The table above shows the subadvisory fees paid by Aberdeen to AAML for the fiscal period ended October 31, 2013 and fiscal year ended October 31, 2014.

(3) The Predecessor Fund of the Aberdeen Global Natural Resources Fund had subadvisory arrangements with Aberdeen Asset Management Inc. Effective on March 1, 2012, AAML began to serve as the subadviser for the Aberdeen Global Natural Resources Fund pursuant to a subadvisory agreement.

(4) The Latin American Equity Fund commenced operations on March 25, 2013. The table above shows the subadvisory fees paid by Aberdeen to AAML for the fiscal period ended October 31, 2013 and fiscal year ended October 31, 2014.

Multi-Manager Structure

On September 22, 2008, the Adviser and the Trust received an exemptive order from the SEC for a multi-manager structure which allows the Adviser, subject to the approval of the Board of Trustees, to hire, replace or terminate unaffiliated subadvisers without the approval of shareholders. The order also allows the Adviser to revise a subadvisory agreement with an unaffiliated subadviser without shareholder approval. If a new unaffiliated subadviser is hired, the change would be communicated to shareholders within 90 days of such change, and all changes would be approved by the Trust’s Board of Trustees, including a majority of the Trustees who are not interested persons of the Trust or the Adviser. The multi-manager structure is intended to facilitate the efficient operation of the Funds and afford the Trust increased management flexibility.

131

The Adviser provides investment management evaluation services to the Funds principally by performing initial due diligence on prospective subadvisers for the Fund and thereafter monitoring the performance of the subadviser through quantitative and qualitative analysis as well as periodic in-person, telephonic and written consultations with the subadviser. The Adviser has responsibility for communicating performance expectations and evaluations to the subadviser and ultimately recommending to the Trust’s Board of Trustees whether the subadviser’s contract should be renewed, modified or terminated; however, the Adviser does not expect to recommend frequent changes of subadvisers. The Adviser will regularly provide written reports to the Trust’s Board of Trustees regarding the results of its evaluation and monitoring functions. Although the Adviser will monitor the performance of the subadvisers, there is no certainty that the subadviser or the Funds will obtain favorable results at any given time.

Portfolio Managers

Appendix A contains the following information regarding the portfolio manager(s) identified in the Funds’ Prospectus: (i) a description of the portfolio manager’s compensation structure and (ii) information regarding other accounts managed by the portfolio manager and potential conflicts of interest that might arise from the management of multiple accounts. Information relating to each portfolio manager’s ownership in the Funds contained in this SAI that he or she manages, as part of the team, as of October 31, 2014, is set forth in the chart below.

Portfolio Manager	Portfolio Managed	Dollar Range of Portfolio Shares Owned
Paul Atkinson*	Equity Long-Short Fund	None
	Small Cap Fund	None
	U.S. Equity Fund	None
Ralph Bassett	Equity Long-Short Fund	$10,001-$50,000
	Small Cap Fund	None
	U.S. Equity Fund	None
Douglas Burtnick	Equity Long-Short Fund	$50,001-$100,000
	Small Cap Fund	$1-$10,000
	U.S. Equity Fund	$10,001-$50,000
Richard Fonash	Diversified Income Fund	$50,001-$100,000
	Dynamic Allocation Fund	$100,001-$500,000
	Diversified Alternatives Fund	$50,001-$100,000
Jason Kotik	Equity Long-Short Fund	$10,001-$50,000
	Small Cap Fund	$100,001-$500,000
	U.S. Equity Fund	$50,001-$100,000
Allison Mortensen	Diversified Income Fund	None
	Dynamic Allocation Fund	None
	Diversified Alternatives Fund	$100,001-$500,000
Francis Radano, III	Equity Long-Short Fund	None
	U.S. Equity Fund	$100,001-$500,000
Joseph McFadden	Small Cap Fund	None
Stephen Docherty	Global Equity Fund	None
	International Equity Fund	None
	Global Natural Resources Fund	None
	Global Small Cap Fund	None

132

Bruce Stout	Global Equity Fund	None
	International Equity Fund	None
	Global Natural Resources Fund	None
	Global Small Cap Fund	None
Samantha Fitzpatrick	Global Equity Fund	None
	International Equity Fund	None
	Global Natural Resources Fund	None
	Global Small Cap Fund	None
Jamie Cumming	Global Equity Fund	None
	International Equity Fund	None
	Global Natural Resources Fund	None
	Global Small Cap Fund	None
Martin Connaghan	Global Equity Fund	None
	International Equity Fund	None
	Global Natural Resources Fund	None
	Global Small Cap Fund	None
Hugh Young	China Opportunities Fund	None
	Asia Pacific (ex-Japan) Equity Fund	None
	Asia-Pacific Smaller Companies Fund	None
	Emerging Markets Fund	None
Flavia Cheong	China Opportunities Fund	None
	Asia Pacific (ex-Japan) Equity Fund	None
	Asia-Pacific Smaller Companies Fund	None
Nicholas Yeo	China Opportunities Fund	None
Kathy Xu	China Opportunities Fund	None
Frank Tian	China Opportunities Fund	None
Chou Chong	Asia Pacific (ex-Japan) Equity Fund	None
	Asia-Pacific Smaller Companies Fund	None
Christopher Wong	Asia Pacific (ex-Japan) Equity Fund	None
	Asia-Pacific Smaller Companies Fund	None
Adrian Lim	Asia Pacific (ex-Japan) Equity Fund	None
	Asia-Pacific Smaller Companies Fund	None
Neil Moriarty	Global Fixed Income Fund	None
	Ultra-Short Duration Bond Fund	None
Neal Rayner	High Yield Fund	None
Oliver Boulind	Global Fixed Income Fund	$10,001-$50,000
Emma Jack	Global Fixed Income Fund	None
Oliver Chambers	Ultra-Short Duration Bond Fund	None

133

Stephen R. Cianci	Ultra-Short Duration Bond Fund	None
József Szabó	Global Fixed Income Fund	None
Rich Smith	Global Fixed Income Fund	None
Victor Rodriguez	Asia Bond Fund	None
Adam McCabe	Asia Bond Fund	None
Thomas Drissner	Asia Bond Fund	None
Kenneth Akintewe	Asia Bond Fund	None
Thu-Ha Chow	Asia Bond Fund	None
Michael Degernes	Tax-Free Income Fund	None
	Ultra-Short Duration Bond Fund	None
Keith Bachman	High Yield Fund	$500,001-$1,000,000
Brendan Dillon	High Yield Fund	$10,001-$50,000
Kam Poon	Ultra-Short Duration Bond Fund	$10,001-$50,000
Edward Grant	Tax-Free Income Fund	None
	High Yield Fund	None
Devan Kaloo	Emerging Markets Fund	None
	Latin American Equity Fund	None
Joanne Irvine	Emerging Markets Fund	None
Mark Gordon-James	Emerging Markets Fund	None
	Latin American Equity Fund	None
Fiona Manning	Emerging Markets Fund	None
	Latin American Equity Fund	None
Brett Diment	Emerging Markets Debt Local Currency Fund	None
	Emerging Markets Debt Fund	None
Edwin Gutierrez	Emerging Markets Debt Local Currency Fund	None
	Emerging Markets Debt Fund	$1-$10,000
Viktor Szabó	Emerging Markets Debt Local Currency Fund	None
	Emerging Markets Debt Fund	None
Andrew Stanners	Emerging Markets Debt Local Currency Fund	None
	Emerging Markets Debt Fund	None
Kevin Daly	Emerging Markets Debt Local Currency Fund	None
	Emerging Markets Debt Fund	None
Jeremy Whitley	European Equity Fund	None
Edward Beal	European Equity Fund	None
Charles Luke	European Equity Fund	None
Ben Ritchie	European Equity Fund	None

134

Nick Robinson		Latin American Equity Fund		None
Stephen Parr		Latin American Equity Fund		None

* Paul Atkinson will leave the Adviser at the end of June 2015 and shall be deemed removed from this table at that time.

Distributor

The Trust and Aberdeen Fund Distributors LLC (the “distributor” or “AFD”) have entered into a distribution agreement whereby Aberdeen Fund Distributors LLC will act as principal underwriter for the Trust’s shares. The principal business address of Aberdeen Fund Distributors LLC is 1735 Market Street, 32 nd Floor, Philadelphia, Pennsylvania 19103. AFD is affiliated with the Funds’ Adviser.

Under the distribution agreement, the distributor must use reasonable efforts, consistent with its other business, in connection with the continuous offering of shares of the Trust. The distributor has no obligation to sell any specific quantity of Fund shares. Unless otherwise terminated, the distribution agreement has an initial term of two years and thereafter will remain in effect from year to year for successive annual periods if approved at least annually by (i) the Trust’s Board of Trustees or by the vote of a majority of the outstanding shares of that Fund, and (ii) the vote of a majority of the Trustees of the Trust who are not parties to the distribution agreement or interested persons (as defined in the 1940 Act) of any party to the distribution agreement, cast in person at a meeting called for the purpose of voting on such approval. The distribution agreement may be terminated in the event of any assignment, as defined in the 1940 Act.

The distributor may enter into arrangements with various financial institutions through which a shareholder may purchase or redeem shares. The distributor may enter into agreements with selected broker-dealers, banks or other financial institutions for distribution of shares of the Funds. If applicable to a class of the Trust’s Shares as described below, the distributor may receive distribution fees from certain of the Funds as authorized by the Distribution and Service Plan described below.

The distributor also receives the proceeds of contingent deferred sales charges imposed on certain redemptions of Class C shares (and certain Class A shares).

The distributor reallows to Financial Industry Regulatory Authority registered dealers: 5.00% of sales charges on Class A shares of the Funds that have a maximum front-end sales charge of 5.75%; 3.75% of sales charges on Class A shares of the Tax-Free Income Fund, the Global Fixed Income Fund, the Emerging Markets Debt Fund, the Emerging Markets Debt Local Currency Fund, the High Yield Fund, the Asia Bond Fund and the Ultra-Short Duration Bond Fund; and 1.00% on Class C shares of the Funds.

Distributor Fees

The information presented below for the fiscal years ended October 31, 2014, 2013 and 2012 reflects the amounts received in underwriting commissions from a portion of the front end sales charge of certain classes of the Funds, all of which is retained by AFD.

135

Fund	Year Ended October 31, 2014		Year Ended October 31, 2013		Year Ended October 31, 2012
China Opportunities Fund	$	2,590	$	13,989	$	9,432
Equity Long-Short Fund	1,273		5,980		2,882
Global Equity Fund	1,396		1,700		1,551
International Equity Fund	9,140		20,658		32,042
Global Natural Resources Fund	1,775		3,490		2,406
Small Cap Fund	9,106		4,629		2,596
U.S. Equity Fund	5,772		7,537		2,294
Tax-Free Income Fund	2,506		2,310		7,085
Dynamic Allocation Fund	4,293		1,391		659
Diversified Income Fund	1,167		4,234		2,402
Diversified Alternatives Fund	7,209		877		963
Asia-Pacific Smaller Companies Fund	166		2,743		20
Emerging Markets Debt Local Currency Fund	61		560		643
Ultra-Short Duration Bond Fund	7		—		—
Global Fixed Income Fund	65		101		22
Global Small Cap Fund	2,027		29,414		2,524
High Yield Fund(1)	47		42		—
Asia Bond Fund(2)	15		2,538		97
Asia-Pacific (ex-Japan) Equity Fund(3)	798		1,814		—

136

Fund	Year Ended October 31, 2014	Year Ended October 31, 2013	Year Ended October 31, 2012
Emerging Markets Fund(4)	13,539	62,094	6,960
Emerging Markets Debt Fund(5)	N/A	N/A	N/A
European Equity Fund(6)	173	381	N/A
Latin American Equity Fund(6)	3	N/A	N/A

(1)	Commenced operations on February 27, 2012.
(2)	Classes A, C and R commenced operations on February 27, 2012.
(3)	Classes A, C and R commenced operations on February 28, 2012.
(4)	Classes A, C and R commenced operations on May 21, 2012.
(5)	Commenced operations on November 1, 2012.
(6)	Commenced operations on March 25, 2013.

AFD also received the proceeds of contingent deferred sales charges imposed on certain redemptions of Class C shares (and certain Class A shares). The tables below reflect contingent deferred sales charges paid to AFD on redemptions of the Funds’ shares for the fiscal year ended October 31, 2014.

Fund	Year Ended October 31, 2014
China Opportunities Fund	$	2,508
Equity Long-Short Fund	2,320
Global Equity Fund	1,303
Global Natural Resources Fund	608
International Equity Fund	11,594
Small Cap Fund	7,229
U.S. Equity Fund	1,443
Tax-Free Income Fund	670
Dynamic Allocation Fund	2,488
Diversified Income Fund	2,508
Diversified Alternatives Fund	1,643
Asia-Pacific Smaller Companies Fund	—
Emerging Markets Debt Local Currency Fund	—
Ultra-Short Duration Bond Fund	—
High Yield Fund	7
Asia-Pacific (ex-Japan) Equity Fund	—
Emerging Markets Fund	24,562
Asia Bond Fund	—
Global Fixed Income Fund	—

137

Fund		Year Ended October 31, 2014
Global Small Cap Fund		687
Emerging Markets Debt Fund		—
European Equity Fund		—
Latin American Equity Fund		—

Distribution Plan

The Funds have adopted a Distribution Plan (the “Plan”) under Rule 12b-1 of the 1940 Act with respect to certain classes of shares. The Plan permits the Funds to compensate the Funds’ distributor for expenses associated with the distribution of certain classes of shares of the Funds. Although actual distribution expenses may be more or less, under the Plan the Funds pay the distributor an annual fee in an amount that will not exceed the following amounts:

· 0.25% of the average daily net assets of Class A shares of each applicable Fund (distribution or service fees);

· 1.00% of the average daily net assets of Class C shares for each applicable Fund (0.25% service fees); and

· 0.50% of the average daily net assets of the Class R Shares of each applicable Fund (0.25% of which must be either a distribution or service fee).

As required by Rule 12b-1, the Plan was approved by the Board of Trustees, including a majority of the Trustees who are not interested persons of the Trust and who have no direct or indirect financial interest in the operation of the Plan (the “Independent Trustees”). The Plan was approved for the Funds by the Board of Trustees, and may be amended from time to time upon approval by vote of a majority of the Trustees, including a majority of the Independent Trustees, cast in person at a meeting called for that purpose. The Plan may be terminated as to a Class of a Fund by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding shares of that Class. Any change in the Plan that would materially increase the distribution cost to a Class requires shareholder approval. The Trustees will review, quarterly, a written report of such costs and the purposes for which such costs have been incurred. The Plan may be amended by vote of the Trustees, including a majority of the Independent Trustees, cast in person at a meeting called for that purpose. For so long as the Plan is in effect, selection and nomination of those Trustees who are not interested persons of the Trust shall be committed to the discretion of such disinterested persons. All agreements with any person relating to the implementation of the Plan may be terminated at any time on 60 days’ written notice without payment of any penalty, by vote of a majority of the Independent Trustees or by a vote of the majority of the outstanding shares of the applicable Class. The Plan will continue in effect for successive one-year periods, provided that each such continuance is specifically approved (i) by the vote of a majority of the Independent Trustees, and (ii) by a vote of a majority of the entire Board of Trustees cast in person at a meeting called for that purpose. The Board of Trustees has a duty to request and evaluate such information as may be reasonably necessary for them to make an informed determination of whether the Plan should be implemented or continued. In addition the Trustees in approving the Plan as to a Fund must determine that there is a reasonable likelihood that the Plan will benefit such Fund and its shareholders.

138

The Board of Trustees of the Trust believes that the Plan is in the best interests of the Funds since it encourages Fund growth and maintenance of Fund assets. As the Funds grow in size, certain expenses, and therefore total expenses per share, may be reduced and overall performance per share may be improved.

The distributor will enter into, from time to time, agreements with selected dealers pursuant to which such dealers will provide certain services in connection with the distribution and shareholder servicing of a Fund’s shares including, but not limited to, those discussed above. The Adviser or an affiliate of the Adviser may pay additional amounts from its own resources to dealers or other financial intermediaries, for aid in distribution or for aid in providing administrative services to shareholders.

Distribution Plan Fees

During the period November 1, 2013-October 31, 2014, AFD earned the following distribution fees under the Plan for the Funds:

Fund	Class A		Class C		Class R
China Opportunities Fund	$	54,531	$	66,234	$	7,620
Equity Long-Short Fund	123,465		111,893		15,646
Global Equity Fund	202,717		47,305		10,922
Global Natural Resources Fund	47,126		34,436		17,766
Global Small Cap Fund	179,436		19,749		6,580
International Equity Fund	458,148		386,714		85,481
Small Cap Fund	193,759		321,900		6,344
U.S. Equity Fund	704,818		90,363		1,976
Global Fixed Income Fund	3,725		4,275		—
Tax-Free Income Fund	23,555		7,013		50
Dynamic Allocation Fund	24,414		140,175		2,189
Diversified Income Fund	19,618		161,716		1,948
Diversified Alternatives Fund	28,119		131,199		1,200
Asia-Pacific Smaller Companies Fund	3,116		597		70
Emerging Markets Debt Local Currency Fund	1,052		2,879		11,629
Ultra-Short Duration Bond Fund	309		—		—
High Yield Fund	687		1,462		63
Asia Bond Fund	3,396		5,979		50
Asia-Pacific (ex-Japan) Equity Fund	3,363		1,710		75
Emerging Markets Fund	947,844		455,336		138,596
Emerging Markets Debt Fund	25		99		50
European Equity Fund	584		161		56
Latin American Equity Fund	104		135		42

139

For the period November 1, 2013-October 31, 2014, the following expenditures were made using the 12b-1 fees received by AFD with respect to the Funds:

Fund	Advertising		Prospectus Printing & Mailing(1)	Distributor Compensation & Costs (1)			Financing Charges with Respect to C Shares		Broker-Dealer Compensation & Costs
China Opportunities Fund	$	635	—	$	2,236		$	3,239	$	122,275
Equity Long-Short Fund	1,453		—	5,166			10,922		233,462
Global Equity Fund	8,392		—	25,910			10,817		215,824
Global Natural Resources Fund	261		—	1,169			1,148		96,748
Global Small Cap Fund	13,638		—	42,235			10,646		139,245
International Equity Fund	2,412		—	14,743			58,501		854,686
Small Cap Fund	1,668		—	5,960			14,133		500,243
U.S. Equity Fund	82,991		—	248,193			4,432		461,541
Tax-Free Income Fund	609		—	1,903			1,261		26,845
Global Fixed Income Fund	88		—	478			175		7,260
Dynamic Allocation Fund	637		—	2,302			7,741		156,097
Diversified Income Fund	65		—	469			9,301		173,446
Diversified Alternatives Fund	55		—	(153		)	22,079		138,537
Asia-Pacific Smaller Companies Fund	79		—	234			130		3,340
Emerging Markets Debt Local Currency Fund	7		—	45			580		14,929
Ultra-Short Duration Bond Fund	15		—	55			0		238
High Yield Fund	55		—	159			109		1,888
Asia Bond Fund	70		—	232			826		8,298
Asia-Pacific (ex-Japan) Equity Fund	53		—	158			729		4,207
Emerging Markets Fund	3,617		—	17,944			171,448		1,348,766
Emerging Markets Debt Fund	44		—	131			0		0
European Equity Fund	73		—	210			43		475
Latin American Equity Fund	31		—	90			62		98

(1) Printing and mailing of prospectuses to other than current Fund shareholders.

Administrative Services Plan

Under the terms of an Administrative Services Plan, a Fund is permitted to enter into Servicing Agreements with servicing organizations, such as broker-dealers and financial institutions, who agree to provide certain administrative support services in connection with the Class A, Class R and Institutional Service Class shares of the Funds (as applicable). Such administrative support services include, but are not limited to, the following: establishing and maintaining shareholder accounts, processing purchase and redemption transactions, arranging for bank wires, performing shareholder sub-accounting, answering inquiries regarding the Funds, providing periodic statements showing the account balance for beneficial owners or for plan participants or contract holders of insurance company separate accounts, transmitting proxy statements, periodic reports, updated prospectuses and other communications to shareholders and, with respect to meetings of shareholders, collecting, tabulating and forwarding to the Trust executed proxies and obtaining such other information and performing such other services as may reasonably be required. With respect

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to the Class R shares, these types of administrative support services will be exclusively provided for retirement plans and their plan participants.

As authorized by the particular Administrative Services Plan for the Funds, the Trust has entered into Servicing Agreements for the Funds pursuant to which the contracted servicing agent for the Funds has agreed to provide certain administrative support services in connection with the applicable Fund shares held beneficially by its customers. In consideration for providing administrative support services, the servicing agent with whom the Trust may enter into Servicing Agreements will receive a fee, computed at the annual rate of up to 0.25% of the average daily net assets of the Class A, D, R or Institutional Service Class shares of each Fund (as applicable).

Administrative Services Plan Fees

For the period November 1, 2013-October 31, 2014, the following administrative services fees were paid from the Funds:

Fund	Class A		Class R		Institutional Service Class
China Opportunities Fund	$	4,187	$	2,313	$	410
Equity Long-Short Fund	32,180		7,402		6,532
Global Equity Fund	94,375		3,583		0
Global Natural Resources Fund	13,661		1,498		13
Global Small Cap Fund	34,725		765		5,098
International Equity Fund	95,517		14,762		255,552
Small Cap Fund	50,703		685		58
U.S. Equity Fund	68,102		21		118,351
Tax-Free Income Fund	59		0		0
Global Fixed Income Fund	0		0		0
Dynamic Allocation Fund	2,160		873		0
Diversified Income Fund	700		846		0
Diversified Alternatives Fund	2,776		190		0
Asia-Pacific (ex-Japan) Equity Fund	0		0		2,030
Asia-Pacific Smaller Companies Fund	593		10		0
Emerging Markets Fund	240,256		52,971		697,372
Emerging Markets Debt Fund	0		0		0
Emerging Markets Debt Local Currency Fund	149		5,682		0
Ultra-Short Duration Bond Fund	0		0		0
Asia Bond Fund	0		0		25,578
High Yield Fund	93		0		0
European Equity Fund	0		0		0
Latin American Equity Fund	0		0		0

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Transfer Agent Out-of-Pocket Expenses

The Funds may pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. Transfer agent out-of-pocket expenses may be in addition to the Rule 12b-1 fees and Administrative Services fees described in the Funds’ prospectus. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with omnibus accounting, recordkeeping, networking, sub-transfer agency or other administrative or shareholder services.

The Funds may pay and/or reimburse transfer agent out-of-pocket expenses on an average-net-assets basis or on a per-account-per-year basis for services to the Funds and its shareholders, including on certain non-omnibus accounts. Because these fees are paid out of a Fund’s assets on an ongoing basis, these fees will increase the cost of an investment in a share class over time and may cost more than other types of fees.

Fund Administration

Under the terms of a Fund Administration Agreement, AAMI provides various administrative and accounting services, including daily valuation of the Funds’ shares, preparation of financial statements, tax returns, and regulatory reports, and presentation of quarterly reports to the Board of Trustees. AAMI is located at 1735 Market Street, 32 nd Floor, Philadelphia, Pennsylvania 19103. The Trust shall pay fees to the Administrator, as set forth directly below, for the provision of services. Fees will be computed daily and payable monthly on the first business day of each month, or as otherwise set forth below.

Prior to February 25, 2013, the fees were as follows:

Asset-Based Annual Fee

· 0.065% of the first $500 million in aggregate net assets of all Funds of the Trust, plus

· 0.045% of aggregate net assets of all Funds of the Trust in excess of $500 million up to $2 billion; plus

· 0.02% of the aggregate net assets of all Funds of the Trust in excess of $2 billion.

The asset-based fees are subject to an annual minimum fee equal to the number of Funds of the Trust multiplied by $25,000.

As of February 25, 2013, the fees are as follows:

Asset-Based Annual Fee

	Aggregate Fee as a
Fund Asset Level	Percentage of Fund Net Assets
All Assets	0.08	%

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The asset-based fees are subject to an annual minimum fee equal to the number of Funds of the Trust multiplied by $25,000.

Fund Administration Fees

During the fiscal years ended October 31, 2014, 2013 and 2012, the Administrator was paid fees from the Funds as indicated below.

Fund	Year Ended October 31, 2014		Year Ended October 31, 2013		Year Ended October 31, 2012
China Opportunities Fund	$	26,477	$	24,041	$	10,567
Equity Long-Short Fund	463,997		386,630		136,946
Global Equity Fund	129,518		93,174		16,712
Global Natural Resources Fund	22,888		23,065		13,269
International Equity Fund	770,547		654,573		185,149
Small Cap Fund	107,319		87,513		41,711
U.S. Equity Fund	339,636		248,046		84,913
Tax-Free Income Fund	80,852		68,401		30,534
Dynamic Allocation Fund	20,361		17,346		6,393
Diversified Income Fund	21,229		19,945		7,812
Diversified Alternatives Fund	49,005		14,002		6,446
Asia Bond Fund	172,275		239,867		143,702
Global Fixed Income Fund	17,547		16,018		8,526
Global Small Cap Fund	226,990		143,469		15,103
Emerging Markets Fund	8,511,413		6,858,465		1,669,365
Asia-Pacific (ex-Japan) Equity Fund	691,775		529,792		120,752
Ultra-Short Duration Bond Fund	10,823		9,422		8,743
Asia-Pacific Smaller Companies Fund	18,077		22,913		4,457
Emerging Markets Debt Local Currency Fund	33,724		30,094		7,594
High Yield Fund(1)	8,788		10,518		2,507
Emerging Markets Debt Fund(2)	16,105		6,165		N/A
European Equity Fund(3)	5,118		2,566		N/A
Latin American Equity Fund(3)	3,461		2,229		N/A

(1) The High Yield Fund commenced operations February 27, 2012.

(2) The Emerging Markets Debt Fund commenced operations November 1, 2012.

(3) The European Equity Fund and the Latin American Equity Fund commenced operations on March 25, 2013.

Transfer Agent

The Trust has entered into a Transfer Agency and Service Agreement with Boston Financial Data Services, Inc. (“BFDS”), 30 Dan Road, Canton, Massachusetts 02021, whereby BFDS provides transfer agent and dividend disbursement agent services.

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Sub-Administrator, Custodian and Fund Accountant

The Trust has entered into an Amended and Restated Master Custodian Agreement (the “Custody Agreement”) with State Street Bank and Trust Company (“State Street”), State Street Financial Center, 1 Lincoln Street, Boston, Massachusetts 02111, whereby State Street provides custody and fund accounting services for the Funds. Aberdeen has entered into a Sub-Administration Agreement with State Street whereby State Street will provide certain administration services to the Funds. For the administration services provided by State Street to the Funds, Aberdeen pays State Street an asset-based fee that is calculated based on the assets of certain registered and unregistered funds and segregated accounts advised by the Adviser and its affiliates, plus certain out-of-pocket expenses, subject to a minimum fee.

Legal Counsel

Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019, serves as the Trust’s legal counsel. Drinker, Biddle & Reath LLP, One Logan Square, Philadelphia, Pennsylvania 19103, serves as legal counsel to the Independent Trustees.

Independent Registered Public Accounting Firm

KPMG serves as the Independent Registered Public Accounting Firm for the Trust.

BROKERAGE ALLOCATION

The Adviser (or a subadviser) is responsible for decisions to buy and sell securities and other investments for the Funds, the selection of brokers and dealers to effect the transactions and the negotiation of brokerage commissions, if any. In transactions on stock and commodity exchanges in the United States, these commissions are negotiated, whereas on foreign stock and commodity exchanges these commissions are generally fixed and are generally higher than brokerage commissions in the United States. In the case of securities traded on the OTC markets or for securities traded on a principal basis, there is generally no commission, but the price includes a spread between the dealer’s purchase and sale price. This spread is the dealer’s profit. In underwritten offerings, the price includes a disclosed, fixed commission or discount. Most short term obligations are normally traded on a “principal” rather than agency basis. This may be done through a dealer (e.g., a securities firm or bank) who buys or sells for its own account rather than as an agent for another client, or directly with the issuer.

Except as described below, the primary consideration in portfolio security transactions is best execution of the transaction i.e., execution at a favorable price and in the most effective manner possible. “Best execution” encompasses many factors affecting the overall benefit obtained by the client account in the transaction including, but not necessarily limited to, the price paid or received for a security, the commission charged, the promptness, availability and reliability of execution, the confidentiality and placement accorded the order, and customer service. Therefore, “best execution” does not necessarily mean obtaining the best price alone but is evaluated in the context of all the execution services provided. Both the Adviser and the subadvisers have complete freedom as to the markets in and the broker-dealers through which they seek this result.

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Subject to the primary consideration of seeking best execution and as discussed below, securities may be bought or sold through broker-dealers who have furnished statistical, research, corporate access, and other information or services to the Adviser or a subadviser. In placing orders with such broker-dealers, the Adviser or the subadviser will, where possible, take into account the comparative usefulness of such information. Such information is useful to the Adviser or a subadviser even though its dollar value may be indeterminable, and its receipt or availability generally does not reduce the Adviser’s or a subadviser’s normal research activities or expenses.

There may be occasions when portfolio transactions for a Fund are executed as part of concurrent authorizations to purchase or sell the same security for trusts or other accounts (including other mutual funds) served by the Adviser or a subadviser or by an affiliated company thereof. Although such concurrent authorizations potentially could be either advantageous or disadvantageous to a Fund, they are affected only when the Adviser or the subadviser believes that to do so is in the interest of the Fund. When such concurrent authorizations occur, the executions will be allocated in an equitable manner.

In purchasing and selling investments for the Funds, it is the policy of each of the Adviser and the subadvisers to obtain best execution through responsible broker-dealers. The determination of what may constitute best execution in a securities transaction by a broker involves a number of considerations, including the overall direct net economic result to the Fund (involving both price paid or received and any commissions and other costs paid), the efficiency with which the transaction is effected, the ability to effect the transaction at all when a large block is involved, the availability of the broker to stand ready to execute possibly difficult transactions in the future, the professionalism of the broker, and the financial strength and stability of the broker. These considerations are judgmental and are weighed by the Adviser or the subadvisers in determining the overall reasonableness of securities executions and commissions paid. In selecting broker-dealers, the Adviser or a subadviser will consider various relevant factors, including, but not limited to, the size and type of the transaction; the nature and character of the markets for the security or asset to be purchased or sold; the execution efficiency, settlement capability, and financial condition of the broker-dealer’s firm; the broker-dealer’s execution services, rendered on a continuing basis; and the reasonableness of any commissions.

As discussed under “General Information about the Funds’ Portfolio Instruments and Investment Policies — Foreign Currencies” above, with respect to FX transactions, different considerations or circumstances may apply, particularly with respect to Restricted Market FX. FX transactions executed for the Funds are divided into two main categories: (1) Restricted Market FX and (2) Unrestricted Market FX. Restricted Market FX are required to be executed by a local bank in the applicable market. Unrestricted Market FX are not required to be executed by a local bank. The Adviser or subadvisers execute Unrestricted Market FX relating to trading decisions. The Funds’ custodian executes all Restricted Market FX because it has local banks or relationships with local banks in each of the restricted markets where custodial client accounts hold securities. Unrestricted Market FX relating to the repatriation of dividends and/or income/expense items not directly relating to trading may be executed by the Adviser or subadvisers or by the Funds’ custodian due to the small currency amount and lower volume of such transactions. The Funds, the Adviser and the subadvisers have limited ability to negotiate prices at which certain FX transactions are customarily executed by the Funds’ custodian, i.e., transactions in Restricted Market FX and repatriation transactions.

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The Adviser and each subadviser may cause a Fund to pay a broker-dealer who furnishes brokerage and/or research services a commission that is in excess of the commission another broker-dealer would have received for executing the transaction if it is determined, pursuant to the requirements of Section 28(e) of the Exchange Act, that such commission is reasonable in relation to the value of the brokerage and/or research services provided. Such research services may include, among other things, analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, analytic or modeling software, market data feeds, corporate access, and historical market information. Any such research and other information provided by brokers to the Adviser or a subadviser is considered to be in addition to and not in lieu of services required to be performed by it under its investment advisory or subadvisory agreement, as the case may be. The fees paid to the Adviser and the subadvisers pursuant to their respective investment advisory or subadvisory agreement are not reduced by reason of their receiving any brokerage and research services. The research services provided by broker-dealers can be useful to the Adviser or a subadviser in serving their other clients. All research services received from the brokers to whom commissions are paid are used collectively, meaning such services may not actually be utilized in connection with each client account that may have provided the commission paid to the brokers providing such services. The Adviser and the subadvisers are prohibited from considering the broker-dealers’ sale of shares of any fund for which it serves as investment adviser or subadviser, except as may be specifically permitted by law.

The Adviser may direct security transactions to brokers providing brokerage and research services to the benefit of all Aberdeen clients, including the Funds.

Under the 1940 Act, “affiliated persons” of a Fund are prohibited from dealing with it as a principal in the purchase and sale of securities unless an exemptive order allowing such transactions is obtained from the SEC. However, each Fund may purchase securities from underwriting syndicates of which a subadviser or any of its affiliates, as defined in the 1940 Act, is a member under certain conditions, in accordance with Rule 10f-3 under the 1940 Act.

Each of the Funds contemplate that, consistent with the policy of obtaining best execution, brokerage transactions may be conducted through “affiliated brokers or dealers,” as defined in rules under the 1940 Act. Under the 1940 Act, commissions paid by a Fund to an “affiliated broker or dealer” in connection with a purchase or sale of securities offered on a securities exchange may not exceed the usual and customary broker’s commission. Accordingly, it is the Funds’ policy that the commissions to be paid to an affiliated broker-dealer must, in the judgment of the Adviser or the appropriate subadviser, be (1) at least as favorable as those that would be charged by other brokers having comparable execution capability and (2) at least as favorable as commissions contemporaneously charged by such broker or dealer on comparable transactions for the broker’s or dealer’s unaffiliated customers. The Adviser and the subadvisers do not necessarily deem it practicable or in the Funds’ best interests to solicit competitive bids for commissions on each transaction. However, consideration regularly is given to information concerning the prevailing level of commissions charged on comparable transactions by other brokers during comparable periods of time.

For the fiscal year ended October 31, 2014, the Funds directed the dollar amount of transactions and related commissions for transactions to a broker because of research services provided, as summarized in the table below:

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Fund	Total Dollar Amount of Transactions^		Total Commissions Paid on Such Transactions^
Aberdeen China Opportunities Fund	$	2,463,868.20	$	4,633.50
Aberdeen Global Equity Fund	$	11,480,274.14	$	17,569.95
Aberdeen Global Natural Resources Fund	$	1,395,495.02	$	2,240.92
Aberdeen Global Small Cap Fund	$	60,343,066.84	$	113,391.40
Aberdeen International Equity Fund	$	90,581,852.03	$	143,174.38
Aberdeen Diversified Income Fund	$	2,680,126.43	$	4,020.19
Aberdeen Dynamic Allocation Fund	$	1,696,795.42	$	2,545.19
Aberdeen Diversified Alternatives Fund	$	7,795,930.98	$	11,693.89
Aberdeen Small Cap Fund	$	54,735,589.11	$	82,103.35
Aberdeen U.S. Equity Fund	$	117,688,377.21	$	176,532.61
Aberdeen Equity Long-Short Fund	$	510,595,713.94	$	765,893.59
Aberdeen Emerging Markets Fund	$	1,162,996,752.14	$	2,349,099.39
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	$	91,143,874.58	$	212,375.31
Aberdeen Asia-Pacific Smaller Companies Fund	$	4,478,601.53	$	13,200.46
Aberdeen European Equity Fund	$	346,039.92	$	519.06
Aberdeen Latin American Equity Fund	$	374,997.07	$	663.31

^The FX rate used was the January 15, 2015 closing spot rate for GBP.

During the fiscal years ended October 31, 2014, 2013 and 2012, the following brokerage commissions were paid by the Funds:

	Year ended October 31,
Fund	2014*		2013		2012
China Opportunities Fund	$	12,101	$	17,732	$	35,727
Equity Long-Short Fund	914,455		993,794		779,466
Global Equity Fund	45,324		40,625		36,310
Global Natural Resources Fund	5,324		17,248		19,627
Global Small Cap Fund	148,319		310,466		50,122
International Equity Fund	249,131		312,649		210,436
U.S. Equity Fund	208,334		212,819		260,038
Small Cap Fund	102,207		158,832		152,092
Global Fixed Income Fund	0		0		866
Tax-Free Income Fund	0		0		0

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	Year ended October 31,
Fund	2014*	2013		2012
Dynamic Allocation Fund	3,167	8,705		12,341
Diversified Income Fund	6,299	8,536		14,520
Diversified Alternatives Fund	16,513	4,545		11,066
Asia Bond Fund	1,010	3,435		17,634
Asia-Pacific (ex-Japan) Equity Fund	580,486	520,244		509,396
Ultra-Short Duration Bond Fund	0	0		263
Asia-Pacific Smaller Companies Fund	26,205	51,952		63,945
Emerging Markets Fund	3,646,085	5,887,434		4,508,035
Emerging Markets Debt Fund	0	0		N/A
Emerging Markets Debt Local Currency Fund	0	0		0
High Yield Fund	0	0		0	(1)
European Equity Fund	1,123	2,114	(2)	N/A
Latin American Equity Fund	779	3,168	(2)	N/A

* Any material differences between the commissions paid during the past fiscal year and the two preceding fiscal years are due to a variety of factors including, among others, changes in the Predecessor Fund’s investment subadvisers, changes in equity management staff and cash flows into and out of the Fund.

(1) Reflects the period February 27, 2012 (commencement of operations) to October 31, 2012.

(2) Reflects the period from March 25, 2013 (commencement of operations) to October 31, 2013.

During the fiscal year ended October 31, 2014, the following Funds held investments in securities of their regular broker-dealers as follows:

Fund	Approximate Aggregate Value of Issuer’s Securities Owned by the Fund as of Fiscal Year End October 31, 2014		Name of Broker or Dealer
Aberdeen U.S. Equity Fund	$	8,122,110	ROYAL BANK OF CANADA
Aberdeen U.S. Equity Fund	749,000		STATE STREET
Aberdeen U.S. Equity Fund	10,010,703		WELLS FARGO + CO
Aberdeen Equity Long-Short Fund	8,962,972		WELLS FARGO
Aberdeen Global Natural Resources Fund	369,000		STATE STREET
Aberdeen Global Fixed Income Fund	49,174		BANK OF AMERICA CORP
Aberdeen Global Fixed Income Fund	51,232		CREDIT SUISSE
Aberdeen Global Fixed Income Fund	223,274		GOLDMAN SACHS
Aberdeen Global Fixed Income Fund	117,848		HSBC
Aberdeen Global Fixed Income Fund	200,665		ICICI BANK
Aberdeen Global Fixed Income Fund	458,137		JPMORGAN CHASE + CO
Aberdeen Global Fixed Income Fund	69,855		MORGAN STANLEY
Aberdeen Global Fixed Income Fund	151,819		SOCIETE GENERALE
Aberdeen Global Fixed Income Fund	520,000		STATE STREET
Aberdeen Global Fixed Income Fund	188,636		WELLS FARGO

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Fund	Approximate Aggregate Value of Issuer’s Securities Owned by the Fund as of Fiscal Year End October 31, 2014	Name of Broker or Dealer
Aberdeen Emerging Markets Fund	306,534,747	BANCO BRADESCO S
Aberdeen Emerging Markets Fund	123,767,527	BANCO SANTANDER
Aberdeen Emerging Markets Fund	92,242,477	CIMB GROUP
Aberdeen Emerging Markets Fund	138,376,143	ICICI BANK
Aberdeen Emerging Markets Fund	172,018,228	STANDARD CHARTERED BANK
Aberdeen Emerging Markets Fund	229,143,000	STATE STREET
Aberdeen Emerging Markets Debt Fund	519,000	STATE STREET
Aberdeen Emerging Markets Debt Local Currency Fund	366,408	STATE STREET
Aberdeen Ultra-Short Duration Bond Fund	151,086	BANK OF AMERICA
Aberdeen Ultra-Short Duration Bond Fund	100,564	BANK OF MONTREAL
Aberdeen Ultra-Short Duration Bond Fund	125,663	BANK OF NOVA SCOTIA
Aberdeen Ultra-Short Duration Bond Fund	100,696	BARCLAYS
Aberdeen Ultra-Short Duration Bond Fund	100,219	CITIGROUP INC
Aberdeen Ultra-Short Duration Bond Fund	92,407	HSBC
Aberdeen Ultra-Short Duration Bond Fund	150,493	JPMORGAN CHASE + CO
Aberdeen Ultra-Short Duration Bond Fund	101,238	MORGAN STANLEY
Aberdeen Ultra-Short Duration Bond Fund	150,399	ROYAL BANK OF CANADA
Aberdeen Ultra-Short Duration Bond Fund	86,214	ROYAL BANK OF SCOTLAND
Aberdeen Ultra-Short Duration Bond Fund	218,004	SANTANDER
Aberdeen Ultra-Short Duration Bond Fund	100,499	TD BANK
Aberdeen Ultra-Short Duration Bond Fund	218,099	WELLS FARGO + COMPANY
Aberdeen Diversified Income Fund	538,000	STATE STREET
Aberdeen Dynamic Allocation Fund	625,000	STATE STREET
Aberdeen Diversified Alternatives Fund	5,853,000	STATE STREET
Aberdeen Asia Bond Fund	3,441,829	BARCLAYS
Aberdeen Asia Bond Fund	26,031,771	STATE STREET
Aberdeen Asia Bond Fund	6,068,944	ICICI BANK
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	11,889,312	CIMB GROUP
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	39,277,590	HSBC
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	8,043,078	ICICI BANK
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	29,648,855	STANDARD CHARTERED BANK
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	33,785,000	STATE STREET

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Fund	Approximate Aggregate Value of Issuer’s Securities Owned by the Fund as of Fiscal Year End October 31, 2014	Name of Broker or Dealer
Aberdeen Asia-Pacific Smaller Companies Fund	831,000	STATE STREET
Aberdeen Asia-Pacific Smaller Companies Fund	300,771	TISCO FINANCIAL GROUP
Aberdeen High Yield Fund	2,049,000	STATE STREET
Aberdeen China Opportunities Fund	1,451,719	HSBC
Aberdeen China Opportunities Fund	901,403	STANDARD CHARTERED BANK
Aberdeen China Opportunities Fund	130,000	STATE STREET
Aberdeen European Equity Fund	168,244	STANDARD CHARTERED BANK
Aberdeen European Equity Fund	192,000	STATE STREET
Aberdeen Global Equity Fund	4,390,818	BANCO BRADESCO
Aberdeen Global Equity Fund	3,114,684	HSBC
Aberdeen Global Equity Fund	2,960,857	STANDARD CHARTERED BANK
Aberdeen Global Equity Fund	6,474,000	STATE STREET
Aberdeen Global Small Cap Fund	333,000	STATE STREET
Aberdeen International Equity Fund	25,579,533	BANCO BRADESCO
Aberdeen International Equity Fund	19,430,324	HSBC
Aberdeen International Equity Fund	17,052,928	STANDARD CHARTERED BANK
Aberdeen International Equity Fund	12,879,000	STATE STREET
Aberdeen Latin American Equity Fund	349,062	BANCO BRADESCO
Aberdeen Latin American Equity Fund	99,593	BANCO SANTANDER
Aberdeen Small Cap Fund	3,031,000	STATE STREET
Aberdeen Tax-Free Income Fund	390,000	STATE STREET

ADDITIONAL INFORMATION ON PURCHASES AND SALES

Fund Closure

In order to protect the integrity of the investment process that is used to manage the Aberdeen Emerging Markets Fund, effective February 22, 2013 (the “Closing Date”), the Fund no longer accepts purchase orders from new investors or exchanges from other Aberdeen Funds into the Fund by new investors. However, the categories of persons described below will continue to be able to invest in the Fund:

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· Existing shareholders, as of the Closing Date, are permitted to make new investments into the Fund directly.

· Existing shareholders, as of the Closing Date, are permitted to continue to purchase Fund shares through the Automatic Investment Plan and through dividend and capital gain reinvestments.

· Existing shareholders, as of the Closing Date, are permitted to transfer assets from one existing account t o another account within the Fund, regardless of whether such account is under a different registration or holds shares of the Fund as of the Closing Date . Such shareholders are permitted to make new investments into such account.

The Fund will continue to limit inflows to the Fund until otherwise notified.

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Class A Sales Charges

The charts below show the Class A sales charges, which decrease as the amount of your investment increases.

Class A Shares of the Funds (other than the Tax-Free Income Fund, Global Fixed Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, High Yield Fund, Asia Bond Fund and Ultra-Short Duration Bond Fund)

AMOUNT OF PURCHASE	SALES CHARGE AS % OF OFFERING PRICE		SALES CHARGE AS % OF AMOUNT INVESTED		DEALER COMMISSION
less than $50,000	5.75	%	6.10	%	5.00	%
$50,000 up to $100,000	4.75		4.99		4.00
$100,000 up to $250,000	3.50		3.63		3.00
$250,000 up to $500,000	2.50		2.56		2.00
$500,000 up to $1 million	2.00		2.04		1.75
$1 million or more	None		None		None

Class A Shares of the Tax-Free Income Fund, Global Fixed Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, High Yield Fund, Asia Bond Fund and Ultra-Short Duration Bond Fund

AMOUNT OF PURCHASE	SALES CHARGE AS % OF OFFERING PRICE		SALES CHARGE AS % OF AMOUNT INVESTED		DEALER COMMISSION
less than $100,000	4.25	%	4.44	%	3.75	%
$100,000 up to $250,000	3.50		3.63		3.00
$250,000 up to $500,000	2.50		2.56		2.00
$500,000 up to $1 million	2.00		2.04		1.75
$1 million or more	None		None		None

Using the NAV per share as of October 31, 2014, the maximum offering price of each Fund’s Class A shares would be as follows:

Fund Name	Net Asset Value		Maximum Sales Charge		Offering Price to Public
Aberdeen China Opportunities Fund	$	20.19	5.75	%	$	21.42
Aberdeen Equity Long-Short Fund	$	12.26	5.75	%	$	13.01
Aberdeen Global Equity Fund	$	13.83	5.75	%	$	14.67
Aberdeen Global Natural Resources Fund	$	15.35	5.75	%	$	16.29
Aberdeen Global Small Cap Fund	$	29.64	5.75	%	$	31.45
Aberdeen International Equity Fund	$	14.85	5.75	%	$	15.76
Aberdeen U.S. Equity Fund	$	13.40	5.75	%	$	14.22
Aberdeen Small Cap Fund	$	23.90	5.75	%	$	25.36
Aberdeen Asia Bond Fund	$	10.19	4.25	%	$	10.64
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	$	12.08	5.75	%	$	12.82
Aberdeen Asia-Pacific Smaller Companies Fund	$	10.13	5.75	%	$	10.75
Aberdeen Ultra-Short Duration Bond Fund	$	9.95	4.25	%	$	10.39

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Aberdeen Emerging Markets Fund	$	14.88	5.75	%	$	15.79
Aberdeen Emerging Markets Debt Fund	$	9.73	4.25	%	$	10.16
Aberdeen Emerging Markets Debt Local Currency Fund	$	8.73	4.25	%	$	9.12
Aberdeen High Yield Fund	$	9.20	4.25	%	$	9.61
Aberdeen Global Fixed Income Fund	$	10.12	4.25	%	$	10.57
Aberdeen Tax-Free Income Fund	$	10.38	4.25	%	$	10.84
Aberdeen Dynamic Allocation Fund	$	13.30	5.75	%	$	14.11
Aberdeen Diversified Income Fund	$	12.99	5.75	%	$	13.78
Aberdeen Diversified Alternatives Fund	$	13.32	5.75	%	$	14.13
Aberdeen European Equity Fund	$	10.22	5.75	%	$	10.84
Aberdeen Latin American Equity Fund	$	7.93	5.75	%	$	8.41

Waiver of Class A Sales Charges

You may qualify for a reduced Class A sales charge if you own or are purchasing shares of the Funds. You may also qualify for a waiver of the Class A sales charges. To receive the reduced or waived sales charge, you must inform Customer Service or your broker or other intermediary at the time of your purchase that you qualify for such a reduction or waiver. If you do not inform Customer Service or your intermediary that you are eligible for a reduced or waived sales charge, you may not receive the discount or waiver that you are entitled to. You may have to produce evidence that you qualify for a reduced sales charge or waiver before you will receive it.

The sales charge applicable to Class A shares may be waived for shares sold to financial intermediaries who have entered into an agreement with a Fund’s distributor to offer shares to self-directed investment brokerage accounts that may or may not charge a transaction fee to its customers.

The sales charge applicable to Class A shares may be waived for the following purchases:

1) shares sold to other registered investment companies affiliated with Aberdeen;

2) shares sold to:

a) any pension, profit sharing, or other employee benefit plan for the employees of Aberdeen, any of its affiliated companies, or investment advisory clients and their affiliates;

b) 401(a) plans, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, non-qualified deferred compensation plans, employer sponsored benefit plans (including health savings accounts), other similar employer-sponsored retirement and benefit plans. (Individual retirement vehicles, such as traditional and Roth IRAs, Coverdell education savings accounts, individual 403(b)(7) custodial accounts, one person Keogh plans, SEPs, SARSEPs, SIMPLE IRAs or similar accounts do not qualify for the waiver.)

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c) any life insurance company separate account registered as a unit investment trust;

d) Trustees and retired Trustees of the Trust;

e) directors, officers, full-time employees, sales representatives and their employees, and retired directors, officers, employees, and sales representatives, their spouses (including domestic partners), children or immediate relatives (immediate relatives include mother, father, brothers, sisters, grandparents, grandchildren (“Immediate Relatives”)), and Immediate Relatives of deceased employees of any member of Aberdeen, or any investment advisory clients of the Adviser and its affiliates;

f) directors, officers, and full-time employees, their spouses (including domestic partners), children or Immediate Relatives and Immediate Relatives of deceased employees of any sponsor group which may be affiliated with Aberdeen;

g) financial intermediaries who have entered into an agreement with a Fund’s distributor to offer shares to self-directed investment brokerage accounts that may or may not charge a transaction fee to its customers;

h) any person purchasing through an account with an unaffiliated brokerage firm having an agreement with the distributor to waive sales charges for those persons; and

i) any directors, officers, full-time employees, sales representatives and their employees, their spouses (including domestic partners), children or Immediate Relatives, or any investment advisory clients of a broker-dealer having a dealer/selling agreement with the distributor.

Reduction of Sales Charges

Reduction of Class A Sales Charges

Shareholders can reduce or eliminate Class A shares’ initial sales charge through one or more of the discounts described below:

· A Larger Investment . The sales charge decreases as the amount of your investment increases.

· Rights of Accumulation . You and members of your family who live at the same address can add the current value of your Class A and Class C investments in the Aberdeen Funds and Aberdeen Investment Funds that you currently own or are currently purchasing to the value of your Aberdeen Funds Class A purchase, possibly reducing the sales charge.

· No Sales Charge on a Repurchase . If you sell Fund shares from your account, we allow you a one-time privilege to reinvest some or all of the proceeds in shares of the same class. You will not pay a sales charge on Class A shares that you buy within 30 days of selling Class A shares of an equal or greater amount if you have already paid a sales charge. Remember, if you realize a gain or a loss on your sale of shares, the transaction is taxable and reinvestment will not affect the amount of capital gains tax that is due. If you realize a loss on your sale and you reinvest, some or all of the loss may not be allowed as a tax deduction depending on the amount you reinvest.

· Letter of Intent Discount . State in writing that during a 13-month period you or a group of family members who live at the same address will purchase or hold at least $50,000 in Class A shares (at least $100,000 in Class A shares of Global Fixed Income Fund, Tax-Free Income Fund, Emerging Markets Debt Local Currency Fund,

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High Yield Fund, Asia Bond Fund, Ultra-Short Duration Bond Fund and Emerging Markets Debt Fund) and your sales charge will be based on the total amount you intend to invest. You can also combine your purchase of Class A and Class C Shares in the Aberdeen Funds and Aberdeen Investment Funds to fulfill your Letter of Intent. Your Letter of Intent is not a binding obligation to buy shares of the Fund; it is merely a statement of intent. You are not legally required to complete the purchases indicated in your Letter of Intent. However, if you do not fulfill your Letter of Intent, additional sales charges may be due and shares in your account would be liquidated to cover those sales charges.

Class A Finder’s Fee and Corresponding CDSC

There are no front-end sales charges for purchases of Class A shares of the Funds of $1 million or more. An investor may purchase $1 million or more of Class A shares in one or more of the Aberdeen Funds and avoid the front-end sales charge. However, unless an investor is otherwise eligible to purchase Class A shares without a sales charge, the investor will pay a CDSC if he or she redeems such Class A shares within 18 months of the date of purchase. With respect to such purchases, the distributor or the Funds’ Adviser may pay dealers a finders’ fee (as described below) on investments made in Class A shares with no initial sales charge. The CDSC covers the finder’s fee paid by the distributor or the Adviser to the selling dealer. For the selling dealer to be eligible for the finders’ fee, the following requirements apply:

· The purchase can be made in any combination of the Funds of the Trust. The amount of the finder’s fee will be determined based on the particular combination of the Funds purchased. The applicable finder’s fee will be determined on a pro rata basis to the purchase of each particular Fund.

· The shareholder will be subject to a CDSC for shares redeemed in any redemption within the first 18 months of purchase.

The CDSC will equal the amount of the finder’s fee paid out to the dealer as described in the chart below. The applicable CDSC will be determined on a pro rata basis according to the amount of the redemption from each particular Fund. The Class A CDSC will not exceed the aggregate amount of the finder’s fee the distributor or Adviser paid to the selling dealer on all purchases of Class A shares of all Funds an investor made that were subject to the Class A CDSC.

Amount of Finder’s Fee/Contingent Deferred Sales Charge

	Amount of Purchase
Funds Purchased	$1 million up to $4 million		$4 million up to $25 million		$25 million or more
U.S. Equity Fund, Global Equity Fund, China Opportunities Fund, International Equity Fund, Equity Long-Short Fund, Global Natural Resources Fund, Global Small Cap Fund, Asia-Pacific (ex-Japan) Equity Fund, Asia-Pacific Smaller Companies Fund, Emerging Markets Fund, Funds-of-Funds, European Equity Fund and Latin American Equity Fund	1.00	%	0.50	%	0.25	%
Small Cap Fund	0.50	%	0.50	%	0.25	%
Tax-Free Income Fund, Global Fixed Income Fund, Emerging Markets Debt Fund, Emerging Markets Debt Local Currency Fund, High Yield Fund, Asia Bond Fund and Ultra-Short Duration Bond Fund	0.75	%	0.50	%	0.25	%

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CDSC for Class C Shares

You will pay a CDSC of 1.00% if you sell your Class C shares within the first year after you purchased the shares. The distributor or the Funds’ Adviser compensates broker-dealers and financial intermediaries for sales of Class C shares from its own resources at the rate of 1.00% of sales of Class C shares of the Funds. The CDSC is never imposed on dividends, whether paid in cash or reinvested, or on appreciation over the initial purchase price. The CDSC applies only to the lesser of the original investment or current market value.

Other Dealer Compensation

In addition to the dealer commissions and payments under its 12b-1 Plan, from time to time, the Adviser and/or its affiliates may make payments for distribution and/or shareholder servicing activities out of their past profits and other of their own resources. The Adviser may also pay and/or reimburse transfer agent out-of-pocket expenses to certain broker-dealers and financial intermediaries who provide administrative support services to beneficial shareholders on behalf of the Funds, subject to certain limitations approved by the Board. Transfer agent out-of-pocket expenses generally include, but are not limited to, costs associated with recordkeeping, networking, sub-transfer agency or other administrative services. The Adviser and/or its affiliates may make payments for marketing, promotional, or related services provided by dealers and other financial intermediaries, and may be in exchange for factors that include, without limitation, differing levels or types of services provided by the intermediary, the expected level of assets or sales of shares, the placing of some or all of the Funds of the Trust on a preferred or recommended list, access to an intermediary’s personnel, and other factors. The amount of these payments is determined by the Adviser.

In addition to these payments described above, the Adviser or its affiliates may offer other sales incentives in the form of sponsorship of educational or client seminars relating to current products and issues, assistance in training and educating the intermediary’s personnel, and/or entertainment or meals. These payments also may include, at the direction of a retirement plan’s named fiduciary, amounts to intermediaries for certain plan expenses or otherwise for the benefit of plan participants and beneficiaries. As permitted by applicable law, the Adviser or its affiliates may pay or allow other incentives or payments to intermediaries.

The payments described above are often referred to as “revenue sharing payments.” The recipients of such payments may include:

· the distributor and other affiliates of the Adviser,

· broker-dealers,

· financial institutions, and

· other financial intermediaries through which investors may purchase shares of a Fund.

Payments may be based on current or past sales; current or historical assets; or a flat fee for specific services provided. In some circumstances, such payments may create an incentive for an intermediary or its employees or associated persons to recommend or sell shares of a Fund to you instead of shares of funds offered by competing fund families.

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Class R Shares

Class R shares generally are available only to 401(a) plans, 401(k) plans, 457 plans, 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans, non-qualified deferred compensation plans and other retirement accounts (collectively, “retirement plans”) whereby the retirement plan or the retirement plan’s financial service firm has an agreement with the Funds’ distributor to utilize Class R shares in certain investment products or programs. Class R shares are generally available to small and mid-sized retirement plans having at least $1 million in assets. In addition, Class R shares also are generally available only to retirement plans where Class R shares are held on the books of the Funds through omnibus accounts (either at the plan level or at the level of the financial services firm) and where the plans are introduced by an intermediary, such as a broker, third party administrator, registered investment adviser or other retirement plan service provider. Class R shares are not available to retail or institutional non-retirement accounts, traditional and Roth IRAs, Coverdell Education Savings Accounts, SEPs, SAR-SEPs, one person Keogh plans, SIMPLE IRAs, individual 403(b) plans, or through 529 Plan accounts.

A retirement plan’s intermediaries can help determine which class is appropriate for that retirement plan. If a retirement plan qualifies to purchase other shares of a Fund, one of these other classes may be more appropriate than Class R shares. Specifically, if a retirement plan eligible to purchase Class R shares is otherwise qualified to purchase Class A shares at NAV or at a reduced sales charge or to purchase Institutional Service Class or Institutional Class shares, one of these classes may be selected where the retirement plan does not require the distribution and administrative support services typically required by Class R share investors and/or the retirement plan’s intermediaries have elected to forgo the level of compensation that Class R shares provide. Plan fiduciaries should consider their obligations under ERISA in determining which class is an appropriate investment for a retirement plan. A retirement plan’s intermediaries may receive different compensation depending upon which class is chosen.

Redemptions

Generally, a Fund will pay you for shares that redeem one day after your redemption request is received, however, a Fund may take three days in certain circumstances. A Fund may delay forwarding redemption proceeds for up to seven days (i) if the investor redeeming shares is engaged in excessive trading, or (ii) if the amount of the redemption request otherwise would be disruptive to efficient portfolio management or would adversely affect the Fund.

In-Kind Redemptions

The Funds generally plan to redeem their shares for cash with the following exceptions. As described in the Prospectus, each Fund reserves the right, in circumstances where in its sole discretion it determines that cash redemption payments would be undesirable, taking into account the best interests of all Fund shareholders, to honor any redemption request by transferring some of the securities held by the Fund directly to you (an “in-kind redemption”).

The Trust has elected to be governed by Rule 18f-1 under the 1940 Act pursuant to which the Trust is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1% of the specific Fund’s NAV during any 90-day period for any one shareholder.

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The Trust’s Board of Trustees has adopted procedures for redemptions in-kind by a shareholder including affiliated persons of a Fund. Affiliated persons of a Fund include shareholders who are affiliates of the Adviser and shareholders of a Fund owning 5% or more of the outstanding shares of that Fund. These procedures provide that a redemption in-kind shall be effected at approximately the shareholder’s proportionate share of the distributing Fund’s current net assets, so that redemptions will not result in the dilution of interests of the remaining shareholders. The procedures also require that the distributed securities be valued in the same manner as they are valued for purposes of computing the distributing Fund’s NAV and that any redemption in-kind made by an affiliated party does not favor such affiliate to the detriment of any other shareholder. The Trust’s Chief Financial Officer or his or her designee must determine that the redemption is in the best interests of a Fund. Use of the redemption in-kind procedures will allow a Fund to avoid having to sell significant portfolio assets to raise cash to meet the shareholder’s redemption request - thus limiting the potential adverse effect on the distributing Fund’s NAV.

Medallion Signature Guarantee

A medallion signature guarantee is required if: (1) the redemption check is made payable to anyone other than the registered shareholder; (2) the redemption proceeds are mailed to an address other than the address of record; (3) your account address has changed within the past 15 calendar days; (4) the redemption proceeds are being wired or sent by ACH to a bank for which instructions are currently not on your account; (5) the redemption proceeds are being wired or sent by ACH to a bank account that has been added or changed within the past 15 calendar days; or (6) ownership is being changed on your account. The distributor reserves the right to require a medallion signature guarantee in other circumstances, without notice. Based on the circumstances of each transaction, the distributor reserves the right to require that your signature be guaranteed by an authorized agent of an “eligible guarantor institution,” which includes, but is not limited to, certain banks, credit unions, savings associations, and member firms of national securities exchanges. A medallion signature guarantee is designed to protect the shareholder by helping to prevent an unauthorized person from redeeming shares and obtaining the proceeds. A notary public is not an acceptable guarantor. In certain special cases (such as corporate or fiduciary registrations), additional legal documents may be required to ensure proper authorizations. If the distributor decides to require signature guarantees in all circumstances, shareholders will be notified in writing prior to implementation of the policy. The distributor, at its discretion, may waive the requirement for a signature guarantee.

Accounts With Low Balances

If the value of your account falls below $1,000 for any reason, including market fluctuation, you are generally subject to a $5 quarterly fee, which is deposited into the applicable Fund to offset the expenses of small accounts. We will sell shares from your account quarterly to cover the fee.

Listed below are certain cases in which the Funds have elected, in their discretion, not to assess the Minimum Balance Fee. These exceptions are subject to change:

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· Accounts of shareholders that are held by intermediaries under the NSCC Fund/SERV system in Networking Level 0 (Trust) and Level 3 accounts;

· Individual Retirement Accounts;

· Retirement Plans including but not limited to 401(k) plans, 457 plans, 403(b) plans, profit sharing and money purchase pension plans, defined benefit plans, nonqualified deferred compensation plans; and

· Coverdell Educational Savings Accounts

We reserve the right to sell the rest of your shares and close your account if you make a sale that reduces the value of your account to less than $1,000. Before the account is closed, we will give you notice and allow you 60 days to purchase additional shares to avoid this action. We do this because of the high cost of maintaining small accounts.

VALUATION OF SHARES

The NAV per share for each Fund is determined as of the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4 p.m. Eastern Time) on each day that the Exchange is open (a “Business Day”) and on such other days as the Board of Trustees determines (together, the “Valuation Time”). However, to the extent that a Fund’s investments are traded in markets that are open when the Exchange is closed, the value of the Fund’s investments may change on days when shares cannot be purchased or redeemed.

The Funds will not compute NAV on customary business holidays, including New Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, or the days when such holidays are observed and other days when the Exchange is closed.

Each Fund reserves the right not to determine its NAV when: (i) a Fund has not received any orders to purchase, sell or exchange shares and (ii) changes in the value of that Fund’s portfolio do not affect that Fund’s NAV.

The offering price for orders received in good form before the close of the Exchange, on each business day the Exchange is open for trading, will be based upon calculation of the NAV at the close of regular trading on the Exchange. For orders received in good form after the close of regular trading on the Exchange, or on a day on which the Exchange is not open for trading, the offering price is based upon NAV at the close of the Exchange on the next day thereafter on which the Exchange is open for trading. The NAV of a share of a Fund on which offering and redemption prices are based is the Total Net Assets (“TNA”) of the Fund, divided by the number of shares outstanding, with the result adjusted to the nearer cent. The TNA of the Funds is determined by subtracting the liabilities of the Funds from the value of its assets (chiefly composed of investment securities). The NAV per share of a class is computed by adding the value of all securities and other assets in a Fund’s portfolio allocable to such class, deducting any liabilities allocable to such class and any other liabilities charged directly to that class and dividing by the number of shares outstanding in such class.

The Funds value their securities at current market value or fair value, consistent with regulatory requirements. “Fair value” is defined in the Funds’ valuation and liquidity procedures as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants without a compulsion to contract at the measurement date.

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Equity securities that are traded on an exchange are valued at the last quoted sale price on the principal exchange on which the security is traded at the “Valuation Time”, subject to application, when appropriate, of the valuation factors described in the paragraph below. The Valuation Time is as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time). In the absence of a sale price, the security is valued at the mean of the bid/ask quoted at the close on the principal exchange on which the security is traded. Securities traded on NASDAQ are valued at the NASDAQ official closing price. Open-end mutual funds are valued at the respective net asset value as reported by such company. The prospectuses for the registered open-end management investment companies in which a Fund invests explain the circumstances under which those companies will use fair value pricing and the effects of using fair value pricing. Closed-end funds and ETFs are valued at the market price of the security at the Valuation Time.

In the event that a security’s market quotations are not readily available or are deemed unreliable (for reasons other than because the foreign exchange on which it trades closed before the Valuation Time), the security is valued at fair value as determined by the Funds’ Pricing Committee, taking into account the relevant factors and surrounding circumstances using valuation policies and procedures approved by the Funds’ Board of Trustees.

The Trust may suspend the right of redemption for such periods as are permitted under the 1940 Act and under the following unusual circumstances: (a) when the New York Stock Exchange is closed (other than weekends and holidays) or trading is restricted; (b) when an emergency exists, making disposal of portfolio securities or the valuation of net assets not reasonably practicable; or (c) during any period when the SEC has by order permitted a suspension of redemption for the protection of shareholders.

SYSTEMATIC INVESTMENT STRATEGIES

Automatic Investment Plan - This is a systematic investment strategy which combines automatic monthly transfers from your personal checking account to your mutual fund

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account with the concept of Dollar Cost Averaging. With this strategy, you invest a fixed amount monthly over an extended period of time, during both market highs and lows. Dollar Cost Averaging can allow you to achieve a favorable average share cost over time since your fixed monthly investment buys more shares when share prices fall during low markets, and fewer shares at higher prices during market highs. However, no formula can assure a profit or protect against loss in a declining market. Once you have opened an account with at least $1,000, you can contribute to an Automatic Investment Plan for as little as $50 a month in a Fund.

Systematic Exchange Plan and Dividend Moves - This systematic exchange plan allows you to transfer $50 or more to one Fund from another Fund systematically, monthly or quarterly. Accounts participating in a systematic exchange plan have a minimum balance requirement of $5,000. The money is transferred on the 25th day of the month as selected or on the preceding business day. Dividends of any amount can be moved automatically from one Fund to another at the time they are paid. This strategy can provide investors with the benefits of Dollar Cost Averaging through an opportunity to achieve a favorable average share cost over time. With this plan, your fixed monthly or quarterly transfer from the Fund to any other Fund you select buys more shares when share prices fall during low markets and fewer shares at higher prices during market highs. However, no formula can assure a profit or protect against loss in a declining market.

Systematic Withdrawal Plan (“SWP”) ($50 or More) - You may have checks for any fixed amount of $50 or more automatically sent bi-monthly, monthly, quarterly, semi-annually or annually, to you (or anyone you designate) from your account. Complete the appropriate section of the New Account Form or contact your financial intermediary or the Fund. Your account value must meet the minimum initial investment amount at the time the program is established. This program may reduce and eventually deplete your account. Generally, it is not advisable to continue to purchase Class A or Class C shares subject to a sales charge while simultaneously redeeming shares under the program. The $50 minimum is waived for required minimum distributions from individual retirement accounts.

NOTE: If you are withdrawing more shares than your account receives in dividends, you will be decreasing your total shares owned, which will reduce your future dividend potential.

INVESTOR PRIVILEGES

The Funds offer the following privileges to shareholders. Additional information may be obtained by calling toll free 866-667-9231.

No Sales Charge On Reinvestments - All dividends and capital gains will be automatically reinvested free of charge in the form of additional shares within the same Fund and class or another specifically requested Fund (but the same class) unless you have chosen to receive them in cash on your application. Unless requested in writing by the shareholder, the Trust will not mail checks for dividends and capital gains of less than $5 but instead they will automatically be reinvested in the form of additional shares.

Exchange Privilege - The exchange privilege is a convenient way to exchange shares from one Fund to another Fund in order to respond to changes in your goals or in market conditions. The registration of the account to which you are making an exchange must be exactly the same as that of the Fund account from which the exchange is made, and the amount you exchange must meet

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the applicable minimum investment of the Fund being purchased. The exchange privilege may be limited due to excessive trading or market timing of Fund shares.

Exchanges Among Funds . Exchanges may be made among any of the Aberdeen Funds within the same class of shares (except for any other Fund not currently accepting purchase orders), so long as both accounts have the same registration, and your first purchase in the new Fund meets the new Fund’s minimum investment requirement.

Because Class R shares of the Funds are held within retirement plans, exchange privileges with other Class R shares of the Aberdeen Funds may not be available unless the Class R shares of the other Aberdeen Funds are also available within a plan. Please contact your retirement plan administrator for information on how to exchange your Class R shares within your retirement plan.

Generally, there is no sales charge for exchanges of Class C, Institutional Service Class or Institutional Class shares. However, if your exchange involves certain Class A shares, you may have to pay the difference between the sales charges if a higher sales charge applies to the Fund into which you are exchanging. If you exchange your Class A shares of a Fund that are subject to a CDSC into another Aberdeen Fund and then redeem those Class A shares within 18 months of the original purchase, the applicable CDSC will be the CDSC for the original Fund.

If you wish to purchase shares of a Fund or class for which the exchange privilege does not apply, you will pay any applicable CDSC at the time you redeem your shares and pay any applicable front-end load on the new Fund you are purchasing unless a sales charge waiver otherwise applies.

Exchanges May Be Made in the Following Ways:

By Telephone

Automated Voice Response System - You can automatically process exchanges for the Funds by calling 866-667-9231, 24 hours a day, seven days a week. However, if you declined the option on the application, you will not have this automatic exchange privilege. This system also gives you quick, easy access to mutual fund information. Select from a menu of choices to conduct transactions and hear fund price information, mailing and wiring instructions as well as other mutual fund information. You must call our toll free number by the Valuation Time to receive that day’s closing share price. The Valuation Time is the close of regular trading of the Exchange, which is usually 4:00 p.m. Eastern Time.

Customer Service Line - By calling 866-667-9231, you may exchange shares by telephone. Requests may be made only by the account owner(s). You must call our toll free number by the Valuation Time to receive that day’s closing share price.

The Funds may record all instructions to exchange shares. The Funds reserve the right at any time without prior notice to suspend, limit or terminate the telephone exchange privilege or its use in any manner by any person or class.

The Funds will employ the same procedure described under “Buying, Selling and Exchanging Fund Shares” in the Prospectus to confirm that the instructions are genuine.

The Funds will not be liable for any loss, injury, damage, or expense as a result of acting upon instructions communicated by telephone reasonably believed to be genuine, and the

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Funds will be held harmless from any loss, claims or liability arising from its compliance with such instructions. These options are subject to the terms and conditions set forth in the Prospectus and all telephone transaction calls may be recorded. The Funds reserve the right to revoke this privilege at any time without notice to shareholders and request the redemption in writing, signed by all shareholders.

By Mail or Fax - Write or fax to Aberdeen Funds, P.O. Box 55930, Boston, MA 02205-5930 or fax to 866-923-4269. Please be sure that your letter or facsimile is signed exactly as your account is registered and that your account number and the Fund from which you wish to make the exchange are included. For example, if your account is registered “John Doe and Mary Doe,” “Joint Tenants With Right of Survivorship,” then both John Doe and Mary Doe must sign the exchange request. The exchange will be processed effective the date the signed letter or fax is received. Fax requests received after the Valuation Time will be processed as of the next business day. The Funds reserve the right to require the original document if you use the fax method.

By On Line Access - Log on to our website, www.aberdeen-asset.us/aam.nsf/usRetail/home, 24 hours a day, seven days a week, for easy access to your mutual fund accounts. Once you have reached the website, you will be instructed on how to select a password and perform transactions. You can choose to receive information on all Funds as well as your own personal accounts. You may also perform transactions, such as purchases, redemptions and exchanges. The Funds may terminate the ability to buy Fund shares on its website at any time, in which case you may continue to exchange shares by mail, wire or telephone pursuant to the Prospectus.

INVESTOR SERVICES

Automated Voice Response System - Our toll free number 866-667-9231 will connect you 24 hours a day, seven days a week to the system. Through a selection of menu options, you can conduct transactions, hear fund price information, mailing and wiring instructions and other mutual fund information.

Toll Free Information and Assistance - Customer service representatives are available to answer questions regarding the Funds and your account(s) between the hours of 8 a.m. and 9 p.m. Eastern Time (Monday through Friday).

Retirement Plans (Not available with the Tax-Free Income Fund) - Shares of the Funds may be purchased for Self-Employed Retirement Plans, Individual Retirement Accounts (IRAs), Roth IRAs, Coverdell Education Savings Accounts, IRAs, Simplified Employee Pension Plans, Corporate Pension Plans, Profit Sharing Plans and Money Purchase Plans.

Shareholder Confirmations - You will receive a confirmation statement each time a requested transaction is processed. However, no confirmations are mailed on certain pre-authorized, systematic transactions, or IRAs. Instead, these will appear on your next consolidated statement.

Consolidated Statements - Shareholders of the Funds receive quarterly statements as of the end of March, June, September and December. Please review your statement carefully and notify us immediately if there is a discrepancy or error in your account.

For shareholders with multiple accounts, your consolidated statement will reflect all your current holdings in the Funds. Your accounts are consolidated by social security number and zip code. Accounts in your household under other social security numbers may be added to your

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statement at your request. Only transactions during the reporting period will be reflected on the statements. An annual summary statement reflecting all calendar-year transactions in all your Funds will be sent after year-end.

Average Cost Statement - This statement may aid you in preparing your tax return and in reporting capital gains and losses to the IRS. If you redeemed any shares during the calendar year, a statement reflecting your taxable gain or loss for the calendar year (based on the average cost you paid for the redeemed shares) will be mailed to you following each year-end. Average cost can only be calculated on accounts opened on or after January 1, 1984. Fiduciary accounts and accounts with shares acquired by gift, inheritance, transfer, or by any means other than a purchase cannot be calculated.

Average cost is one of the IRS approved methods available to compute gains or losses. You may wish to consult a tax advisor on the other methods available.

Shareholder Reports - All shareholders will receive reports semi-annually detailing the financial operations of the Funds.

Prospectus - An updated prospectus will be mailed to you at least annually.

Undeliverable Mail - If mail from the Funds to a shareholder is returned as undeliverable on two or more consecutive occasions, the Funds will not send any future mail to the shareholder unless it receives notification of a correct mailing address for the shareholder. With respect to any redemption checks or dividend/capital gains distribution checks that are returned as undeliverable or not presented for payment within six months, the Trust reserves the right to reinvest the check proceeds and any future distributions in shares of the particular Fund at the then-current NAV of such Fund until the Funds receive further instructions from the shareholder.

ADDITIONAL INFORMATION

Description of Shares

The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest of each Fund and to divide or combine such shares into a greater or lesser number of shares without thereby exchanging the proportionate beneficial interests in the Trust. Each share of a Fund represents an equal proportionate interest in that Fund with each other share. The Trust reserves the right to create and issue a number of different funds. Shares of each Fund would participate equally in the earnings, dividends, and assets of that particular fund. Upon liquidation of a Fund, shareholders are entitled to share pro rata in the net assets of such Fund available for distribution to shareholders.

The Trust presently consists of the following 23 series of shares of beneficial interest, without par value and with the various classes listed:

FUND		SHARE CLASS
Aberdeen China Opportunities Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Emerging Markets Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class

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FUND		SHARE CLASS
Aberdeen Emerging Markets Debt Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Equity Long-Short Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Global Equity Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Global Natural Resources Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Global Small Cap Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen International Equity Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Small Cap Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen U.S. Equity Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Emerging Markets Debt Local Currency Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Global Fixed Income Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Tax-Free Income Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Ultra-Short Duration Bond Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen High Yield Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Dynamic Allocation Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Diversified Income Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Diversified Alternatives Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Asia Bond Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Asia-Pacific (ex-Japan) Equity Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Asia-Pacific Smaller Companies Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen European Equity Fund		Class A, Class C, Class R, Institutional Service Class, Institutional Class
Aberdeen Latin American Equity Fund		Class A, Class C, Class R, Institutional Service Class,

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FUND		SHARE CLASS
		Institutional Class

You have an interest only in the assets of the Fund whose shares you own. Shares of a particular class are equal in all respects to other shares of that class. In the event of liquidation of a Fund, shares of the same class will share pro rata in the distribution of the net assets of the Fund with all other shares of that class. All shares are without par value and when issued and paid for, are fully paid and nonassessable by the Trust. Shares may be exchanged or converted as described in this Statement of Additional Information and in the Prospectus but will have no other preference, conversion, exchange or preemptive rights.

Voting Rights

Shareholders of each class of shares have one vote for each share held and a proportionate fractional vote for any fractional share held. An annual or special meeting of shareholders to conduct necessary business is not required by the Declaration of Trust, the 1940 Act or other authority except, under certain circumstances, to amend the Declaration of Trust, the Investment Advisory Agreement, fundamental investment objectives, fundamental investment policies and fundamental investment restrictions, to elect and remove Trustees, to reorganize the Trust or any series or class thereof and to act upon certain other business matters. In regard to sale of assets; the change of fundamental investment objectives, policies and restrictions; the approval of an Investment Advisory Agreement; or any other matter for which a shareholder vote is sought, the right to vote is limited to the holders of shares of the particular Fund affected by the proposal. In addition, holders of shares subject to a Rule 12b-1 fee will vote as a class and not with holders of any other class with respect to the approval of the Distribution Plan.

To the extent that such a meeting is not required, the Trust does not intend to have an annual or special meeting of shareholders.

ADDITIONAL GENERAL TAX INFORMATION FOR ALL FUNDS

The information discussed in this section applies generally to all of the Funds, but is supplemented or modified in additional separate sections that are provided below for Aberdeen Tax-Free Income Fund and the Funds-of-Funds.

Buying a Dividend

If you are a taxable investor and invest in a Fund shortly before the record date of a taxable distribution, the distribution will lower the value of the Fund’s shares by the amount of the distribution, and you will in effect receive some of your investment back, but in the form of a taxable distribution.

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Multi-Class Funds

Funds with multiple classes of shares calculate dividends and capital gain distributions the same way for each class. The amount of any dividends per share will differ, however, generally due to the difference in the distribution and service (Rule 12b-1) and administrative services fees applicable to each class.

Distributions of Net Investment Income

Each Fund receives income generally in the form of dividends and interest on its investments. This income, less expenses incurred in the operation of a Fund, constitutes its net investment income from which dividends may be paid to you. If you are a taxable investor, any distributions by a Fund from such income (other than qualified dividend income received by individuals) will be taxable to you at ordinary income tax rates, whether you receive them in cash or in additional shares. Distributions from qualified dividend income will be taxable to individuals at long-term capital gain rates, provided certain holding period requirements are met by you and the Fund. See the discussion below under the heading, “Qualified Dividend Income for Individuals.”

Distributions of Capital Gains

A Fund may realize a capital gain or loss in connection with sales or other dispositions of its portfolio securities. Distributions derived from the excess of net short-term capital gain over net long-term capital loss will be taxable to you as ordinary income. Distributions paid from the excess of net long-term capital gain over net short-term capital loss will be taxable to you as long-term capital gain, regardless of how long you have held your shares in a Fund. Any net short-term or long-term capital gain realized by a Fund (net of any capital loss carryovers) generally will be distributed once each year, and may be distributed more frequently, if necessary, in order to reduce or eliminate federal excise or income taxes on the Fund.

For federal income tax purposes, each Fund is generally permitted to carry forward a net capital loss in any taxable year to offset its own capital gains. These amounts are available to be carried forward to offset future capital gains to extent permitted by the Code and applicable tax regulations. Loss carryforwards stemming from pre-2011 taxable years are subject to an eight-year expiration. In the event that the Fund were to experience an ownership change as defined for federal income tax purposes, the Fund’s loss carryforwards may be subject to limitation.

Medicare Contribution Tax

A 3.8 percent Medicare contribution tax will be imposed on net investment income, among other things, including interest, dividends, and net gain from investments, of U.S. individuals with income exceeding $200,000 (or $250,000 if married filing jointly), and of estates and trusts.

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Returns of Capital

If a Fund’s distributions exceed its taxable income and capital gains realized during a taxable year, all or a portion of the distributions made in the same taxable year may be recharacterized as a return of capital to shareholders. A return of capital distribution generally will not be taxable, but will reduce each shareholder’s cost basis in a Fund and result in a higher reported capital gain or lower reported capital loss when those shares on which the distribution was received are sold. Any return of capital in excess of your basis, however, is taxable as a capital gain.

Investments in Foreign Securities

The next three paragraphs describe tax considerations that are applicable to Funds that invest in foreign securities.

Effect of foreign withholding taxes . A Fund may be subject to foreign withholding taxes on income from certain foreign securities. This, in turn, could reduce a Fund’s distributions paid to you.

Effect of foreign debt investments on distributions . Realized gains and losses from the sale of debt securities are treated as ordinary income or loss for federal income tax purposes by a Fund, to the extent attributable to foreign exchange gains or losses. These gains when distributed are taxable to you as ordinary income, and any losses reduce a Fund’s ordinary income otherwise available for distribution to you. This treatment could increase or decrease a Fund’s ordinary income distributions to you and may cause some or all of a Fund’s previously distributed income to be classified as a return of capital.

Pass-through of foreign tax credits . If more than 50% of a Fund’s total assets at the end of a fiscal year is invested in foreign securities or, at the close of each quarter, is at least 50% invested in other regulated investment companies, the Fund may elect to pass through to you your pro rata share of foreign taxes paid by the Fund. If this election is made, a Fund may report more taxable income to you than it actually distributes. You will then be entitled either to deduct your share of these taxes in computing your taxable income (if you itemize your income tax deductions) or to claim a foreign tax credit for these taxes against your U.S. federal income tax (subject to limitations for certain shareholders). A Fund will provide you with the information necessary to complete your personal income tax return if it makes this election. The amount of any foreign tax credits available to you (as a result of the pass-through to you of your pro rata share of foreign taxes by paid by a Fund) will be reduced if you receive foreign dividends from a Fund reported as qualified dividend income subject to taxation at long-term capital gain rates. Shareholders in these circumstances should talk with their personal tax advisors about their foreign tax credits and the procedures that they should follow to claim these credits on their personal income tax returns.

PFIC securities . A Fund may invest in securities of foreign entities that could be deemed for tax purposes to be passive foreign investment companies (“PFICs”). In general, a PFIC is any foreign corporation if 75% or more of its gross income for its taxable year is passive income, or 50% or more of its average assets (by value) are held for the production of passive income. When investing in PFIC securities, each Fund intends to mark-to-market these securities and recognize any unrealized gains as ordinary income at the end of the Fund’s fiscal and excise (described below) tax years. Deductions for losses are allowable only to the extent of any current or previously recognized

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gains. These gains (reduced by allowable losses) are treated as ordinary income that a Fund is required to distribute, even though it has not sold or received dividends from these securities. You should also be aware that the designation of a foreign security as a PFIC security would cause its income dividends to fall outside of the definition of qualified foreign corporation dividends. These dividends generally will not qualify for the reduced rate of taxation on qualified dividends for individuals when distributed to you by a Fund. In addition, if a Fund is unable to identify an investment as a PFIC and thus does not make a mark-to-market election, the Fund may be subject to U.S. federal income tax (the effect of which could be mitigated by making a mark-to-market election in a year prior to the sale) on a portion of any “excess distribution” or gain from the disposition of such shares even if such income is distributed as a taxable dividend by the Fund to its shareholders. Additional charges in the nature of interest may be imposed on a Fund in respect of deferred taxes arising from such distributions or gains.

Information on the Amount and Tax Character of Distributions

Each Fund will inform you of the amount of your ordinary income and capital gain dividends at the time they are paid and will advise you of their tax status for federal income tax purposes shortly after the end of each calendar year. If you have not held Fund shares for a full year, a Fund may designate and distribute to you, as ordinary income, as qualified dividends or as capital gains a percentage of income that may not be equal to the actual amount of this type of income earned during the period of your investment in the Fund. Taxable distributions declared by a Fund in December to shareholders of record in such month but paid in January are taxable to you as if they were paid in December.

Election to be Taxed as a Regulated Investment Company

Each Fund intends to elect or has elected to be treated as a regulated investment company under Subchapter M of the Code. Each Fund that has been in existence for more than one year has qualified as a regulated investment company for its most recent fiscal year and intends to continue to qualify during the current fiscal year. As a regulated investment company, a Fund generally is not subject to entity-level federal income tax on the income and gains it distributes to you. The Board of Trustees reserves the right not to distribute a Fund’s net long-term capital gain or not to maintain the qualification of a Fund as a regulated investment company if it determines such a course of action to be beneficial to shareholders. If net long-term capital gain is retained, a Fund would be taxed on the gain at the highest corporate tax rate, and the shareholders of the Fund would be notified that they are entitled to a credit or refund for the tax paid by the Fund. If a Fund fails to qualify as a regulated investment company, the Fund would be subject to federal and possibly state corporate taxes on its taxable income and gain, and distributions to you would be taxed as dividend income to the extent of the Fund’s earnings and profits.

In order to qualify as a regulated investment company for federal income tax purposes, each Fund must meet certain asset diversification, income, and distribution specific requirements, including:

(i) a Fund must derive at least 90% of its gross income in each taxable year from dividends, interest, payments with respect to securities loans and gains from the sale or other disposition of stock or

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securities or foreign currencies, other income (including, but not limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities or currencies and net income derived from interests in “qualified publicly traded partnerships” ( i . e ., partnerships that are traded on an established securities market or tradable on a secondary market, other than partnerships that derive 90% of their income from interest, dividends, capital gains, and other traditionally permitted mutual fund income);

(ii) a Fund must diversify its holdings so that, at the end of each quarter of the Fund’s taxable year, (a) at least 50% of the market value of the Fund’s assets is represented by cash, securities of other regulated investment companies, U.S. Government securities and other securities, with such other securities limited, in respect of any one issuer, to an amount not greater than 5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer and (b) not more than 25% of the value of its assets is invested in the securities (other than U.S. Government securities or securities of other regulated investment companies) of any one issuer, any two or more issuers of which 20% or more of the voting stock is held by the Fund and that are determined to be engaged in the same or similar trades or businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships; and

(iii) a Fund must distribute to its shareholders at least the sum of (i) 90% of its “investment company taxable income” ( i.e. , income other than its net realized long-term capital gain over its net realized short-term capital loss), plus or minus certain adjustments, and (ii) 90% of its net tax-exempt income for the taxable year. The Fund will be subject to income tax at regular corporation rates on any taxable income or gains that it does not distribute to its shareholders.

Excise Tax Distribution Requirements

To avoid a 4% federal excise tax, the Code requires a Fund to distribute to you by December 31 of each year, at a minimum, the following amounts: 98% of its taxable ordinary income earned during the calendar year; 98.2% of its capital gain net income earned during the twelve-month period ending October 31; and 100% of any undistributed amounts from the prior year. Each Fund intends to declare and pay these distributions in December (or to pay them in January, in which case you must treat them as received in December) but can give no assurances that its distributions will be sufficient to eliminate all taxes.

Sales , Exchanges and Redemption of Fund Shares

Sales, exchanges, and redemptions (including redemptions in kind) of Fund shares are taxable transactions for federal and state income tax purposes. If you sell your Fund shares, whether you receive cash or exchange them for shares of a different Fund, the IRS requires you to report any gain or loss on your sale or exchange. If you owned your shares as a capital asset, any gain or loss that you realize generally is a capital gain or loss, and is long-term or short-term, depending on how long you owned your shares. Any redemption/exchange fees you incur on shares redeemed or exchanged within 90 days after the date they were purchased will decrease the amount of any capital gain (or increase any capital loss) you realize on the sale or exchange.

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Sales at a Loss Within Six Months of Purchase . Any loss incurred on the sale or exchange of Fund shares owned for six months or less is treated as a long-term capital loss to the extent of any long-term capital gains distributed to you by the Fund on those shares.

Wash Sales . All or a portion of any loss that you realize on the sale of your Fund shares is disallowed to the extent that you buy other shares in the Fund (through reinvestment of dividends or otherwise) within 30 days before or after your sale. Any loss disallowed under these rules is added to your tax basis in the new shares.

Deferral of Basis — Class A shares only . In reporting gain or loss on the sale of your Fund shares, you may be required to adjust your basis in the shares you sell under the following circumstances:

If:

· In your original purchase of Fund shares, you received a reinvestment right (the right to reinvest your sales proceeds at a reduced or with no sales charge), and

· You sell some or all of your original shares within 90 days of their purchase, and

· You reinvest the sales proceeds in the Fund or in another Fund on or before January 31 of the following year, and the sales charge that would otherwise apply is reduced or eliminated;

Then:

In reporting any gain or loss on your sale, all or a portion of the sales charge that you paid for your original shares is excluded from your tax basis in the shares sold and added to your tax basis in the new shares.

Cost Basis Reporting . A Fund’s administrative agent will be required to provide you with cost basis information on the sale of any of your shares in a Fund, subject to certain exceptions. This cost basis reporting requirement is effective for shares purchased in a Fund on or after January 1, 2012.

U.S. Government Securities

The income earned on certain U.S. Government securities is exempt from state and local personal income taxes if earned directly by you. States also grant tax-free status to dividends paid to you from interest earned on these securities, subject in some states to minimum investment or reporting requirements that must be met by a Fund. The income on Fund investments in certain securities, such as repurchase agreements collateralized by U.S. Government obligations, commercial paper and federal agency-backed obligations (e.g., Government National Mortgage Association (Ginnie Mae) or Federal National Mortgage Association (Fannie Mae) securities), generally does not qualify for tax-free treatment. The rules on exclusion of this income are different for corporations.

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Qualified Dividend Income For Individuals

For individual shareholders, a portion of the dividends paid by a Fund may be qualified dividends eligible for taxation at long-term capital gain rates. This reduced rate generally is available for dividends paid by a Fund out of dividends earned on the Fund’s investment in stocks of domestic corporations and qualified foreign corporations. Dividends from PFICs are not eligible to be treated as qualified dividend income. Either none or only a nominal portion of the dividends paid by certain Funds will be qualified dividend income because they invest primarily in non-qualified foreign securities. Income dividends earned by the Funds on non-qualified foreign securities will continue to be taxed at the higher ordinary income tax rate.

Both a Fund and the investor must meet certain holding period requirements to qualify Fund dividends for this treatment. Specifically, a Fund must hold the stock for at least 61 days during the 121-day period beginning 60 days before the stock becomes ex-dividend. Similarly, investors must hold their Fund shares for at least 61 days during the 121-day period beginning 60 days before the Fund distribution goes ex-dividend. The ex-dividend date is the first date following the declaration of a dividend on which the purchaser of stock is not entitled to receive the dividend payment. When counting the number of days you held your Fund shares, include the day you sold your shares but not the day you acquired these shares.

While the income received in the form of a qualified dividend is taxed at the same rates as long-term capital gains, such income will not be considered as a long-term capital gain for other federal income tax purposes. For example, you will not be allowed to offset your long-term capital losses against qualified dividend income on your federal income tax return. Any qualified dividend income that you elect to be taxed at these reduced rates also cannot be used as investment income in determining your allowable investment interest expense. For other limitations on the amount of or use of qualified dividend income on your income tax return, please contact your personal tax advisor.

After the close of its fiscal year, a Fund will report the portion of its ordinary dividend income that meets the definition of qualified dividend income taxable at reduced rates. If 95% or more of a Fund’s income is from qualified sources, it will be allowed to report 100% of its ordinary income distributions as qualified dividend income.

Dividends-Received Deduction for Corporations

For corporate shareholders, a portion of the dividends paid by a Fund may qualify for the dividends-received deduction. The portion of dividends paid by a Fund that qualifies for the corporate dividends-received deduction will be reported each year in a notice mailed to the Fund’s shareholders, and cannot exceed the gross amount of dividends received by the Fund from domestic (U.S.) corporations that would have qualified for the dividends-received deduction in the hands of the Fund if the Fund was a regular corporation. Either none or only a nominal portion of the dividends paid by certain Funds will be eligible for the corporate dividends-received deduction because they invest primarily in foreign securities.

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The availability of the dividends-received deduction is subject to certain holding period and debt financing restrictions imposed under the Code on the corporation claiming the deduction. The amount that a Fund may report as eligible for the dividends-received deduction will be reduced or eliminated if the shares on which the dividends earned by the Fund were debt-financed or held by the Fund for less than a minimum period of time, generally 46 days during a 91-day period beginning 45 days before the stock becomes ex-dividend. Similarly, if your Fund shares are debt-financed or held by you for less than a 46-day period then the dividends-received deduction for Fund dividends on your shares may also be reduced or eliminated. Even if reported as dividends eligible for the dividends-received deduction, all dividends (including any deducted portion) must be included in your alternative minimum taxable income calculation.

Investment in Complex Securities

Each Fund may invest in complex securities (e.g., futures, options, forward currency contracts, short-sales, PFICs, etc.) that may be subject to numerous special and complex tax rules. These rules could affect whether gain or loss recognized by a Fund is treated as ordinary or capital, or as interest or dividend income. These rules could also accelerate the recognition of income to a Fund (possibly causing the Fund to sell securities to raise the cash for necessary distributions). These rules could defer a Fund’s ability to recognize a loss, and, in limited cases, subject a Fund to U.S. federal income tax on income from certain foreign securities. These rules could, therefore, affect the amount, timing, or character of the income distributed to you by a Fund. For example:

Derivatives . A Fund may be permitted to invest in certain options, futures or forward currency contracts to hedge a Fund’s portfolio or for any other permissible purposes consistent with that Fund’s investment objective. If a Fund makes these investments, it could be required to mark-to-market these contracts and realize any unrealized gains and losses at its fiscal year end even though it continues to hold the contracts. Under these rules, gains or losses on the contracts generally would be treated as 60% long-term and 40% short-term gains or losses, but gains or losses on certain foreign currency contracts would be treated as ordinary income or losses. In determining its net income for excise tax purposes, a Fund also would be required to mark-to-market these contracts annually as of October 31 (for capital gain net income and ordinary income arising from certain foreign currency contracts), and to realize and distribute any resulting income and gains.

Tax straddles . A Fund’s investment in options, futures, forwards, or foreign currency contracts (or in substantially similar or related property) in connection with certain hedging transactions could cause it to hold offsetting positions in securities. If a Fund’s risk of loss with respect to specific securities in its portfolio is substantially diminished by the fact that it holds other securities, the Fund could be deemed to have entered into a tax “straddle” or to hold a “successor position” that would require any loss realized by it to be deferred for tax purposes.

Short sales and securities lending transactions . A Fund’s entry into a short sale transaction or an option or other contract could be treated as the “constructive sale” of an “appreciated financial position,” causing it to realize gain, but not loss, on the position. Additionally, a Fund’s entry into securities lending transactions may cause the replacement income earned on the loaned securities to fall outside of the definition of qualified dividend income. This replacement income generally will not be eligible for reduced rates of taxation on qualified dividend

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income, and, to the extent that debt securities are loaned, will generally not qualify as qualified interest income for foreign withholding tax purposes.

Convertible debt . Convertible debt is ordinarily treated as a “single property” consisting of a pure debt interest until conversion, after which the investment becomes an equity interest. If the security is issued at a premium (i.e., for cash in excess of the face amount payable on retirement), the creditor-holder may amortize the premium over the life of the bond. If the security is issued for cash at a price below its face amount, the creditor-holder must accrue original issue discount in income over the life of the debt.

Securities purchased at discount . Certain Funds may be permitted to invest in securities issued or purchased at a discount such as zero coupon, deferred interest or payment-in-kind (PIK) bonds that could require it to accrue and distribute income not yet received. If it invests in these securities, a Fund could be required to sell securities in its portfolio that it otherwise might have continued to hold in order to generate sufficient cash to make these distributions.

Credit default swap agreements . A Fund may be permitted to enter into credit default swap agreements. The rules governing the tax aspects of swap agreements that provide for contingent nonperiodic payments of this type are in a developing stage and are not entirely clear in certain aspects. Accordingly, while a Fund intends to account for such transactions in a manner deemed to be appropriate, the IRS might not accept such treatment. The Funds intend to monitor developments in this area. Certain requirements that must be met under the Code in order for a Fund to qualify as a regulated investment company may limit the extent to which a Fund will be able to engage in credit default swap agreements.

Investment in taxable mortgage pools (excess inclusion income) . The Funds may invest in U.S.-REITs that hold residual interests in real estate mortgage investment conduits (REMICs) or which are, or have certain wholly-owned subsidiaries that are, “taxable mortgage pools.” A portion of a Fund’s income from a U.S.-REIT that is attributable to the REIT’s residual interest in a REMIC or equity interests in a taxable mortgage pool (referred to in the Code as an excess inclusion) will be subject to federal income tax in all events. The excess inclusion income of a regulated investment company, such as a Fund, will be allocated to shareholders of the regulated investment company in proportion to the dividends received by such shareholders, with the same consequences as if the shareholders held the related REMIC residual interest or, if applicable, taxable mortgage pool directly. In general, excess inclusion income allocated to shareholders (i) cannot be offset by net operating losses (subject to a limited exception for certain thrift institutions), (ii) will constitute unrelated business taxable income (“UBTI”) to entities (including a qualified pension plan, an individual retirement account, a 401(k) plan, a Keogh plan or other tax-exempt entity) subject to tax on UBTI, thereby potentially requiring such an entity that is allocated excess inclusion income, and otherwise might not be required to file a tax return, to file a tax return and pay tax on such income, and (iii) in the case of a non-U.S. shareholder, will not qualify for any reduction in U.S. federal withholding tax. In addition, if at any time during any taxable year a “disqualified organization” (which generally includes certain cooperatives, governmental entities and tax-exempt organizations that are not subject to tax on UBTI) is a record holder of a share in a regulated investment company, then the regulated investment company will be subject to a tax equal to that

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portion of its excess inclusion income for the taxable year that is allocable to the disqualified organization, multiplied by the highest federal income tax rate imposed on corporations.

The rules concerning excess inclusion income are complex and unduly burdensome in their current form, and the Funds are awaiting further guidance from the IRS on how these rules are to be implemented. Shareholders should talk to their tax advisors about whether an investment in a Fund is a suitable investment given the potential tax consequences of the Fund’s receipt and distribution of excess inclusion income.

Investments in securities of uncertain tax character . A Fund may invest in securities the U.S. federal income tax treatment of which may not be clear or may be subject to recharacterization by the IRS. To the extent the tax treatment of such securities or the income from such securities differs from the tax treatment expected by a Fund, it could affect the timing or character of income recognized by the Fund, requiring the Fund to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to regulated investment companies under the Code. In the event that the Fund were to experience an ownership change as defined under the Code, the Fund’s loss carryforwards if any may be subject to limitation.

Backup Withholding

By law, each Fund must withhold 28% of your taxable distributions and redemption proceeds unless you provide your correct social security or taxpayer identification number, certify that this number is correct, certify that you are not subject to backup withholding, and certify that you are a U.S. person (including a U.S. resident alien). A Fund also must withhold if the IRS instructs it to do so. The special U.S. tax certification requirements applicable to non-U.S. investors are described under the “Non-U.S. Investors” heading below.

Non-U.S. Investors

Non-U.S. investors (shareholders who, as to the United States, are nonresident alien individuals, foreign trusts or estates, foreign corporations, or foreign partnerships) may be subject to U.S. withholding and estate tax and are subject to special U.S. tax certification requirements. Non-U.S. investors should consult their tax advisors about the applicability of U.S. tax withholding and the use of the appropriate forms to certify their status.

In general . The United States imposes a flat 30% withholding tax (or a withholding tax at a lower treaty rate) on U.S. source dividends, including on income dividends paid to you by a Fund, but not on capital gain dividends. However, notwithstanding such exemptions from U.S. withholding at the source, any dividends and distributions of income and capital gains, including the proceeds from the sale of your Fund shares, will be subject to backup withholding if you fail to properly certify that you are not a U.S. person.

Capital gain dividends . In general, a capital gain dividend reported by a Fund and paid from its net long-term capital gains, other than long- or short-term capital gains realized on disposition of U.S. real property interests (see the discussion below), are not subject to U.S.

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withholding tax unless you are a nonresident alien individual present in the United States for a period or periods aggregating 183 days or more during the calendar year.

Investment in U.S. real property . A Fund may invest in equity securities of corporations that invest in U.S. real property, including U.S. Real Estate Investment Trusts (“U.S.-REITs”). The sale of a U.S. real property interest (“USRPI”) by a U.S.-REIT in which the Fund invests may trigger special tax consequences to the Fund’s non-U.S. shareholders.

In general, U.S. federal withholding tax will not apply to any gain or income realized by a non-U.S. shareholder in respect of any distributions of net long-term capital gains over net short-term capital losses, exempt-interest dividends, or upon the sale or other disposition of Fund shares.

For taxable years beginning before January 1, 2014, distributions that a Fund reports as “short-term capital gain dividends” or “long-term capital gain dividends” will not be treated as such to a recipient foreign shareholder if the distribution is attributable to gain received from the sale or exchange of U.S. real property or an interest in a U.S. real property holding corporation and a Fund’s direct or indirect interests in U.S. real property exceeded certain levels. Instead, if the foreign shareholder has not owned more than 5% of the outstanding shares of a Fund at any time during the one year period ending on the date of distribution, such distributions will be subject to 30% withholding by a Fund and will be treated as ordinary dividends to the foreign shareholder; if the foreign shareholder owned more than 5% of the outstanding shares of a Fund at any time during the one year period ending on the date of the distribution, such distribution will be treated as real property gain subject to 35% withholding tax and could subject the foreign shareholder to U.S. filing requirements. Additionally, if a Fund’s direct or indirect interests in U.S. real property were to exceed certain levels, a foreign shareholder realizing gains upon redemption from a Fund on or before December 31, 2013 could be subject to the 35% withholding tax and U.S. filing requirements unless more than 50% of a Fund’s shares were owned by U.S. persons at such time or unless the foreign person had not held more than 5% of a Fund’s outstanding shares throughout either such person’s holding period for the redeemed shares or, if shorter, the previous five years.

In addition, the same rules apply with respect to distributions to a foreign shareholder from a Fund and redemptions of a foreign shareholder’s interest in a Fund attributable to a REIT’s distribution to a Fund of gain from the sale or exchange of U.S. real property or an interest in a U.S. real property holding corporation, if a Fund’s direct or indirect interests in U.S. real property were to exceed certain levels. The rule with respect to distributions and redemptions attributable to a REIT’s distribution to a Fund will not expire for taxable years beginning on or after January 1, 2014.

The rules laid out in the previous two paragraphs, other than the withholding rules, will apply notwithstanding a Fund’s participation in a wash sale transaction or its payment of a substitute dividend.

Provided that 50% or more of the value of a Fund’s stock is held by U.S. shareholders, distributions in kind of U.S. real property interests (including securities in a U.S. real property holding corporation, unless such corporation is regularly traded on an established securities market and the Fund has held 5% or less of the outstanding shares of the corporation during the five-

176

year period ending on the date of distribution) occurring on or before December 31, 2013, in redemption of a foreign shareholder’s shares of the Fund will cause the Fund to recognize gain. If the Fund is required to recognize gain, the amount of gain recognized will equal to the fair market value of such interests over the Fund’s adjusted bases to the extent of the greatest foreign ownership percentage of the Fund during the five-year period ending on the date of redemption. Legislation has been proposed to extend the expiration dates for the above provisions, but there can be no assurance at this time that such legislation will be enacted.

Shares of a Fund held by a non-U.S. shareholder at death will be considered situated within the United States and subject to the U.S. estate tax, if applicable.

Because each Fund expects to invest less than 50% of its assets at all times, directly or indirectly, in U.S. real property interests, the Funds expect that neither gain on the sale or redemption of Fund shares nor Fund dividends and distributions would be subject to FIRPTA reporting and tax withholding.

U.S tax certification rules . Special U.S. tax certification requirements apply to non-U.S. shareholders both to avoid U.S. backup withholding and to obtain the benefits of any treaty between the United States and the shareholder’s country of residence. In general, a non-U.S. shareholder must provide a Form W-8 BEN (or other applicable Form W-8) to establish that you are not a U.S. person, to claim that you are the beneficial owner of the income and, if applicable, to claim a reduced rate of, or exemption from, withholding as a resident of a country with which the United States has an income tax treaty. A Form W-8BEN provided without a U.S. taxpayer identification number will remain in effect for a period beginning on the date signed and ending on the last day of the third succeeding calendar year unless an earlier change of circumstances makes the information on the form incorrect.

Withholding . A 30% withholding tax is currently imposed on dividends and will be imposed on redemption proceeds paid after December 31, 2016, to (i) foreign financial institutions including non-U.S. investment funds unless they agree to collect and disclose to the IRS information regarding their direct and indirect U.S. account holders and (ii) certain other foreign entities, unless they certify certain information regarding their direct and indirect U.S. owners. To avoid withholding, foreign financial institutions will need to (i) enter into agreements with the IRS that state that they will provide the IRS information, including the names, addresses and taxpayer identification numbers of direct and indirect U.S. account holders, comply with due diligence procedures with respect to the identification of U.S. accounts, report to the IRS certain information with respect to U.S. accounts maintained, agree to withhold tax on certain payments made to non-compliant foreign financial institutions or to account holders who fail to provide the required information, and determine certain other information as to their account holders, or (ii) in the event that an intergovernmental agreement and implementing legislation is adopted, provide local revenue authorities with similar account holder information. Other foreign entities will need to either provide the name, address, and taxpayer identification number of each substantial U.S. owner or certifications of no substantial U.S. ownership unless certain exceptions apply.

The tax consequences to a non-U.S. shareholder entitled to claim the benefits of an applicable tax treaty may be different from those described herein. Non-U.S. shareholders are urged

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to consult their own tax advisors with respect to the particular tax consequences to them of an investment in a Fund, including the applicability of foreign tax.

Reporting

If a shareholder recognizes a loss with respect to the Fund’s shares of $2 million or more for an individual shareholder or $10 million or more for a corporate shareholder, the shareholder must file with the IRS a disclosure statement on Form 8886. Direct shareholders of portfolio securities are in many cases exempted from this reporting requirement, but under current guidance, shareholders of a regulated investment company are not exempted. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

Effect of Future Legislation; Local Tax Considerations

The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the regulations issued thereunder as in effect on the date of this Statement of Additional Information. Future legislative or administrative changes or court decisions may significantly change the conclusions expressed herein, and any such changes or decisions may have a retroactive effect with respect to the transactions contemplated herein. Rules of state and local taxation of ordinary income, qualified dividend income and capital gain dividends may differ from the rules for U.S. federal income taxation described above. Distributions may also be subject to additional state, local and foreign taxes depending on each shareholder’s particular situation. Non-U.S. shareholders may be subject to U.S. tax rules that differ significantly from those summarized above. Shareholders are urged to consult their tax advisors as to the consequences of these and other state and local tax rules affecting investment in a Fund.

This discussion of “ADDITIONAL GENERAL TAX INFORMATION FOR THE FUNDS” is not intended or written to be used as tax advice and does not purport to deal with all U.S. federal tax consequences applicable to all categories of investors, some of which may be subject to special rules. You should consult your own tax advisor regarding your particular circumstances before making an investment in a Fund.

Additional Tax Information with respect to Aberdeen Tax-Free Income Fund

The tax information described in “Additional General Tax Information for All Funds” above applies to the Aberdeen Tax-Free Income Fund, except as noted in this section.

Exempt-Interest Dividends

By meeting certain requirements of the Code, the Fund qualifies to pay exempt-interest dividends to you. These dividends are derived from interest income exempt from regular federal income tax and are not subject to regular U.S. federal income tax when they are paid to you. Exempt-interest dividends that are excluded from federal taxable income may still be subject to the federal alternative minimum tax. See the discussion below under the heading, “Alternative Minimum Tax.”

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In addition, to the extent that exempt-interest dividends are derived from interest on obligations of a state or its political subdivisions, or from interest on qualifying U.S. territorial obligations (including qualifying obligations of Puerto Rico, the U.S. Virgin Islands and Guam), they also may be exempt from that state’s personal income taxes. Most states, however, do not grant tax-free treatment to interest on state and municipal securities of other states. Because of these tax exemptions, a tax-free fund may not be a suitable investment for retirement plans and other tax-exempt investors. Corporate shareholders should note that these dividends may be fully taxable in states that impose corporate franchise taxes, and they should consult with their tax advisors about the taxability of this income before investing in a Fund. Derivatives on municipal securities generally produce taxable income or taxable loss, with certain exceptions.

Exempt-interest dividends are taken into account when determining the taxable portion of your social security or railroad retirement benefits. The Fund may invest a portion of its assets in private activity bonds. The income from private activity bonds is a tax preference item when determining your U.S. federal alternative minimum tax. From time to time, legislation may be introduced or litigation may arise that may restrict or eliminate the federal income tax exemption for interest on debt obligations issued by states and their political subdivisions.

As a result of entering into swap contracts, the Fund may make or receive net periodic payments. The Fund may also make or receive a net periodic payment when a swap is terminated prior to maturity through an assignment of the swap or other closing transaction. Periodic net payments received by the Fund will generally constitute taxable ordinary income or deductions, while termination of a swap will generally result in capital gain or loss (which will be a long-term capital gain or loss if the Fund has been a party to the swap for more than one year). With respect to certain types of swaps, the Fund may be required to currently recognize income or loss with respect to future payments on such swaps or may elect under certain circumstances to mark such swaps to market annually for tax purposes as ordinary income or loss. Periodic net payments paid by the Fund that would otherwise constitute ordinary deductions but are allocable under the Code to exempt interest dividends will not be allowed as a deduction but instead will reduce net tax-exempt income.

Dividends from Taxable Income

The Fund may earn taxable income from many sources, including income from temporary investments, discount from stripped obligations or their coupons, income from securities loans or other taxable transactions, and ordinary income from the sale of market discount bonds. If you are a taxable investor, any distributions by the Fund from this income will be taxable to you as ordinary income, whether you receive them in cash or in additional shares.

Distributions of Capital Gains and Gain or Loss on Sale or Exchange of Your Fund Shares

The Fund may realize a capital gain or loss on sale of portfolio securities. Distributions of capital gains are taxable to you. Distributions from net short-term capital gain will be taxable to you as ordinary income. Distributions from net long-term capital gain will be taxable to you as long-term capital gain, regardless of how long you have held your shares in the Fund.

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When you sell your shares in the Fund, you may realize a capital gain or loss, which is subject to federal income tax. For tax purposes, an exchange of your Fund shares for shares of a different Aberdeen Fund is the same as a sale.

Information on the Amount and Tax Character of Distributions

The Fund will inform you of the amount of your taxable ordinary income and capital gain dividends at the time they are paid, and will advise you of their tax status for U.S. federal income tax purposes shortly after the end of each calendar year, including the portion of the distributions that on average are comprised of exempt-interest income, taxable income and the portion of exempt-interest income that is a tax preference item when determining the alternative minimum tax. If you have not held Fund shares for a full year, the Fund may report and distribute to you, as exempt-interest income, taxable income, or capital gains, and in the case of non-U.S. shareholders, the Fund may further report and distribute as interest-related dividends and short-term capital gain dividends, a percentage of income that may not be equal to the actual amount of this type of income earned during the period of your investment in the Fund. Taxable distributions declared by the Fund in December to shareholders of record in such month but paid in January are taxed to you as if made in December.

Redemption at a Loss Within Six Months of Purchase

Any loss incurred on the redemption or exchange of shares held for six months or less will be disallowed to the extent of any exempt-interest dividends paid to you with respect to your Fund shares, and any remaining loss will be treated as a long-term capital loss to the extent of any long-term capital gain distributed to you by the Fund on those shares.

Qualified Dividend Income for Individuals

Because the Fund’s income is derived primarily from interest rather than dividends, none of its distributions are expected to be qualified dividends eligible for taxation by individuals at long-term capital gain rates.

Dividends-Received Deduction for Corporations

Because the Fund’s income is derived primarily from interest rather than dividends, none of its distributions are expected to qualify for the corporate dividends-received deduction.

Alternative Minimum Tax

Interest on certain private activity bonds, while exempt from regular U.S. federal income tax, is a preference item for you when determining your alternative minimum tax under the

180

Code and under the income tax provisions of several states. Private activity bond interest could subject you to or increase your liability under the federal and state alternative minimum taxes, depending on your personal or corporate tax position. If you are a person defined in the Code as a substantial user (or person related to a user) of a facility financed by private activity bonds, you should consult with your tax adviser before buying shares of the Fund.

Treatment of Interest on Debt Incurred to Hold Fund Shares

Interest on debt you incur to buy or hold Fund shares may not be deductible for U.S. federal income tax purposes. Indebtedness may be allocated to shares of a Fund even though not directly traceable to the purchase of such shares.

Loss of Status of Securities as Tax-Exempt

Failure of the issuer of a tax-exempt security to comply with certain legal or contractual requirements relating to the security could cause interest on the security, as well as Fund distributions derived from this interest, to become taxable, perhaps retroactively to the date the security was issued. In such a case, the Fund may be required to report to the IRS and send to shareholders amended Forms 1099 for a prior taxable year in order to report additional taxable income. This, in turn, could require shareholders to file amended federal and state income tax returns for such prior year to report and pay tax and interest on their pro rata share of the additional amount of taxable income.

Non-U.S. Investors

In general, exempt-interest dividends reported by the fund and paid from net tax-exempt income are not subject to U.S. withholding tax.

Additional Tax Information with respect to the Funds-of-Funds

Each of the Funds-of-Funds invests in one or more Underlying Funds that are classified as corporations for U.S. federal income tax purposes. If an Underlying Fund is classified as a partnership, different tax rules may apply. The tax consequences of an investment in a Fund-of-Funds are generally the same as the consequences of investment in a non-Fund-of-Funds, except as noted below.

Distributions of Net Investment Income

A Fund-of-Funds’ income consists of dividends it receives from the Underlying Funds, less the estimated expenses of the Fund-of-Funds. Any distributions by a Fund-of-Funds from such income (other than qualified dividend income received by individuals) will be taxable to you as ordinary income, whether you receive them in cash or additional shares. A portion of the income dividends paid to you may be qualified dividends eligible to be taxed at reduced rates.

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Distributions of Capital Gain

An Underlying Fund may realize capital gain or loss in connection with sales or other dispositions of its portfolio securities. Any net long-term capital gains may be distributed to a Fund-of-Funds as capital gain distributions while any net short-term capital gains may be distributed to a Fund-of-Funds as ordinary income ineligible for offset by capital loss carryover at the Funds-of-Funds level. A Fund-of-Funds may also derive capital gains and losses in connection with sales of shares of the Underlying Funds. Realized losses on sales of shares of Underlying Funds will be subject to wash sale tax rules and may be subject to deferral, perhaps indefinitely. Distributions from net short-term capital gains are taxable to you as ordinary income. Distributions from net long-term capital gains are taxable to you as long-term capital gains, regardless of how long you have owned your shares in a Fund-of-Funds. Capital gain will be distributed by a Fund-of-Funds once each year, and may be distributed more frequently, if necessary, to reduce or eliminate excise or income taxes on the Fund-of-Funds.

Effect of Foreign Investments on Distributions

Gain or loss realized on the sale of debt securities is treated as ordinary income or loss by an Underlying Fund to the extent attributable to foreign exchange gain or loss. This gain when distributed will be taxable to the Fund-of-Funds as ordinary income, and any loss will reduce an Underlying Fund’s ordinary income otherwise available for distribution to the Fund-of-Funds. This treatment could increase or decrease an Underlying Fund’s ordinary income distributions to a Fund-of-Funds and, in turn, to you, and may cause some or all of the Underlying Fund’s previously distributed income to be classified as a return of capital to the Fund-of-Funds. A return of capital generally is not taxable to a Fund-of-Funds, but reduces the Fund-of-Funds’ tax basis in its shares of the Underlying Fund. Any return of capital in excess of the Fund-of-Funds’ tax basis is taxable to the Fund-of-Funds as a capital gain.

Certain Underlying Funds may be subject to foreign withholding taxes on income from certain foreign securities. This could reduce such an Underlying Fund’s ordinary income distributions to a Fund-of-Funds and, in turn, to you.

Pass-through of foreign tax credits . A Fund-of-Funds that primarily invests in Underlying Funds organized as corporations will be permitted to pass through a credit or deduction for its pro rata share of foreign withholding taxes paid by such Underlying Funds.

PFIC securities . A Fund-of-Funds (through its investment in the Underlying Funds) may invest in securities of foreign entities that could be deemed for federal income tax purposes to be passive foreign investment companies (“PFICs”). In general, a PFIC is any foreign corporation if 75% or more of its gross income for its taxable year is passive income, or 50% or more of its average assets (by value) are held for the production of passive income. When investing in PFIC securities, the Underlying Funds expect to mark-to-market these securities under certain provisions of the Internal Revenue Code and recognize any unrealized gains as ordinary income at the end of the Fund’s fiscal and excise (described below) tax years. Deductions for losses are allowable only to the extent of any current or previously recognized gains. These gains (reduced by allowable losses) are treated as ordinary income that an Underlying Fund, and in turn, a Fund is required to distribute, even though it

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has not sold or received dividends from these securities. You should also be aware that the designation of a foreign security as a PFIC security will cause its income dividends to fall outside of the definition of qualified foreign corporation dividends. These dividends will not qualify for the reduced rate of taxation on qualified dividends when distributed to you by a Fund. In addition, if a Fund or Underlying Fund organized as a corporation is unable to identify an investment as a PFIC and thus does not make a mark-to-market election, the Fund or Underlying Fund may be subject to U.S. federal income tax (the effect of which could be mitigated by making a mark-to-market election in a year prior to the sale) on a portion of any “excess distribution” or gain from the disposition of such shares even if such income is distributed as a taxable dividend by the Fund to its shareholders. Additional charges in the nature of interest may be imposed on a Fund or Underlying Fund in respect of deferred taxes arising from such distributions or gains. Any such taxes or interest charges could in turn reduce a Fund’s distributions paid to you.

U.S. Government Securities

The income earned on certain U.S. Government securities is generally exempt from state and local personal income taxes if earned directly by you. States also grant tax-free status to dividends paid to you from interest earned on these securities, subject in some states to minimum investment or reporting requirements that must be met by a Fund of Funds. Dividends paid by a Fund-of-Funds may not be exempt from state and local taxes in certain states when the Fund of Fund invests in U.S. Government securities only indirectly by investing in an Underlying Fund.

This discussion of “Additional General Tax Information” is not intended or written to be used as tax advice and does not purport to deal with all U.S. federal tax consequences applicable to all categories of investors, some of which may be subject to special rules. You should consult your own tax advisor regarding your particular circumstances before making an investment in any of the Funds.

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MAJOR SHAREHOLDERS

Persons or organizations beneficially owning more than 25% of the outstanding shares of a Fund are presumed to “control” the Fund within the meaning of the 1940 Act. As a result, those persons or organizations could have the ability to take action with respect to a Fund without the consent or approval of other shareholders. As of January 31, 2015, the following shareholders were shown in the Trust’s records as owning more than 25% of a Fund’s shares. The Trust does not know of any other person who owns beneficially more than 25% of any Fund’s shares except as set forth below.

Fund

Shareholder

Percent of the Fund
Total Assets Held by
the Shareholder

Aberdeen Asia Bond Fund

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

49.44

Aberdeen Diversified Alternatives Fund

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

37.96

Aberdeen Emerging Markets Debt Fund

THE NORTHERN TRUST

AS CUSTODIAN FBO MEMPHIS LIGHT GAS & WATER

PO BOX 92956

CHICAGO IL 60675-2956

47.27

Aberdeen Emerging Markets Debt Fund

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

31.22

Aberdeen Emerging Markets Debt Local Currency Fund

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

51.30

Aberdeen Emerging Markets Debt Local Currency Fund

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

32.64

Aberdeen Equity Long-Short Fund

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

55.57

Aberdeen European Equity Fund

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

85.84

Aberdeen Global Small Cap Fund

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

45.51

Aberdeen High Yield Fund

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

61.16

184

Aberdeen Latin American Equity Fund

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

97.77

Aberdeen Ultra-Short Duration Bond Fund

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

94.08

As of January 31, 2015, the following shareholders were shown in the Trust’s records as owning 5% or more of any class of a Fund’s shares. The Trust does not know of any other person who owns of record or beneficially 5% or more of any class of a Fund’s shares except as set forth below.

Fund/Class

Shareholder

Percent of the
Class Total
Assets Held by
the Shareholder

Aberdeen Asia Bond Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

53.58

Aberdeen Asia Bond Fund Class A

NFS LLC

FEBO CHARLES L MARKS TTEE

RICHARD MESIROW EXEMPT FAM TR

U/A 1/1/97

160 CARY AVE

HIGHLAND PARK IL 60035-4702

15.41

Aberdeen Asia Bond Fund Class A

NFS LLC

FEBO MYRON BERKSON TTEE

RICHARD S MESIROW IRREV TR

U/A 11/1/94

787 STABLES CT W

HIGHWOOD IL 60040-2057

8.57

Aberdeen Asia Bond Fund Class A

NFS LLC

FEBO RICHARD MESIROW, S DAVIS TTEE MESIR

OW CHILDRENS TR U/A 12/14/79 FBO ST

EVEN MESIROW

160 CARY AVE

HIGHLAND PARK IL 60035-4702

6.16

Aberdeen Asia Bond Fund Class A

NFS LLC

FEBO DEBORAH KESSLER

28 HILLCREST RD

MOUNTAIN LKS NJ 07046-1327

5.31

Aberdeen Asia Bond Fund Class C

NFS LLC

FEBO RALPH SILVER

1280 RUDOLPH RD APT 5J

NORTHBROOK IL 60062-1449

16.21

Aberdeen Asia Bond Fund Class C

NFS LLC

FEBO NFS/FMTC IRA

FBO PATSY N FREEMAN

35 LINCOLNSHIRE DR

LINCOLNSHIRE IL 60069-3130

14.55

Aberdeen Asia Bond Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

7.81

185

Aberdeen Asia Bond Fund Class C

NFS LLC

FEBO LAUREN GORDON ALAN SALZENSTEIN, H K

ROLL TTEE HELGA KROLL REVOC TRST U/

A 11/18/97

320 CHATEAU DR

BUFFALO GROVE IL 60089-1791

6.58

Aberdeen Asia Bond Fund Class C

NFS LLC

FEBO NFS/FMTC ROLLOVER IRA

FBO RICHARD S DENBY

89 HILLSIDE AVE

VERONA NJ 07044-1022

6.42

Aberdeen Asia Bond Fund Class C

ROBERT W BAIRD & CO. INC.

777 EAST WISCONSIN AVENUE

MILWAUKEE WI 53202-5391

5.40

Aberdeen Asia Bond Fund Class C

NFS LLC

FEBO NFS/FMTC IRA

FBO JAMES A PINKSTON

8648 MONAGHAN DR

TINLEY PARK IL 60487-3642

5.18

Aberdeen Asia Bond Fund Class C

NFS LLC

FEBO LINDA HORN

5015 COUNTY RTE 7

SPENCERTOWN NY 12165

5.05

Aberdeen Asia Bond Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Asia Bond Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

52.30

Aberdeen Asia Bond Fund Institutional Class

ASSETMARK TRUST COMPANY

FBO ASSETMARK INC & MUTUAL CLIENTS & FBO OTHER CUSTODIAL CLIENTS

3200 N CENTRAL AVE FL 7

PHOENIX AZ 85012-2468

21.22

Aberdeen Asia Bond Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

8.71

Aberdeen Asia Bond Fund Institutional Service Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

97.13

186

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class A

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

57.24

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

33.56

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class C

RBC CAPITAL MARKETS LLC

MR RICARDO CESAR S MALFITANO

APT 2106

5875 COLLINS AVENUE

MIAMI BEACH FL 33140-3770

25.62

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

20.83

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

14.29

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class C

SOUTHWEST SECURITIES INC

FBO MARY K KLENDA TRUST

MARY K KLENDA TTEE

UAD DEC 21 2000

PO BOX 509002

DALLAS TX 75250-9002

9.07

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class C

SOUTHWEST SECURITIES INC

FBO POLLY R KLENDA

PO BOX 509002

DALLAS TX 75250-9002

9.05

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

11.76

187

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

42.35

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Institutional Service Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

18.60

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Institutional Service Class

BROWN BROTHERS HARRIMAN AND COMPANY

AS CUSTODIAN

525 WASHINGTON BLVD

JERSEY CITY NJ 07310-1692

17.09

Aberdeen Asia-Pacific (ex-Japan) Equity Fund Institutional Service Class

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

13.84

Aberdeen Asia-Pacific Smaller Companies Fund Class A

SEI PRIVATE TRUST COMPANY

1 FREEDOM VALLEY DRIVE

OAKS PA 19456-9989

31.47

Aberdeen Asia-Pacific Smaller Companies Fund Class A

SEI PRIVATE TRUST COMPANY

1 FREEDOM VALLEY DRIVE

OAKS PA 19456-9989

22.79

Aberdeen Asia-Pacific Smaller Companies Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

13.17

Aberdeen Asia-Pacific Smaller Companies Fund Class C

D A DAVIDSON & CO INC

FBO JOSEPH J WITHEY

PO BOX 5015

GREAT FALLS MT 59403-5015

40.95

188

Aberdeen Asia-Pacific Smaller Companies Fund Class C

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

19.90

Aberdeen Asia-Pacific Smaller Companies Fund Class C

D.A. DAVIDSON & CO.

REBECCA E WETZEL IRA

8 THIRD STREET NORTH

GREAT FALLS MT 59401-3155

16.08

Aberdeen Asia-Pacific Smaller Companies Fund Class C

RBC CAPITAL MARKETS LLC

KEVIN GEPHART

1855 PINEHURST AVE

ST PAUL MN 55116-1336

15.78

Aberdeen Asia-Pacific Smaller Companies Fund Class C

D A DAVIDSON & CO INC

D A DAVIDSON & CO AS CUST FOR

PO BOX 5015

GREAT FALLS MT 59403-5015

7.30

Aberdeen Asia-Pacific Smaller Companies Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Asia-Pacific Smaller Companies Fund Institutional Service Class

STATE STREET BANK & TRUST CO

CUST FOR THE IRA OF KENNETH A DIGIUSEPPE

9 HIGH LN

MYSTIC CT 06355-1833

25.32

Aberdeen Asia-Pacific Smaller Companies Fund Institutional Service Class

STATE STREET BANK & TRUST

CUST FOR THE IRA OF DEREK AKIO FUJIMOTO

1556 PIIKOI ST APT 1508

HONOLULU HI 96822-4042

24.63

Aberdeen Asia-Pacific Smaller Companies Fund Institutional Service Class

DEREK AKIO FUJIMOTO

1556 PIIKOI ST APT 1508

HONOLULU HI 96822-4042

24.22

189

Aberdeen Asia-Pacific Smaller Companies Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

23.02

Aberdeen China Opportunities Fund Class A

MLPFS

FOR SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

15.41

Aberdeen China Opportunities Fund Class A

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

7.48

Aberdeen China Opportunities Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

5.79

Aberdeen China Opportunities Fund Class A

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

5.09

Aberdeen China Opportunities Fund Class C

MLPF & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

47.34

Aberdeen China Opportunities Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

9.64

Aberdeen China Opportunities Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

6.82

Aberdeen China Opportunities Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

38.05

190

Aberdeen China Opportunities Fund Class R

MLPF&S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

22.36

Aberdeen China Opportunities Fund Class R

COUNSEL TRUST DBA MATC

FBO DODGE COUNTRY LTD 401 K PLAN

1251 WATERFRONT PLACE SUITE 525

PITTSBURGH PA 15222-4228

12.66

Aberdeen China Opportunities Fund Institutional Class

ATTN BENITA H KOMAN

TD AMERITRADE FBO

THE ROY COCKRUM FOUNDATION

445 S GAY ST STE 306

KNOXVILLE TN 37902-1169

39.18

Aberdeen China Opportunities Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

32.62

Aberdeen China Opportunities Fund Institutional Class

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

12.64

Aberdeen China Opportunities Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

9.48

Aberdeen China Opportunities Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

89.50

Aberdeen Diversified Alternatives Fund Class A

CHARLES SCHWAB & CO INC

FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

14.57

191

Aberdeen Diversified Alternatives Fund Class A

LPL FINANCIAL

4707 EXECUTIVE DR

SAN DIEGO CA 92121-3091

11.29

Aberdeen Diversified Alternatives Fund Class A

MLPF & SMITH INC

FOR THE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

9.86

Aberdeen Diversified Alternatives Fund Class A

RAYMOND JAMES OMNIBUS

ATTN COURTNEY WALLER

880 CARILLON PKWY

ST PETERSBURG FL 33716-1100

8.98

Aberdeen Diversified Alternatives Fund Class C

MERRILL LYNCH PIERCE FENNER & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DRIVE EAST

JACKSONVILLE FL 32246-6484

47.45

Aberdeen Diversified Alternatives Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

18.31

Aberdeen Diversified Alternatives Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

55.43

Aberdeen Diversified Alternatives Fund Class R

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

41.25

Aberdeen Diversified Alternatives Fund Institutional Class

CHARLES SCHWAB & CO INC

FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

57.89

192

Aberdeen Diversified Alternatives Fund Institutional Class

MLPFS INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

14.98

Aberdeen Diversified Alternatives Fund Institutional Class

LPL FINANCIAL

4707 EXECUTIVE DR

SAN DIEGO CA 92121-3091

9.15

Aberdeen Diversified Alternatives Fund Institutional Class

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

8.11

Aberdeen Diversified Alternatives Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

5.40

Aberdeen Diversified Alternatives Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Diversified Income Fund Class A

MLPFS

FOR SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

25.26

Aberdeen Diversified Income Fund Class A

LPL FINANCIAL

4707 EXECUTIVE DR

SAN DIEGO CA 92121-3091

10.30

193

Aberdeen Diversified Income Fund Class A

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

7.64

Aberdeen Diversified Income Fund Class C

MLPF & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

38.15

Aberdeen Diversified Income Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

33.55

Aberdeen Diversified Income Fund Class R

ASCENSUS TRUST COMPANY

FBO HYPOWER, INC. 401(K) RETIREMENT PLA

P.O. BOX 10758

FARGO ND 58106-0758

61.82

Aberdeen Diversified Income Fund Class R

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

37.93

Aberdeen Diversified Income Fund Institutional Class

TDA TRUST COMPANY

COMPANY HOUSE ACCOUNT

PO BOX 17748

DENVER CO 80217-0748

27.41

Aberdeen Diversified Income Fund Institutional Class

NATIONWIDE TRUST COMPANY

FSB C O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

23.79

Aberdeen Diversified Income Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

15.52

194

Aberdeen Diversified Income Fund Institutional Class

MLPFS INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

14.84

Aberdeen Diversified Income Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

11.61

Aberdeen Diversified Income Fund Institutional Service Class

THOMAS A MCCULLOUGH

SHARON E MCCULLOUGH

JT TEN WROS

210 W SANTA FE TRL

KANSAS CITY MO 64145-1025

71.98

Aberdeen Diversified Income Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

28.02

Aberdeen Dynamic Allocation Fund Class A

MLPFS

FOR SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

24.25

Aberdeen Dynamic Allocation Fund Class A

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

10.64

Aberdeen Dynamic Allocation Fund Class A

NATIONWIDE TRUST COMPANY

FSB C/O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

7.00

Aberdeen Dynamic Allocation Fund Class C

MLPF & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

40.03

195

Aberdeen Dynamic Allocation Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

21.61

Aberdeen Dynamic Allocation Fund Class C

LPL FINANCIAL

4707 EXECUTIVE DR

SAN DIEGO CA 92121-3091

5.40

Aberdeen Dynamic Allocation Fund Class R

ASCENSUS TRUST COMPANY

FBO PATRICIA PAVLOS DDS PA 401(K) PLAN

P.O. BOX 10758

FARGO ND 58106-0758

69.29

Aberdeen Dynamic Allocation Fund Class R

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

20.51

Aberdeen Dynamic Allocation Fund Class R

ASCENSUS TRUST COMPANY

FBO OMNI WATER CONSULTANTS 401K

PO BOX 10758

FARGO ND 58106-0758

7.14

Aberdeen Dynamic Allocation Fund Institutional Class

NATIONWIDE TRUST COMPANY

FSB C O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

31.39

Aberdeen Dynamic Allocation Fund Institutional Class

MLPFS INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

28.63

Aberdeen Dynamic Allocation Fund Institutional Class

TD AMERITRADE TRUST COMPANY

ATTN: HOUSE

P.O. BOX 17748

DENVER CO 80217-0748

17.27

Aberdeen Dynamic Allocation Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

12.96

196

Aberdeen Dynamic Allocation Fund Institutional Class

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

8.77

Aberdeen Dynamic Allocation Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Emerging Markets Debt Fund Class A

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Emerging Markets Debt Fund Class C

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Emerging Markets Debt Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Emerging Markets Debt Fund Institutional Class Shares

THE NORTHERN TRUST

AS CUSTODIAN FBO MEMPHIS LIGHT GAS & WATER

PO BOX 92956

CHICAGO IL 60675-2956

47.33

Aberdeen Emerging Markets Debt Fund Institutional Class Shares

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

31.27

Aberdeen Emerging Markets Debt Fund Institutional Class Shares

COMMUNITY FOUNDATION OF MIDDLE TENNESSEE

3833 CLEGHORN AVE #400

NASHVILLE TN 37215-2519

19.38

197

Aberdeen Emerging Markets Debt Fund Institutional Service Class Shares

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Emerging Markets Debt Local Currency Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

72.91

Aberdeen Emerging Markets Debt Local Currency Fund Class A

NFS LLC

FEBO FMT CO CUST IRA ROLLOVER FBO JOHN A MADDEN

59 LONDONDERRY DR

GREENWICH CT 06830-3508

7.06

Aberdeen Emerging Markets Debt Local Currency Fund Class C

MLPFS INC

FOR THE SOLE BENEIFT OF CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

39.09

Aberdeen Emerging Markets Debt Local Currency Fund Class C

SOUTHWEST SECURITIES INC

FBO DEAN KUCKELMAN & ANNE KUCKELMAN JTWROS

PO BOX 509002

DALLAS TX 75250-9002

32.67

Aberdeen Emerging Markets Debt Local Currency Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

26.81

Aberdeen Emerging Markets Debt Local Currency Fund Class R

VOYA INSTITUTIONAL TRUST COMPANY

ONE ORANGE WAY

WINDSOR CT 06095-4773

80.85

Aberdeen Emerging Markets Debt Local Currency Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

19.15

Aberdeen Emerging Markets Debt Local Currency Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

55.95

198

Aberdeen Emerging Markets Debt Local Currency Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

35.59

Aberdeen Emerging Markets Debt Local Currency Fund Institutional Class

WELLS FARGO BANK NA

FBO GBRA DBP D

PO BOX 1533

MINNEAPOLIS MN 55480-1533

7.41

Aberdeen Emerging Markets Debt Local Currency Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Emerging Markets Fund Class A

CHARLES SCHWAB & CO INC

MUTUAL FUNDS OPS-TEAM 1

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

21.25

Aberdeen Emerging Markets Fund Class A

MLPFS INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

15.32

Aberdeen Emerging Markets Fund Class A

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

9.65

Aberdeen Emerging Markets Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

9.10

Aberdeen Emerging Markets Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

6.07

199

Aberdeen Emerging Markets Fund Class C

MERRILL LYNCH PIERCE FENNER & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DRIVE EAST

JACKSONVILLE FL 32246-6484

26.70

Aberdeen Emerging Markets Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

23.39

Aberdeen Emerging Markets Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

22.71

Aberdeen Emerging Markets Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

5.79

Aberdeen Emerging Markets Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

55.22

Aberdeen Emerging Markets Fund Class R

VOYA INSTITUTIONAL TRUST COMPANY

ONE ORANGE WAY

WINDSOR CT 06095-4773

16.12

Aberdeen Emerging Markets Fund Class R

MLPF&S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

15.82

Aberdeen Emerging Markets Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

18.93

Aberdeen Emerging Markets Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY A/C FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

18.84

200

Aberdeen Emerging Markets Fund Institutional Class

WELLS FARGO BANK NA FBO

OMNIBUS ACCOUNT CASH/CASH

PO BOX 1533

MINNEAPOLIS MN 55480-1533

8.72

Aberdeen Emerging Markets Fund Institutional Class

MERRILL LYNCH PIERCE FENNER & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DRIVE EAST

JACKSONVILLE FL 32246-6484

7.48

Aberdeen Emerging Markets Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

93.93

Aberdeen Equity
Long-Short
Fund Class A

TD AMERITRADE INC

FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS

PO BOX 2226

OMAHA NE 68103-2226

9.61

Aberdeen Equity
Long-Short
Fund Class A

MLPFS

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

8.64

Aberdeen Equity
Long-Short
Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

5.59

Aberdeen Equity
Long-Short
Fund Class C

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

48.62

Aberdeen Equity
Long-Short
Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

14.40

Aberdeen Equity
Long-Short
Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

5.65

201

Aberdeen Equity
Long-Short
Fund Class R

VOYA INSTITUTIONAL TRUST COMPANY

ONE ORANGE WAY

WINDSOR CT 06095-4773

70.88

Aberdeen Equity
Long-Short
Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

21.26

Aberdeen Equity
Long-Short
Fund Institutional Class

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

65.59

Aberdeen Equity
Long-Short
Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

8.21

Aberdeen Equity
Long-Short
Fund Institutional Class

MERRILL LYNCH PIERCE FENNER & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOME

4800 DEER LAKE DRIVE EAST

JACKSONVILLE FL 32246-6484

6.15

Aberdeen Equity
Long-Short
Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

99.51

Aberdeen European Equity Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

77.56

Aberdeen European Equity Fund Class A

FORREST N JOHNSON

567 MONTARA WAY

EUGENE OR 97405-2055

11.99

Aberdeen European Equity Fund Class C

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

202

Aberdeen European Equity Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen European Equity Fund Institutional Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

92.08

Aberdeen European Equity Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

7.92

Aberdeen European Equity Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Global Equity Fund Class A

NATIONWIDE TRUST COMPANY FSB

C/O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

45.94

Aberdeen Global Equity Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

9.53

Aberdeen Global Equity Fund Class A

NATIONWIDE LIFE INSURANCE CO

QPVA

C/O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

8.89

Aberdeen Global Equity Fund Class C

NFS LLC

FEBO BBT CO DBA WILBRANCH & CO

FBO NON-ERISA CLIENTS REINV

PO BOX 2887

WILSON NC 27894-2887

37.45

Aberdeen Global Equity Fund Class C

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

21.15

Aberdeen Global Equity Fund Class C

WELLS FARGO BANK NA

FBO LANDRUM FAMILY

PO BOX 1533

MINNEAPOLIS MN 55480-1533

7.92

203

Aberdeen Global Equity Fund Class C

BROWN BROTHERS HARRIMAN & CO

AS CUSTODIAN

525 WASHINGTON BLVD

JERSEY CITY NJ 07310-1606

5.31

Aberdeen Global Equity Fund Class C

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

5.18

Aberdeen Global Equity Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

63.31

Aberdeen Global Equity Fund Class R

MLPF&S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

31.32

Aberdeen Global Equity Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

29.94

Aberdeen Global Equity Fund Institutional Class

NATIONWIDE TRUST COMPANY

FSB C O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

24.29

Aberdeen Global Equity Fund Institutional Class

WELLS FARGO BANK NA

MCWANE SLRY PAYMENT CASH ACCOUNT

PO BOX 1533

MINNEAPOLIS MN 55480-1533

19.25

Aberdeen Global Equity Fund Institutional Class

CAPINCO C/O US BANK NA

PO BOX 1787

MILWAUKEE WI 53201-1787

10.58

Aberdeen Global Equity Fund Institutional Class

US BANK NA

FBO LOUDOUN MUT SELF DIRECTED

PO BOX 1787

MILWAUKEE WI 53201-1787

8.88

204

Aberdeen Global Equity Fund Institutional Service Class

NEW YORK LIFE TRUST CO TTEE

NEW YORK LIFE TRUST CO CLIENT ACC

690 CANTON ST STE 100

WESTWOOD MA 02090-2324

99.98

Aberdeen Global Fixed Income Fund Class A

AMERICAN ENTERPRISE INV SVCS

707 2ND AVE S

MINNEAPOLIS MN 55402-2405

11.18

Aberdeen Global Fixed Income Fund Class A

STATE STREET BANK & TRUST

CUST FOR THE IRA OF PAMELA S GARDNER

490 ASPEN LOOP

PAWLEYS ISL SC 29585-8028

7.49

Aberdeen Global Fixed Income Fund Class A

AMERICAN ENTERPRISE INV SVCS

707 2ND AVE S

MINNEAPOLIS MN 55402-2405

5.81

Aberdeen Global Fixed Income Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

5.14

Aberdeen Global Fixed Income Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

50.89

Aberdeen Global Fixed Income Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

17.25

Aberdeen Global Fixed Income Fund Class C

NFS LLC

FEBO CURTIS & DORIS K HANKAMER FDN

EARL C HANKAMER III

U A 08 13 81

9039 KATY FWY

HOUSTON TX 77024-1647

7.82

Aberdeen Global Fixed Income Fund Class C

AMERICAN ENTERPRISE INV SVCS

707 2ND AVE S

MINNEAPOLIS MN 55402-2405

6.02

Aberdeen Global Fixed Income Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ATTN MUTUAL FUNDS DEPARTM 4TH FLOOR

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

57.20

205

Aberdeen Global Fixed Income Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

23.63

Aberdeen Global Fixed Income Fund Institutional Class

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

17.10

Aberdeen Global Fixed Income Fund Institutional Service Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

25.12

Aberdeen Global Fixed Income Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

21.71

Aberdeen Global Fixed Income Fund Institutional Service Class

VRSCO

FBO AIGFSB CUST TTEE FBO ERIE COUNTY 457

ATTN CHRIS BAUMAN

2727A ALLEN PKWY # 4-D1

HOUSTON TX 77019-2107

9.58

Aberdeen Global Fixed Income Fund Institutional Service Class

NATIONWIDE LIFE INSURANCE COMPANY

NATIONWIDE QPVA

C O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

6.80

Aberdeen Global Natural Resources Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

38.00

Aberdeen Global Natural Resources Fund Class A

MLPFS

FOR THE SOLE BENEFIT OF CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

14.81

206

Aberdeen Global Natural Resources Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

7.77

Aberdeen Global Natural Resources Fund Class A

TD AMERITRADE INC

FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS

PO BOX 2226

OMAHA NE 68103-2226

5.78

Aberdeen Global Natural Resources Fund Class C

MLPF & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

38.18

Aberdeen Global Natural Resources Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

8.89

Aberdeen Global Natural Resources Fund Class C

MSSB

FBO BRIAN R ESHER TTEE

REV TR OF BRIAN RICHARD ESHER U/A

DTD 10/31/2011

9185 OLD SOUTHWICK PASS

ALPHARETTA GA 30022-6253

7.93

Aberdeen Global Natural Resources Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

6.68

Aberdeen Global Natural Resources Fund Class R

MLPF&S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

70.30

Aberdeen Global Natural Resources Fund Class R

ASCENSUS TRUST COMPANY

FBO BAKER EYE INSTITUTE, PA 401(K) PLAN

P.O. BOX 10758

FARGO ND 58106-0758

7.19

Aberdeen Global Natural Resources Fund Class R

COUNSEL TRUST DBA MATC

FBO MILAN SUPPLY COMPANY PSP

1251 WATERFRONT PLACE SUITE 525

PITTSBURGH PA 15222-4228

5.24

207

Aberdeen Global Natural Resources Fund Institutional Class

MLPFS INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

60.40

Aberdeen Global Natural Resources Fund Institutional Class

TDA TRUST COMPANY

COMPANY HOUSE ACCOUNT

PO BOX 17748

DENVER CO 80217-0748

22.76

Aberdeen Global Natural Resources Fund Institutional Class

GREAT WEST LIFE AND ANNUITY

FBO VARIABLE ANNUITY 5

8515 E ORCHARD RD 2T2

GREENWOOD VILLAGE CO 80111-5002

6.59

Aberdeen Global Natural Resources Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

80.45

Aberdeen Global Natural Resources Fund Institutional Service Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

5.56

Aberdeen Global Small Cap Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

26.75

Aberdeen Global Small Cap Fund Class C

LPL FINANCIAL

4707 EXECUTIVE DR

SAN DIEGO CA 92121-3091

15.42

Aberdeen Global Small Cap Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

14.61

208

Aberdeen Global Small Cap Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

11.52

Aberdeen Global Small Cap Fund Class C

RAYMOND JAMES OMNIBUS

FOR MUTUAL FUNDS HOUSE ACCT FIRM

ATTN COURTNEY WALLER

880 CARILLON PKWY

ST PETERSBURG FL 33716-1100

10.83

Aberdeen Global Small Cap Fund Class C

MERRILL LYNCH PIERCE

FENNER & SMITH INC

BUILDING 1 TEAM A FL 2

4800 DEER LAKE DR EAST

JACKSONVILLE FL 32246-6484

9.00

Aberdeen Global Small Cap Fund Class C

MSSB

FBO THE CHAIM & LEAH FOUNDATION

1479 53RD ST

BROOKLYN NY 11219-3949

6.04

Aberdeen Global Small Cap Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

5.52

Aberdeen Global Small Cap Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

14.59

Aberdeen Global Small Cap Fund Class R

NFS LLC FEBO

FMT CO CUST IRA ROLLOVER

FBO MARK R HARWELL

125 COLDSTREAM CT

CANTON GA 30115-9166

12.27

Aberdeen Global Small Cap Fund Class R

MERRILL LYNCH PIERCE

FENNER & SMITH INC

BUILDING 1 TEAM A FL 2

4800 DEER LAKE DR EAST

JACKSONVILLE FL 32246-6484

10.19

Aberdeen Global Small Cap Fund Class R

NFS LLC

FEBO JOHN ZENTNER

BRIAN DAVIS TTEE

ZENTNER & ZENTNER 401(K) PLAN

95 LINDEN ST STE 3

OAKLAND CA 94607-2516

9.89

Aberdeen Global Small Cap Fund Class R

FIIOC

FBO WEATHERCRAFT COMPANIES OF NORTH PLATTE

100 MAGELLAN WAY (KW1C)

COVINGTON KY 41015-1987

7.10

209

Aberdeen Global Small Cap Fund Class R

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

5.94

Aberdeen Global Small Cap Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

66.27

Aberdeen Global Small Cap Fund Institutional Class

STRAFE & CO

FBO HADASSAH MEDICAL RELIEF ASSOC INC

PO BOX 6924

NEWARK DE 19714-6924

5.78

Aberdeen Global Small Cap Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

5.59

Aberdeen Global Small Cap Fund Institutional Service Class

TD AMERITRADE INC

FOR THE EXCLUSIVE BENEFIT OF OUR CLIENT

PO BOX 2226

OMAHA NE 68103-2226

97.43

Aberdeen High Yield Fund Class A

AMERICAN ENTERPRISE INV SVCS

707 2ND AVE S

MINNEAPOLIS MN 55402-2405

15.70

Aberdeen High Yield Fund Class A

NFS LLC

FEBO FMT CO CUST IRA

FBO BILLY MARINELLI

11983 QUAIL FALLS WAY

RNCHO CORDOVA CA 95742

13.29

Aberdeen High Yield Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

11.89

Aberdeen High Yield Fund Class A

AMERICAN ENTERPRISE INV SVCS

707 2ND AVE S

MINNEAPOLIS MN 55402-2405

10.33

Aberdeen High Yield Fund Class A

NFS LLC

FEBO VIRGINIA JONES

VIRGINIA & KENNETH JONES TTEE

U/A 04/29/1989

680 MORRIS AVE

SACRAMENTO CA 95864-6175

10.04

210

Aberdeen High Yield Fund Class A

STATE STREET BANK & TRUST

CUST FOR THE ROTH IRA OF BARBARA M SHACKELFORD

200 HIDDEN HLS

BOONEVILLE MS 38829-7620

7.17

Aberdeen High Yield Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

51.14

Aberdeen High Yield Fund Class C

STIFEL NICOLAUS & CO INC

DAVID T GOMEZ AND

501 N BROADWAY FL 8

SAINT LOUIS MO 63102-2188

22.41

Aberdeen High Yield Fund Class C

AMERICAN ENTERPRISE INV SVCS

707 2ND AVE S

MINNEAPOLIS MN 55402-2405

9.76

Aberdeen High Yield Fund Class C

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

9.73

Aberdeen High Yield Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

66.56

Aberdeen High Yield Fund Class R

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

33.44

Aberdeen High Yield Fund Institutional Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

64.77

Aberdeen High Yield Fund Institutional Class

ABERDEEN DIVERSIFIED INCOME FUND

ATTN RICH FONASH

1735 MARKET ST FL 33

PHILADELPHIA PA 19103-7501

19.61

Aberdeen High Yield Fund Institutional Class

TD AMERITRADE TRUST COMPANY

ATTN: HOUSE

P.O. BOX 17748

DENVER CO 80217-0748

11.63

211

Aberdeen High Yield Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen International Equity Fund Class A

MLPF & S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

22.52

Aberdeen International Equity Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

12.76

Aberdeen International Equity Fund Class A

STATE STREET BANK

FBO MSDW 401K PRODUCT

1 LINCOLN ST FL 1

BOSTON MA 02111-2901

9.28

Aberdeen International Equity Fund Class A

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

5.98

Aberdeen International Equity Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

5.22

Aberdeen International Equity Fund Class C

MLPF & SMITH INC

FOR THE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

34.89

Aberdeen International Equity Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

16.29

Aberdeen International Equity Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

9.18

212

Aberdeen International Equity Fund Class R

MLPF&S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

30.89

Aberdeen International Equity Fund Class R

PRIAC

FBO VARIOUS RETIREMENT PLANS

801 PENNSYLVANIA AVE

KANSAS CITY MO 64105-1307

22.47

Aberdeen International Equity Fund Class R

SAMMONS FINANCIAL NETWORK LLC

4546 CORPORATE DR STE 100

WDM IA 50266-5911

7.09

Aberdeen International Equity Fund Class R

RELIANCE TRUST CO CUSTODIAN

FBO MASSMUTUAL OMNIBUS PLL/SMF

PO BOX 48529

ATLANTA GA 30362-1529

5.63

Aberdeen International Equity Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

33.68

Aberdeen International Equity Fund Institutional Class

MAC & CO

ATTN MUTUAL FUND OPS

PO BOX 3198

525 WILLIAM PENN PLACE

PITTSBURGH PA 15230-3198

29.53

Aberdeen International Equity Fund Institutional Class

BOARD OF GEN EMPLOYEES TTEE

RET SYSTEM CITY OF FT LAUDERDALE

TRST GEN RET UAD 1 1 73

UAD 1 1 73 EMPLOYEES

PO BOX 14250

FT LAUDERDALE FL 33302-4250

9.11

Aberdeen International Equity Fund Institutional Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY A/C FBO CUSTOMERS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

5.36

Aberdeen International Equity Fund Institutional Service Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

38.87

213

Aberdeen International Equity Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

12.82

Aberdeen Latin American Equity Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

42.89

Aberdeen Latin American Equity Fund Class A

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

28.62

Aberdeen Latin American Equity Fund Class A

TD AMERITRADE INC

FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS

PO BOX 2226

OMAHA NE 68103-2226

15.60

Aberdeen Latin American Equity Fund Class A

DOROTHY S FIELDS

WALTER T FIELDS JR TTEES

FIELDS LIVING TRUST DTD 12/05/2013

1159 PALMETTO TYRONE RD

SHARPSBURG GA 30277-4623

6.16

Aberdeen Latin American Equity Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

58.17

Aberdeen Latin American Equity Fund Class C

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

31.86

Aberdeen Latin American Equity Fund Class C

TD AMERITRADE INC

FOR THE EXCLUSIVE BENEFIT OF OUR CLIENTS

PO BOX 2226

OMAHA NE 68103-2226

9.97

Aberdeen Latin American Equity Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

214

Aberdeen Latin American Equity Fund Institutional Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

99.45

Aberdeen Latin American Equity Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Small Cap Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

12.65

Aberdeen Small Cap Fund Class A

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

9.11

Aberdeen Small Cap Fund Class A

WELLS FARGO BANK RABBI TRUST

GREATER BALTIMORE MEDICAL CENTER

C/O FASCORE LLC

8515 E ORCHARD RD 2T2

GREENWOOD VILLAGE CO 80111-5002

5.88

Aberdeen Small Cap Fund Class C

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

34.64

Aberdeen Small Cap Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

13.46

Aberdeen Small Cap Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

8.60

Aberdeen Small Cap Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

6.57

Aberdeen Small Cap Fund Class C

RAYMOND JAMES OMNIBUS

FOR MUTUAL FUNDS HOUSE ACCT FIRM

ATTN COURTNEY WALLER

880 CARILLON PKWY

ST PETERSBURG FL 33716-1100

5.20

215

Aberdeen Small Cap Fund Class R

MLPF&S

THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

52.04

Aberdeen Small Cap Fund Class R

MG TRUST COMPANY CUST.

FBO COKINGTIN EYE CENTER RETIREMENT PLA

717 17TH ST STE 1300

DENVER CO 80202-3304

19.70

Aberdeen Small Cap Fund Class R

COUNSEL TRUST DBA MATC

FBO IAN N KARR ASSOCIATES INC 401 K

PROFIT SHARING PLAN & TRUST

1251 WATERFRONT PLACE SUITE 525

PITTSBURGH PA 15222-4228

7.96

Aberdeen Small Cap Fund Class R

PENSION INC

FBO FOX RIVER VALLEY BANCORP 401K

1980 COMMERCIAL WAY

GREEN BAY WI 54311-6203

6.34

Aberdeen Small Cap Fund Class R

NFS LLC

FEBO NFS/FMTC IRA

FBO RANDALL S BROWN

1217 GOLDEN LN

ORLANDO FL 32804-7122

5.27

Aberdeen Small Cap Fund Class R

DALE A HOPPER

FBO SEA - MOUNTAIN INSURANCE BROKERS 401 K PLAN

805 S WHEATLEY ST

RIDGELAND MS 39157-5000

5.11

Aberdeen Small Cap Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

37.09

Aberdeen Small Cap Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

27.86

Aberdeen Small Cap Fund Institutional Class

MLPFS INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

14.08

216

Aberdeen Small Cap Fund Institutional Class

ABERDEEN DYNAMIC ALLOCATIONS FUND

ATTN RICH FONASH

1735 MARKET ST FL 33

PHILADELPHIA PA 19103-7501

6.45

Aberdeen Small Cap Fund Institutional Service Class

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

57.14

Aberdeen Small Cap Fund Institutional Service Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

33.46

Aberdeen Tax-Free Income Fund Class A

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

5.80

Aberdeen Tax-Free Income Fund Class A

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

5.72

Aberdeen Tax-Free Income Fund Class C

MLPF & SMITH INC

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

35.92

Aberdeen Tax-Free Income Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

21.26

Aberdeen Tax-Free Income Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

12.86

Aberdeen Tax-Free Income Fund Class C

MSSB

FBO KENNETH W HARTWEG

SHIRLEY L HARTWEG JT TEN

1 CLINTON PL

NORMAL IL 61761-3622

6.48

217

Aberdeen Tax-Free Income Fund Class C

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCT FBO CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

5.13

Aberdeen Tax-Free Income Fund Class R

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

100.00

Aberdeen Tax-Free Income Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

60.40

Aberdeen Tax-Free Income Fund Institutional Service Class

STATE STREET BANK & TRUST

CUST FOR THE IRA OF MARK H INLOW

2117 N 10TH ST

TERRE HAUTE IN 47804-2306

39.60

Aberdeen U.S. Equity Fund Class A

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

8.71

Aberdeen U.S. Equity Fund Class C

MLPF & SMITH

FOR THE SOLE BENEFIT OF ITS CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

44.92

Aberdeen U.S. Equity Fund Class C

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

10.01

Aberdeen U.S. Equity Fund Class C

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

7.99

Aberdeen U.S. Equity Fund Class C

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

5.82

218

Aberdeen U.S. Equity Fund Class R

MLPF&S INC

FOR THE SOLE BENEFIT OF ITS CUSTOMER

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

99.15

Aberdeen U.S. Equity Fund Institutional Class

NATIONAL FINANCIAL SERVICES LLC

FOR THE EXCLUSIVE BENEFIT OF OUR CUSTOMERS

ONE WORLD FINANCIAL CENTER

499 WASHINGTON BLVD FL 5 FL 4

JERSEY CITY NJ 07310-2010

46.50

Aberdeen U.S. Equity Fund Institutional Class

UBS WM USA

OMNI ACCOUNT M/F

ATTN DEPARTMENT MANAGER

1000 HARBOR BLVD 5TH FL

WEEHAWKEN NJ 07086-6761

17.98

Aberdeen U.S. Equity Fund Institutional Class

FIRST CLEARING LLC

SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER

2801 MARKET STREET

ST LOUIS MO 63103-2523

12.05

Aberdeen U.S. Equity Fund Institutional Class

MLPFS INC

FOR THE SOLE BENEFIT OF CUSTOMERS

4800 DEER LAKE DR E

JACKSONVILLE FL 32246-6484

9.92

Aberdeen U.S. Equity Fund Institutional Class

NATIONWIDE TRUST COMPANY

FSB C O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

7.19

Aberdeen U.S. Equity Fund Institutional Service Class

CHARLES SCHWAB & CO INC

SPECIAL CUSTODY ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS

ATTN MUTUAL FUNDS

211 MAIN STREET

SAN FRANCISCO CA 94105-1905

20.10

Aberdeen U.S. Equity Fund Institutional Service Class

NAT’L FINANCIAL SVCS CORP

FBO CUSTOMERS

CHURCH ST STATION

PO BOX 3908

NEW YORK NY 10008-3908

13.03

219

Aberdeen U.S. Equity Fund Institutional Service Class

NATIONWIDE LIFE INSURANCE COMPANY

QPVA

C/O IPO PORTFOLIO ACCOUNTING

PO BOX 182029

COLUMBUS OH 43218-2029

8.07

Aberdeen Ultra-Short Duration Bond Fund Class A

STATE STREET BANK & TRUST CO

CUST FOR THE IRA OF LAURENCE LING

230 E 71ST ST APT 5J

NEW YORK NY 10021-5111

60.24

Aberdeen Ultra-Short Duration Bond Fund Class A

JAMES M FERALO

TOD

2913 LAKE RD W

ASHTABULA OH 44004-2307

23.67

Aberdeen Ultra-Short Duration Bond Fund Class A

SOUTHWEST SECURITIES INC

FBO DAVID F MALONE

SOUTHWEST SECURITIES INC AS SEP IRA CUSTODIAN

PO BOX 509002

DALLAS TX 75250-9002

5.66

Aberdeen Ultra-Short Duration Bond Fund Institutional Class

PERSHING LLC

1 PERSHING PLZ

JERSEY CITY NJ 07399-0001

97.12

Aberdeen Ultra-Short Duration Bond Fund Institutional Service Class

STATE STREET BANK & TRUST

CUST FOR THE IRA OF FRAN MADLANG

5945 SPRING CANYON RD

OGDEN UT 84403-5477

94.56

Aberdeen Ultra-Short Duration Bond Fund Institutional Service Class

ABERDEEN ASSET MANAGEMENT

SEED ACCOUNT

1735 MARKET ST FL 32

PHILADELPHIA PA 19103-7503

5.44

220

FINANCIAL STATEMENTS

KPMG is the Funds’ independent registered public accounting firm. KPMG audits the Funds’ annual financial statements. The audited financial statements and financial highlights of the Funds for their fiscal year ended October 31, 2014, as set forth in the Funds’ annual report to shareholders, including the report of KPMG, are incorporated by reference into this SAI. No other parts of any Annual Report are incorporated by reference herein. A copy of the Funds’ Annual Report may be obtained upon request and without charge by writing or by calling 866-667-9231.

221

APPENDIX A- PORTFOLIO MANAGERS

DESCRIPTION OF COMPENSATION STRUCTURE

Aberdeen Asset Management Inc. (“Adviser”), Aberdeen Asset Managers Limited (“AAML”) and Aberdeen Asset Management Asia Limited (“AAMAL”) (collectively referred to as “Aberdeen”)

Aberdeen’s remuneration policies are designed to support our business strategy, as a leading international asset manager. The objective is to attract, retain and reward talented individuals for the delivery of sustained, superior returns for our clients and shareholders. Aberdeen operates in a highly competitive international employment market, and aims to maintain its strong track record of success in developing and retaining talent.

The policy is to recognise corporate and individual achievements each year through an appropriate annual bonus scheme. The aggregate value of awards in any year is dependent on the Group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards which are payable to all members of staff are determined by a rigorous assessment of achievement against defined objectives.

A long-term incentive plan for key staff and senior employees comprises of a mixture of cash and deferred shares in Aberdeen PLC or select Aberdeen funds (where applicable). Overall compensation packages are designed to be competitive relative to the investment management industry.

Base Salary

Any increase is to reflect inflation and is applied in a manner consistent with other Group employees; any other increases must be justified by reference to promotion or changes in responsibilities. The Policy is to pay a fair salary commensurate with the individual’s role, responsibilities and experience, and having regard to the market rates being offered for similar roles in the asset management sector and other comparable companies.

Annual Bonus

The Policy is to recognise corporate and individual achievements each year through an appropriate annual bonus scheme. The Remuneration Committee determines the KPI’s that will be applied in considering the overall size of the bonus pool. In line with practice amongst other asset management companies, individual bonuses are not subject to an absolute cap. However, the aggregate size of the bonus pool is dependent on the group’s overall performance and profitability. Consideration is also given to the levels of bonuses paid in the market. Individual awards are determined by a rigorous assessment of achievement against defined objectives, and are reviewed and approved by the Remuneration Committee.

The deferral policy is intended to assist in the retention of talent and to create additional alignment of executives’ interests with Aberdeen’s sustained performance and, in respect of the deferral into funds, managed by Aberdeen, to align the interest of asset managers with our clients.

A-1

Staff performance is reviewed formally at least once a year. The review process looks at all of the ways in which an individual has contributed to the Aberdeen Group, and specifically, in the case of portfolio managers, to the relevant investment team. Discretionary bonuses are based on client service, asset growth and the performance of the respective portfolio manager. Overall participation in team meetings, generation of original research ideas and contribution to presenting the team externally are also evaluated.

In the calculation of a portfolio management team’s bonus, the Aberdeen Group takes into consideration investment matters (which include the performance of funds, adherence to the company investment process, and quality of company meetings) as well as more subjective issues such as team participation and effectiveness at client presentations. To the extent performance is factored in, such performance is not judged against any specific benchmark and is evaluated over the period of a year - January to December. The pre- or after-tax performance of an individual account is not considered in the determination of a portfolio manager’s discretionary bonus; rather the review process evaluates the overall performance of the team for all of the accounts they manage.

Portfolio manager performance on investment matters is judged over all of the accounts the portfolio manager contributes to and is documented in the appraisal process. A combination of the team’s and individual’s performance is considered and evaluated.

Although performance is not a substantial portion of a portfolio manager’s compensation, the Aberdeen Group also recognizes that fund performance can often be driven by factors outside one’s control, such as (irrational) markets, and as such pays attention to the effort by portfolio managers to ensure integrity of our core process by sticking to disciplines and processes set, regardless of momentum and ‘hot’ themes. Short-terming is thus discouraged and trading-oriented managers will thus find it difficult to thrive in the Aberdeen Group’s environment. Additionally, if any of the aforementioned undue risks were to be taken by a portfolio manager, such trend would be identified via Aberdeen’s dynamic compliance monitoring system.

A-2

OTHER MANAGED ACCOUNTS

The following chart summarizes information regarding accounts for which each portfolio manager has day-to-day management responsibilities. Accounts are grouped into the following three categories: (1) registered investment companies; (2) other pooled investment vehicles; and (3) other accounts. To the extent that any of these accounts pay advisory fees that are based on account performance (“performance-based fees”), information on those accounts is provided separately. The figures in the chart below for the category of “registered investment companies” do not include the Funds listed under each portfolio manager’s name in the opposite column.

Name of Portfolio Manager		Number of Other Accounts Managed by Each Portfolio Manager and Total Assets (in millions) by Category (as of October 31, 2014)
Aberdeen Asset Management Inc.

Paul Atkinson* Equity Long-Short Fund Small Cap Fund U.S. Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 8 accounts, $1,122.37 total assets Other Accounts: 4 accounts, $874.80 total assets

Ralph Bassett Equity Long-Short Fund Small Cap Fund U.S. Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 8 accounts, $1,122.37 total assets Other Accounts: 4 accounts, $874.80 total assets

Douglas Burtnick Equity Long-Short Fund Small Cap Fund U.S. Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 8 accounts, $1,122.37 total assets Other Accounts: 4 accounts, $874.80 total assets

Richard Fonash Diversified Income Fund Dynamic Allocation Fund Diversified Alternatives Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 0 accounts, $0 total assets Other Accounts: 0 accounts, $0 total assets

Jason Kotik Equity Long-Short Fund Small Cap Fund U.S. Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 8 accounts, $1,122.37 total assets Other Accounts: 4 accounts, $874.80 total assets

A-3

Joseph McFadden Small Cap Fund		Registered Investment Companies: 2 accounts, $768.94 total assets Other Pooled Investment Vehicles: 8 accounts, $1,122.37 total assets Other Accounts: 4 accounts, $874.80 total assets

Allison Mortensen Diversified Income Fund Dynamic Allocation Fund Diversified Alternatives Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 0 accounts, $0 total assets Other Accounts: 0 accounts, $0 total assets

Francis Radano, III Equity Long-Short Fund U.S. Equity Fund		Registered Investment Companies: 1 account, $134.43 total assets Other Pooled Investment Vehicles: 8 accounts, $1,122.37 total assets Other Accounts: 4 accounts, $874.80 total assets

Keith Bachman High Yield Fund		Registered Investment Companies: 15 accounts, $4,360.63 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Neil Moriarty Global Fixed Income Fund Ultra-Short Duration Bond Fund		Registered Investment Companies: 14 accounts, $4,339.16 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Stephen R. Cianci Ultra-Short Duration Bond Fund		Registered Investment Companies: 15 accounts, $4,360.16 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Oliver Chambers Ultra-Short Duration Bond Fund		Registered Investment Companies: 15 accounts, $4,360.16 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Michael Degernes Tax-Free Income Fund Ultra-Short Duration Bond Fund		Registered Investment Companies: 14 accounts, $4,260.06 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets

A-4

		Other Accounts: 37 accounts, $9,047.77 total assets

Edward Grant Tax-Free Income Fund		Registered Investment Companies: 15 accounts, $4,270.30 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Kam Poon Ultra-Short Duration Bond Fund		Registered Investment Companies: 15 accounts, $4,360.16 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Brendan Dillon High Yield Fund		Registered Investment Companies: 15 accounts, $4,360.63 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

Neal Rayner High Yield Fund		Registered Investment Companies: 15 accounts, $4,360.63 total assets Other Pooled Investment Vehicles: 24 accounts, $3,005.55 total assets Other Accounts: 37 accounts, $9,047.77 total assets

* Paul Atkinson will leave the Adviser at the end of June 2015 and shall be deemed removed from this table at that time.

Aberdeen Asset Managers Limited

Stephen Docherty Global Equity Fund International Equity Fund Global Natural Resources Fund Global Small Cap Fund		Registered Investment Companies: 5 accounts, $1,036.33 total assets Other Pooled Investment Vehicles: 45 accounts, $20,058.34 total assets (1 account, $2,386.42 total assets of which the advisory fee is based on performance) Other Accounts: 78 accounts, $27,655.94 total assets (1 account, $70.71 total assets of which the advisory fee is based on performance)

Bruce Stout Global Equity Fund International Equity Fund Global Natural Resources Fund Global Small Cap Fund		Registered Investment Companies: 5 accounts, $1,036.33 total assets Other Pooled Investment Vehicles: 45 accounts, $20,058.34 total assets (1 account, $2,386.42 total assets of which the advisory fee is based on performance) Other Accounts: 78 accounts, $27,655.94 total

A-5

		assets (1 account, $70.71 total assets of which the advisory fee is based on performance)

Samantha Fitzpatrick Global Equity Fund International Equity Fund Global Natural Resources Fund Global Small Cap Fund		Registered Investment Companies: 5 accounts, $1,036.33 total assets Other Pooled Investment Vehicles: 45 accounts, $20,058.34 total assets (1 account, $2,386.42 total assets of which the advisory fee is based on performance) Other Accounts: 78 accounts, $27,655.94 total assets (1 account, $70.71 total assets of which the advisory fee is based on performance)

Jamie Cumming Global Equity Fund International Equity Fund Global Natural Resources Fund Global Small Cap Fund		Registered Investment Companies: 5 accounts, $1,036.33 total assets Other Pooled Investment Vehicles: 45 accounts, $20,058.34 total assets (1 account, $2,386.42 total assets of which the advisory fee is based on performance) Other Accounts: 78 accounts, $27,655.94 total assets (1 account, $70.71 total assets of which the advisory fee is based on performance)

Martin Connaghan Global Equity Fund International Equity Fund Global Natural Resources Fund Global Small Cap Fund		Registered Investment Companies: 5 accounts, $1,036.33 total assets Other Pooled Investment Vehicles: 45 accounts, $20,058.34 total assets (1 account, $2,386.42 total assets of which the advisory fee is based on performance) Other Accounts: 78 accounts, $27,655.94 total assets (1 account, $70.71 total assets of which the advisory fee is based on performance)

Devan Kaloo Emerging Markets Fund Latin American Equity Fund		Registered Investment Companies: 9 accounts, $788.57 total assets Other Pooled Investment Vehicles: 25 accounts, $24,206.52 total assets Other Accounts: 55 accounts, $20,114.20 total assets (4 accounts, $713.24 total assets of which the advisory fee is based on performance)

Joanne Irvine Emerging Markets Fund		Registered Investment Companies: 10 accounts, $792.70 total assets Other Pooled Investment Vehicles: 25 accounts, $24,206.52 total assets Other Accounts: 55 accounts, $20,114.20 total assets (4 accounts, $713.24 total assets of which the advisory fee is based on performance)

A-6

Mark Gordon-James Emerging Markets Fund Latin American Equity Fund		Registered Investment Companies: 9 accounts, $788.57 total assets Other Pooled Investment Vehicles: 25 accounts, $24,206.52 total assets Other Accounts: 55 accounts, $20,114.20 total assets (4 accounts, $713.24 total assets of which the advisory fee is based on performance)

Fiona Manning Emerging Markets Fund Latin American Equity Fund		Registered Investment Companies: 9 accounts, $788.57 total assets Other Pooled Investment Vehicles: 25 accounts, $24,206.52 total assets Other Accounts: 55 accounts, $20,114.20 total assets (4 accounts, $713.24 total assets of which the advisory fee is based on performance)

Kevin Daly Emerging Markets Debt Fund Emerging Markets Debt Local Currency Fund		Registered Investment Companies: 3 accounts, $468.54 total assets Other Pooled Investment Vehicles: 80 accounts, $14,362.16 total assets Other Accounts: 91 accounts, $24,924.68 total assets

Brett Diment Emerging Markets Debt Fund Emerging Markets Debt Local Currency Fund		Registered Investment Companies: 3 accounts, $468.54 total assets Other Pooled Investment Vehicles: 80 accounts, $14,362.16 total assets Other Accounts: 91 accounts, $24,924.68 total assets

Edwin Gutierrez Emerging Markets Debt Fund Emerging Markets Debt Local Currency Fund		Registered Investment Companies: 3 accounts, $468.54 total assets Other Pooled Investment Vehicles: 80 accounts, $14,362.16 total assets Other Accounts: 91 accounts, $24,924.68 total assets

Viktor Szabó Emerging Markets Debt Fund Emerging Markets Debt Local Currency Fund		Registered Investment Companies: 3 accounts, $468.54 total assets Other Pooled Investment Vehicles: 80 accounts, $14,362.16 total assets Other Accounts: 91 accounts, $24,924.68 total assets

Andrew Stanners Emerging Markets Debt Fund Emerging Markets Debt Local Currency Fund		Registered Investment Companies: 3 accounts, $468.54 total assets Other Pooled Investment Vehicles: 80 accounts, $14,362.16 total assets Other Accounts: 91 accounts, $24,924.68 total assets

A-7

Rich Smith Global Fixed Income Fund		Registered Investment Companies: 4 accounts, $509.99 total assets Other Pooled Investment Vehicles: 77 accounts, $14,164.45 total assets Other Accounts: 86 accounts, $23,671.40 total assets

József Szabó Global Fixed Income Fund		Registered Investment Companies: 4 accounts, $509.99 total assets Other Pooled Investment Vehicles: 77 accounts, $14,164.45 total assets Other Accounts: 86 accounts, $23,671.40 total assets

Jeremy Whitley European Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 11 accounts, $1,202.00 total assets (1 account, $29.57 total assets of which the advisory fee is based on performance) Other Accounts: 8 accounts, $1,200.77 total assets

Edward Beal European Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 11 accounts, $1,202.00 total assets (1 account, $29.57 total assets of which the advisory fee is based on performance) Other Accounts: 8 accounts, $1,200.77 total assets

Charles Luke European Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 11 accounts, $1,202.00 total assets (1 account, $29.57 total assets of which the advisory fee is based on performance) Other Accounts: 8 accounts, $1,200.77 total assets

Ben Ritchie European Equity Fund		Registered Investment Companies: 0 accounts, $0 total assets Other Pooled Investment Vehicles: 11 accounts, $1,202.00 total assets (1 account, $29.57 total assets of which the advisory fee is based on performance) Other Accounts: 8 accounts, $1,200.77 total assets

A-8

Nick Robinson Latin American Equity Fund		Registered Investment Companies: 10 accounts, $10,812.12 total assets Other Pooled Investment Vehicles: 25 accounts, $24,206.52 total assets Other Accounts: 55 accounts, $20,114.20 total assets (4 accounts, $713.24 total assets of which the advisory fee is based on performance)

Stephen Parr Latin American Equity Fund		Registered Investment Companies: 10 accounts, $10,812.12 total assets Other Pooled Investment Vehicles: 25 accounts, $24,206.52 total assets Other Accounts: 55 accounts, $20,114.20 total assets (4 accounts, $713.24 total assets of which the advisory fee is based on performance)

Oliver Boulind Global Fixed Income Fund		Registered Investment Companies: 4 accounts, $509.99 total assets Other Pooled Investment Vehicles: 77 accounts, $14,164.45 total assets Other Accounts: 86 accounts, $23,671.40 total assets

Emma Jack Global Fixed Income Fund		Registered Investment Companies: 4 accounts, $509.99 total assets Other Pooled Investment Vehicles: 77 accounts, $14,164.45 total assets Other Accounts: 86 accounts, $23,671.40 total assets

Aberdeen Asset Management Asia Limited

Hugh Young China Opportunities Fund Asia-Pacific (Ex-Japan) Equity Fund Emerging Markets Fund Asia-Pacific Smaller Companies Fund		Registered Investment Companies: 17 accounts, $2,359.11 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Flavia Cheong China Opportunities Fund Asia-Pacific (Ex-Japan) Equity Fund Asia-Pacific Smaller Companies Fund		Registered Investment Companies: 18 accounts, $12,382.66 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of

A-9

		which the advisory fee is based on performance)

Chou Chong Asia-Pacific (Ex-Japan) Equity Fund Asia-Pacific Smaller Companies Fund		Registered Investment Companies: 19 accounts, $12,413.01 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Adrian Lim Asia-Pacific (Ex-Japan) Equity Fund Asia-Pacific Smaller Companies Fund		Registered Investment Companies: 19 accounts, $12,413.01 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Christopher Wong Asia-Pacific (Ex-Japan) Equity Fund Asia-Pacific Smaller Companies Fund		Registered Investment Companies: 19 accounts, $12,413.01 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Nicholas Yeo China Opportunities Fund		Registered Investment Companies: 20 accounts, $13,487.82 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Kathy Xu China Opportunities Fund		Registered Investment Companies: 20 accounts, $13,487.82 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total

A-10

		assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Frank Tian China Opportunities Fund		Registered Investment Companies: 20 accounts, $13,487.82 total assets Other Pooled Investment Vehicles: 82 accounts, $58,553.28 total assets (2 accounts, $398.26 total assets of which the advisory fee is based on performance) Other Accounts: 132 accounts, $46,938.58 total assets (16 accounts, $5,017.36 total assets of which the advisory fee is based on performance)

Victor Rodriguez Asia Bond Fund		Registered Investment Companies: 2 accounts, $2,376.31 total assets Other Pooled Investment Vehicles: 14 accounts, $2,104.30 total assets Other Accounts: 39 accounts, $9,336.17 total assets

Adam McCabe Asia Bond Fund		Registered Investment Companies: 2 accounts, $2,376.31 total assets Other Pooled Investment Vehicles: 14 accounts, $2,104.30 total assets Other Accounts: 39 accounts, $9,336.17 total assets

Thomas Drissner Asia Bond Fund		Registered Investment Companies: 2 accounts, $2,376.31 total assets Other Pooled Investment Vehicles: 14 accounts, $2,104.30 total assets Other Accounts: 39 accounts, $9,336.17 total assets

Kenneth Akintewe Asia Bond Fund		Registered Investment Companies: 2 accounts, $2,376.31 total assets Other Pooled Investment Vehicles: 14 accounts, $2,104.30 total assets Other Accounts: 39 accounts, $9,336.17 total assets

Thu-Ha Chow Asia Bond Fund		Registered Investment Companies: 2 accounts, $2,376.31 total assets Other Pooled Investment Vehicles: 14 accounts, $2,104.30 total assets Other Accounts: 39 accounts, $9,336.17 total assets

A-11

POTENTIAL CONFLICTS OF INTEREST

Aberdeen Asset Management Inc., Aberdeen Asset Managers Limited and Aberdeen Asset Management Asia Limited

The portfolio managers’ management of “other accounts” may give rise to potential conflicts of interest in connection with their management of a Fund’s investments, on the one hand, and the investments of the other accounts, on the other. The other accounts may have the same investment objective as the Fund. Therefore, a potential conflict of interest may arise as a result of the identical investment objectives, whereby the portfolio manager could favor one account over another. However, the Adviser believes that these risks are mitigated by the fact that: (i) accounts with like investment strategies managed by a particular portfolio manager are generally managed in a similar fashion, subject to exceptions to account for particular investment restrictions or policies applicable only to certain accounts, differences in cash flows and account sizes, and similar factors; and (ii) portfolio manager personal trading is monitored to avoid potential conflicts. In addition, the Adviser has adopted trade allocation procedures that require equitable allocation of trade orders for a particular security among participating accounts.

In some cases, another account managed by the same portfolio manager may compensate Aberdeen based on the performance of the portfolio held by that account. The existence of such a performance-based fee may create additional conflicts of interest for the portfolio manager in the allocation of management time, resources and investment opportunities.

Another potential conflict could include instances in which securities considered as investments for the Fund also may be appropriate for other investment accounts managed by the Adviser or its affiliates. Whenever decisions are made to buy or sell securities by the Fund and one or more of the other accounts simultaneously, the Adviser may aggregate the purchases and sales of the securities and will allocate the securities transactions in a manner that it believes to be equitable under the circumstances. As a result of the allocations, there may be instances where the Fund will not participate in a transaction that is allocated among other accounts. While these aggregation and allocation policies could have a detrimental effect on the price or amount of the securities available to the Fund from time to time, it is the opinion of the Adviser that the benefits from the Adviser organization outweigh any disadvantage that may arise from exposure to simultaneous transactions. The Trust has adopted policies that are designed to eliminate or minimize conflicts of interest, although there is no guarantee that procedures adopted under such policies will detect each and every situation in which a conflict arises.

A-12

APPENDIX B — DEBT RATINGS

STANDARD & POOR’S DEBT RATINGS

A Standard & Poor’s corporate or municipal debt rating is a current assessment of the creditworthiness of an obligor with respect to a specific obligation. This assessment may take into consideration obligors such as guarantors, insurers, or lessees.

The debt rating is not a recommendation to purchase, sell, or hold a security, inasmuch as it does not comment as to market price or suitability for a particular investor. The ratings are based on current information furnished by the issuer or obtained by Standard & Poor’s from other sources it considers reliable. Standard & Poor’s does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or for other circumstances.

The ratings are based, in varying degrees, on the following considerations:

1. Likelihood of default - capacity and willingness of the obligor as to the timely payment of interest and repayment of principal in accordance with the terms of the obligation.

2. Nature of and provisions of the obligation.

3. Protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting.

INVESTMENT GRADE

AAA - Debt rated “AAA” has the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.

AA - Debt rated “AA” has a very strong capacity to pay interest and repay principal and differs from the highest rated issues only in small degree.

A - Debt rated “A” has a strong capacity to pay interest and repay principal although it is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.

BBB - Debt rated “BBB” is regarded as having an adequate capacity to pay interest and repay principal. Whereas it normally exhibits adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for debt in this category than in higher rated categories.

SPECULATIVE GRADE

Debt rated “BB”, “B”, “CCC”, “CC” and “C” is regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. “BB” indicates the least degree of speculation and “C” the highest. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.

B-1

BB - Debt rated “BB” is less vulnerable to default than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments.

B - Debt rated “B” has a greater vulnerability to default than obligations rated BB but currently has the capacity to meet interest payments and principal repayments. Adverse business, financial, or economic conditions will likely impair capacity or willingness to pay interest and repay principal.

CCC - Debt rated “CCC” is currently vulnerable to default, and is dependent upon favorable business, financial, and economic conditions to meet timely payment of interest and repayment of principal. In the event of adverse business, financial, or economic conditions, it is not likely to have the capacity to pay interest and repay principal.

CC - Debt rated “CC” typically is currently highly vulnerable to nonpayment.

C - Debt rated “C” signifies that a bankruptcy petition has been filed, but debt service payments are continued.

D - Debt rated “D” is in payment default. The “D” rating category is used when interest payments or principal payments are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor’s believes that such payments will be made during such grade period. The “D” rating also will be used upon the filing of a bankruptcy petition if debt service payments are jeopardized.

MOODY’S INVESTORS SERVICE INC. (“Moody’s”) LONG-TERM DEBT RATINGS

Aaa - Bonds which are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edged.” Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.

Aa - Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risk appear somewhat larger than in Aaa securities.

A - Bonds which are rated A possess many favorable investment attributes and are to be considered as upper-medium grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present which suggest a susceptibility to impairment some time in the future.

Baa - Bonds which are rated Baa are considered as medium-grade obligations (i.e., they are neither highly protected nor poorly secured). Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

B-2

Ba - Bonds which are rated Ba are judged to have speculative elements; their future cannot be considered well-assured. Often the protection of interest and principal payments may be very moderate, and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

B - Bonds which are rated B generally lack characteristics of the desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.

Caa - Bonds which are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest.

Ca - Bonds which are rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings.

C - Bonds which are rated C are the lowest rated class of bonds, and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

STATE AND MUNICIPAL NOTES

Excerpts from Moody’s description of state and municipal note ratings:

MIG-1- Notes bearing this designation are of the best quality, enjoying strong protection from established cash flows of funds for their servicing from established and board-based access to the market for refinancing, or both.

MIG-2- Notes bearing this designation are of high quality, with margins of protection ample although not so large as in the preceding group.

MIG-3- Notes bearing this designation are of favorable quality, with all security elements accounted for but lacking the strength of the preceding grade. Market access for refinancing, in particular, is likely to be less well established.

FITCH, INC. BOND RATINGS

Fitch investment grade bond ratings provide a guide to investors in determining the credit risk associated with a particular security. The ratings represent Fitch’s assessment of the issuer’s ability to meet the obligations of a specific debt issue or class of debt in a timely manner.

The rating takes into consideration special features of the issue, its relationship to other obligations of the issuer, the current and prospective financial condition and operating performance of the issuer and any guarantor, as well as the economic and political environment that might affect the issuer’s future financial strength and credit quality.

Fitch ratings do not reflect any credit enhancement that may be provided by insurance policies or financial guaranties unless otherwise indicated.

Bonds that have the same rating are of similar but not necessarily identical credit quality since the rating categories do not fully reflect small differences in the degrees of credit risk.

Fitch ratings are not recommendations to buy, sell, or hold any security ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect of any security.

B-3

Fitch ratings are based on information obtained from issuers, other obligors, underwriters, their experts, and other sources Fitch believes to be reliable. Fitch does not audit or verify the truth or accuracy of such information. Ratings may be changed, suspended, or withdrawn as a result of changes in, or the unavailability of, information or for other reasons.

AAA Bonds considered investment grade and representing the lowest expectation of credit risk. The obligor has an exceptionally strong capacity for timely payment of financial commitments, a capacity that is highly unlikely to be adversely affected by foreseeable events.

AA Bonds considered to be investment grade and of very high credit quality. This rating indicates a very strong capacity for timely payment of financial commitments, a capacity that is not significantly vulnerable to foreseeable events.

A Bonds considered to be investment grade and represent a low expectation of credit risk. This rating indicates a strong capacity for timely payment of financial commitments. This capacity may, nevertheless, be more vulnerable to changes in economic conditions or circumstances than long term debt with higher ratings.

BBB Bonds considered to be in the lowest investment grade and indicates that there is currently low expectation of credit risk. The capacity for timely payment of financial commitments is considered adequate, but adverse changes in economic conditions and circumstances are more likely to impair this capacity.

BB Bonds are considered speculative. This rating indicates that there is a possibility of credit risk developing, particularly as the result of adverse economic changes over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade.

B Bonds are considered highly speculative. This rating indicates that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment.

CCC, CC Bonds are considered a high default risk. Default is a real and C possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic developments. A “CC” rating indicates that default of some kind appears probable. “C” rating signal imminent default.

DDD, DD Bonds are in default. Such bonds are not meeting current and D obligations and are extremely speculative. “DDD” designates the highest potential for recovery of amounts outstanding on any securities involved and “D” represents the lowest potential for recovery.

SHORT-TERM RATINGS

STANDARD & POOR’S COMMERCIAL PAPER RATINGS

A Standard & Poor’s commercial paper rating is a current assessment of the likelihood of timely payment of debt considered short-term in the relevant market.

Ratings are graded into several categories, ranging from `A-1’ for the highest quality obligations to “D” for the lowest. These categories are as follows:

B-4

A-1 - This highest category indicates that the degree of safety regarding timely payment is strong. Those issues determined to possess extremely strong safety characteristics are denoted with a plus sign (+) designation.

A-2 - Capacity for timely payment on issues with this designation is satisfactory. However, the relative degree of safety is not as high as for issues designated “A-1”.

A-3 - Issues carrying this designation have adequate capacity for timely payment. They are, however, more vulnerable to the adverse effects of changes in circumstances than obligations carrying the higher designations.

B - Issues rated “B” are regarded as having only speculative capacity for timely payment.

C - This rating is assigned to short-term debt obligations with doubtful capacity for payment.

D - Debt rated “D” is in payment default. The “D” rating category is used when interest payments or principal payments are not made on the date due, even if the applicable grace period has not expired, unless Standard & Poor’s believes that such payments will be made during such grade period.

STANDARD & POOR’S NOTE RATINGS

A Standard & Poor’s note rating reflects the liquidity factors and market-access risks unique to notes. Notes maturing in three years or less will likely receive a note rating. Notes maturing beyond three years will most likely receive a long-term debt rating.

The following criteria will be used in making the assessment:

1. Amortization schedule - the larger the final maturity relative to other maturities, the more likely the issue is to be treated as a note.

2. Source of payment - the more the issue depends on the market for its refinancing, the more likely it is to be considered a note.

Note rating symbols and definitions are as follows:

SP-1 - Strong capacity to pay principal and interest. Issues determined to possess very strong capacity to pay principal and interest are given a plus (+) designation.

SP-2 - Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the term of the notes.

SP-3 - Speculative capacity to pay principal and interest.

MOODY’S SHORT-TERM RATINGS

Moody’s short-term debt ratings are opinions on the ability of issuers to repay punctually senior debt obligations. These obligations have an original maturity not exceeding one year, unless explicitly noted. Moody’s employs the following three designations, all judged to be investment grade, to indicate the relative repayment capacity of rated issuers:

B-5

Issuers rated Prime-1 (or supporting institutions) have a superior capacity for repayment of senior short-term debt obligations. Prime-1 repayment capacity will normally be evidenced by the following characteristics: (I) leading market positions in well established industries, (II) high rates of return on funds employed, (III) conservative capitalization structures with moderate reliance on debt and ample asset protection, (IV) broad margins in earnings coverage of fixed financial charges and high internal cash generation, and (V) well established access to a range of financial markets and assured sources of alternative liquidity.

Issuers rated Prime-2 (or supporting institutions) have a strong capacity for repayment of short-term promissory obligations. This will normally be evidenced by many of the characteristics cited above, but to a lesser degree. Earnings trends and coverage ratios, while sound, will be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained.

Issuers rated Prime-3 (or supporting institutions) have an acceptable capacity for repayment of short-term promissory obligations. The effect of industry characteristics and market composition may be more pronounced. Variability in earnings and profitability may result in changes in the level of debt protection measurements and may require relatively high financial leverage. Adequate alternate liquidity is maintained.

Issuers rated Not Prime do not fall within any of the prime rating categories.

MOODY’S NOTE RATINGS

MIG 1/VMIG 1 - This designation denotes best quality. There is present strong protection by established cash flows, superior liquidity support or demonstrated broad based access to the market for refinancing.

MIG 2/VMIG 2 - This designation denotes high quality. Margins of protection are ample although not so large as in the preceding group.

MIG 3/VMIG 3 - This designation denotes favorable quality. All security elements are accounted for but there is lacking the undeniable strength of the preceding grades. Liquidity and cash flow protection may be narrow and market access for refinancing is likely to be less well established.

SG - This designation denotes speculative quality. Debt instruments in this category lack margins of protection.

FITCH’S SHORT-TERM RATINGS

Fitch’s short-term ratings apply to debt obligations that are payable on demand or have original maturities of up to three years, including commercial paper, certificates of deposit, medium-term notes, and municipal and investment notes.

The short-term rating places greater emphasis than a long-term rating on the existence of liquidity necessary to meet the issuer’s obligations in a timely manner.

F-1+ - Exceptionally strong credit quality. Issues assigned this rating are regarded as having the strongest degree of assurance for timely payment.

B-6

F-1 - Very strong credit quality. Issues assigned this rating reflect an assurance of timely payment only slightly less in degree than issues rated F-1+.

F-2 - Good credit quality. Issues assigned this rating have a satisfactory degree of assurance for timely payment but the margin of safety is not as great as for issues assigned F-1+ and F-1 ratings.

B-7

APPENDIX C - PROXY VOTING POLICIES AND PROCEDURES

Aberdeen U.S. Registered Advisers
Summary of Proxy Voting Guidelines

as of August 29, 2012

Aberdeen and its affiliated U.S. registered advisers (the “Aberdeen Advisers”) have adopted a proxy voting policy. The proxy voting policy is designed and implemented in a way that is reasonably expected to ensure that proxies are voted in the best economic interests of clients, that is, the common interest that all clients share in seeing the value of a common investment increase over time. Proxies are voted with the aim of furthering the best economic interests of clients, promoting high levels of corporate governance and adequate disclosure of company policies, activities and returns, including fair and equal treatment of stockholders.

The Aberdeen Advisers seek to develop relationships with the management of portfolio companies to encourage transparency and improvements in the treatment of employees, owners and stakeholders. Thus, the Aberdeen Advisers may engage in dialogue with the management of portfolio companies with respect to pending proxy voting issues. In voting proxies, the Aberdeen Advisers may conduct research internally and/or use the resources of an independent research consultant. The Aberdeen Advisers may consider legislative materials, studies of corporate governance and other proxy voting issues, and/or analyses of shareholder and management proposals by a certain sector of companies, e.g., Fortune 500 companies.

The proxy voting policy is a guideline. Each vote is ultimately cast on a case-by-case basis, taking into consideration the contractual obligations under the advisory agreement or comparable document, and all other relevant facts and circumstances at the time of the vote. The Aberdeen Advisers may cast proxy votes in favor of management proposals or seek to change the views of management, considering specific issues as they arise on their merits. The Aberdeen Advisers may also join with other investment managers in seeking to submit a shareholder proposal to a company or to oppose a proposal submitted by the company. Such action may be based on fundamental, social, environmental or human rights grounds.

Material conflicts are resolved in the best interest of clients. A material conflict of interest includes those circumstances when the Aberdeen Advisers or any member of senior management, portfolio manager or portfolio analyst knowingly does business with a particular proxy issuer or closely affiliated entity, which may appear to create a material conflict between the interests of an Aberdeen Adviser and the interests of its clients in how proxies of that issuer are voted. A material conflict of interest might also exist in unusual circumstances when an Aberdeen Adviser has actual knowledge of a material business arrangement between a particular proxy issuer or closely affiliated entity and an affiliate of the Aberdeen Advisers.

When a material conflict of interest between an Aberdeen Adviser’s interests and its clients’ interests appears to exist, the Aberdeen Adviser may choose among the following options to eliminate such conflict: (1) vote in accordance with the proxy voting policy if it involves little or no discretion; (2) vote as recommended by a third party service if the Aberdeen Adviser utilizes such a service; (3) “echo vote” or “mirror vote” the proxies in the same proportion as the votes of other proxy holders that are not the Aberdeen Adviser’s clients; (4) if possible, erect information barriers around the person or persons making voting decisions sufficient to insulate the decision from the conflict; (5) if practical, notify affected clients of the conflict of interest and seek a waiver of the conflict; or (6) if agreed upon in writing with the client, forward the proxies to affected clients allowing them to vote their own proxies.

In certain circumstances, the Aberdeen Advisers may take a limited role in voting proxies. Some of these circumstances may include, but are not limited to, when the effect on shareholders’ economic interests or the value of the portfolio holding is indeterminable or insignificant; for cost reasons (e.g., non-U.S. securities); if the securities are on loan; or if a jurisdictions has imposed share blocking restrictions that prevents the Aberdeen Advisers from exercising their voting authority.

C-1

PART C: OTHER INFORMATION

Item 28. Exhibits

(a) (1) Amended and Restated Agreement and Declaration of Trust of Registrant is incorporated by reference to Exhibit EX-99.a.1 of Post-Effective Amendment No. 1 to the Registrant’s Registration Statement on Form N-1A as filed on March 13, 2008 (Accession Number 0001104659-08-017390) (“Post-Effective Amendment No. 1”).

(a) Amendment No. 1 to the Amended and Restated Agreement and Declaration of Trust of Registrant is incorporated by reference to Exhibit EX-99.a.1.a. of Post-Effective Amendment No. 2 to the Registrant’s Registration Statement on Form N-1A as filed on June 23, 2008 (Accession Number 0001193125-08-138324) (“Post-Effective Amendment No. 2”).

(b) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen Global Fixed Income Fund, Aberdeen Global Small Cap Fund, Aberdeen International Focus Fund, Aberdeen International Focus Portfolio and Aberdeen Asia Bond Fund is incorporated by reference to Exhibit EX-99.a.1.c. of Post-Effective Amendment No. 11 to the Registrant’s Registration Statement on Form N-1A as filed on April 22, 2009 (Accession Number 0001104659-09-025445) (“Post-Effective Amendment No. 11”).

(c) Certificate of Establishment and Designation of Additional Series and Share Class of Aberdeen Funds establishing the Aberdeen Emerging Markets Institutional Fund is incorporated by reference to Exhibit EX-99.a.1.d. of Post-Effective Amendment No. 14 to the Registrant’s Registration Statement on Form N-1A as filed on July 20, 2009 (Accession Number 0001104659-09-043743) (“Post-Effective Amendment No. 14”).

(d) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen Asia-Pacific (ex-Japan) Institutional Fund and Institutional Service Class for the Aberdeen International Equity Institutional Fund, Aberdeen Asia Bond Institutional Fund and Aberdeen Emerging Markets Institutional Fund is incorporated by reference to Exhibit EX-99.a.1.e. of Post-Effective Amendment No. 19 to the Registrant’s Registration Statement on Form N-1A as filed on October 28, 2009 (Accession Number 0001135428-09-000523) (“Post-Effective Amendment No. 19”).

(e) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen Emerging Markets Debt Local Currency Fund, Aberdeen Global High Yield Bond Fund and Aberdeen Ultra-Short Duration Bond Fund is incorporated by reference to Exhibit EX-99.a.1.f. of Post-Effective Amendment No. 28 to the Registrant’s Registration Statement on Form N-1A as filed on October 4, 2010 (Accession Number 0001104659-10-051121) (“Post-Effective Amendment No. 28”).

(f) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen Asia-Pacific Smaller Companies Fund is incorporated by reference to Exhibit EX-99.a.1.g. of Post-Effective Amendment No. 34 to the Registrant’s Registration Statement on Form N-1A as filed on April 4, 2011 (Accession Number 0001104659-11-018407) (“Post-Effective Amendment No. 34”).

(g) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen U.S. Equity I Fund and Aberdeen U.S. Equity II Fund is incorporated by reference to Exhibit EX-99.a.1.g. of Post-Effective Amendment No. 39 to the Registrant’s Registration Statement on Form N-1A as filed on August 12, 2011 (Accession Number 0001104659-11-046544) (“Post-Effective Amendment No. 39”).

(h) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen U.S. High Yield Bond Fund is incorporated by reference to Exhibit EX-99.a.1.g. of Post-Effective Amendment No. 43 to the Registrant’s Registration Statement on Form N-1A as filed on December 15, 2011 (Accession Number 0001104659-11-069674) (“Post-Effective Amendment No. 43”).

(i) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen Emerging Markets Debt Fund is incorporated by reference to Exhibit EX-99.a.1.j of Post-Effective Amendment No.47 to the Registrant’s Registration Statement on Form N-1A as filed on June 15, 2012 (SEC Accession No. 0001104659-12-043873) (“Post-Effective Amendment No. 47”).

(j) Certificate of Establishment and Designation of Additional Series and Share Classes of Aberdeen Funds establishing the Aberdeen European Equity Fund and Aberdeen Latin American Equity Fund

is incorporated by reference to Exhibit EX-99.a.1.k of Post-Effective Amendment No.54 to the Registrant’s Registration Statement on Form N-1A as filed on December 11, 2012 (SEC Accession No. 00011-04659-12-083265) (“Post-Effective Amendment No. 54”).

(2) Certificate of Trust of Registrant, as filed with the Office of the Secretary of State of the State of Delaware on September 27, 2007, is incorporated by reference to the Registrant’s initial Registration Statement on Form N-1A as filed on October 12, 2007 (Accession Number 0001137439-07-000471).

(b) Amended and Restated By-Laws of Registrant are incorporated by reference to Pre-effective Amendment No. 1 to the Registrant’s initial Registration Statement on Form N-1A as filed on January 18, 2008 (Accession Number 0001386893-08-000026) (“Pre-effective Amendment No. 1”).

(c) (1) See Article III, “Shares,” and Article V, “Shareholders’ Voting Powers and Meetings,” of Registrant’s Amended and Restated Agreement and Declaration of Trust.

(2) See Article II, “Meetings of Shareholders,” of Registrant’s Amended and Restated By-Laws.

(d) (1) Investment Advisory Agreement between Registrant and Aberdeen Asset Management Inc. (“AAMI”) is incorporated by reference to Exhibit EX-99.d.1. of Post-Effective Amendment No. 2 filed on June 23, 2008.

(a) Exhibit A to the Investment Advisory Agreement between Registrant and AAMI is filed herewith as Exhibit EX-99.d.1.a.

(2) Subadvisory Agreement between Registrant, AAMI and Aberdeen Asset Management Asia Limited (“AAMAL”) is incorporated by reference to Exhibit EX-99.d.3. of Post-Effective Amendment No. 28 filed on October 4, 2010.

(a) Exhibit A to the Subadvisory Agreement between Registrant, AAMI and AAMAL is incorporated by reference to Exhibit EX-99.d.2.a. of Post-Effective Amendment No. 60 filed on December 26, 2013.

(3) Subadvisory Agreement between Registrant, AAMI and Aberdeen Asset Managers Limited (“AAML”) is incorporated by reference to Exhibit EX-99.d.4. of Post-Effective Amendment No. 47 filed on June 15, 2012.

(a) Exhibit A to the Subadvisory Agreement between Registrant, AAMI and AAML is incorporated by reference to Exhibit EX-99.d.3.a. of Post-Effective Amendment No. 60 filed on December 26, 2013.

(e) (1) Underwriting Agreement between Registrant and Aberdeen Fund Distributors, LLC is incorporated by reference to Exhibit EX-99.e.1. of Post-Effective Amendment No. 2 filed on June 23, 2008.

(a) Schedule A to the Underwriting Agreement between Registrant and Aberdeen Fund Distributors, LLC is filed herewith as Exhibit EX-99.e.1.a.

(2) Form of Dealer Agreement is incorporated by reference to Exhibit EX-99.e.2. of Post-Effective Amendment No. 60 filed on December 26, 2013.

(f) Not Applicable.

(g) (1) Amended and Restated Master Custodian Agreement between Registrant and State Street Bank and Trust Company is incorporated by reference to Exhibit EX-99.g. of Post-Effective Amendment No. 26 to the Registrant’s Registration Statement on Form N-1A as filed on July 12, 2010 (Accession No. 0001104659-10-037599) (“Post-Effective Amendment No. 26”).

(a) Amendment dated March 5, 2014 to the Amended and Restated Master Custodian Agreement is filed herewith as Exhibit EX-99.g.1.a.

(b) Letter Amendment dated January 27, 2015 to the Amended and Restated Master Custodian Agreement is filed herewith as Exhibit EX-99.g.1.b.

(h) (1) Fund Administration Agreement between Registrant and AAMI is incorporated by reference to Exhibit EX-99.h.1. of Post-Effective Amendment No. 2 filed on June 23, 2008.

(a) Exhibit B to the Fund Administration Agreement between Registrant and AAMI is filed herewith as Exhibit EX-99.h.1.a.

(2) Transfer Agency and Service Agreement between Registrant and Boston Financial Data Services, Inc. is incorporated by reference to Exhibit EX-99.h.2. of Post-Effective Amendment No. 39 filed on August 12, 2011.

(a) Amendment dated September 18, 2014 to the Transfer Agency and Service Agreement between Registrant and Boston Financial Data Services, Inc. is filed herewith as Exhibit EX-99.h.2.a.

(b) Amendment dated February 3, 2015 to the Transfer Agency and Service Agreement between Registrant and Boston Financial Data Services, Inc. is filed herewith as Exhibit EX-99.h.2.b.

(3) Sub-Administration Agreement between AAMI and State Street Bank and Trust Company is incorporated by reference to Exhibit EX-99.h.3 of Post-Effective Amendment No. 26 filed on July 12, 2010.

(a) Letter Amendment and Updated Schedule A to the Sub-Administration Agreement between AAMI and State Street Bank and Trust Company is filed herewith as Exhibit EX-99.h.3.a.

(4) Administrative Services Plan is incorporated by reference to Exhibit EX-99.h.4. of Post-Effective Amendment No. 8 to the Registrant’s Registration Statement on Form N-1A as filed on February 6, 2009 (Accession Number 0001386893-09-000028).

(a) Exhibit A to the Administrative Services Plan is incorporated by reference to Exhibit EX-99.h.4.a of Post-Effective Amendment No. 57 to the Registration Statement on Form N-1A as filed on March 7, 2013 (Accession No. 0001104659-13-018215) (“Post-Effective Amendment No. 57”).

(5) Form of Servicing Agreement is filed herewith as Exhibit EX-99.h.5.

(6) Amended and Restated Expense Limitation Agreement is filed herewith as Exhibit EX-99.h.6.

(7) Short-Sale Brokerage Expense Limitation Agreement for Aberdeen Equity Long-Short Fund is filed herewith as Exhibit EX-99.h.7.

(i) (1) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for initial 26 Funds (Stradley Ronon Stevens & Young, LLP) is incorporated by reference to Exhibit EX-99.i of Post-Effective Amendment No. 2 filed on June 23, 2008.

(2) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen Asia Bond Institutional Fund, Aberdeen Global Fixed Income Fund, Aberdeen Global Small Cap Fund and Aberdeen International Equity Institutional Fund (Stradley Ronon Stevens & Young, LLP) is incorporated by reference to Exhibit EX-99.i.3. of Post-Effective Amendment No. 14 filed on July 20, 2009.

(3) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen Emerging Markets Institutional Fund (Stradley Ronon Stevens & Young, LLP) is incorporated by reference to Exhibit EX-99.i.4. of Post-Effective Amendment No. 14 filed on July 20, 2009.

(4) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Institutional Service Class Shares of Aberdeen Asia Bond Institutional Fund, Aberdeen International Equity Institutional Fund and Aberdeen Emerging Markets Institutional Fund (Stradley Ronon Stevens &

Young, LLP) is incorporated by reference to Exhibit EX-99.i.5. of Post-Effective Amendment No. 21 to the Registrant’s Registration Statement on Form N-1A as filed on November 6, 2009 (Accession Number 0001421877-09-000283) (“Post-Effective Amendment No. 21”).

(5) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen Asia-Pacific (ex-Japan) Equity Institutional Fund (Stradley Ronon Stevens & Young, LLP) is incorporated by reference to Exhibit EX-99.i.6. of Post-Effective Amendment No. 21 filed on November 6, 2009.

(6) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen Emerging Markets Debt Local Currency Fund, Aberdeen Global High Yield Bond Fund and Aberdeen Ultra-Short Duration Bond Fund is incorporated by reference to Exhibit EX-99.i.7. of Post-Effective Amendment No. 28 filed on October 4, 2010.

(7) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen Asia-Pacific Smaller Companies Fund is incorporated by reference to Exhibit EX-99.i.8. of Post-Effective Amendment No. 34 filed on April 4, 2011.

(8) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen U.S. Equity I Fund and Aberdeen U.S. Equity II Fund is incorporated by reference to Exhibit EX-99.i.7. of Post-Effective Amendment No. 39 filed on August 12, 2011.

(9) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen U.S. High Yield Bond Fund is incorporated by reference to Exhibit EX-99.h.i.10. of Post-Effective Amendment No. 43 filed on December 15, 2011.

(10) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen Emerging Markets Debt Fund is incorporated by reference to Exhibit EX 99.i.11 of Post-Effective Amendment No. 47 filed on June 15, 2012.

(11) Opinion and Consent of Counsel that shares will be legally issued, fully paid and non-assessable for the Aberdeen European Equity Fund and Aberdeen Latin American Equity Fund is incorporated by reference to Exhibit-99.i.12 of Post-Effective Amendment No. 56 as filed on February 25, 2013.

(12) Opinion and Consent of Counsel that Class R, Institutional Class and Institutional Service Class shares will be legally issued, fully paid and non-assessable for the Aberdeen Tax-Free Income Fund is incorporated by reference to Exhibit EX-99.i.13 of Post-Effective Amendment No. 56 as filed on February 25, 2013.

(j) Consent of KPMG LLP, independent registered public accounting firm, is filed herewith as Exhibit EX-99.j.

(k) Not Applicable.

(l) Initial Capital Agreement between Registrant and AAMI is incorporated by reference to Pre-effective Amendment No. 2 to the Registrant’s initial Registration Statement on Form N-1A as filed on February 5, 2008 (Accession No. 000137439-08-000064).

(m) Distribution Plan is filed herewith as Exhibit EX-99.m.

(n) Rule 18f-3 Plan is filed herewith as Exhibit EX-99.n.

(o) Reserved.

(p) (1) Code of Ethics of Registrant is incorporated by reference to Exhibit EX-99.p.1 of Post-Effective Amendment No. 43 filed on December 15, 2011.

(2) Code of Ethics of AAMI, Aberdeen Asset Managers Limited, Aberdeen Asset Management Asia Limited and Aberdeen Fund Distributors, LLC is filed herewith as Exhibit EX-99.p.2.

(q) (1) Power of Attorney with respect to the Trust for P. Gerald Malone, Warren C. Smith, Richard H. McCoy, Jack Solan, Peter D. Sacks, Martin Gilbert, Neville Miles, and John T. Sheehy is filed herewith as Exhibit EX-99.q.1.

(2) Power of Attorney with respect to the Trust for Bev Hendry, Andrea Melia, Alan Goodson, Megan Kennedy, Jennifer Nichols and Lucia Sitar is filed herewith as Exhibit EX-99.q.2.

(3) Certificate of Secretary is filed herewith as Exhibit EX-99.q.3.

Item 29. Persons Controlled by or under Common Control with Registrant.

No person is controlled by or under common control with the Registrant.

Item 30. Indemnification

(a) Article VII, Section 2 of the Registrant’s Agreement and Declaration of Trust (“Trust Declaration”) provides that the Registrant (the “Trust”), out of the Trust Property, shall indemnify and hold harmless each and every officer and trustee from and against any and all claims and demands whatsoever arising out of or related to such officer’s or trustee’s performance of his or her duties as an officer or trustee of the Trust. This limitation on liability applies to events occurring at the time a person serves as a trustee or officer of the Trust whether or not such person is a trustee or officer at the time of any proceeding in which liability is asserted. Nothing in the Trust Declaration shall indemnify, hold harmless or

protect any officer or trustee from or against any liability to the Trust or any shareholder to which such person would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person’s office (such conduct referred to herein as “Disqualifying Conduct”).

For the purpose of this indemnification and limitation of liability, “Agent” means any person who is or was a trustee, officer, employee or other agent of the Trust or is or was serving at the request of the Trust as a trustee, director, officer, employee or other agent of another foreign or domestic corporation, partnership, joint venture, trust or other enterprise; “Proceeding” means any threatened, pending or completed action or proceeding, whether civil, criminal, administrative or investigative. To the fullest extent that limitations on the liability of Agents are permitted by the Delaware Statutory Trust Act, as amended, and other applicable law, the Agents shall not be responsible or liable in any event for any act or omission of any other Agent of the Trust or any investment adviser or principal underwriter of the Trust. No amendment or repeal of Article VII of the Trust Declaration regarding indemnification shall adversely affect any right or protection of an Agent that exists at the time of such amendment or repeal.

(b) The Registrant’s Trust Declaration provides that to the fullest extent permitted by applicable law, the officers and Trustees shall be entitled and have the authority to purchase with Trust Property, insurance for liability and for all expenses reasonably incurred or paid or expected to be paid by a Trustee or officer in connection with any claim, action, suit or proceeding in which such Person becomes involved by virtue of such Person’s capacity or former capacity with the Trust, whether or not the Trust would have the power to indemnify such Person against such liability under the provisions of Article VII of the Trust Declaration.

(c) In addition, indemnification against certain liabilities of the Registrant’s trustees and officers and the Registrant’s sub-advisers, administrator, principal underwriter and custodian are provided in: (1) Section 7(b) of the Investment Advisory Agreement between the Registrant and Aberdeen Asset Management, Inc. (“AAMI”) (2) Section 10 of the Sub-Advisory Agreements among the Registrant, AAMI and each of the following sub-advisers; (a) Aberdeen Asset Management Asia Limited and (b) Aberdeen Asset Managers Limited; (3) Section 9(a) and (b) of the Underwriting Agreement between the Registrant and Aberdeen Fund Distributors, LLC; (4) Section 8 of the Transfer Agency and Service Agreement between the Registrant and Boston Financial Data Services, Inc. and (g) Section 17 of the Amended and Restated Master Custodian Agreement between the Registrant and State Street Bank and Trust Company. Generally, such indemnification does not apply to any liabilities by reason of willful misfeasance, bad faith or gross negligence and reckless disregard of duties. These Agreements are incorporated herein by reference to Item 28.

Item 31. Business and Other Connections of the Investment Adviser.

The Registrant’s investment adviser, Aberdeen Asset Management Inc. (“AAMI”), is a Delaware corporation. In addition to providing investment advisory services to registered management investment companies, AAMI provides investment advisory services to individual accounts. Additional information as to AAMI and the directors and officers of AAMI is included in AAMI’s Form ADV filed with the U.S. Securities and Exchange Commission (“SEC”) (File No. 801-49966), which is incorporated herein by reference and sets forth the officers and directors of AAMI and information as to any business, profession, vocation or employment of a substantial nature engaged in by AAMI and such officers and directors during the past two years.

The Registrant’s subadviser, Aberdeen Asset Managers Limited (“AAML”), is a Scottish company. Additional information as to AAML and the directors and officers of AAML is included in AAML’s Form ADV filed with the SEC (File No. 801-75074), which is incorporated herein by reference and sets forth the officers and directors of AAML and information as to any business, profession, vocation or employment of a substantial nature engaged in by AAML and such officers and directors during the past two years.

The Registrant’s subadviser, Aberdeen Asset Management Asia Limited (“AAMAL”), is a Singapore corporation. Additional information as to AAMAL and the directors and officers of AAMAL is included in AAMAL’s Form ADV filed with the SEC (File No. 801-62020), which is incorporated herein by reference and sets forth the officers and directors of AAMAL and information as to any business, profession, vocation or employment of a substantial nature engaged in by AAMAL and such officers and directors during the past two years.

Item 32. Principal Underwriters.

(a) Aberdeen Fund Distributors, LLC (the “Distributor”) acts as principal underwriter for the Registrant and each of its series. The Distributor also serves as the principal underwriter for Aberdeen Investment Funds.

(b)

Name	Position with Underwriter	Position with Registrant

Mickey Janvier 1735 Market Street, 32 nd Floor Philadelphia, PA 19103	Chief Executive Officer	None

Jeffrey Cotton 1735 Market Street, 32 nd Floor Philadelphia, PA 19103	Chief Compliance Officer	Vice President and Chief Compliance Officer

Chad Kirschenblatt 100 Quentin Roosevelt Blvd. Suite 516 Garden City, NY 11530	Financial Operations Principal	None

Item 33. Location of Accounts and Records.

All accounts, books and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, as amended, and the rules thereunder will be maintained at the offices of Boston Financial Data Services, Inc. 30 Dan Road, Canton, MA 02021 with the exception of those maintained by the Registrant’s investment adviser, Aberdeen Asset Management Inc. at 1735 Market Street, 32 nd Floor, Philadelphia, PA 19103.

Item 34. Management Services.

Not Applicable.

Item 35. Undertakings.

Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to Trustees, officers and controlling persons of the Registrant pursuant to the provisions described in response to Item 30, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a Trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such Trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, as amended (the “Securities Act”), and the Investment Company Act of 1940, as amended, the Registrant certifies that it meets all of the requirements for effectiveness of this Post-Effective Amendment No. 63 to this registration statement under Rule 485(b) under the Securities Act and has duly caused this Post-Effective Amendment No. 63 to this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Philadelphia, and the Commonwealth of Pennsylvania on the 27 th day of February, 2015.

	Aberdeen Funds
	Registrant

	By:	/s/ Bev Hendry(1)
		Bev Hendry
		President of Aberdeen Funds

Pursuant to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and on the date indicated.

Name	Title	Date

/s/ Bev Hendry(1)	President and Chief Executive Officer	February 27, 2015
Bev Hendry

/s/ Andrea Melia(1)	Treasurer, Chief Financial Officer And Principal Accounting Officer	February 27, 2015
Andrea Melia

/s/ P. Gerald Malone(1)	Chairman of the Board	February 27, 2015
P. Gerald Malone

/s/ Richard H. McCoy(1)	Trustee	February 27, 2015
Richard H. McCoy

/s/ Peter D. Sacks(1)	Trustee	February 27, 2015
Peter D. Sacks

/s/ John T. Sheehy(1)	Trustee	February 27, 2015
John T. Sheehy

/s/ Warren C. Smith(1)	Trustee	February 27, 2015
Warren C. Smith

(1) Pursuant to a power of attorney filed herewith.

Name	Title	Date

/s/ Jack Solan(1)	Trustee	February 27, 2015
Jack Solan

/s/ Neville Miles(1)	Trustee	February 27, 2015
Neville Miles

/s/ Martin Gilbert(1)	Trustee	February 27, 2015
Martin Gilbert

By:	/s/ Lucia Sitar
	Lucia Sitar
	Attorney In Fact

(1) Pursuant to a power of attorney filed herewith.

Exhibit List

Exhibit Number		Exhibit

EX-99.d.1.a		Exhibit A to the Investment Advisory Agreement between Registrant and AAMI

EX-99.e.1.a		Schedule A to the Underwriting Agreement between Registrant and Aberdeen Fund Distributors, LLC

EX-99.g.1.a		Amendment dated March 5, 2014 to Amended and Restated Master Custodian Agreement between State Street and Registrant

EX-99.g.1.b		Letter Amendment dated January 27, 2015 to Amended and Restated Master Custodian Agreement between State Street and Registrant

EX-99.h.1.a		Exhibit B to the Fund Administration Agreement between Registrant and AAMI

EX-99.h.2.a		Amendment dated September 18, 2014 to the Transfer Agency and Service Agreement between Registrant and Boston Financial Data Services, Inc.

EX-99.h.2.b		Amendment dated February 3, 2015 to the Transfer Agency and Service Agreement between Registrant and Boston Financial Data Services, Inc.

EX-99.h.3.a		Letter Amendment and Updated Schedule A to the Sub-Administration Agreement between AAMI and State Street Bank and Trust Company

EX-99.h.5		Form of Servicing Agreement

EX-99.h.6		Amended and Restated Expense Limitation Agreement

EX-99.h.7		Short-Sale Brokerage Expense Limitation Agreement for Aberdeen Equity Long-Short Fund

EX-99.j		Consent of KPMG LLP, independent registered public accounting firm

EX-99.m		Distribution Plan

EX-99.n		Rule 18f-3 Plan

EX-99.p.2		Code of Ethics of AAMI, Aberdeen Asset Managers Limited, Aberdeen Asset Management Asia Limited and Aberdeen Fund Distributors, LLC

EX-99.q.1		Power of Attorney with respect to the Trust for P. Gerald Malone, Warren C. Smith, Richard H. McCoy, Jack Solan, Peter D. Sacks, Martin Gilbert, Neville Miles, and John T. Sheehy

EX-99.q.2		Power of Attorney with respect to the Trust for Bev Hendry, Andrea Melia, Alan Goodson, Megan Kennedy, Jennifer Nichols and Lucia Sitar

EX-99.q.3		Certificate of Secretary

Exhibit 99.(d)(1)(a)

EXHIBIT A*

INVESTMENT ADVISORY AGREEMENT

BETWEEN

ABERDEEN ASSET MANAGEMENT INC. AND ABERDEEN FUNDS

Fund	Assets	Investment Advisory Fee
Aberdeen Tax-Free Income Fund	$0 up to $250 million	0.425	%
	$250 million up to $1 billion	0.375	%
	$1 billion and more	0.355	%
Aberdeen Small Cap Fund	up to $100 million	0.95	%
	$100 million or more	0.80	%
Aberdeen Global Natural Resources Fund	$0 up to $500 million	0.70	%
	$500 million up to $2 billion	0.65	%
	$2 billion and more	0.60	%
Aberdeen Equity Long-Short Fund****	$0 up to $1 billion	1.15	%
	$1 billion and more	1.00	%
AberdeenChina Opportunities Fund	$0 up to $500 million	1.25	%
	$500 million up to $2 billion	1.20	%
	$2 billion and more	1.15	%
Aberdeen Diversified Income Fund (formerly, Aberdeen Optimal Allocations Fund: Moderate)	All Assets	0.15	%
Aberdeen Dynamic Allocation Fund (formerly, Aberdeen Optimal Allocations Fund: Moderate Growth)	All Assets	0.15	%
Aberdeen Diversified Alternatives Fund (formerly, Aberdeen Optimal Allocations Fund: Specialty)	All Assets	0.15	%
Aberdeen Global Equity Fund	$0 up to $500 million	0.90	%
	$500 million up to $2 billion	0.85	%
	$2 billion and more	0.80	%
Aberdeen Core Fixed Income Fund**	$0 up to $2 billion	0.30	%
	$2 billion up to $5 billion	0.275	%
	$5 billion or more	0.25	%
Aberdeen Asia Bond Fund	All Assets	0.50	%
Aberdeen Global Fixed Income Fund***	$0 up to $500 million	0.60	%
	$500 million up to $1 billion	0.55	%
	$1 billion and more	0.50	%

Fund	Assets	Investment Advisory Fee
Aberdeen Global Small Cap Fund***	$0 up to $100 million	1.25	%
	$100 million and more	1.00	%
Aberdeen International Equity Fund	All Assets	0.80	%
Aberdeen Emerging Markets Fund (formerly, Aberdeen Emerging Markets Institutional Fund)	All Assets	0.90	%
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	All Assets	1.00	%
Aberdeen Emerging Markets Debt Local Currency Fund	$0 up to $500 million	0.80	%
	$500 million and more	0.75	%
Aberdeen Ultra-Short Duration Bond Fund	All Assets	0.20	%
Aberdeen Asia-Pacific Smaller Companies Fund	$0 up to $500 million	1.30	%
	$500 million up to $2 billion	1.25	%
	$2 billion and more	1.15	%
Aberdeen U.S. Equity Fund	$0 up to $500 million	0.75	%
	$500 million up to $2 billion	0.70	%
	$2 billion and more	0.65	%
Aberdeen High Yield Fund (formerly, Aberdeen U.S. High Yield Bond Fund)	$0 up to $500 million $500 million and more	0.60 0.55	% %
Aberdeen Emerging Markets Debt Fund	$0 up to $500 million	0.75	%
	$500 million and more	0.70	%
Aberdeen European Equity Fund	$0 up to $500 million	0.90	%
	$500 million to $2 billion	0.85	%
	$2 billion and more	0.80	%
Aberdeen Latin American Equity Fund	$0 up to $500 million	1.10	%
	$500 million to $2 billion	1.05	%
	$2 billion and more	1.00	%

* As most recently approved at the December 10, 2014 Board Meeting.

** On December 10, 2014, the Board of Trustees of the Trust approved the liquidation of the Core Fixed Income Fund. The Core Fixed Income Fund shall be deemed removed from this Exhibit A effective upon its liquidation, to take place on or about February 12, 2015.

*** Rates effective as of July 1, 2010.

**** Rates effective as of February 27, 2011.

Exhibit 99.(e)(1)(a)

Schedule A *

Underwriting Agreement

between Aberdeen Funds and

Aberdeen Fund Distributors, LLC

Name of Fund

Aberdeen Global Equity Fund
Aberdeen China Opportunities Fund
Aberdeen Equity Long-Short Fund
Aberdeen Global Natural Resources Fund
Aberdeen Diversified Income Fund
(formerly, Aberdeen Optimal Allocations Fund: Moderate)
Aberdeen Dynamic Allocation Fund
(formerly, Aberdeen Optimal Allocations Fund: Moderate Growth)
Aberdeen Diversified Alternatives Fund
(formerly, Aberdeen Optimal Allocations Fund: Specialty)
Aberdeen Small Cap Fund
Aberdeen Tax-Free Income Fund
Aberdeen Core Fixed Income Fund*
Aberdeen Global Fixed Income Fund
Aberdeen Global Small Cap Fund
Aberdeen Asia Bond Fund
Aberdeen International Equity Fund
Aberdeen Emerging Markets Fund
(formerly, Aberdeen Emerging Markets Institutional Fund)
Aberdeen Asia-Pacific (ex-Japan) Equity Fund

Aberdeen Emerging Markets Debt Local Currency Fund
Aberdeen Ultra-Short Duration Bond Fund
Aberdeen Asia-Pacific Smaller Companies Fund
Aberdeen U.S. Equity Fund
Aberdeen U.S. High Yield Bond Fund
(formerly, Aberdeen U.S. High Yield Bond Fund)
Aberdeen Emerging Markets Debt Fund
Aberdeen European Equity Fund
Aberdeen Latin American Equity Fund

* On December 10, 2014, the Board of Trustees of the Trust approved the liquidation of the Aberdeen Core Fixed Income Fund. The Core Fixed Income Fund shall be deemed removed from this Schedule A effective upon its liquidation, to take place on or about February 12, 2015.

Exhibit 99.(g)(1)(a)

FORM OF

AMENDMENT TO MASTER CUSTODIAN AGREEMENT

THIS AMENDMENT TO THE MASTER CUSTODIAN AGREEMENT (the “Amendment”) is made and entered into as of March 5, 2014 by and among the funds that are parties to the Master Custodian Agreement dated as of June 1, 2010, as amended (the “Agreement”) as listed on Appendix A, which shall be amended from time to time (the “Fund Parties”), and STATE STREET BANK AND TRUST COMPANY , a Massachusetts trust company (the “Custodian”).

WITNESSETH:

WHEREAS , the Fund Parties and Custodian are parties to the Agreement; and

WHEREAS , Fund and Custodian desire to amend and supplement the Agreement upon the following terms and conditions.

NOW THEREFORE , for and in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Fund Parties and Custodian hereby agree that the Agreement is amended and supplemented as follows:

1. Section 2.6 of the Agreement is hereby amended to read:

“SECTION 2.6 PAYMENT OF FUND MONIES. The Custodian shall pay out monies of a Portfolio as provided in Section 5 and otherwise upon receipt of Proper Instructions signed by an authorized person on behalf of the applicable Portfolio, which may be continuing instructions when deemed appropriate by the parties. Proper Instructions for the payment of fund expenses or extraordinary cash movements greater than $50,000 must be signed by two (2) authorized persons on behalf of the applicable Portfolio. The Custodian shall pay out monies of a Portfolio in the following cases only:”

[Note: the subsections that follow remain unchanged]

2. General Provisions. This Amendment will at all times and in all respects be construed, interpreted, and governed by the laws of The Commonwealth of Massachusetts, without giving effect to the conflict of laws provisions thereof. This Amendment may be executed in any number of counterparts, each constituting an original and all considered one and the same agreement. This Amendment is intended to modify and amend the Agreement and the terms of this Amendment and the Agreement are to be construed to be cumulative and not exclusive of each other. Except as provided herein, the Agreement is hereby ratified and confirmed and remains in full force and effect.

[ The remainder of the page has been left blank intentionally. ]

IN WITNESS WHEREOF , the parties have caused this Amendment to be executed by their duly authorized officers to be effective as of the date first above written.

STATE STREET BANK AND TRUST COMPANY		FUND PARTIES, as listed on Appendix A in the Agreement, as amended from time to time


By:	/s/ Michael F. Rogers	By:	/s/ Lucia Sitar

Name:	Michael F. Rogers	Name:	Lucia Sitar

Title:	Executive Vice President	Title:	Vice President

Exhibit 99.(g)(1)(b)

January 27, 2015

State Street Bank and Trust Company

Channel Center

One Iron Street

Boston, MA 02210

Attention: Geoff Emery, Vice President

Re: Aberdeen Funds Core Fixed Income Fund Liquidation

Ladies and Gentlemen:

Please be advised that the Board of Trustees of Aberdeen Funds approved the liquidation of the Aberdeen Core Fixed Income Fund (the “Fund”). Such liquidation is expected to take place on or about February 12, 2015; however, cash may remain in the Fund’s custody account thereafter for payment of final fund expenses. Effective as of the complete liquidation of the Fund, the Fund shall be removed from Appendix A to the Amended and Restated Master Custodian Agreement dated as of June 1, 2010, as amended, between each management investment company identified on Appendix A thereto and State Street Bank and Trust Company, as reflected in the attached updated Appendix A.

Kindly indicate your acceptance of the foregoing by executing two copies of this letter agreement, returning one to Aberdeen Funds and retaining one for your records.

		Sincerely,

		EACH ABERDEEN FUND IDENTIFIED ON APPENDIX A HERETO


		By:	/s/ Lucia Sitar
		Name:	Lucia Sitar
		Title:	Vice President


Agreed and Accepted:

STATE STREET BANK AND TRUST COMPANY


By:	/s/ Michael F. Rogers
Name:	Michael F. Rogers
Title:	Executive Vice President

APPENDIX A

MASTER CUSTODIAN AGREEMENT

Effective June 1, 2010

As Amended January 27, 2015

MANAGEMENT INVESTMENT COMPANIES REGISTERED WITH THE SEC AND PORTFOLIOS THEREOF, IF ANY

Aberdeen Funds

Aberdeen Equity Long-Short Fund
Aberdeen Global Natural Resources Fund
Aberdeen Small Cap Fund
Aberdeen China Opportunities Fund
Aberdeen Global Equity Fund
Aberdeen Diversified Alternatives Fund
( formerly, Aberdeen Optimal Allocations Fund: Specialty )
Aberdeen Dynamic Allocation Fund
( formerly, Aberdeen Optimal Allocations Fund: Moderate )
Aberdeen Diversified Alternatives Fund
( formerly, Aberdeen Optimal Allocations Fund: Moderate )
Aberdeen Asia Bond Fund
Aberdeen Asia-Pacific (ex-Japan) Equity Fund
Aberdeen Emerging Markets Fund
(formerly, Aberdeen Emerging Markets Institutional Fund)
Aberdeen International Equity Fund
Aberdeen Global Fixed Income Fund
Aberdeen Global Small Cap Fund
Aberdeen Tax-Free Income Fund
Aberdeen Core Fixed Income Fund (1)
Aberdeen Emerging Markets Debt Local Currency Fund
Aberdeen Ultra-Short Duration Bond Fund
Aberdeen Asia-Pacific Smaller Companies Fund
Aberdeen U.S. Equity Fund
Aberdeen High Yield Fund
(formerly, Aberdeen U.S. High Yield Bond Fund)
Aberdeen Emerging Markets Debt Fund
Aberdeen European Equity Fund
Aberdeen Latin American Equity Fund

The India Fund, Inc.

The Asia Tigers Fund, Inc.

Aberdeen Chile Fund, Inc.

Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc.

Aberdeen Indonesia Fund, Inc.

Aberdeen Israel Fund, Inc.

Aberdeen Latin American Fund, Inc.

Aberdeen Greater China Fund, Inc.

(1) The Core Fixed Income Fund shall be deemed removed from this Appendix A effective as of the complete liquidation of the Fund.

Exhibit 99.(h)(1)(a)

January 27, 2015

Alan Goodson

Aberdeen Asset Management Inc.

1735 Market St.

32 nd Floor

Philadelphia PA, 19103

VIA HAND DELIVERY

Dear Mr. Goodson,

Reference is made to the Administration Agreement made between Aberdeen Funds and Aberdeen Asset Management Inc. (the “Administrator”) dated as of February 7, 2008, as amended and supplemented (the “Agreement”). Pursuant to the Agreement, this letter is to provide notice that the Board of Trustees of Aberdeen Funds approved the liquidation of the Aberdeen Core Fixed Income Fund (the “Fund”). Such liquidation is expected to take place on or about February 12, 2015.

The Fund will require the services of the Administrator in winding up the affairs of the Fund, including completing final reporting and filing requirements for the Fund and any year-end tax related matters. In order to ensure that appropriate amounts are retained by the Fund to pay amounts due to you as a Fund service provider, please provide a good faith estimate of your fees through the complete winding up of the Fund’s affairs.

Please indicate your acceptance of the foregoing by executing two copies of this letter, returning one to Aberdeen Asset Management Inc. and retaining one for your records.

		Sincerely,

		ABERDEEN FUNDS


		By:	/s/ Lucia Sitar
		Name:	Lucia Sitar
		Title:	Vice President

Acknowledged by:
ABERDEEN ASSET MANAGEMENT INC.


By:	/s/ Alan Goodson
Name:	Alan Goodson
Title:	Vice President

EXHIBIT B

ABERDEEN FUNDS

Fund Administration Agreement

Fee Schedule

Effective June 1, 2010

As amended December 10, 2014*

Fees

The Trust shall pay fees to the Administrator, as set forth in the schedule directly below, for the provision of services covered by this Agreement. Fees will be computed daily and payable monthly at an annual rate based on the aggregate amount of the Trust’s average daily net assets. The Trust will also be responsible for out-of-pocket expenses (including, but not limited to, the cost of the pricing services that the Administrator utilizes and any networking fees paid as out-of-pocket expenses) reasonably incurred by the Administrator and in providing services to the Trust. All fees and expenses shall be paid by the Trust to the Administrator on behalf of the Administrator.

	Aggregate Fee as a
Fund Asset Level	Percentage of Fund Net Assets
All Assets	0.08	%

The asset-based fees are subject to an annual minimum fee equal to the number of Funds multiplied by $25,000. If the asset-based fees do not meet the annual minimum, the amount needed to meet the minimum will be paid by the Funds on a pro rata basis, according to each Fund’s average net assets.

Funds of the Trust

Aberdeen Global Equity Fund
Aberdeen China Opportunities Fund
Aberdeen Emerging Markets Fund
(formerly, Aberdeen Emerging Markets Institutional Fund)
Aberdeen International Equity Fund
Aberdeen Equity Long-Short Fund
Aberdeen Global Natural Resources Fund
Aberdeen Dynamic Allocation Fund
(formerly, Aberdeen Optimal Allocations Fund: Moderate Growth)
Aberdeen Diversified Income Fund
(formerly, Aberdeen Optimal Allocations Fund: Moderate)
Aberdeen Diversified Alternatives Fund
(formerly, Aberdeen Optimal Allocations Fund: Specialty)

Aberdeen Small Cap Fund
Aberdeen Global Small Cap Fund
Aberdeen Asia Pacific (ex-Japan) Equity Fund
Aberdeen Global Fixed Income Fund
Aberdeen Asia Bond Fund
Aberdeen Tax-Free Income Fund
Aberdeen Core Fixed Income Fund*
Aberdeen Emerging Markets Debt Local Currency Fund
Aberdeen Ultra-Short Duration Bond Fund
Aberdeen Asia-Pacific Smaller Companies Fund
Aberdeen U.S. Equity Fund
Aberdeen High Yield Fund
(formerly, Aberdeen U.S. High Yield Bond Fund)
Aberdeen Emerging Markets Debt Fund
Aberdeen European Equity Fund
Aberdeen Latin American Equity Fund

* On December 10, 2014, the Board of Trustees of the Trust approved the liquidation of the Aberdeen Core Fixed Income Fund, which liquidation is expected to take place on or about February 12, 2015. The Core Fixed Income Fund shall be deemed removed from this Exhibit B effective as of the date that the winding-up of the Fund’s affairs is complete and the Administrator is no longer providing services with respect to the Fund.

	ABERDEEN FUNDS


	By:	/s/ Lucia Sitar
	Name:	Lucia Sitar
	Title:	Vice President


	ABERDEEN ASSET MANAGEMENT INC.


	By:	/s/ Alan Goodson
	Name:	Alan Goodson
	Title:	Vice President

Exhibit 99.(h)(2)(a)

AMENDMENT

Transfer Agency and Service Agreement

between

Aberdeen Funds, On Behalf Of Each of The Entities,

Individually and Not Jointly, As Listed On Schedule A (the “Funds”)

and

Boston Financial Data Services, Inc. (the “Transfer Agent”)

This Amendment is made as of this 18th day of September, 2014 between the Funds and the Transfer Agent. The Funds and the Transfer Agent are parties to a Transfer Agency and Service Agreement dated June 3, 2011, as amended, (the “Agreement”) under which the Transfer Agent performs certain services for the Funds. In accordance with Section 16.1 (Amendment) and Section 17 (Additional Portfolios/Funds) of the Agreement, the parties desire to amend the Agreement as set forth herein.

NOW THEREFORE, the parties agree as follows:

1. Parties . The parties and Aberdeen Investment Funds and Aberdeen Global Select Opportunities Fund, Inc. do hereby agree that as of the date hereof, Aberdeen Investment Funds and Aberdeen Global Select Opportunities Fund, Inc. shall each be added as a party to the Agreement. All references in the Agreement and in any exhibits or schedules thereto to “Fund” or “Funds” shall be deemed to include the Aberdeen Investment Funds and Aberdeen Global Select Securities Funds, Inc., and references to “Portfolio” or “Portfolios” shall be deemed to include their respective series as reflected on Schedule A.

2. Sections 8.1(c)(iii) and (iv) . The parties and Aberdeen Investment Funds and Aberdeen Global Select Opportunities Fund, Inc. do hereby agree that as of the date hereof, Sections 8.1(c)(iii) and (iv) shall be replaced in their entirety by the following new Sections 8.1(c)(iii), (iv) and (v):

“(iii) any instructions by the Fund or opinions of legal counsel to the Fund with respect to any matter arising in connection with the services requested by the Fund to be performed by the Transfer Agent under this Agreement which are provided to the Transfer Agent by counsel to the Fund after consultation with such legal counsel and upon which Fund instructions or opinion of Fund counsel the Transfer Agent is expressly permitted to rely; (iv) opinions of legal counsel that the Fund requests the Transfer Agent to obtain with respect to the transfer agency services to the Fund and the Fund affirmatively authorizes in writing that the Transfer Agent is permitted to rely on such opinion; or (v) any paper or document, reasonably believed to be genuine, authentic, or signed by the proper person or person.”

3. Schedule A . The current Schedule A attached to the Agreement will be replaced and superseded with Schedule A, dated September 18, 2014, which is attached hereto and incorporated herein.

4. Schedule 3. 1 (Fees and Expenses). Schedule 3.1 of the Agreement is hereby amended as follows:

a. Omnibus Transparency , Section 3 (“Omnibus Transparency Bundled Accountlet Fee”) is amended by (i) by deleting the corresponding fee for “1 — 500,000 accountlets (includes 25 investigations)” and replacing it with “$0.40/Accountlet/Year”; and (ii) by deleting the corresponding fee for “2,000,001 and above accountlets (includes 100 investigations)” and replacing it with “$0.12/Accountlet/Year”.

b. Omnibus Transparency , Section 4 (“Administration/Full Service Fee (in addition to the bundled accountlet technology cost)”) is amended by deleting the corresponding fee for “100,001 and above accountlets (includes 100 investigations)” and replacing it with “$4,500.00/Month”.

5. All defined terms and definitions in the Agreement shall be the same in this Amendment (the “Amendment”) except as specifically revised by this Amendment.

6. Except as specifically set forth in this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in their names and on their behalf by and through their duly authorized officers, as of the day and year first above written.

ABERDEEN FUNDS, ON BEHALF OF EACH OF ITS SERIES, INDIVIDUALLY AND NOT JOINTLY, AS LISTED ON SCHEDULE A		BOSTON FINANCIAL DATA SERVICES, INC.

By:	/s/ Lucia Sitar	By:	/s/ Richard J. Johnson

Name:	Lucia Sitar	Name:	Richard J. Johnson

Title:	Vice President	Title:	Managing Director
As an Authorized Officer on behalf of each of its Series indicated on Schedule A


ABERDEEN INVESTMENT FUNDS, ON BEHALF OF EACH OF ITS SERIES, INDIVIDUALLY AND NOT JOINTLY, AS LISTED ON SCHEDULE A

By:	/s/ Lucia Sitar

Name:	Lucia Sitar

Title:	Vice President
As an Authorized Officer on behalf of each of its Series indicated on Schedule A


ABERDEEN GLOBAL SELECT OPPORTUNITIES FUND, INC.

By:	/s/ Lucia Sitar

Name:	Lucia Sitar

Title:	Vice President
As an Authorized Officer on behalf of Aberdeen Global Select Opportunities Fund, Inc.

SCHEDULE A

Effective as of: September 18, 2014

Aberdeen Funds

Aberdeen Asia Bond Fund		Series of Delaware statutory trust
Aberdeen Asia-Pacific (Ex-Japan) Equity Fund		Series of Delaware statutory trust
Aberdeen Asia-Pacific Smaller Companies Fund		Series of Delaware statutory trust
Aberdeen China Opportunities Fund		Series of Delaware statutory trust
Aberdeen Core Fixed Income Fund		Series of Delaware statutory trust
Aberdeen Diversified Alternatives Fund ( formerly, Aberdeen Optimal Allocations Fund: Specialty )		Series of Delaware statutory trust
Aberdeen Diversified Income Fund ( formerly, Aberdeen Optimal Allocations Fund: Moderate )		Series of Delaware statutory trust
Aberdeen Dynamic Allocation Fund ( formerly, Aberdeen Optimal Allocations Fund: Moderate Growth )		Series of Delaware statutory trust
Aberdeen Emerging Markets Debt Fund		Series of Delaware statutory trust
Aberdeen Emerging Markets Debt Local Currency Fund		Series of Delaware statutory trust
Aberdeen Emerging Markets Fund ( formerly, Aberdeen Emerging Markets Institutional Fund )		Series of Delaware statutory trust
Aberdeen Equity Long-Short Fund		Series of Delaware statutory trust
Aberdeen European Equity Fund		Series of Delaware statutory trust
Aberdeen Global Equity Fund		Series of Delaware statutory trust
Aberdeen Global Fixed Income Fund		Series of Delaware statutory trust
Aberdeen Global Natural Resources Fund		Series of Delaware statutory trust
Aberdeen Global Small Cap Fund		Series of Delaware statutory trust
Aberdeen International Equity Fund		Series of Delaware statutory trust
Aberdeen Latin American Equity Fund		Series of Delaware statutory trust
Aberdeen Small Cap Fund		Series of Delaware statutory trust
Aberdeen Tax-Free Income Fund		Series of Delaware statutory trust
Aberdeen Ultra-Short Duration Bond Fund		Series of Delaware statutory trust
Aberdeen U.S. Equity Fund		Series of Delaware statutory trust
Aberdeen High Yield Bond Fund ( formerly, Aberdeen U.S. High Yield Bond Fund )		Series of Delaware statutory trust

Aberdeen Investment Funds

Aberdeen Select International Equity Fund		Series of a Massachusetts business trust
Aberdeen Select International Equity Fund II		Series of a Massachusetts business trust
Aberdeen Total Return Bond Fund		Series of a Massachusetts business trust
Aberdeen Global High Income Fund		Series of a Massachusetts business trust

Aberdeen Global Select Opportunities Fund, Inc .

Exhibit 99.(h)(2)(b)

AMENDMENT

Transfer Agency and Service Agreement

among

Aberdeen Global Select Opportunities Fund Inc. and

Aberdeen Funds and Aberdeen Investment Funds, Each on Behalf of Each of the Entities,

Individually and not Jointly, as Listed on Schedule A

(collectively, the “Funds”)

and

Boston Financial Data Services, Inc. (the “Transfer Agent”)

This Amendment is made as of this 3rd day of February, 2015 between the Funds and the Transfer Agent. The Funds and the Transfer Agent are parties to a Transfer Agency and Service Agreement dated June 3, 2011, as amended, (the “Agreement”) under which the Transfer Agent performs certain services for the Funds. In accordance with Section 16.1 (Amendment) of the Agreement, the parties desire to amend the Agreement as set forth herein.

NOW THEREFORE, the parties agree as follows:

1. Parties . The parties do hereby agree that as of the closing date of the reorganization of the Aberdeen Global Select Opportunities Fund Inc. into the Aberdeen Global Equity Fund, a series of the Aberdeen Funds, on or about February 25, 2015, that the Agreement will be terminated with respect to Aberdeen Global Select Opportunities Fund Inc. and Aberdeen Global Select Opportunities Fund Inc. shall no longer be a party to the Agreement; and further.

2. Schedule A . The current Schedule A attached to the Agreement is replaced and superseded with Schedule A attached hereto.

3. All defined terms and definitions in the Agreement shall be the same in this Amendment (the “Amendment”) except as specifically revised by this Amendment.

4. Except as specifically set forth in this Amendment, all other terms and conditions of the Agreement shall remain in full force and effect.

ABERDEEN FUNDS, ON BEHALF OF EACH OF ITS SERIES, INDIVIDUALLY AND NOT JOINTLY, AS LISTED ON SCHEDULE A		BOSTON FINANCIAL DATA SERVICES, INC.

By:	/s/ Lucia Sitar	By:	/s/ Richard J. Johnson

Name:	Lucia Sitar	Name:	Richard J. Johnson

Title:	Vice President	Title:	Managing Director
As an Authorized Officer on behalf of each of its Series indicated on Schedule A


ABERDEEN INVESTMENT FUNDS, ON BEHALF OF EACH OF ITS SERIES, INDIVIDUALLY AND NOT JOINTLY, AS LISTED ON SCHEDULE A

By:	/s/ Lucia Sitar

Name:	Lucia Sitar

Title:	Vice President
As an Authorized Officer on behalf of each of its Series indicated on Schedule A


ABERDEEN GLOBAL SELECT OPPORTUNITIES FUND INC.

By:	/s/ Lucia Sitar

Name:	Lucia Sitar

Title:	Vice President
As an Authorized Officer on behalf of Aberdeen Global Select Opportunities Fund Inc.

SCHEDULE A

Dated February 3, 2015

Aberdeen Funds

Aberdeen Asia Bond Fund		Series of Delaware statutory trust
Aberdeen Asia-Pacific (Ex-Japan) Equity Fund		Series of Delaware statutory trust
Aberdeen Asia-Pacific Smaller Companies Fund		Series of Delaware statutory trust
Aberdeen China Opportunities Fund		Series of Delaware statutory trust
Aberdeen Core Fixed Income Fund(1)		Series of Delaware statutory trust
Aberdeen Diversified Alternatives Fund ( formerly, Aberdeen Optimal Allocations Fund: Specialty )		Series of Delaware statutory trust
Aberdeen Diversified Income Fund ( formerly, Aberdeen Optimal Allocations Fund: Moderate )		Series of Delaware statutory trust
Aberdeen Dynamic Allocation Fund ( formerly, Aberdeen Optimal Allocations Fund: Moderate Growth )		Series of Delaware statutory trust
Aberdeen Emerging Markets Debt Fund		Series of Delaware statutory trust
Aberdeen Emerging Markets Debt Local Currency Fund		Series of Delaware statutory trust
Aberdeen Emerging Markets Fund ( formerly, Aberdeen Emerging Markets Institutional Fund )		Series of Delaware statutory trust
Aberdeen Equity Long-Short Fund		Series of Delaware statutory trust
Aberdeen European Equity Fund		Series of Delaware statutory trust
Aberdeen Global Equity Fund		Series of Delaware statutory trust
Aberdeen Global Fixed Income Fund		Series of Delaware statutory trust
Aberdeen Global Natural Resources Fund		Series of Delaware statutory trust
Aberdeen Global Small Cap Fund		Series of Delaware statutory trust
Aberdeen International Equity Fund		Series of Delaware statutory trust
Aberdeen Latin American Equity Fund		Series of Delaware statutory trust
Aberdeen Small Cap Fund		Series of Delaware statutory trust
Aberdeen Tax-Free Income Fund		Series of Delaware statutory trust
Aberdeen Ultra-Short Duration Bond Fund		Series of Delaware statutory trust
Aberdeen U.S. Equity Fund		Series of Delaware statutory trust
Aberdeen High Yield Bond Fund ( formerly, Aberdeen U.S. High Yield Bond Fund )		Series of Delaware statutory trust

(1) On December 10, 2014, the Board of Trustees of Aberdeen Funds approved the liquidation of the Aberdeen Core Fixed Income Fund. The Core Fixed Income Fund shall be deemed removed from this Schedule A effective upon its liquidation, to take place on or about February 12, 2015.

Aberdeen Investment Funds

Aberdeen Select International Equity Fund		Series of a Massachusetts business trust
Aberdeen Select International Equity Fund II		Series of a Massachusetts business trust
Aberdeen Total Return Bond Fund		Series of a Massachusetts business trust
Aberdeen Global High Income Fund		Series of a Massachusetts business trust

Aberdeen Global Select Opportunities Fund Inc .(2)

(2) On February 3, 2015, the shareholders of Aberdeen Global Select Opportunities Fund Inc. (the “Fund”) approved a proposal to reorganize the Fund into the Aberdeen Global Equity Fund, a series of Aberdeen Funds. The Fund shall be deemed removed from this Schedule A effective upon the reorganization, which is to take place on or about February 25, 2015.

Exhibit 99.(h)(3)(a)

State Street Bank and Trust Company

Channel Center

One Iron Street

Boston, MA 02210

Attention: Geoff Emery, Vice President

Re : Sub-Administration Agreement - Aberdeen Core Fixed Income Fund Liquidation

Ladies and Gentlemen:

Reference is made to the Sub-Administration between State Street Bank and Trust Company (the “Sub-Administrator”) and Aberdeen Asset Management Inc. (the “Administrator”) dated as of June 1, 2010, as amended and supplemented (the “Agreement”). Pursuant to the Agreement, this letter is to provide notice that the Board of Trustees of Aberdeen Funds approved the liquidation of the Aberdeen Core Fixed Income Fund (the “Fund”). Such liquidation is expected to take place on or about February 12, 2015. The Administrator will require the services of the Sub-Administrator in winding up the affairs of the Fund, including completing final reporting and filing requirements for the Fund and any year-end tax related matters. Please provide a good faith estimate of your fees through the complete winding up of the Fund’s affairs.

Please indicate your acceptance of the foregoing by executing two copies of this letter, returning one to Aberdeen Asset Management Inc. and retaining one for your records.

		Sincerely,

		ABERDEEN ASSET MANAGEMENT INC.


		By:	/s/ Lucia Sitar
		Name:	Lucia Sitar
		Title:	Managing U.S. Counsel

Accepted:

STATE STREET BANK AND TRUST COMPANY


By:	/s/ Michael F. Rogers
Name:	Michael F. Rogers
Title:	Executive Vice President

SUB-ADMINISTRATION AGREEMENT

Effective June 1, 2010

As amended December 10, 2014 *

SCHEDULE A

Listing of Funds

Fund Name		Classes of Shares

Aberdeen Equity Long-Short Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Global Natural Resources Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Small Cap Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen China Opportunities Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen International Equity Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Global Equity Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Diversified Alternatives Fund ( formerly, Aberdeen Optimal Allocations Fund: Specialty )		Class A Class C Class R Institutional Class Institutional Service Class

Fund Name		Classes of Shares

Aberdeen Dynamic Allocation Fund ( formerly, Aberdeen Optimal Allocations Fund: Moderate )		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Diversified Alternatives Fund ( formerly, Aberdeen Optimal Allocations Fund: Moderate )		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Asia Bond Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Asia-Pacific (ex-Japan) Equity Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Emerging Markets Fund ( formerly, Aberdeen Emerging Markets Institutional Fund )		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Global Fixed Income Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Global Small Cap Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Tax-Free Income Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Core Fixed Income Fund*		Class A Class C Class R Institutional Class Institutional Service Class

Fund Name		Classes of Shares

Aberdeen Emerging Markets Debt Local Currency Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Ultra-Short Duration Bond Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Asia-Pacific Smaller Companies Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen U.S. Equity Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen High Yield Fund ( formerly, Aberdeen U.S. High Yield Bond Fund )		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Emerging Markets Debt Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen European Equity Fund		Class A Class C Class R Institutional Class Institutional Service Class
Aberdeen Latin American Equity Fund		Class A Class C Class R Institutional Class Institutional Service Class

* On December 10, 2014, the Board of Trustees of the Trust approved the liquidation of the Aberdeen Core Fixed Income Fund, which liquidation is expected to take place on or about February 12, 2015. The Core Fixed Income Fund shall be deemed removed from this Exhibit B effective as of the date that the winding-up of the Fund’s affairs is complete and the Sub-Administrator is no longer providing services with respect to the Fund.

Exhibit 99.(h)(5)

SERVICING AGREEMENT

ABERDEEN FUNDS

Agreement, made as of this day of , 2014 between Aberdeen Funds (the “Trust”) and , whereby you agree to provide certain administrative support services to your customers who may from time to time be the record or beneficial owners of shares (such shares referred to herein as the “Shares”) of any and all current and future series and classes of Aberdeen Funds (the “Trust”) (i) that are effective or become effective with the U.S. Securities and Exchange Commission; (ii) that are available for sale; and (iii) for which an Administrative Services Plan is in place for Shares of such series and class (each such series, a “Fund”) subject to the following terms and conditions:

1. Administrative Support Services

You agree to provide administrative support services, directly or through an affiliate/designee, to your customers who may from time to time own of record or beneficially a Fund’s Shares. Services provided may include, but are not limited to, some or all of the following: (i) processing dividend and distribution payments from the Fund on behalf of customers; (ii) providing periodic statements to your customers showing their positions in the Shares or share equivalents; (iii) arranging for bank wires; (iv) responding to routine customer inquiries relating to services performed by you; (v) providing sub-accounting with respect to the Shares beneficially owned by your customers or the information necessary for sub-accounting; (vi) if required by law, forwarding shareholder communications from the Fund (such as proxies, shareholder reports, annual and semi-annual financial statements and dividend, distribution and tax notices) to your customers; (vii) forwarding to customers proxy statements and proxies containing any proposals regarding this Agreement or the Administrative Services Plan related hereto; (viii) aggregating and processing purchase, exchange, and redemption requests from customers and placing net purchase, exchange, and redemption orders for your customers; (ix) providing customers with a service that invests the assets of their accounts in the Shares pursuant to specific or preauthorized instructions; (x) establishing and maintaining customer accounts and records related to transactions in the Shares (xi) assisting customers in changing dividend or distribution options, account designations and addresses; or (xii) other similar services if requested by the Funds.

In providing administrative support services, you agree to follow any written guidelines or standards relating to the processing of purchase, exchange and redemption orders for your customers as we may provide to you from time to time. All purchase and redemption orders will be executed at net asset value in accordance with the terms and condition of a Fund’s then current summary prospectus, statutory prospectus, and Statement of Additional Information (collectively, the then current summary prospectus, statutory prospectus, and Statement of Additional Information for each Fund are the “Prospectus”).

You and your employees will, upon reasonable request, be available during normal business hours to consult with the Funds or their designees concerning the performance of your responsibilities under this Agreement.

2. Office Space

You will provide such office space and equipment, telephone facilities and personnel (which may be any part of the space, equipment and facilities currently used in your business, or any personnel employed by you) as may be reasonably necessary or beneficial in order to provide the aforementioned services to customers.

3. Representations

Neither you nor any of your officers, employees or agents are authorized to make any representations concerning the Funds or their Shares except those contained in the Trust’s Prospectuses for such shares, copies of which will be supplied by the Fund’s distributor, to you, or in such supplemental literature or advertising as may be authorized by the Funds in writing.

4. Independent Contractor

For all purposes of this Agreement you will be deemed to be an independent contractor, and will have no authority to act as limited agent for the Fund in any matter or in any respect except that if you transmit purchase and sale instructions to the Funds or its agent after the close of the New York Stock Exchange, then you will be considered the Fund’s agent for purposes of Rule 22c-1 under the Investment Company Act of 1940.

5. Indemnification

By your written acceptance of this Agreement, you agree to and do release, indemnify and hold the Trust and the Funds harmless from and against any and all liabilities or losses resulting from requests, directions, actions or inactions of or by you or your officers, employees or agents regarding your responsibilities hereunder or the purchase, redemption, transfer or registration of the Shares by or on behalf of customers; provided, however, that you shall not be responsible to us for any liabilities or losses resulting from our own willful misfeasance, bad faith, gross negligence or reckless disregard.

In turn, we agree to and do release, indemnify and hold you harmless from and against any and all liabilities or losses resulting from directions, actions or inactions of or by us or our officers, employees or agents regarding our responsibilities pursuant to this Agreement; provided, however, that we shall not be responsible to you for any liabilities or losses resulting from your own willful misfeasance, bad faith, gross negligence or reckless disregard.

In no event shall either party be liable hereunder for any special, indirect, punitive or consequential damages arising out of, pursuant to or in connection with this Agreement, even if that party has been advised of the possibility of such damages.

6. Compensation

In consideration for the services and facilities provided by you hereunder, the Funds will pay to you, and you will accept as full payment therefore, a fee at the annual rate as described in Exhibit A to this agreement, for which you provide services hereunder, which fee will be computed daily and payable monthly. The fee rate described in Exhibit A may be prospectively increased or decreased by the Fund and the investment adviser, in their sole discretion, at any time upon notice to you. Further, the Fund may, in its discretion and without notice, suspend or withdraw

the sale of such Shares, including the sale of such Shares to you for the account of any customer(s).

7. Quarterly Reports

Any person authorized to direct the disposition of monies paid or payable by the Funds pursuant to this Agreement will provide to the Board of Trustees of the Trust and the Trustees will review, at least quarterly, a written report of the amounts so expended and the entities to whom such expenditures were made. In addition, you will furnish the Funds or their designees with such information as the Funds or their designees may reasonably request (including, without limitation, periodic certifications confirming the provision to customers of some or all of the services described herein), and will otherwise cooperate with the Funds and their designees (including, without limitation, any auditors designated by the Fund), in connection with the preparation of reports to the Trust’s Board of Trustees concerning this Agreement and the monies paid or payable by the Funds pursuant hereto, as well as any other reports or filings that may be required by law.

8. Non-Exclusivity

Both parties may enter into other similar Servicing Agreements with any other person or persons without the other’s consent.

9. Representations

By your written acceptance of this Agreement, you represent, warrant and agree that: (i) in no event will any of the services provided by you hereunder be primarily intended to result in the sale of any shares issued by the Fund; (ii) the compensation payable to you hereunder, together with any other compensation you receive from customers for services contemplated by this Agreement, will to the extent required be disclosed to your customers, and will not be excessive or unreasonable under the laws and instruments governing your relationships with your customers; and (iii) if you are subject to laws governing, among other things, the conduct of activities by federally chartered and supervised banks and other affiliated banking organizations, you will perform only those activities which are consistent with your statutory and regulatory obligations.

10. Termination

This Agreement will become effective on the date a fully executed copy of this Agreement is received by the Funds or their designee. This Agreement may be terminated at any time, without the payment of any penalty with respect to the Funds by the vote of a majority of the members of the Board of Trustees and who have no direct or indirect financial interest in the operation of the Administrative Servicing Plan or in any related agreements to the Administrative Servicing Plan (“Disinterested Trustees”) or by a majority of the outstanding voting securities of the Fund on at least sixty (60) days written notice to the parties to this Agreement, or upon material breach of this Agreement or by either party on at least ninety (90) days written notice to the other party.

In the event this Agreement is terminated under the Terms and Conditions described in such Agreement, the indemnification provision contained in the Agreement shall continue until the possibilities for damages or loss have expired.

11. Notices

All notices and other communications to either you, us or the Funds will be duly given if mailed, telegraphed, telexed or transmitted by similar telecommunications device to the address contained in the “Acceptance of Agreement” (Section 20) portion of this Agreement.

12. Choice of Law

This Agreement will be construed in accordance with the laws of the State of Delaware and is assignable upon written consent by all the parties hereto. Amendments will be made only upon written consent by both parties and subject to the approval of the Board of Trustees of the Trust when applicable.

13. Board of Approval

This Agreement, or form thereof, has been approved by vote of a majority of (i) the Board of Trustees and (ii) the Disinterested Trustees, cast in person at a meeting called for the purpose of voting on such approval.

14. Trust Disclosure

The Trust is a statutory trust organized under the Delaware Statutory Trust Act (12 Del. C. §3801 et seq) and under a Certificate of Trust, to which reference is hereby made and a copy of which is on file at the office of the Secretary of State of Delaware as required by law, and to any and all amendments thereto so filed or hereafter filed. Pursuant to Section 3804 of the Delaware Statutory Trust Act, the debts, liabilities, obligations, costs, charges, reserves and expenses incurred, contracted for or otherwise existing with respect to a particular Fund, whether such Fund is now authorized and existing pursuant to the governing instrument of the Trust or is hereafter authorized and existing pursuant to said governing instrument, shall be enforceable against the assets associated with such Fund only, and not against the assets of the Trust generally or any other Fund thereof, and, except as otherwise provided in the governing instrument of the Trust, none of the debts, liabilities, obligations, costs, charges, reserves and expenses incurred, contracted for or otherwise existing with respect to the Trust generally or any other Fund thereof shall be enforceable against the assets of such Fund.

The obligation of the Trust and the Funds hereunder are not personally binding upon nor shall resort be had to the private property of any of the trustees, shareholders, officers, employees or agents of the Trust but only the Trust’s property allocable to the particular share class shall be bound.

15. Complete Agreement

This Agreement constitutes the entire agreement of the parties hereto with respect to the matters covered by this Agreement. This Agreement supersedes any and all prior understandings,

written or oral, between the parties and may be amended at any time and from time to time by written agreement of the parties hereto subject to the approval of the Board of Trustees of the Trust, when applicable.

16. Privacy Program

Each party of this Agreement agrees to protect Customer Information (defined below) and to comply as may be necessary with requirements of the Gramm-Leach-Bliley Act, the relevant state and federal regulations pursuant thereto, including Regulation S-P, and state privacy laws (all the foregoing referred to as “Privacy Law”).

Customer Information means any information contained on an application of a customer (“Customer”) of the Funds or other form and all nonpublic personal information about a Customer that a party receives from the other party. Customer Information includes, by way of example and not limitation, name, address, telephone number, social security number, date of birth and personal financial information.

The parties shall establish and maintain safeguards against the unauthorized access, destruction, loss or alteration of Customer Information in their control, which are no less rigorous than those maintained by a party for its own information of a similar nature. In the event of any improper disclosure of any Customer Information, the party responsible for the disclosure will immediately notify the other party.

The provisions of this Privacy Program shall survive the termination of the Agreement.

17. Anti-Money Laundering Program

We will rely upon you to establish a written Anti-Money Laundering Program (the “Program”) to include policies, procedures, and controls that comply with the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA Patriot Act) of 2001, (“the ACT”) and the Bank Secrecy Act of 1970 (“BSA”). Each party to this Agreement acknowledges, represents, and warrants that each party has adopted and implemented an Anti-Money Laundering Program that complies and will continue to comply with all aspects and requirements of the ACT, the BSA, and all other applicable anti-money laundering laws and regulations.

Upon request, you shall promptly certify to having such Program that complies with and continues to comply with all aspects and requirements of the ACT, the BSA, and all other applicable federal, state and local anti-money laundering laws and regulations.

Your Program shall include, and the Trust’s distributor shall rely upon, your policies, procedures and controls to, among other things, (i) verify the identity (due diligence) of your customers, (ii) maintain records of the information used to identify your customer, (iii) determine if your customer appears on lists of known or suspected terrorists or associated with known or terrorists organizations (said customer hereinafter referred to as a “Prohibited Customer”), and (iv) to ensure that that Prohibited Customers and foreign shell banks do not maintain investments in any Fund.

Your Program shall also comply with the Customer Identification Program (“CIP”) for customers who open accounts on or after October 1, 2003, and as such, shall among other matters provide for the release of customer information to law enforcement agencies, and the filing of Suspicious Activity Reports (“SARs”), as and if applicable, and in accordance with the ACT. In addition, your Program also shall include procedures for fulfilling the currency reporting requirements of the ACT and the BSA, as and if applicable.

The provisions of this Anti-Money Laundering section shall survive the termination of the Agreement.

18. FATCA Compliance

You hereby agree to perform the following to permit the Trust to comply with its obligations pursuant to that certain United States legislation enacted in 2010 and generally referred to as the Foreign Account Tax Compliance Act (“FATCA”):

i. You shall collect from all customers and existing accountholders (each, a “Customer” and collectively, the “Customers”) valid documentation sufficient to establish the U.S.-status or non-U.S. status, as the case may be, of each such Customer, including by requiring Customers to provide you with an executed United States Internal Revenue Service Form W-8BEN or other applicable United States Internal Revenue Service Form W-8 (or any successor thereto) and/or a United States Internal Revenue Service Form W-9 (or any successor thereto). All such documentation hereinafter referred to as the “Customer Information.”

ii. You shall resolve to the reasonable satisfaction of the Trust any discrepancies in any Customer Information.

iii. You shall monitor the Customers and Customer Information for any changes with respect to a Customer’s U.S. or non-U.S. status, as the case may be.

iv. You shall promptly notify the Trust of any discrepancies in any Customer Information and any changes in circumstances relating to a Customer’s U.S. or non-U.S. status, as the case may be.

v. To the extent required by applicable law, you shall obtain from each Customer a waiver of such Customer’s privacy, data protection and similar rights in connection with the collection, processing and transferring of the Customers’ personal data pursuant to the Trust’s obligations under FATCA, or otherwise obtain the written consent of the Customer for you or the Trust to collect, process and transfer the Customer’s personal data pursuant to the Trust’s obligations under FATCA, in each case in such form of waiver or consent as provided by Trust to you.

vi. If and when obtained by you, you shall provide the Trust with your Global Intermediary Identification Number as issued to you by the U.S. Internal Revenue Service.

vii. You shall maintain accurate and complete books and records of all Customer Information (the “Books and Records”), which Books and Records shall be (a) maintained in accordance with any and all applicable laws and (b) in an accessible format.

viii. You shall maintain facilities and procedures that are in accordance with commercially reasonable standards of recordkeeping for safekeeping the Books and Records. You shall back up all of its computer files relating to the Books and Records on a daily basis and shall maintain back up files in an offsite location.

ix. You shall make available all Books and Records (including access to your appropriate employees and representatives) to the Trust, its auditors, counsel or other designees, and regulatory agencies, during normal business hours and on reasonable notice, for review, audit, inspection, examination and reproduction, at the Trust’s or its agent’s cost.

You hereby agree to indemnify, to the fullest extent permitted by applicable law, the Trust and its affiliates, directors, officers, employees, successors, permitted assigns, agents and representatives (the “Trust Indemnitees”) against and agree to hold each of them harmless from any and all damage, loss, liability, judgment, settlement, cost and expense (including reasonable attorneys’ fees and other expenses of investigation and reasonable attorneys’ fees and other expenses in connection with any action, suit or proceeding) incurred or suffered by the Trust or any Trust Indemnitees arising out of or relating to any breach or nonfulfillment by you of, or any failure by you to perform, any of the duties or obligations under, this Section “18. FATCA Compliance.”

19. Shareholder Information

A. Agreement to Provide Information . You agree to provide the Fund, upon written request, the taxpayer identification number (“TIN”), if known, of any or all Shareholder(s) of the account and the amount, date, name or other identifier of any registered representative(s) associated with the Shareholder(s) or account (if known), and transaction type (purchase, redemption, transfer, or exchange) of every purchase, redemption, transfer, or exchange of Shares held through an account maintained by you during the period covered by the request.

1. Period Covered by Request . Requests must set forth a specific period, not to exceed 12 months from the date of the request, for which transaction information is sought. A Fund may request transaction information older than 12 months from the date of the request as it deems necessary to investigate compliance with policies established by the Fund for the purpose of eliminating or reducing any dilution of the value of the outstanding shares issued by the Fund.

2. Form and Timing of Response . You agree to transmit the requested information that is on its books and records to the Fund or its designee promptly, but in any event not later than five (5) business days, after receipt of a request. If the requested information is not on your books and records, you agrees to: (i) provide or arrange to provide the requested information from Shareholders who hold an account with an indirect intermediary; or (ii) if directed by the Fund, block further purchases of Fund Shares from such indirect intermediary. In such instance, you agree to inform the Fund whether it plans to perform (i) or (ii). Responses required by this paragraph must be communicated in writing and in a format mutually agreed upon by the parties. To the extent practicable, the format for any transaction information provided to a Fund should be consistent with the NSCC Standardized Data Reporting Format. For purposes of this provision, an “indirect intermediary” has the same meaning as in SEC Rule 22c-2 under the 1940 Act.

3. Limitations on Use of Information . The Funds agree not to use the information received for marketing or any other similar purpose without the prior written consent of you.

B. Agreement to Restrict Trading . You agree to execute written instructions from a Fund to restrict or prohibit further purchases or exchanges of Shares by a Shareholder that has been identified by such Fund as having engaged in transactions of the Fund’s Shares (directly or indirectly through your account) that violate policies established by the Fund for the purpose of eliminating or reducing any dilution of the value of the outstanding Shares issued by the Fund.

1. Form of Instructions . Instructions must include the TIN, if known, and the specific restriction(s) to be executed. If the TIN is not known, the instructions must include an equivalent identifying number of the Shareholder(s) or account(s) or other agreed upon information to which the instruction relates.

2. Timing of Response . You agree to execute instructions as soon as reasonably practicable, but not later than five business days after receipt of the instructions by you.

3. Confirmation by Dealer . You must provide written confirmation to the Fund that instructions have been executed. You agree to provide confirmation as soon as reasonably practicable, but not later than ten business days after the instructions have been executed.

C. Definitions . For purposes of this paragraph 19:

1. The term “Fund” includes the Funds’ distributor and transfer agent. The term does not include any “excepted funds” as defined in SEC Rule 22c-2(b) under the 1940 Act.

2. The term “Shares” means the interest of Shareholders corresponding to the redeemable securities of record issued by a Fund under the 1940 Act that are held by you.

20. Acceptance of Agreement

If you agree to be legally bound by the provisions of this Agreement, please sign a copy of this Agreement here indicated below and promptly return it to the Fund’s designee, Aberdeen Fund Distributors LLC (“Distributor”), to the address below:

Aberdeen Fund Distributors LLC

Attention: Investor Services

1735 Market Street

32 nd Floor

Philadelphia, PA 19103

This Agreement will become effective on the date a fully executed copy of this Agreement is received by our designee.

Accepted by:

ABERDEEN FUNDS



Name:

Title:

Date:

Accepted and Agreed to:


By:

Name:

Title:

Company:

Date:

ABERDEEN FUNDS

ADMINISTRATIVE SERVICES PLAN

Exhibit A

All available series and classes Aberdeen Funds will be available for investment provided the eligibility requirements for investment are met by the Dealer and/or its customers.

The Funds shall pay amounts not exceeding on an annual basis a maximum amount of:

(a) 25 basis points (0.25%) of the average daily net assets of the Class A Shares of the Funds;

(b) 25 basis points (0.25%) of the average daily net assets of the Class R Shares of the Funds; and

Exhibit 99.(h)(6)

AMEND ED AND RESTATED EXPENSE LIMITATION AGREEMENT

ABE RDEEN FUNDS

AMENDED AND RESTATED EXPENSE LIMITATION AGREEMENT, effective as of June 11, 2008, as most recently amended December 10, 2014 by and between ABERDEEN ASSET MANAGEMENT INC. (the “Investment Adviser”) and ABERDEEN FUNDS (the “Trust”) a Delaware statutory trust, on behalf of the funds listed on Exhibit A (each, a “Fund”).

WHEREAS, the Trust is registered under the Invest ment Company Act of 1940, as amended (the “1940 Act”), as an open end management investment company of the series type, and each Fund is a separate series of the Trust; and

WHEREAS, the Trust and the Investment Adviser have entered into an Investment Advisory Agreement (the “Advisory Agreement”), pursuant to which the Investment Adviser renders investment advisory services to each Fund for compensation based on the value of the average daily net assets of that Fund; and

WHEREAS, the Trust and the Invest ment Adviser have determined that it is appropriate and in the best interests of each Fund and its shareholders to maintain the expenses of the Fund at a level below the level to which that Fund would otherwise be subject.

NO W, THEREFORE, the parties hereto agree as follows:

1. Expense Limitation .

1.1. Applicable Expense Li mit . To the extent that the aggregate expenses incurred by a Fund or class of a Fund in any fiscal year, including but not limited to investment advisory fees of the Investment Adviser (but excluding interest, taxes, brokerage fees, short sale dividend expenses, Acquired Fund Fees and Expenses, 12b-1 fees, administrative services fees and extraordinary expenses for a Fund) (“Fund Operating Expenses”), exceed the Operating Expense Limit, as defined in Section 1.2 below, such excess amount (the “Excess Amount”) shall be borne by or reimbursed by the Investment Adviser. The Investment Adviser shall pay Excess Amounts due to a Fund on a monthly basis.

1.2. Operating E xpense Li mit . The Operating Expense Limit in any year shall be an amount that is a percentage of the fiscal year to date average daily net assets of each class of the Fund at an annual rate as described in Exhibit A, or such other annual rate as may be agreed to in writing by the parties. The parties hereby agree that Operating Expense Limit described in Exhibit A will not be increased before the date listed on Exhibit A.

2. Rei m burs e ment of Fee Waivers and Expense Rei m burs em ent s .

2.1. Reimbursement .

If the Invest ment Advisory Agreement is still in effect and the Fund Operating Expenses are less than the Operating Expense Limit on the computation date to determine reimbursements, then the Adviser may be reimbursed by a Fund, in whole or in part, for the advisory fees waived or reduced and other payments remitted by the Investment Adviser to the Fund pursuant to Section 1 hereof. Payment of any reimbursements is subject to quarterly

approval by the Trust ’s Board of Trustees as provided in Section 2.2 below. Reimbursements, if any, will be paid no less frequently than quarterly. The total amount of reimbursement to which the Investment Adviser may be entitled (the “Reimbursement Amount”) shall equal, at any time, the sum of all advisory fees previously waived or reduced by the Investment Adviser and all other payments remitted by the Investment Adviser to a Fund or a class of a Fund (as appropriate), pursuant to Section 1 hereof, less any reimbursement previously paid by such Fund to the Investment Adviser, pursuant to Section 2 hereof, with respect to such waivers, reductions, and payments; provided, however, that no Reimbursement Amount shall be paid at a date more than three (3) years after the date when the Investment Adviser waived investment advisory fees or reimbursed other expenses to a Fund or a class of a Fund for the corresponding Excess Amount pursuant to Section 1. The Reimbursement Amount shall not include any additional charges or fees whatsoever, including, but not limited to, interest accruable on the Reimbursement Amount.

2.2. Board Approval . No reimbursement shall be paid to the Investment Adviser pursuant to this provision unless the Trust’s Board of Trustees has determined that the payment of such reimbursement is appropriate in light of the terms of this Agreement. The Trust’s Board of Trustees shall determine quarterly whether any portion of the Reimbursement Amount may be paid to the Investment Adviser for the most recent completed fiscal quarter or any earlier period.

2.3. Year-End Adjustment . If necessary, on or before the last day of the first month of each fiscal year, an adjustment payment shall be made by the appropriate party in order that the actual Fund Operating Expenses for the prior fiscal year (including any reimbursement payments hereunder with respect to such fiscal year) do not exceed the Operating Expense Limit.

2.4 Change in Waiver Amount s . If the Board approves any changes in the waiver terms or limitations as detailed in Exhibit A, reimbursements are only permitted to the extent that the terms of the Operating Expense Limit that were in effect at the time of the waiver are met at the time that reimbursement is approved.

3. Term and Ter m ination of A greement .

This Agre ement shall continue in effect for the period listed on Exhibit A for any Fund covered by the Agreement and then unless this Agreement is terminated earlier as provided below, from year to year thereafter provided such continuance is specifically approved by a majority of the Trustees of the Trust who (i) are not “interested persons” of the Trust or any other party to this Agreement, as defined in the 1940 Act, and (ii) have no direct or indirect financial interest in the operation of this Agreement (“Non-Interested Trustees”), provided however, that the reimbursements described in Section 2.1 will not continue to accrue for more than three (3) years after the date when the Investment Adviser waived investment advisory fees or reimbursed other expenses to a Fund or a class of a Fund for the corresponding Excess Amount pursuant to Section 1. In order to terminate the Agreement, the terminating party must give at least 30 days’ prior written notice to the Trust prior to the end of the period listed on Exhibit A or the end of the annual renewal. Regardless of any other termination provisions, the provisions contained in Section 2 of this Agreement relating to the reimbursement of the Investment Adviser for fee waivers and expense reimbursements previously made by the Investment Adviser on behalf of the Fund shall survive the termination of the Agreement.

4. Miscellaneous .

4.1. Caption s . The captions in this Agreement are included for convenience of reference only and in no other way define or delineate any of the provisions hereof or otherwise affect their construction or effect.

4.2. Inter p r e tati on . Nothing herein contained shall be deemed to require the Trust or a Fund to take any action contrary to the Trust’s Agreement and Declaration of Trust or By-Laws, or any applicable statutory or regulatory requirement to which it is subject or by which it is bound, or to relieve or deprive the Trust’s Board of Trustees of its responsibility for and control of the conduct of the affairs of the Trust or the Fund.

4.3. Definitions . Any question of interpretation of any term or provision of this Agreement, including but not limited to the investment advisory fee, the computations of net asset values, and the allocation of expenses, having a counterpart in or otherwise derived from the terms and provisions of the Advisory Agreement or the 1940 Act, shall have the same meaning as and be resolved by reference to such Advisory Agreement or the 1940 Act.

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed by their respective officers thereunto duly authorized, as of the day and year first above written.

	ABE RDEEN FUNDS


	By:	Lucia Sitar
	Name: Lucia Sitar
	Titl e: Vice President


	ABE RDEEN ASSET MANAGEMENT INC.

	By:	Lucia Sitar
	Name: Lucia Sitar
	Titl e: Managing U.S. Counsel

EXHIBIT A*

to the Amended and Restated Expense Limitation Agreement between

ABERDEEN FUNDS and

ABERDEEN ASSET MANAGEMENT INC.

Name of Fund/Class	2015 Expense Limitation		2015 Expiration Date
Aberdeen China Opportunities Fund	1.62	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen International Equity Fund	1.10	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Equity Long-Short Fund	1.40	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Equity Fund	1.19	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Natural Resources Fund	1.16	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Small Cap Fund	1.15	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Tax-Free Income Fund	0.62	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Dynamic Allocation Fund	0.25	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Diversified Income Fund	0.25	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Diversified Alternatives Fund	0.25	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Core Fixed Income Fund	0.50	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Asia Bond Fund	0.70	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Fixed Income Fund	0.85	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Global Small Cap Fund	1.30	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Emerging Markets Fund	1.10	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Asia-Pacific (ex-Japan) Equity Fund	1.25	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Ultra-Short Duration Bond Fund	0. 30	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Emerging Markets Debt Local Currency Fund	0.90	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Asia-Pacific Smaller Companies Fund	1.50	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first

Aberdeen U.S. Equity Fund	0.90	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen High Yield Fund (formerly, Aberdeen U.S. High Yield Bond Fund)	0.80	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Emerging Markets Debt Fund	0.90	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen European Equity Fund	1.10	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first
Aberdeen Latin American Equity Fund	1.30	%	Feb. 29, 2016 or the effective date of the 2016 annual update to the registration statement, whichever occurs first

* As most recently approved at the December 10, 2014 Board Meeting. The 2015 Expense Limitation is effective as of February 28, 2015, or the effective date of the 2015 annual update to the prospectus, whichever occurs sooner.

Exhibit 99.(h)(7)

December 10, 2014

Aberdeen Asset Management Inc.

1735 Market Street, 32 nd Floor

Philadelphia, PA 19103

Re: Aberdeen Equity Long-Short Fund

This letter agreement (“Agreement”) is entered into by and between Aberdeen Funds, on behalf of the Aberdeen Equity Long-Short Fund (the “Fund”), and Aberdeen Asset Management Inc. (“Aberdeen”), on behalf of itself as the investment adviser of the Fund.

Effective as of February 28, 2015, or the effective date of the 2015 annual update to the Fund’s registration statement, whichever occurs first, and through February 29, 2016, or the effective date of the 2016 annual update to the registration statement, whichever occurs first, Aberdeen agrees to reimburse the Fund for short-sale brokerage expenses at an annual rate of up to 0.15% of the Fund’s average daily net assets. Amounts reimbursed by Aberdeen are not subject to recoupment at a later date.

	Sincerely,

	ABERDEEN ASSET MANAGEMENT INC.


	By:	/s/ Alan Goodson
	Name:	Alan Goodson
	Title:	Vice President

Agreed and Accepted:

ABERDEEN FUNDS, ON BEHALF OF

ABERDEEN EQUITY LONG-SHORT FUND

By:	/s/ Lucia Sitar
Name:	Lucia Sitar
Title:	Vice President

Exhibit 99.(j)

Consent of Independent Registered Public Accounting Firm

The Board of Trustees of the Aberdeen Funds:

We consent to the use of our reports dated December 26, 2014, with respect to the financial statements of the Aberdeen Asia Bond Fund, Aberdeen Asia-Pacific (ex-Japan) Equity Fund, Aberdeen Asia-Pacific Smaller Companies Fund, Aberdeen China Opportunities Fund, Aberdeen Emerging Markets Fund, Aberdeen Emerging Markets Debt Fund, Aberdeen Emerging Markets Debt Local Currency Fund, Aberdeen Equity Long-Short Fund, Aberdeen European Equity Fund, Aberdeen Global Equity Fund, Aberdeen Global Fixed Income Fund, Aberdeen Global Small Cap Fund, Aberdeen International Equity Fund, Aberdeen Latin American Equity Fund, Aberdeen Global Natural Resources Fund, Aberdeen Diversified Income Fund, Aberdeen Dynamic Allocation Fund, Aberdeen Diversified Alternatives Fund, Aberdeen Small Cap Fund, Aberdeen Tax-Free Income Fund, Aberdeen Ultra-Short Duration Bond Fund, Aberdeen High Yield Fund, and Aberdeen U.S. Equity Fund, twenty-three funds comprising the Aberdeen Funds, as of October 31, 2014, incorporated herein by reference, and to the references to our firm under the headings “Financial Highlights” in the prospectus and in the introduction to, and under the headings, “Independent Registered Public Accounting Firm”, “Disclosure of Portfolio Holdings” and “Financial Statements” in the statement of additional information.

/s/ KPMG LLP

Philadelphia, Pennsylvania

February 26, 2015

Exhibit 99.(m)

DISTRIBUTION PLAN OF

ABERDEEN FUNDS

Effective December 12, 2007

As most recently updated December 10, 2014*

Section 1. This Distribution Plan (the “Plan”) constitutes the distribution plan for the following classes of the series (each, a “Fund”) of Aberdeen Funds (the “Trust”):

Fund		Classes
Aberdeen Global Equity Fund		A, C, R
Aberdeen China Opportunities Fund		A, C, R
Aberdeen Emerging Markets Fund (formerly, Aberdeen Emerging Markets Institutional Fund)		A, C, R
Aberdeen International Equity Fund		A, C, R
Aberdeen Equity Long-Short Fund		A, C, R
Aberdeen Global Natural Resources Fund		A, C, R
Aberdeen Dynamic Allocation Fund (formerly, Aberdeen Optimal Allocations Fund: Moderate Growth)		A, C, R
Aberdeen Diversified Income Fund (formerly, Aberdeen Optimal Allocations Fund: Moderate)		A, C, R
Aberdeen Diversified Alternatives Fund (formerly, Aberdeen Optimal Allocations Fund: Specialty)		A, C, R
Aberdeen Small Cap Fund		A, C, R
Aberdeen Tax-Free Income Fund		A, C, R
Aberdeen Core Fixed Income Fund*		A, C, R
Aberdeen Global Fixed Income Fund		A, C, R
Aberdeen Global Small Cap Fund		A, C, R
Aberdeen Emerging Markets Debt Local Currency Fund		A, C, R
Aberdeen Ultra-Short Duration Bond Fund		A, C, R
Aberdeen Asia Bond Fund		A, C, R
Aberdeen Asia-Pacific (ex-Japan) Equity Fund		A, C, R
Aberdeen Asia-Pacific Smaller Companies Fund		A, C, R
Aberdeen U.S. Equity Fund		A, C, R
Aberdeen High Yield Fund (formerly, Aberdeen U.S. High Yield Bond Fund)		A, C, R
Aberdeen Emerging Markets Debt Fund		A, C, R
Aberdeen European Equity Fund		A, C, R
Aberdeen Latin American Equity Fund		A, C, R

* On December 10, 2014, the Board of Trustees of the Trust approved the liquidation of the Aberdeen Core Fixed Income Fund. The Core Fixed Income Fund shall be deemed removed from the Plan effective upon its liquidation, to take place on or about February 12, 2015.

The Plan is adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”).

Section 2. Subject to the limitations on the payment of asset-based sales charges set forth in Section 2830 of the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”) , the Funds shall pay amounts not exceeding on an annual basis a maximum amount of:

(a) 25 basis points (0.25%) of the average daily net assets of the Class A Shares of each applicable Fund (distribution or services fees); and

(b) 100 basis points (1.00%) of the average daily net assets of the Class C Shares of each applicable Fund, 75 basis points (0.75%) of which will be a “distribution fee” (as described below) and 25 basis points (0.25%) of which will be a service fee; and

(c) 50 basis points (0.50%) of the average daily net assets of the Class R Shares of each applicable Fund, 25 basis points (0.25%) of which will be a distribution fee and 25 basis points (0.25%) of which will be a service fee; and

Such compensation shall be calculated and accrued daily and payable monthly or at such other intervals as the Board of Trustees may determine. These fees will be paid to Aberdeen Fund Distributors LLC for activities or expenses primarily intended to result in the sale or servicing of Fund shares. Except as specifically designated above, the fees may be used either as distribution fees or servicing fees to the extent that they fit the descriptions below. As described above, the following types of fees may be paid pursuant to the Plan:

(a) a distribution fee for: (i) (a) efforts of an Underwriter expended in respect of or in furtherance of sales of Class A, Class C or Class R, and (b) to enable an Underwriter to make payments to other broker/dealers and other eligible institutions (each a “Broker/Dealer”) for distribution assistance pursuant to an agreement with the Broker/Dealer; and (ii) reimbursement of expenses (a) incurred by an Underwriter, and (b) incurred by a Broker/Dealer pursuant to an agreement in connection with distribution assistance including, but not limited to, the reimbursement of expenses relating to printing and distributing advertising and sales literature and reports to shareholders for use in connection with the sales of Class A, Class C or Class R, processing purchase, exchange and redemption requests from customers and placing orders with an Underwriter or the Funds’ transfer agent, and personnel and communication equipment used in servicing shareholder accounts and prospective shareholder inquiries; and

(b) a service fee, if applicable and not otherwise covered under an administrative services plan and/or agreement, for: (i) (a) efforts of an Underwriter expended in servicing shareholders and (b) to enable an Underwriter to make payments to a Broker/Dealer for shareholder services pursuant to an agreement with the Broker/Dealer; and (ii) reimbursement of expenses (a) incurred by an Underwriter, and (b) incurred by a Broker/Dealer pursuant to an agreement in connection with shareholder service including, but not limited to personal, continuing shareholder liaison services to investors. For purposes of the Plan, a

Broker/Dealer may include any of an Underwriter’s affiliates or subsidiaries. A service fee will be considered as such pursuant to Section 2830(b)(9) of the Conduct Rules of FINRA.

(c) No provision of this Plan shall be interpreted to prohibit any payments by a Fund with respect to shares of such Fund during periods when the Fund has suspended or otherwise limited sales of such shares.

Section 3. This Plan shall not take effect until it has been approved by the vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the applicable class of each of the Funds, if adopted after any public offering of such shares, and by the vote of the Board of Trustees of the Trust, as described in Section 4 of the Plan.

Section 4. This Plan shall not take effect with respect to a class of a Fund until it has been approved, together with any related agreements, by votes of the majority of both (a) the Board of Trustees of the Trust and (b) those Trustees of the Trust who are not “interested persons” (as defined in the 1940 Act) of the Trust and who have no direct or indirect financial interest in the operation of this Plan or any agreements related to this Plan (the “Rule 12b-1 Trustees”), cast in person at a meeting called for the purpose of voting on this Plan or such agreements.

Section 5. Unless sooner terminated pursuant to Section 7 or 8, this Plan shall continue in effect with respect to the class of a Fund for a period of one year from the date it takes effect with respect to such class and thereafter shall continue in effect so long as such continuance is specifically approved at least annually in the manner provided for approval of this Plan in Section 4.

Section 6. Any person authorized to direct the disposition of monies paid or payable by a Fund pursuant to this Plan or any related agreement shall provide to the Board and the Board shall review at least quarterly a written report of the amounts so expended and the purposes for which such expenditures were made.

Section 7. This Plan may be terminated as to a class of a Fund at any time by vote of a majority of the Rule 12b-1 Trustees, or by vote of a majority of the outstanding affected class of such Fund.

Section 8. Any agreement with any person relating to the implementation of this Plan shall be in writing, and shall provide:

A. That such agreement may be terminated at any time with respect to a Class, without payment of any penalty, by vote of a majority of the Rule 12b-1 Trustees or by a vote of a majority of the outstanding Class Shares of the Fund on not more than 60 days written notice to any other party to the agreement; and

B. That such agreement shall terminate automatically in the event of its assignment.

Section 9. This Plan may not be amended to increase materially the amount of distribution expenses of a Fund provided for in Section 2 hereof, unless such amendment is approved in the manner provided in Section 3 hereof. No material amendment to this Plan shall be made unless approved in the manner provided for approval of this Plan in Section 4 hereof.

Section 10. The provisions of the Plan are severable for each class of shares of the Funds and any action required hereunder must be taken separately for each class covered hereby.

Section 11. While this Plan is in effect, the selection and nomination of the Trustees who are not interested persons (as defined in the 1940 Act) of the Trust shall be committed to the discretion of the Trustees who are not such interested persons.

Section 12. The Trust shall preserve copies of this Plan and any related agreements and all reports made pursuant to Section 6 for a period of not less than 6 years from the date of this Plan, any such agreement or any such report, as the case may be, the first two years in an easily accessible place.

Section 13. The obligation of the Trust and the Funds hereunder are not personally binding upon nor shall resort be had to the private property of any of the trustees, shareholders, officers, employees or agents of the Trust but only the Trust’s property allocable to the particular share class shall be bound.

Section 14. The Trust is a statutory trust organized under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq) and under an Agreement and Declaration of Trust and any and all amendments thereto. Pursuant to Section 3804 of the Delaware Statutory Trust Act, the debts, liabilities, obligations, costs, charges, reserves and expenses incurred, contracted for or otherwise existing with respect to a particular series, whether such series is now authorized and existing pursuant to the governing instrument of the Trust or is hereafter authorized and existing pursuant to said governing instrument, shall be enforceable against the assets associated with such series only, and not against the assets of the Trust generally or any other series thereof, and, except as otherwise provided in the governing instrument of the Trust, none of the debts, liabilities, obligations, costs, charges, reserves and expenses incurred, contracted for or otherwise existing with respect to the Trust generally or any other series thereof shall be enforceable against the assets of such series.

Exhibit 99.(n)

ABERDEEN FUNDS

RULE 18f-3 PLAN

Effective December 12, 2007

As most recently amended December 10, 2014*

WHEREAS, Aberdeen Funds, a Delaware statutory trust (the “Trust”), is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”);

WHEREAS, the following have been designated as the series and classes of the Trust:

Series		Classes
Aberdeen China Opportunities Fund		A, C, R, Institutional, Institutional Service
Aberdeen Global Natural Resources Fund		A, C, R, Institutional, Institutional Service
Aberdeen Diversified Income Fund (formerly, Aberdeen Optimal Allocations Fund: Moderate)		A, C, R, Institutional, Institutional Service
Aberdeen Dynamic Allocation Fund (formerly, Aberdeen Optimal Allocations Fund: Moderate Growth)		A, C, R, Institutional, Institutional Service
Aberdeen Diversified Alternatives Fund (formerly, Aberdeen Optimal Allocations Fund: Specialty)		A, C, R, Institutional, Institutional Service
Aberdeen Small Cap Fund		A, C, R, Institutional, Institutional Service
Aberdeen Tax-Free Income Fund		A, C, R, Institutional, Institutional Service
Aberdeen Equity Long-Short Fund		A, C, R, Institutional, Institutional Service
Aberdeen Global Equity Fund		A, C, R, Institutional, Institutional Service
Aberdeen Core Fixed Income Fund*		A, C, R, Institutional, Institutional Service
Aberdeen Asia Bond Fund		A, C, R, Institutional, Institutional Service
Aberdeen Global Fixed Income Fund		A, C, R, Institutional, Institutional Service
Aberdeen Global Small Cap Fund		A, C, R, Institutional, Institutional Service
Aberdeen International Equity Fund		A, C, R, Institutional, Institutional Service
Aberdeen Emerging Markets Fund (formerly, Aberdeen Emerging Markets Institutional Fund)		A, C, R, Institutional, Institutional Service
Aberdeen Asia-Pacific (ex-Japan) Equity Fund		A, C, R, Institutional, Institutional Service
Aberdeen Emerging Markets Debt Local Currency Fund		A, C, R, Institutional, Institutional Service
Aberdeen Ultra-Short Duration Bond Fund		A, C, R, Institutional, Institutional Service
Aberdeen Asia-Pacific Smaller Companies Fund		A, C, R, Institutional, Institutional Service
Aberdeen U.S. Equity Fund		A, C, R, Institutional, Institutional Service
Aberdeen High Yield Fund (formerly, Aberdeen U.S. High Yield Bond Fund)		A, C, R, Institutional, Institutional Service
Aberdeen Emerging Markets Debt Fund		A, C, R, Institutional, Institutional Service
Aberdeen European Equity Fund		A, C, R, Institutional, Institutional Service
Aberdeen Latin American Equity Fund		A, C, R, Institutional, Institutional Service

* On December 10, 2014, the Board of Trustees of the Trust approved the liquidation of the Aberdeen Core Fixed Income Fund. The Core Fixed Income Fund shall be deemed removed

from this plan effective upon its liquidation, to take place on or about February 12, 2015.

WHEREAS, Aberdeen Asset Management Inc. (“AAMI”) serves as investment adviser for each of the series;

WHEREAS, Aberdeen Fund Distributors LLC (“AFD”) serves as principal underwriter, AAMI serves as fund administrator and Boston Financial Data Services, Inc. (“BFDS”) serves as transfer agent for the series of the Trust;

WHEREAS, the Trust has adopted a Distribution Plan (“12b-1 Plan”) under Rule 12b-1 of the 1940 Act providing for:

(1) in the case of Class A shares of the Funds, fees of not more than 0.25% per annum of average net assets (distribution or service fee);

(2) in the case of Class C shares of the Funds, fees of not more than 1.00% per annum of average net assets, of which 0.25% per annum is considered a service fee;

(3) in the case of Class R shares of the Funds, fees of not more than 0.50% per annum of average net assets, of which 0.25% may be either a distribution or a service fee;

WHEREAS, the Trust has adopted an Administrative Services Plan providing for:

(1) in the case of Class A, Class R and Institutional Service Class shares of the Funds, fees of not more than 0.25% per annum of average net assets;

WHEREAS, The Trust has established a Multiple Class Distribution System enabling the Trust, as described in its prospectuses, to offer eligible investors the option of purchasing shares of its series with the following features (not all series offer each option):

(1) with a front-end sales load (which can vary among series and which is subject to certain reductions and waivers among groups of purchasers) and providing for a 12b-1 fee, an administrative services fee and under certain circumstances, a contingent deferred sales charge (“CDSC”) may be applicable for purchases sold without a sales charge and for which a finder’s fee is paid (the “Class A shares of the Funds”);

(2) without a front-end sales load, but subject to a CDSC (each of which may be subject to certain reductions and waivers among groups of purchasers), and providing for a 12b-1 fee but not providing for an administrative services fee (the “Class C shares of the Funds”);

(3) without a front-end sales load, CDSC or 12b-1 fee, but providing for an administrative services fee (the “Institutional Service Class shares of the Funds”);

(4) without a front-end sales load, CDSC, 12b-1 fee, or administrative service fee (the “Institutional Class shares of the Funds”);

(5) without a front-end sales load or CDSC, but providing for a 12b-1 fee and/or administrative services fee (the “Class R shares of the Funds”);

WHEREAS, Rule 18f-3 under the 1940 Act permits an open-end management investment company to issue multiple classes of voting stock representing interests in the same portfolio notwithstanding Sections 18(f)(1) and 18(i) under the 1940 Act if, among other things, such investment company adopts a written plan setting forth the separate arrangements and expense allocation of each class and any related conversion features or exchange privileges;

NOW, THEREFORE, the Trust, wishing to be governed by Rule 18f-3 under the 1940 Act, hereby adopts this Rule 18f-3 Plan as follows:

1. Each class of shares of a series will represent interests in the same portfolio of investments of such series of the Trust, and be identical in all respects to each other class of that series, except as set forth below. The only differences among the various classes of shares of the series of the Trust will relate solely to (a) different distribution or service fee payments associated with any Rule 12b-1 Plan for a particular class of shares and any other costs relating to implementing or amending such Plan (including obtaining shareholder approval of such Plan or any amendment thereto), which will be borne solely by shareholders of such class; (b) different administrative service fees associated with any Administrative Services Plan; (c) different Class Expenses, which will be limited to the following expenses as determined by the Trustees to be attributable to a specific class of shares: (i) transfer agency fees identified as being attributable to a specific class; (ii) printing and postage expenses related to preparing and distributing materials such as shareholder reports, prospectuses, and proxy statements to current shareholders of a specific class; (iii) Blue Sky notification and/or filing fees incurred by a class of shares; (iv) SEC registration fees incurred by a class; (v) expenses of administrative personnel and services as required to support the shareholders of a specific class; (vi) litigation or other legal expenses and audit or other accounting expenses relating solely to one class; (vii) Trustee fees or expenses incurred as a result of issues relating to one class; and (viii) shareholder meeting costs that relate to a specific class; (d) the voting rights related to any 12b-1 Plan affecting a specific class of shares or related to any other matter submitted to shareholders in which the interests of a Class differ from the interests of any other Class; (e) conversion features; (f) exchange privileges; and (g) class names or designations. Any additional incremental expenses not specifically identified above that are subsequently identified and determined to be properly applied to one class of shares of a series of the Trust shall be so applied upon approval by a majority of the Trustees of the Trust, including a majority of the Trustees who are not interested persons of the Trust.

2. Under the Multiple Class Distribution System, certain expenses may be attributable to the Trust, but not to a particular series or class thereof. All such expenses will be allocated among series based upon the relative aggregate net assets of such series. Expenses that are attributable to a particular series, but not to a particular class thereof, and income, realized gains and losses, and unrealized appreciation and depreciation will be allocated to each class based on its net asset value relative to the net asset value of the series if such series does not declare daily dividends and if the series does declare daily dividends on the basis of the

settled shares method (as described in Rule 18f-3(c)(iii)). Notwithstanding the foregoing, the principal underwriter, the investment adviser or other provider of services to the Trust may waive or reimburse the expenses of a specific class or classes to the extent permitted under Rule 18f-3 under the 1940 Act and pursuant to any applicable ruling, procedure or regulation of the Internal Revenue Service.

A class of shares may be permitted to bear expenses that are directly attributable to such class including: (a) any distribution/service fees associated with any Rule 12b-1 Plan for a particular class and any other costs relating to implementing or amending such Plan (including obtaining shareholder approval of such plan or any amendment thereto); (b) any administrative services fees associated with any administrative services plan for a particular class and any other costs relating to implementing or amending such plan (including obtaining shareholder approval of such plan or any amendment thereto) attributable to such class; and (c) any Class Expenses determined by the Trustees to be attributable to such class.

3. To the extent exchanges are permitted, shares of any class of the Trust will be exchangeable with shares of the same class of another series of the Trust. Exchanges will comply with all applicable provisions of Rule 11a-3 under the 1940 Act.

5. Dividends paid by a series of the Trust as to each class of its shares, to the extent any dividends are paid, will be calculated in the same manner, at the same time, on the same day, and will be in the same amount, except that any distribution/service fees, administrative services fees, and Class Expenses allocated to a class will be borne exclusively by that class.

6. Any distribution arrangement of the Trust, including distribution fees and front-end and deferred sales loads, will comply with Section 2830 of the Conduct Rules of the Financial Industry Regulatory Authority.

7. The initial adoption of, and all material amendments, to this 18f-3 Plan must be approved by a majority of the members of the Trust’s Trustees, including a majority of the Board members who are not interested persons of the Trust.

8. Prior to the initial adoption of, and any material amendments to, this 18f-3 Plan, the Trust’s Trustees shall request and evaluate, and any agreement relating to a class arrangement shall require the parties thereto to furnish, such information as may be reasonably necessary to evaluate the 18f-3 Plan.

Exhibit 99.(p)(2)

CODE OF ETHICS

Effective as of August 1, 2014

I. INTRODUCTION

This Code of Ethics (the “Code”) is adopted by:

(i) Aberdeen Asset Management Inc.

(ii) Aberdeen Asset Management Limited

(iii) Aberdeen Asset Management Asia Limited

(iv) Aberdeen Asset Managers Limited

(each hereinafter referred to individually as an “Adviser” and, together, as the “Advisers”) in compliance with the requirements of Rule 17j-1 adopted under the Investment Company Act of 1940, as amended (the “1940 Act”), and Sections 204A and 206 of the Investment Advisers Act of 1940, as amended (the “Advisers Act”), and specifically Rules 204A-1 and 204-2 thereunder, to effectuate the purposes and objectives of those provisions.

Additionally, the Federal Securities Laws (as defined below) require investment advisers, funds and others to adopt policies and procedures to identify and prevent the misuse of material, non-public information. Section V of this Code discusses the prohibitions from trading on material non-public information or communicating material, non-public information to others in violation of the Federal Securities Laws.

A. Applicable Provisions of the 1940 Act and Advisers Act

Access Persons (as defined below) may not, in connection with the purchase or sale, directly or indirectly, by such person of a Security Held or to be Acquired (as defined below) by any Client (as defined below) or otherwise directly or indirectly:

(i)	employ any device, scheme or artifice to defraud any Client (as defined below) or prospective Client;

(ii)	make to any Client, any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made to the Client, in light of the circumstances in which they are made, not misleading;

(iii)	engage in any act, transaction, practice or course of business that operates or would operate as a fraud or deceit upon any Client or prospective Client;

(iv)	engage in any act, practice, or course of business which is fraudulent, deceptive or manipulative;

(v)	acting as principal for his/her own account, knowingly to sell any security to or purchase any Reportable Security (as defined below) from a Client, or acting as a broker for a person other than such Client, knowingly to effect any sale or purchase of any Reportable Security for the account of such Client, without disclosing to such Client in writing before the completion of such transaction the capacity in which he/she is acting and obtaining the consent of the Client to such transaction; and

(vi)	engage in any act, practice, or course of business in violation of any applicable government law, rule or regulation, including but not limited to the Federal Securities Laws.

Under the Advisers Act the Advisers are required to:

·	adopt and enforce Codes of Ethics setting forth standards of conduct for advisory personnel, and to address conflicts arising from personal trading by advisory personnel (Rule 204A-1)

·	establish and enforce policies and procedures reasonably designed to prevent the misuse of material, non-public information by investment advisers (Section 204A)

·	maintain records with respect to the personal securities transactions of Access Persons (as defined below) (Section 204-2)

This Code is based on the principle that the Directors and officers of the Advisers and any of their Supervised Persons (as defined below) employed by Aberdeen Asset Management PLC or any of its subsidiaries or affiliates (collectively, the “Aberdeen Group”) owe a fiduciary duty to Clients to conduct their affairs, including their personal securities transactions, in such a manner as to avoid:

(i) serving their own personal interests ahead of Clients;

(ii) taking inappropriate advantage of their position within the respective Adviser; and

(iii) any actual or potential conflicts of interest or any abuse of their position of trust and responsibility.

Supervised Persons are expected to maintain objectivity and avoid undisclosed conflicts of interest. In the performance of their duties and responsibilities for the Advisers, Supervised Persons must not subordinate their judgment to personal gain and advantage, or be unduly influenced by their own interests or by the interests of others. Supervised Persons must avoid participation in any activity or relationship that constitutes a conflict of interest unless that conflict has been completely disclosed to affected parties. A conflict of interest would generally arise if a Supervised Person directly or indirectly participated in any investment, interest, association, activity or relationship that may impair or appear to impair the Supervised Person’s objectivity. Any Supervised Person who may be involved in a situation or activity that might be a conflict of interest or give the appearance of a conflict of interest should consider reporting such situation or activity to the Chief Compliance Officer of the respective Adviser.

The Board of Directors of each of the Advisers has adopted this Code.

This Code and any amendments to this Code shall be given to all Supervised Persons of the Advisers. All Supervised Persons will sign an acknowledgement, upon receipt of the Code and any amendments, certifying that they have received, understand and will comply with this Code. Upon request, this Code shall be delivered, without charge, to any Client of the Advisers, as stated in the Advisers’ ADV Part 2A.

II. DEFINITIONS

As used in this Code, the following terms have the following meanings:

(i) “Access Person” includes (a) any director, partner, or officer of an Adviser; (b) any Supervised Person who (1) has access to non-public information regarding any Clients’ purchase or sale of securities, or non-public information regarding the portfolio holdings of any Client; or (2) is involved in making securities recommendations to Clients or has access to such recommendations that are nonpublic; (c) any employee of an Adviser who, in connection with his or her regular functions or duties, makes, participates in, or obtains information regarding the purchase or sale of Reportable Securities by a Client, or whose functions relate to the making of any recommendations with respect to such purchases or sales; (d) any natural person in a control relationship to an Adviser who obtains information concerning recommendations made to a Client with regard to the purchase or sale of Reportable Securities of the Client; and (e) any other person who any Adviser’s CCO determines to be an Access Person.

(ii) “Automatic Investment Plan” means any program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation, including, but not limited to, any dividend reinvestment plan (“DRIP”).

(iii) “Beneficial Ownership” generally means any interest in a Security for which an Access Person or any member of his or her immediate family sharing the same household can directly or indirectly receive a monetary (“pecuniary”) benefit. It shall be interpreted in the same manner as it would be under Rule 16a-1(a)(2) of the Securities Exchange Act of 1934, as amended (the “1934 Act”) in determining whether a person is the beneficial owner of a security for purposes of Section 16 of the 1934 Act and the rules and regulations thereunder, that, generally speaking, encompasses those situations where the beneficial owner has the right to enjoy a direct or indirect economic benefit from the ownership of the security. A person is normally regarded as the beneficial owner of securities held in (a) the name of his or her spouse, domestic partner, minor children, or other relatives living in his or her household; (b) a trust, estate, or other account in which he/ she has a present or future interest in the income, principal or right to obtain title to the securities or (c) the name of another person or entity by reason of any contract, understanding, relationship, agreement or other arrangement whereby he or she obtains benefits substantially equivalent to those of ownership.

(iv) “Chief Compliance Officer” or “CCO” means the person appointed by each Adviser designated to be responsible for administering the policies and procedures adopted under the Advisers Act. The CCO may delegate any or all of his or her responsibilities under the Code. In instances when the Code is applied to the CCO, any other executive officer of the appropriate Adviser may act as the designee of the CCO.

(v) “Client” means any person or entity to which the Advisers provide investment advisory services, including Reportable Funds, unregistered investment companies, and any account, trust or other investment vehicle over which the Aberdeen Group has management discretion. With respect to Advisers with a primary place of business outside of the US, the term Client does not include Clients domiciled outside of the US.

(vi) “Control” means the power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result of an official position with such company. Any person who owns beneficially, either directly or through one or more controlled companies, more than twenty-five percent (25%) of the voting securities of a company shall be presumed to control such company. Any person who does not so own more than twenty-five percent (25%) of the voting securities of any company shall be presumed not to control such company. A natural person shall be presumed not to be a controlled person.

(vii) “Federal Securities Laws” means (a) the Securities Act of 1933, as amended (“Securities Act”); (b) the Securities Exchange Act of 1934, as amended (“Exchange Act”); (c) the Sarbanes-Oxley Act of 2002; (d) the 1940 Act; (e) the Advisers Act; (f) Title V of the Gramm-Leach-Bliley Act; (g) any rules adopted by the U.S. Securities and Exchange Commission (“SEC”) under the foregoing statutes; (h) the Bank Secrecy Act, as it applies to funds and investment advisers; and (i) any rules adopted under relevant provisions of the Bank Secrecy Act by the SEC or the Department of the Treasury.

(viii) “Initial Public Offering” (“IPO”) means an offering of securities registered under the Securities Act, the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the 1934 Act, or a similar offering of securities in another market.

(ix) “Investment Personnel” means (a) any Portfolio Manager of the Aberdeen Group; (b) any employee of the Aberdeen Group (or of any company in a control relationship to a Reportable Fund or the Aberdeen Group) who, in connection with his regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities by the Aberdeen Group, including securities analysts and traders; or (c) any person employed by the Aberdeen Group who obtains or otherwise has access to information concerning recommendations made to a Client regarding the purchase or sale of securities by any Client.

(x) “Limited Offering” means an offering that is exempt from registration under the Securities Act pursuant to Section 4(2) or Section 4(6) or Rules 504, 505 or 506 under the Securities Act. Limited offerings are commonly referred to as private placements and include offerings of hedge funds and private funds.

(xi) “Portfolio Manager” means an employee of the Aberdeen Group entrusted with the direct responsibility and authority to make investment decisions affecting the Client portfolios managed by the Aberdeen Group.

(xii) “Purchase or sale of a Security” includes, among other things, the writing of an option to purchase or sell a Security.

(xiii) “Reportable Fund” means: (a) any US registered investment company advised or sub-advised by an Adviser; or (b) any US registered investment company whose investment adviser or principal underwriter controls, is controlled by or is under common control with any Aberdeen Group entity. References to registered investment companies include exchange traded funds.(1) A list of Reportable Funds is maintained by each respective Adviser’s CCO.

(xiv) “Security” shall have the meaning set forth in Section 202(a)(18) of the Advisers Act and Section 2(a)(36) of the 1940 Act except as noted in the following paragraph. Further, for purposes of this Code, “Security” shall include any commodities contracts as defined in Section 2(a)(1)(A) of the Commodity Exchange Act, and shares of exchange traded funds. This definition includes but is not limited to futures contracts on equity indices.

“Reportable Security” shall have the same definition as Security above but shall not include direct obligations of the United States national government, bankers’ acceptances, bank certificates of deposit, high quality short-term debt instruments (maturity of less than 366 days at issuance and rated in one of the two highest rating categories by a Nationally Recognized Statistical Rating Organization), including repurchase agreements, commercial paper and shares of U.S. registered money market funds that limit their investments to the exempted securities enumerated above. Also excluded from the definition are any U.S. registered open-end investment companies ( e . g ., open-end mutual funds, but not exchange traded funds) that are not advised or sub-advised by the Advisers, and any non-US registered open-end investment vehicles not advised or sub-advised by the Advisers that Compliance has determined are exempt from reporting, in reliance on SEC no-action relief(2). Shares of exchange traded funds, whether registered as open-end investment companies or unit investment trusts, are deemed to be Reportable Securities. Any question as to whether a particular investment constitutes a “Security” or a “Reportable Security” should be referred to the respective Compliance Officer.

(xv) “Security Held or to be Acquired” means (a) any Reportable Security other than open-end mutual funds which, within the most recent 7 days, is or has been held by

(1) “Exchange traded funds,” or “ETFs,” are registered investment companies that operate pursuant to an order from the SEC exempting the ETF from certain provisions of the 1940 Act so that the ETF may issue securities that trade in a secondary market, and which are redeemable only in large aggregations called creation units. An ETF registers with the SEC under the 1940 Act either as an open-end management investment company or as a unit investment trust.

(2) Compliance will maintain a list of fund structures which are considered to be exempt.

Client, or (b) is being or has been considered for purchase by a Client or an Adviser, or (c) any option to purchase or sell, and any security convertible into or exchangeable for, a Reportable Security.

(xvi) “Supervised Person” means (a) any partner, officer, director (or other person occupying a similar status or performing similar functions), or employee of an Adviser (including representatives of Aberdeen Fund Distributors LLC), or (b) any other person who provides investment advice on behalf of the Adviser and is subject to the supervision and control of the Adviser, such as those persons covered under a Memorandum of Understanding with an Adviser.

III. PROHIBITED TRANSACTIONS

No Access Person shall engage in any act, transaction, practice or course of conduct, which would violate the provisions of Rule 17j-1 of the 1940 Act or Section 206 of the Advisers Act as described in Section I.A. above.

A. Access Persons

No Access Person shall :

(i)	purchase or sell, directly or indirectly, any Security in which he/she has, or by reason of such transaction acquires, any direct or indirect Beneficial Ownership and which to his/her actual knowledge at the time of such purchase or sale, the same Reportable Security is:

	(a)	being considered for purchase or sale by any Client;

	(b)	being purchased or sold by any Client; or

(ii)	disclose to other persons the Reportable Securities activities engaged in or contemplated for any Client;

(iii)	accept from or offer to the same source any gift valued at $200 (or local equivalent) over an annual period regarding any person or entity that does business with or on behalf of the Aberdeen Group, or accept or give any entertainment from or to any source that an individual has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety. Entertainment received from the same source in the same year is limited to £500 (or local equivalent). Entertainment given by employees to external parties is subject to a £750 annual limit for High Risk Clients and £1500 for Low Risk Clients, as defined in the Group Gifts and Hospitality Policy. Gifts that are festive in nature, as defined by local offices, may exceed the established threshold if approved by the local Compliance Department in writing prior to being given as they meet the other stated requirements in this section. All Gifts and Entertainment, (except where below the “de minimis” value determined regionally) must be reported to the Compliance Department.

	Further all Registered Representatives that are dual employees of the Advisers as defined in the Code and Aberdeen Fund Distributors LLC shall not:

	accept from or offer to the same source any gift valued in excess of $100 over an annual period regarding any person or entity that does business with or on behalf of the Aberdeen Group, or accept or give any entertainment from or to any source that an individual has current or prospective business dealings unless such entertainment is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety. All Gifts and Entertainment, (except where below the “de minimis” value determined regionally) must be reported to the Compliance Department.

	Regardless of the source or value of any gift or favor, any Aberdeen access person and his/her family members must decline any gift offered under circumstances indicating or appearing to indicate that its purpose is to influence the Aberdeen access person in the performance of his or her employment and any gift that might have, or reasonably appear to have, such an effect. Gifts of cash in any amount are prohibited, as well as any gifts which would be viewed as lavish or expensive by a reasonable person, such as the use of a vacation home or trips. Aberdeen access person’s must also refuse any gifts of nominal value if they are part of a pattern or practice which when viewed as a whole would be considered lavish or expensive.

(iv)	acquire a Beneficial Ownership in any securities in an IPO or a Limited Offering, without having received prior approval from the appropriate fund management desk head or delegate (“Fund Management”) and Compliance. Compliance will maintain a record of any decision which includes the reasons supporting the decision made, to approve the Access Person’s acquisition of an IPO or private placement for at least five years after the end of the fiscal year in which the approval was granted.

	Before granting such approval, Fund Management will carefully evaluate such investment to determine that the investment could create no material conflict between the Access Person and a Client. Fund Management may make such determination by looking at, among other things, the nature of the offering and the particular facts surrounding the purchase. For example, Fund Management may consider approving the transaction if it can be determined that: (a) the investment did not result from directing Client or Aberdeen Group business to the underwriter or issuer of the Security; (b) the Access Person is not misappropriating an opportunity that should have been offered to a Client; and (c) an Investment Person’s investment decisions for a Client will not be unduly influenced by his or her personal holdings and investment decisions are based solely on the best interests of a Client.

	In addition, no Access Person shall acquire a Beneficial Ownership in any securities issued in a Limited Offering by a private fund advised or sub-advised by any member of the Aberdeen Group without having received prior written approval from the Compliance Department.

	Any Access Person authorized to purchase securities in an IPO or Limited Offering shall disclose that investment when they play a part in a Client’s subsequent consideration of an investment in that issuer. In such circumstances, a Client’s decision to purchase securities of the issuer shall be subject to independent review by Investment Personnel with no personal interest in the issuer.

(v)	serve on the board of directors of any publicly traded company without prior authorization of the Aberdeen Conflicts of Interest Committee. Any such authorization shall be based upon a determination that the board service would be consistent with the interests of the Aberdeen Group and the Clients under their management. Authorization of board service shall be subject to the implementation by the Aberdeen Group of “Chinese Wall” or other procedures to isolate such Access Persons from making decisions about trading in that company’s Securities.

(vi)	No employees may profit in the purchase and sale, or sale and purchase, of any Reportable Securities within sixty (60) calendar days. Trades made in violation of this prohibition should be unwound, if possible. Otherwise, any profits realized on such short-term trades shall be subject to disgorgement to the appropriate charity of the Aberdeen Group’s choosing. Where local jurisdictions requires a longer holding period e.g. Japan, Access Persons in that region must observe the longer holding period.

(vii)	place any trades in derivatives (this prohibition does not extend to spread betting on currency, sports, the weather, etc.), unless given express approval by the CCO

(viii)

undertake personal investment transactions with the same individual employee at a broker-dealer firm with whom business is conducted on behalf of any Client by an Adviser.

B. Access Persons

In addition to the prohibitions listed above, no Access Person shall acquire or dispose of any Beneficial Ownership in a Reportable Security within seven (7) calendar days before or after any Client trades in that security. Provided that there are no open orders for Clients in these securities, this blackout period does not apply to the following:

(i)	treasury securities issued by G8 countries (Canada, France, Germany, Italy, Japan, Russia, United Kingdom and United States)
(ii)	shares of stock of a company listed on the S&P 500 Index or the FTSE 100 Index
(iii)	shares of an Exchange Traded Fund that tracks the S&P 500 Index or the FTSE 100 Index

Any trades made within the prescribed period that do not fall under any of the exceptions detailed above shall be unwound, if possible. Otherwise, any profits realized on these trades may be disgorged to a charity of the Aberdeen Group’s choosing at the discretion of the CCO.

C. Rumor Policy

No access person shall originate or circulate in any manner any statement or report regarding any issuer or security that the employee knows or has reasonable grounds to believe is false or misleading and could improperly influence the market price for such security. An access person must promptly report to Compliance any circumstance which reasonably would lead the employee to believe such statement or report might have been originated, circulated or received.

D. Waivers

Notwithstanding any other provision in this Code to the contrary, transactions described in Section III.A and III.B above which appear upon reasonable inquiry and investigation to present no reasonable likelihood of harm to a Client and which are otherwise transacted in accordance with Rule 17j-1 under the 1940 Act and Sections 204A and 206 of the Advisers Act may be permitted within the discretion afforded under the Aberdeen Group’s Personal Account Dealing authorization process on a case-by-case basis .

IV. COMPLIANCE PROCEDURES

With respect to the pre-clearance and reporting requirements contained herein, Access Persons shall pre-clear in accordance with the Aberdeen Group’s Personal Account Dealing Procedures.

A. Pre-Clearance Procedures

All Access Persons must receive prior approval before engaging in any transaction in Reportable Securities in which the Access Person acquires or disposes of Beneficial Ownership of such Reportable Security that is not otherwise specifically prohibited by this Code. The Access Person should request pre-clearance by completing the appropriate Personal Account Trade Pre-Clearance Request Form located in MyComplianceOffice, and sending the form for approval to Compliance(3).

Any conflicts of interest related to Reportable Securities in which the Access Person is seeking pre-clearance or any Client must be disclosed in the comments section of the Personal Account Trade Pre-Clearance Request Form in MCO.

In addition, where the Access Person intends to trade in securities issued by a closed-end investment company advised by the Aberdeen Group, a Reportable Fund, or in the shares of Aberdeen Asset

(3) Aberdeen managed open end funds held within certain Aberdeen sponsored retirement plans may be exempt from pre-clearance requirements so long as prompt post trade compliance review is achievable. Availability of such exemption is subject to local Compliance approval.

Management PLC, the approval of an officer of the closed-end investment company, Reportable Fund or Aberdeen Asset Management PLC, as applicable, will be obtained by Compliance before the approval is granted.

Pre-clearance approval will expire one business day after the date the authorization is granted. If the trade instruction is not placed before such pre-clearance expires, the Access Person is required to again obtain pre-clearance for the trade. In addition, if before placing the trade instruction, the Access Person becomes aware of any additional information with respect to a transaction that was pre-cleared, such Access Person shall not proceed further with the trade, without submitting a new pre-clearance request.

Access Persons are not required to pre-clear the following types of transactions:

(i)	purchases or sales which are non-volitional on the part of the Access Person;

(ii)	transactions effected for, and Reportable Securities held in, any account over which the Access Person has no direct or indirect influence or control;

(iii)	purchases which are part of an Automatic Investment Plan or DRIP or other regular investment in a selected security or securities subject to pre-clearance of the first purchase under the scheme;

(iv)	for those Access Persons residing outside the United States, registered open-end investment vehicles within their respective jurisdictions which are not advised or sub-advised by an Adviser; and

(v)	securities acquired by the exercise of rights issued pro rata by an issuer to all holders of a class of its securities, to the extent such rights were acquired from such issuer, and sales of such rights so acquired.

(vi)	Spot Currency is not considered a Reportable Security and as such is not subject to this requirement

B. Excessive Trading

The Aberdeen Group understands that it is appropriate for Access Persons to participate in the public securities markets as part of their overall personal financial planning.

As in other areas, however, this should be done in a way that creates no potential conflicts with the interests of any Client. Further, it is important to recognize that otherwise appropriate trading, if excessive, may compromise the best interests of any Clients if such trading is conducted during work-time or using Client resources . Accordingly, employees and Connected Parties(4) are generally restricted to a maximum of ten personal trades per calendar month to ensure that personal trading is not excessive. Exceptions to this restriction will be considered in hardship situations and at the discretion of the Chief Compliance Officer. For this review Connected Party transactions may be viewed separately from employee transactions.

No Access Person should engage in excessive trading or market timing activities with respect to any mutual funds whether managed by the Aberdeen Group or otherwise.

C. Reporting by Access Persons

Reports submitted pursuant to this Code shall be confidential and shall be provided only to the officers and Directors of the Advisers, their legal advisers/or regulatory authorities upon appropriate request. Notwithstanding the above, reports submitted by an Access Person pursuant to this Code may also be provided to any Reportable Fund to the extent such Access Person is considered an “access person” of the Reportable Fund for purposes of Rule 17j-1.

(4) any member of his or her immediate family sharing the same household, or any individual where the employee has influence or control over the individuals trading

All Access Persons must make the following reports:

1. Initial Holdings and Brokerage Accounts Reports

No later than 10 days after a person becomes an Access Person, such person must file an Initial Report of Access Persons (“Initial Report”) with Compliance reflecting the Access Person’s brokerage accounts and holdings in Reportable Securities as of a date not more than 45 days prior to becoming an Access Person. Such Initial Report must contain the following information:

(i)	the title and type of security, and as applicable the exchange ticker symbol or CUSIP number, the number of shares and principal amount of each Reportable Security in which such person has any direct or indirect Beneficial Ownership;

(ii)	the name of any broker, dealer or bank with whom the Access Person maintains an account in which any Securities are held for the direct or indirect benefit of the Access Person; and

(iii)	the date the Initial Report is submitted.

2. Quarterly Transaction Reports

All Access Persons are required to report to Compliance all transactions involving a Reportable Security in which the Access Person had, or as a result of the transaction, acquired, any direct or indirect Beneficial Ownership conducted during each calendar quarter within thirty (30) days after the close of the quarter and to provide duplicate statements for all brokerage accounts. This disclosure includes the:

(i)	date of the transaction, title of the security, and as applicable the exchange ticker symbol or CUSIP number, interest rate and maturity date (if applicable), number of shares, and principal amount of each Reportable Security involved;

(ii)	nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition);

(iii)	the price of the Reportable Security at which the transaction was effected;

(iv)	name of the broker, dealer or bank with or through which the transaction was effected; and

(v)	date the report is submitted.

In addition, with respect to any account established by an Access Person in which any securities were held during the quarter for the direct or indirect benefit of the Access Person, the Access Person must provide on the Quarterly Transaction Report:

(i)	name of the broker, dealer or bank with whom the Access Person established the account; and

(ii)	date the account was established.

The reporting requirements set out above apply to all transactions in Reportable Securities other than:

(i)	transactions with respect to Reportable Securities held in accounts over which the Access Person had no direct or indirect influence or control; and

(ii)	transactions effected pursuant to an Automatic Investment Plan or DRIP.

Access Persons must provide duplicate copies of their contract confirmations for each transaction in Reportable Securities to Compliance. Duplicate holding/trading statements are to be provided to Compliance at least quarterly, where available, within 30 days after the period end. The Procedures however, recognize that some Access Persons either reside in countries or maintain brokers where such statements are not regularly issued or available, and therefore these individuals are to be exempt from providing quarterly statements within the 30 day time period. In such circumstances, brokerage statements or their equivalent holdings reports must be provided where available.

In the event that an Access Person opens a new account during a quarter, the account is to be noted on their quarterly report and duplicate statements, or the equivalent of such, with respect to such new account, are to be forwarded to Compliance within the 30 day period after the end of the quarter in which the new account is opened, or as appropriate if exempt from the 30 day rule.

3. Annual Holdings Reports

No later than January 31 of each year, every Access Person must submit a report to Compliance which contains the following information:

(i) the title and type of security, and as applicable the exchange ticker symbol or CUSIP number, number of shares and principal amount of each Reportable Security or shares in a Reportable Fund in which such person has any direct or indirect Beneficial Ownership as of December 31 of the prior calendar year;

(ii) the name of the broker, dealer or bank with whom such person maintained an account in which any Securities were held for the direct or indirect benefit of such person as of December 31 of the prior calendar year; and

(iii) the date the report is submitted.

With respect to Aberdeen sponsored retirement plans, to the extent details of reportable holdings are obtained directly from the retirement plan provider, Access Persons need not include such holdings in their Annual Holdings Report if it would duplicate this information.

4. Certification of Compliance with the Code

Compliance shall provide notice to all Access Persons of their status under this Code, and shall deliver a copy of the Code to each Access Person when they become an Access Person and annually thereafter. Additionally, each Access Person will be provided a copy of any amendments to the Code. After reading the Code or any amendment to the Code, each Access Person shall certify to the following in the form provided by Compliance:

(i) they have read and understand the Code and recognize that they are subject thereto;

(ii) they have complied and/or will comply with the requirements of the Code;

(iii) they have reported and/or will report all personal securities transactions required to be reported pursuant to the requirements of the Code;

(iv) they have not disclosed and/or will not disclose pending “buy” or “sell” orders for a Client except where the disclosure occurred subsequent to the execution or withdrawal of an order; and

(v) they have reported, to the best of their knowledge, all actual or potential personal conflicts of interest and outside business activities.

This Certification of Compliance shall be maintained in MyComplianceOffice and made available to the respective CCO.

In the event that an Access Person has any knowledge of a potential or actual violation of the Certification of Compliance, that person should notify the respective CCO in accordance with the procedures set forth below in Section E.

D. Reporting to the Board Of Directors

Each CCO will prepare an annual report relating to the Code of Ethics for the Board of Directors of the applicable Adviser. Such annual report shall:

(i) summarize existing procedures concerning personal investing and any changes in the procedures made during the past year;

(ii) identify any violations requiring significant remedial action during the past year and any sanctions imposed;

(iii) identify any recommended changes in the existing restrictions or procedures based upon the Adviser’s experience under the Code of Ethics, evolving industry practices or developments in applicable laws or regulations; and

(iv) state the CCO’s conclusions regarding whether the Adviser has adopted procedures reasonably necessary to prevent Access Persons from violating the Code.

The CCO shall promptly report to the applicable Adviser’s Board of Directors all material violations of the Code and the reporting requirements thereunder, which will include a description of any remedial actions taken to address the reported violations.

E. Reports to Chief Compliance Officer

The Advisers’ CCOs will provide, a certification to the chief compliance officer (each a “Fund CCO”) or other designee of each Reportable Fund confirming that, as of the prior quarter end:

(i) all documentation required by the Code and Rule 17j-1 as it applies to the Advisers or their Supervised Persons has been collected and is being retained on behalf of the Reportable Fund;

(ii) there have been no material violations to the Code and, if there have been violations to the Code, the violation has been documented and reported to each Fund CCO; and

(iii) the firm has appointed appropriate management or compliance personnel to review transactions and reports filed by Access Persons under the Code, and adopted procedures reasonably necessary to prevent Access Persons from violating the Code.

On request, t he Advisers’ CCOs will also provide a description of any material issues arising under the Code since the last quarter end, including, but not limited to, information about material violations of the Code and sanctions imposed in response to material violations.

On request, each quarter the respective Adviser’s CCO will also provide to each Fund CCO or their designee a list of Access Persons who are subject to this Code and the names of the relevant personnel responsible for pre-clearing and reviewing personal securities transactions.

The CCOs will provide such information, including, but not limited to, initial and annual holdings reports and quarterly transaction reports for all Access Persons, pre-clearance reports and approvals for participation in IPOs and Limited Offerings, as is requested by a Fund CCO.

F. Reporting of Illegal or Unethical Behavior

Supervised Persons should promptly report any conduct or actions by a Supervised Person that does not comply with the Federal Securities Laws, other applicable laws, rules or regulations or this Code.

Any Supervised Person who questions whether a situation, activity or practice is acceptable must immediately report such practice to the CCO of the Adviser. The CCO of the Adviser shall consider the matter and respond to the Supervised Person within a reasonable amount of time. The CCO of the Adviser will contact the Adviser’s legal counsel when he/she believes it to be necessary. To the extent possible and as allowed by law, reports made by Supervised Persons under this Section F will be treated as confidential.

G. Sanctions

Upon discovering a violation of this Code, the Advisers may impose such sanctions as they deem appropriate, including, among other things, verbal or written warnings and censures, monetary sanctions, disgorgement, suspensions or dismissal.

H. Retention of Records

The following records must be maintained by the Advisers in the manner and to the extent set out below. These records must be made available to the SEC or any representative of the SEC at any time and from time to time for reasonable periodic, special or other examination:

(i) A copy of the Code that is in effect, or at any time within the past five years was in effect, must be maintained in an easily accessible place;

(ii) A record of any violation of the Code, and of any action taken as a result of the violation, must be maintained in an easily accessible place for at least five years after the end of the fiscal year in which the violation occurs;

(iii) A copy of each report required to be submitted by Access Persons under Sections IV.C.1, IV.C.2, and IV.C.3 of the Code, including any information provided on broker transaction confirmations and account statements, must be maintained for at least five years after the end of the fiscal year in which the report is made or the information is provided, the first two years in an easily accessible place;

(iv) A record of the names of all persons who are currently, or within the past five years were, Access Persons of the Adviser;

(v) A record of all Access Persons, currently or within the past five years, who are or were required to make reports under the Code must be maintained in an easily accessible place;

(vi) A record of all persons, currently or within the past five years, who are or were responsible for reviewing reports of Access Persons must be maintained in an easily accessible place;

(vii) A copy of each Personal Account Deal Request Form (including a record of all approvals to acquire securities in an IPO or Limited Offering, indicating the reasons for such approvals) must be maintained for at least five years after the end of the fiscal year in which the form was submitted or the approval is granted, whichever is later;

(viii) A record of any decision, and the reasons supporting the decision, to approve the acquisition by an Access Person of securities in an IPO or Limited Offering for at least five years after the end of the fiscal year in which approval is granted;

(ix) A copy of each report to the Board of the Advisers or to a Reportable Fund of the Code must be maintained for at least five years after the end of the fiscal year in which it is made, the first two years in an easily accessible place;

(x) A record of all accounts, currently or within the past five years, in which an Access Person has or had a Beneficial Ownership interest in a Reportable Security solely by

reason of an indirect pecuniary interest described in Rule 16a-1(a)(2)(ii)(B) or (C) under the Exchange Act must be maintained in an easily accessible place; and

(xi) A record of all Certifications of Compliance for each person who is currently, or within the past five years was, a Supervised Person of the Adviser.

V. POLICY STATEMENT ON INSIDER TRADING

A. Definition of Insider Trading

The Aberdeen Group prohibits any “Affected Person” (i.e., any officer or director of an Adviser and employees of the Group) from trading, either personally or on behalf of others, including accounts managed by the Aberdeen Group, on material non-public information or communicating material non-public information to others in violation of the law. This conduct is frequently referred to as “insider trading.” The policy applies to every such Affected Person and extends to activities within and outside their duties within the Aberdeen Group. Any questions regarding this policy and the procedures below should be referred to the CCO of the respective Adviser.

The term “insider trading” is not defined in the Federal Securities Laws, but is generally understood to prohibit the following activities:

(i) trading by an insider while in possession of material non-public information;

(ii) recommending the purchase or sale of securities while in possession of material non-public information; or

(iii) communicating material non-public information to others.

B. The Concept of “Insider”

The concept of “insider” is broad and it includes officers, directors, partners, members and employees of a company. In addition, a person can be a “temporary insider” if he or she is given material inside information about a company or the market for the company’s securities on the reasonable expectation that the recipient would maintain the information in confidence and would not trade on it.

A temporary insider can include, among others, a company’s legal advisers , accountants, consultants, bank lending officers, and the employees of such third parties. In addition, a company may become a temporary insider of a company it advises or for which it performs other services. For that to occur, that company must expect the subsidiary to keep the disclosed non-public information confidential and the relationship must at least imply such a duty before the subsidiary will be considered an insider.

C. Material Information

Trading, tipping or recommending securities transactions while in position of inside information is not a basis for liability unless the information is “material.” “Material information” generally is defined as:

(i) information for which there is a substantial likelihood that a reasonable investor would consider it important in making his or her investment decisions; or

(ii) information that would significantly alter the total mix of information made available.

Information that should be considered material includes, but is not limited to: dividend changes, earnings estimates, changes in previously released earnings estimates, a joint venture, the borrowing of significant funds, a major labor dispute, merger or acquisition proposals or agreements, major litigation, liquidation problems, and extraordinary management developments. For information to be considered material it need not be so important that it would have changed an investor’s decision to purchase or sell particular securities; rather it is enough that it is the type of information on which reasonable investors rely in making purchase or sale decisions. The materiality of information relating

to the possible occurrence of any future event may depend on the likelihood that the event will occur and its significance if it did occur.

D. Non-Public Information

Information is non-public until it has been effectively communicated to the market place. One must be able to point to some fact to show that the information is generally public. For example, information found in a report filed with the SEC , or appearing in Dow Jones , Reuters Economic Services , The Wall Street Journal or other publications of general circulation would be considered public. Information in bulleting and research reports disseminated by brokerage firms are also generally considered to be public information.

Before trading for yourself or others in the securities of a company about which you may have potential inside information, or revealing such information to others or making a recommendation based on such information, you should ask yourself the following questions :

(i) Is the information material? Is this information that an investor would consider important in making his or her investment decisions? Is this information that would substantially affect the market price of the securities if generally disclosed?

(ii) Is the information non-public? To whom has this information been provided? Has the information been effectively communicated to the marketplace?

If, after consideration of the above, you believe that the information is material and non-public, or if you have questions as to whether the information may be material and non-public, you should take the following steps:

(i) Report the matter immediately to the CCO. In consulting with the CCO, you should disclose all information that you believe may bear on the issue of whether the information you have is material and non-public.

(ii) Do not purchase or sell the securities on behalf of yourself or others.

(iii) Do not communicate the information either inside or outside the Aberdeen Group, other than to the CCO or another appropriate member of the Compliance Department.

(iv) After the CCO has reviewed the issue, you will either be (a) instructed to continue the prohibitions against trading, tipping or communication, or (b) allowed to trade and communicate the information. In appropriate circumstances, the CCO will consult with counsel as to the appropriate course to follow.

Information in your possession that you identify, or which has been identified to you as material and non-public, must not be communicated to persons outside the Aberdeen Group, without the prior authorization of the CCO. In addition, care should be taken so that such information is secure. For example, files containing material non-public information should be sealed and access to computer files containing material non-public information should be restricted.

E. Monitoring Procedures

The role of Compliance is critical to the implementation and maintenance of the Aberdeen Group’s policy and procedures against insider trading. The supervisory procedures can be divided into the following two parts: (1) the prevention of insider trading; and (2) the detection of insider trading. Each part of the supervisory procedures is discussed in further detail below.

1. The Prevention of Insider Trading

To prevent insider trading Compliance will:

(i) provide, on a regular basis, an educational program to familiarize Affected Persons with the policy and procedures; and

(ii) when it has been determined that an Affected Person has material non-public information:

(a) implement measures to prevent dissemination of such information; and

(b) where necessary, restrict Affected Persons from trading in the securities.

2. The Detection of Insider Trading

To detect insider trading, Compliance will:

(i) review the trading activity reports filed by each Affected Person;

(ii) review the trading activity on behalf of Clients; and

(iii) to the extent applicable, such other information as the CCO deems necessary or appropriate.

Exhibit 99.(q)(1)

ABERDEEN FUNDS

(a Delaware statutory trust)

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as trustees of ABERDEEN FUNDS (the “Trust”), a Delaware statutory trust, hereby constitutes and appoints Alan Goodson, Megan Kennedy, Jennifer Nichols, Lucia Sitar and Jeffrey Cotton and each of them with power to act without the others, his or her attorney-in-fact, with full power of substitution and resubstitution, to sign the Registration Statement on Form N-1A under the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, of the Trust and any and all amendments thereto, and to file the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, and each of them shall have full power and authority to do and perform in the name and on behalf of the undersigned in any and all capacities, all and every act and thing requisite or necessary to be done, as fully and to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming that which said attorneys, or any of them, may lawfully do or cause to be done by virtue hereof. This instrument may be executed in one or more counterparts.

IN WITNESS WHEREOF, the undersigned has herewith set his or her name as of this 10th day of December 2014.

/s/ P. Gerald Malone		/s/ Warren C. Smith
P. Gerald Malone, Trustee		Warren C. Smith, Trustee

/s/ Richard H. McCoy		/s/ Jack Solan
Richard H. McCoy, Trustee		Jack Solan, Trustee

/s/ Peter D. Sacks		/s/ Martin Gilbert
Peter D. Sacks, Trustee		Martin Gilbert, Trustee

/s/ John T. Sheehy		/s/ Neville Miles
John T. Sheehy, Trustee		Neville Miles, Trustee

NOTICE

THE PURPOSE OF THIS POWER OF ATTORNEY IS TO GIVE THE PERSONS YOU DESIGNATE (YOUR “AGENTS”) BROAD POWERS TO ACT ON YOUR BEHALF WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”). THESE POWERS INCLUDE, THE POWER TO SIGN ON YOUR BEHALF AND FILE THE FORM N-1A REGISTRATION STATEMENT OF ABERDEEN FUNDS AND ANY AMENDMENTS OR EXHIBITS THERETO, AND OTHER DOCUMENTS IN CONNECTION THEREWITH, WITH THE COMMISSION. THE POWER OF ATTORNEY ALSO GIVES YOUR AGENT THE POWER TO DO AND PERFORM IN YOUR NAME AND ON YOUR BEHALF IN ANY AND ALL CAPACITIES, ALL AND EVERY ACT AND THING REQUISITE OR NECESSARY TO BE DONE TO ALL INTENTS AND PURPOSES AS YOU MIGHT OR COULD DO IN PERSON THAT SUCH AGENTS DEEM NECESSARY WITHOUT ADVANCE NOTICE TO YOU OR APPROVAL BY YOU.

THIS POWER OF ATTORNEY DOES NOT IMPOSE A DUTY ON YOUR AGENTS TO EXERCISE GRANTED POWERS, BUT WHEN POWERS ARE EXERCISED, YOUR AGENTS MUST USE DUE CARE TO ACT FOR YOUR BENEFIT AND IN ACCORDANCE WITH THIS POWER OF ATTORNEY.

YOUR AGENTS MAY EXERCISE THE POWERS GIVEN HERE THROUGHOUT YOUR LIFETIME, EVEN AFTER YOU BECOME INCAPACITATED, UNLESS YOU EXPRESSLY LIMIT THE DURATION OF THESE POWERS OR YOU REVOKE THESE POWERS OR A COURT ACTING ON YOUR BEHALF TERMINATES YOUR AGENTS’ AUTHORITY.

YOUR AGENTS MUST KEEP YOUR FUNDS SEPARATE FROM YOUR AGENTS’ FUNDS.

A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENTS IF IT FINDS YOUR AGENTS ARE NOT ACTING PROPERLY.

THE POWERS AND DUTIES OF AN AGENT UNDER A POWER OF ATTORNEY ARE EXPLAINED MORE FULLY IN 20 PA.C.S. CH. 56.

IF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAND, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU.

I HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE AND I UNDERSTAND ITS CONTENTS.

[The remainder of this page is intentionally left blank.]

IN WITNESS WHEREOF, the undersigned has herewith set his or her name and seal as of this 10th day of December 2014.

/s/ P. Gerald Malone		/s/ Warren C. Smith
P. Gerald Malone, Trustee		Warren C. Smith, Trustee

/s/ Richard H. McCoy		/s/ Jack Solan
Richard H. McCoy, Trustee		Jack Solan, Trustee

/s/ Peter D. Sacks		/s/ Martin Gilbert
Peter D. Sacks, Trustee		Martin Gilbert, Trustee

/s/ John T. Sheehy		/s/ Neville Miles
John T. Sheehy, Trustee		Neville Miles, Trustee

ACKNOWLEDGMENT

We, the undersigned, Alan Goodson, Megan Kennedy, Jennifer Nichols, Lucia Sitar and Jeffrey Cotton have read the attached power of attorney and are the persons identified as the agents for the trustees of ABERDEEN FUNDS (the “Trust”), a Delaware statutory trust, and the Trust (the “Grantors”). We hereby acknowledge that, in the absence of a specific provision to the contrary in the power of attorney or in 20 Pa.C.S. Ch. 56, when we act as agents:

We shall exercise the powers for the benefit of the Grantors.

We shall keep the assets of the Grantors separate from our assets.

We shall exercise reasonable caution and prudence.

We shall keep a full and accurate record of all actions, receipts, and disbursements on behalf of the Grantors.

Date: December 10, 2014

	/s/ Alan Goodson
	Alan Goodson

	/s/ Megan Kennedy
	Megan Kennedy

	/s/ Jennifer Nichols
	Jennifer Nichols

	/s/ Lucia Sitar
	Lucia Sitar

	/s/ Jeffrey Cotton
	Jeffrey Cotton

Exhibit 99.(q)(2)

ABERDEEN FUNDS

(a Delaware statutory trust)

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS, that each of the undersigned as officers of ABERDEEN FUNDS (the “Trust”), a Delaware statutory trust, hereby constitutes and appoints Alan Goodson, Megan Kennedy, Jennifer Nichols, Lucia Sitar and Jeffrey Cotton and each of them with power to act without the others, his or her attorney-in-fact, with full power of substitution and resubstitution, to sign the Registration Statement on Form N-1A under the Securities Act of 1933, as amended, and the Investment Company Act of 1940, as amended, of the Trust and any and all amendments thereto, and to file the same, with all exhibits thereto and other documents in connection therewith, with the U.S. Securities and Exchange Commission, and each of them shall have full power and authority to do and perform in the name and on behalf of the undersigned in any and all capacities, all and every act and thing requisite or necessary to be done, as fully and to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming that which said attorneys, or any of them, may lawfully do or cause to be done by virtue hereof. This instrument may be executed in one or more counterparts.

IN WITNESS WHEREOF, the undersigned has herewith set his or her name as of this 10th day of December 2014.

/s/ Bev Hendry
Bev Hendry, President and Chief Executive Officer

/s/ Andrea Melia
Andrea Melia, Treasurer and Chief Financial Officer

NOTICE

YOUR AGENTS MUST KEEP YOUR FUNDS SEPARATE FROM YOUR AGENTS’ FUNDS.

A COURT CAN TAKE AWAY THE POWERS OF YOUR AGENTS IF IT FINDS YOUR AGENTS ARE NOT ACTING PROPERLY.

THE POWERS AND DUTIES OF AN AGENT UNDER A POWER OF ATTORNEY ARE EXPLAINED MORE FULLY IN 20 PA.C.S. CH. 56.

IF THERE IS ANYTHING ABOUT THIS FORM THAT YOU DO NOT UNDERSTAND, YOU SHOULD ASK A LAWYER OF YOUR OWN CHOOSING TO EXPLAIN IT TO YOU.

I HAVE READ OR HAD EXPLAINED TO ME THIS NOTICE AND I UNDERSTAND ITS CONTENTS.

[The remainder of this page is intentionally left blank.]

IN WITNESS WHEREOF, the undersigned has herewith set his or her name and seal as of this 10th day of December 2014.

/s/ Bev Hendry
Bev Hendry, President and Chief Executive Officer

/s/ Andrea Melia
Andrea Melia, Treasurer and Chief Financial Officer

ACKNOWLEDGMENT

We, the undersigned, Alan Goodson, Megan Kennedy, Jennifer Nichols, Lucia Sitar and Jeffrey Cotton and have read the attached power of attorney and are the persons identified as the agents for the officers of ABERDEEN FUNDS (the “Trust”), a Delaware statutory trust, and the Trust (the “Grantors”). We hereby acknowledge that, in the absence of a specific provision to the contrary in the power of attorney or in 20 Pa.C.S. Ch. 56, when we act as agents:

We shall exercise the powers for the benefit of the Grantors.

We shall keep the assets of the Grantors separate from our assets.

We shall exercise reasonable caution and prudence.

We shall keep a full and accurate record of all actions, receipts, and disbursements on behalf of the Grantors.

Date: December 10, 2014


	/s/ Alan Goodson
	Alan Goodson

	/s/ Megan Kennedy
	Megan Kennedy

	/s/ Jennifer Nichols
	Jennifer Nichols

	/s/ Lucia Sitar
	Lucia Sitar

	/s/ Jeffrey Cotton
	Jeffrey Cotton

Exhibit 99(q)(3)

CERTIFICATE OF SECRETARY

The undersigned Secretary for Aberdeen Funds (the “Trust”) hereby certifies that the Board of Trustees of the Trust duly adopted the following resolution on December 10, 2014:

RESOLVED , that the Trustees hereby approve and authorize the use of the Powers of Attorney executed by the Trustees and certain Officers of the Funds appointing Alan Goodson, Megan Kennedy, Jennifer Nichols, Lucia Sitar and Jeffrey Cotton as attorneys-in-fact for the purpose of signing and filing on behalf of the Trust its registration statement and any amendments thereto under the Securities Act of 1933 and the 1940 Act with the SEC, and the attorneys-in-fact listed in such Powers of Attorney are hereby authorized to act in accordance with such Powers of Attorney for the purposes described in the Powers of Attorney.

Dated: February 17, 2015

	/s/ Megan Kennedy
	Megan Kennedy
	Secretary