The Hussman Funds generally pay required annual capital gains distributions during the month of November. As in prior years, our policy is not to announce the exact date of these distributions. For 2009, no capital gain distribution is required for the Strategic Growth Fund. The distribution for the Strategic Total Return Fund is expected to be approximately 0.165 per share (1.35% of the prevailing net asset value), primarily characterized as short-term capital gains.

August 5, 2009: The expense ratio for the Hussman Strategic Growth Fund (HSGFX) was lowered from 1.10% to 1.04% today. The expense ratio for the Hussman Strategic Total Return Fund (HSTRX) was lowered from 0.75% to 0.67%. These cuts reflect active reductions in investment advisory and fund administration fees, the addition of new fee breakpoints (approved at the July meeting of the Hussman Funds Board of Trustees), and general growth in Fund assets. Fund expense ratios are affected by a number of factors including fee breakpoints and the level of Fund assets, and may increase or decrease over time.