We use our disciplined methodology to find industries that are on sale and that are leaders about to be noticed by the marketplace. For example, in the integrated telecom area right now, the Fund holds 16 different names instead of just two or three favorite stocks.

As of February 1, 2007, the Fund held 68 stocks, which we consider a pretty concentrated approach compared to certain other time periods. The reason for the concentration is that now we find a significant amount of value in large-cap names.

Q: What is your view on risk control at the portfolio level, the sector level and the securities level?

A: At the individual stock level, we manage risk through the beta factor, which discounts the more volatile stocks by a greater degree.

In terms of the industry level, we don’t consider ourselves stock pickers. We invest in industries such as electric utilities or integrated telecom, and we feel that we do a good job minimizing the risk by spreading our industry exposure into a number of names with value. That gives us a fair amount of diversification.

Regarding the sector level, investors have to realize that as a sector fund, we can carr y more risk than a completely diversified fund.

We also look at Value at Risk throughout the entire portfolio and calculate how each stock affects the Value at Risk of the portfolio. When entering or increasing a position, we are aware of its impact on the risk profile of the portfolio.

Q: What is your investment outlook for the Telecommunication & Utilities sectors?

A. Our analysis of the Telecommunication and Utilities sectors still indicates value in some industries. We are beginning to see a greater degree of both value and leadership in some of the larger names in the sector and are thus becoming more concentrated. Although we continue to see value in the fixed line communication industry, our heaviest weighted industry in 2005, we are beginning to see attractive combinations of value and leadership in both the independent power producers and energy traders industry and the electric utility industry.

Past performance does not guarantee future results. There are risks involved with mutual fund investing, including the risk of loss of principal. There is no assurance that the investment process will consistently lead to successful results.

An investment in a sector fund may involve greater risk and volatility than a diversified fund.

The beta coefficient is a measure of a portfolio’s volatility relative to the market. An index relevant to the portfolio is used as the proxy for the market, and is considered to have a 1.00 Beta. Therefore, if the portfolio has a beta of 1.50, it has historically been 50% more volatile than the market for the periods shown.

ICON’s value-to-price ratio is a ratio of the intrinsic value, as calculated using ICON’s proprietary valuation methodology, of a broad range of global securities within ICON’s system as compared to the current market price of those securities. To analyze intrinsic value, the ICON valuation methodology relies on the integrity of publicly released financial statements.

Consider the investment objectives, risks, charges, expenses, and share classes of each ICON Fund carefully before investing. The prospectus and the statement of additional information contain this and other information about the Funds and are available by visiting www.iconadvisers.com or calling 1-800-828-4881. Please read the prospectus and the statement of additional information carefully before investing.