Prospectus - COUNTRY Financial

Other Securities and RisksEach Fund’s portfolio securities and investment practices offercertain opportunities and carry various risks. Majorinvestments and risk factors are outlined in the front of theProspectus. Below are brief descriptions of other securities andpractices, along with their associated risks. These risks are notconsidered principal risks for the Funds, except foreignsecurities in the case of both funds, and any mortgage-relatedsecurities in the case of the Bond Fund. Each of the Funds mayengage in these practices, except as otherwise described in thisProspectus and the SAI.Defensive Investing: The Funds may, from time to time, taketemporary defensive positions that are inconsistent with eachFund’s principal investment strategies in attempting to respondto adverse market, economic, political or other conditions.When a Fund takes a temporary defensive position it may notachieve its investment goals.Foreign Securities: Foreign securities present risks beyond thoseof U.S. securities. They are generally more volatile and lessliquid than their U.S. counterparts. Moreover, changes incurrency exchange rates have the potential to reduce oreliminate certain gains achieved in securities markets or createnet losses. These risks are usually higher for investments in lessdeveloped markets. Foreign securities carry additional risksincluding currency, natural event and political risk.When-Issued Securities: The Funds may invest in securitiesprior to their date of issue. These securities could fall in valueby the time they are actually issued, which may be anytimefrom a few days to over a year.Repurchase Agreements: The Funds may buy securities withthe understanding that the seller will buy them back withinterest at a later date. If the seller is unable to honor itscommitment to repurchase the securities, the Funds could losemoney.Securities of Other Investment Companies: The Funds mayinvest in shares of other investment companies to the extentpermitted by the 1940 Act, as amended, or any rules and/orexemptive orders issued thereunder. To the extent the Fundsinvest in shares of an investment company, they will bear theirpro rata share of the other investment company’s expenses, suchas investment advisory and distribution fees and operatingexpenses. These expenses would be in addition to the advisoryand other expenses that a Fund bears directly in connectionwith its own operations.Zero Coupon Securities: A zero coupon security is a debtsecurity that is purchased and traded at a discount to its facevalue because it pays no interest for some or all of its life.Interest, however, is reported as income to the Funds and theFunds are required to distribute to shareholders an amountequal to the amount reported. Those distributions may forcethe Funds to liquidate portfolio securities at a disadvantageoustime.Asset-Backed Securities: Asset-backed securities representinterests in pools of debt (other than mortgage notes), such ascredit card accounts. The principal risks of asset-backedsecurities are that on the underlying obligations, payments maybe made more slowly, and rates of default may be higher thanexpected. In addition, because some of these securities are newor complex, unanticipated problems may affect their value orliquidity.Mortgage-Related Securities: These securities, which representinterests in pools of mortgages, may offer attractive yields butgenerally carry additional risks. The prices and yields ofmortgage-related securities typically assume that the securitieswill be redeemed at a given time before maturity. When interestrates fall substantially, these securities usually are redeemedearly because the underlying mortgages are often prepaid. TheFunds would then have to reinvest the money at a lower rate.The price or yield of mortgage-related securities may fall if theyare redeemed later than expected.Non-Insured: An investment in the Funds is not a deposit ofCOUNTRY Trust Bank, of which the Adviser is a department,and is not insured or guaranteed by the Federal DepositInsurance Corporation, the Office of Thrift Supervision or anyother government agency.20