Managers

INVESTM ENT GROUP

Managers Short Duration Government Fund Managers Intermediate Duration Government Fund
M U T UA L FU N D PAGE 1

PR O D U CT PR O FI LE

About Smith Breeden Associates, Inc.

Smith Breeden Philosophy

The key tenets of Smith Breedens investment philosophy are:
n A portfolio of fixed income

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Independent, global asset management firm focusing on fixed income Founded in 1982 Firm specializes in high credit quality, fixed income investments, interest rate risk management and the application of option pricing

Smith Breeden Associates, Inc. (Smith Breeden) believes research is key to sustaining the competitive advantage over the long term

incremental return from predicting the direction of interest rates

n Within the investment

securities with wide riskadjusted spreads properly matched to the duration of the market produces a total return in excess of the market return
n The incremental return

grade fixed income market, the spread sectors offer the greatest opportunity for excess return through security selection

available from security selection, based on careful relative-value analysis and quantitative research, is significantly greater and more consistent than the

Smith Breeden Strategy

n Both Funds use extensive n The Funds have a wide n Under normal circumstances,

tools for modeling and analyzing securitized securities

n The strategy takes advantage

of the entire MBS (mortgagebacked securities) market, where many securities are inefficiently priced

opportunity set Do not constrain the maturity or duration of the securities that may be purchased Hedges the duration back to closely match the duration of each funds respective benchmark

the Funds will invest at least 80% of their assets in debt securities issued by the U.S. Government or its agencies and instrumentalities, and synthetic instruments or derivatives having economic characteristics similar to such debt securities

www.managersinvest.com | 800.368.4410

Not FDIC Insured

May Lose Value

Not Bank Guaranteed PR025-0811

Managers
INVESTM ENT GROUP

Managers Short Duration Government Fund Managers Intermediate Duration Government Fund
M U T UA L FU N D PAGE 2

PR O D U CT PR O FI LE

Smith Breeden Investment Process

Smith Breeden Portfolio Managers

EXPERIENCE

RESEARCH

RESULTS

Portfolio Strategy Team

Fundamental Research I Economics I Market Analysis I Relative Value Quantitative Research I Portfolio Risk I Relative Value I Portfolio Construction I Performance Attribution Inputs: I Economics I Yield Curve I Sector Allocation I MBS and ABS I Credit
Outputs: I Market Valuation Themes I Strategy Model Portfolio

Portfolio Managers
Portfolio Construction: I Security and Sector Selection I Duration Targeted to Benchmark I Investment-Grade Quality Focus

FUND

Daniel R. Adler
Senior Portfolio Manager and Co-Head of the Investment Management Group of Smith Breeden. Lead Portfolio Manager of the Managers Intermediate Duration Government Fund.

Ideal Investment The ideal investment exhibits many of the following traits: n Yield advantage over Treasuries n Very high quality (AAA or Government) n Attractive value relative to other MBS opportunities Portfolio Construction n Seeks to optimize return per unit of risk n Minimal exposure to credit risk and interest rate risk n Consists of high quality MBS, CMBS, and ABS securities Sell Discipline The investment team will make a sell decision when: n.They no longer view the bonds as attractive n.They deem it necessary to reallocate the portfolio n.To maintain the portfolios target duration.

Timothy J. Cunneen, CFA

Senior Portfolio Manager and Senior Mortgage Strategist of Smith Breeden. Lead Portfolio Manager of the Managers Short Duration Government Fund.

Daniel C. Dektar
Chief Investment Officer and Co-Head of the Investment Managemet Group of Smith Breeden. Portfolio Manager of the Managers Short Duration Government Fund and Managers Intermediate Duration Government Fund.

There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long-term, especially during periods of downturns in the market.

www.managersinvest.com | 800.368.4410

Not FDIC Insured

May Lose Value

Not Bank Guaranteed

Managers
INVESTM ENT GROUP

Managers Short Duration Government Fund Managers Intermediate Duration Government Fund
M U T UA L FU N D PAGE 3 PORTFOLIO MANAGERS Daniel R. Adler Daniel C. Dektar

PR O D U CT PR O FI LE

ASSET CLASS
MANAGERS INTERMEDIATE DURATION GOVERNMENT FUND
SHORT HIGH MED LOW INT. LONG

STYLE1 Style box placement is based on Fund objective as stated in the prospectus Investment Grade Debt Intermediate Duration Government Fund
n

BENCHMARK INDEX CitiGroup Mortgage Index

ADVISOR Managers Investment Group LLC

SUBADVISOR Smith Breeden Associates, Inc.

FIXED INCOME

MANAGERS SHORT DURATION GOVERNMENT FUND

SHORT HIGH MED LOW

INT.

LONG

Style box placement is based on Fund objective as stated in the prospectus Investment Grade Debt Short Duration Government Fund
n

BofA Merrill Lynch 6-Month U.S. Treasury Bill Index

Managers Investment Group LLC

Smith Breeden Associates, Inc.

Timothy J. Cunneen Daniel C. Dektar

FIXED INCOME

FUND FACTS Managers Intermediate Duration Government Fund Managers Short Duration Government Fund
1

Inception 03/31/92 03/31/92

Ticker MGIDX MGSDX

Cusip 561717786 561717794

Expense Ratio Gross/Net 0.97%/0.90%2 0.84%/0.84%3

Minimum Investment $2,000 ($1,000 IRA) $2,000 ($1,000 IRA)

Sales Load

12b1 Fees

The fixed income style box is intended to provide a visual representation of the Funds expected interest-rate sensitivity (duration) and average credit quality. Quality Breakdown (based on weighted average credit rating): Low = < BBB-; Medium = = > BBB- but < AA-; High = = > AA Duration Breakdown: Short = < 3.5 years; Intermediate = > 3.5 years but < 6 years; Long = > 6 years = = 2 The Funds Investment Manager has contractually agreed, through at least May 1, 2012, to limit Fund operating expenses. The net expense ratio reflects this limitation, while the gross expense ratio does not. Please refer to the Funds Prospectus for additional information on the Funds expenses. 3 Annual expense ratio as of 05/01/2011.

Managers Investment Group

Managers Investment Group offers a wide variety of long-term investment strategies through a unique platform that includes both openarchitecture mutual funds, and a family of funds and separate accounts managed by a selection of Affiliated Managers Groups (AMG) Affiliate investment boutiques. This combination of investment products allows us to serve the needs of large institutional investors, thousands of financial advisors and investment professionals, as well as our individual mutual fund shareholders. Throughout our history, our objective has remained the same Develop and deliver investment strategies that can improve our clients ability to meet their long-term investment needs.

DISCLOSURE

Investors should carefully consider the Funds investment objectives, risks, charges, and expenses before investing. For this and other information, please call 800.835.3879 or download a free prospectus at www. managersinvest.com. Read it carefully before investing or sending money.
Fixed income funds are subject to the risks associated with investments in debt securities, such as default risk, fluctuations in the debtors perceived ability to pay its creditors. Changing interest rates may adversely affect the value of an investment. An increase in interest rates typically causes the value of bonds and other fixed income securities to fall. The Funds may use derivative instruments for hedging purposes or as part of its investment strategy. There is a risk that a derivative intended as a hedge may not perform as expected. The main risks with derivatives is that some types can amplify a gain or loss, potentially learning or losing substantially more money than the actual cost of the derivative; or that the counterparty may fail to honor its contract terms, causing a loss for the Fund.

Use of these instruments may also involve certain costs and risks such as liquidity risk, interest rate risk, market risk, credit risk, management risk, and the risk that a fund could not close out a position when it would be most advantageous to do so. Many bonds have call provisions which allow the debtors to pay them back before maturity. This is especially true with mortgage securities, which can be paid back anytime. Typically debtors prepay their debt when it is to their advantage (when interest rates drop making a new loan at current rates more attractive), and thus likely to the disadvantage of bondholders, who may have to reinvest prepayment proceeds in securities with lower yields. Prepayment risk will vary depending on the provisions of the security and current interest rates relative to the interest rate of the debt. The Citigroup Mortgage Index includes all outstanding government sponsored fixed-rate mortgage-backed securities, weighted in proportion to their current market capitalization. The BofA Merrill Lynch 6-Month T-Bill Index is an unmanaged index that measures returns of sixmonth Treasury Bills. Unlike the Funds, the Indices are unmanaged, are not available for investment, and do not incur fees.

Funds are distributed by Managers Distributors, Inc., a member of FINRA.

For more information call 800.368.4410

www.managersinvest.com | 800.368.4410

Not FDIC Insured

May Lose Value

Not Bank Guaranteed