Fund at a Glance

December 31, 2014

Highlights

Tom Lapointe Named 2014 Rising Star of Mutual Funds by Institutional Investor

*Past performance is no guarantee of future results; returns include reinvestment of all distributions. The above represents past performance and current performance may be lower or higher than performance quoted above. Investment return and principal value fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Prospectuses contain more complete information on management fees, distribution charges, and other expenses.  Please read the Prospectus carefully before investing or sending money.  For current Fund performance or a copy of the Prospectus please visit our website: www.thirdave.com or call 800-443-1021. M.J. Whitman LLC, Distributor.  Member FINRA/SIPC.

¹  Calculations of Yield to Worst, Average Coupon, Average Price, Duration and Portfolio Duration are sourced to FactSet Portfolio Analytics and exclude cash and equities. “Average Coupon” is the weighted average annual coupon for the performing securities in the Fund. “Yield-to-Worst” is the lowest potential yield that can be received on a bond without the issuer actually defaulting. Yield-to-Worst is calculated on the performing securities in the Fund. Securities are capped at a maximum 25% Yield-to-Worst. “Duration” is a measure of the sensitivity of the price of a fixed-income investment to a change in interest rates. Portfolio Duration is calculated for all securities in the fund.

² Portfolio Turnover reported for the fiscal year ended October 31, 2014.

³  Includes equities, cash and equivalents.

⁴ High Yield Securities excludes Restructurings

⁵ Credit ratings for each security provided by Standard & Poor’s. Credit ratings are forward-looking opinions about credit risk. Standard & Poor’s credit ratings express the agency’s opinion about the ability and willingness of an issuer, such as a corporation or state or city government, to meet its financial obligations in full and on time. Ratings are expressed on a scale from “AAA” to “D”, where “AAA” signifies the highest confidence in the issuer’s capability to meet financial commitments, and “D” signifies an issuer that is in payment default.

⁶   Restructurings:  securities of companies that are not currently making their debt service payments and have either entered into bankruptcy proceedings or are expected to do so in the near term.

⁷  Equities: Common and preferred stocks purchased, common stock received in a debt-for-equity exchange and closed-end funds.

⁸  Includes receivables and payables.

⁹  Other: Primarily comprised of credit related securities falling outside of the definition of high yield securities or restructurings.  Such securities include liquidating trusts, certain pools of credit related assets and other.

¹⁰  Credit Types are defined by Third Avenue, as follows. Performing: securities that are making debt service payments, are not distressed, and that we believe have a low probability of default. Stressed: securities that are still making debt service payments and are not distressed, but that we believe have a higher probability of default than those securities which we have labeled as Performing. Special Situations: issuers that have defaulted or have higher probability of default than those securities that we have labeled Performing or Stressed. These issuers have experienced or we believe may experience a corporate event such as (1) a restructuring, recapitalization, or liquidation, or (2) capital infusions. Special Situations also include liquidating trusts, certain pools of credit-related assets and other securities.

‡  For the fiscal year ended October 31, 2014.  Expense ratio is annualized

The Fund’s investments in high-yield and special situations securities may expose the Fund to greater risks than if the Fund only owned higher-grade securities. The value of high-yield, lower quality securities is affected by the creditworthiness of the issuers of the securities and by general economic and specific industry conditions. Issuers of high-yield securities are not as strong financially as those with higher credit ratings, so the securities are usually considered speculative instruments. For a full disclosure of principal investment risks, please refer to the Fund’s Prospectus.