Did you know...? There are no tax consequences or Fund fees for shareholders exchanging to the lower cost Arbitrage Fund I Class (ARBNX) from the R Class (ARBFX). Additionally, the Fund prospectus waives I Class minimums for shareholders in fee-based or "wrap" accounts. To learn more please call (800) 560-8210 or see the prospectus.

ARBFX ARBNX Net Asset Value as of 7/29/10 $12.72 $12.92 Change from Previous Day +$0.01 +$0.01 Year-to-Date Return +0.24% +0.48% Assets $834.5 mil. $683.8 mil. Total Assets $1,518.3 mil. One Year Return through month ending 6/30/10 1.86% 2.07% Annualized Return since Inception through month ending 6/30/10 Inception Date: ARBFX - 9/17/00, ARBNX - 10/17/03 5.64% 3.83% One Year Return through quarter ending 6/30/10 1.86% 2.07% Three Year Annualized Return through quarter ending 6/30/10 3.77% 3.96% Five Year Annualized Return through quarter ending 6/30/10 4.81% 5.02% Annualized Return since Inception through quarter ending 6/30/10 Inception Date: ARBFX - 9/17/00, ARBNX - 10/17/03 5.64% 3.83%

2009 Distribution:  ARBFX - $0.3172 per share ($0.0531 income, $0.2641 short term) ARBNX - $0.3376 per share ($0.0735 income, $0.2641 short term) 2008 Distribution:  $0.5231 per share (short term) 2007 Distribution:  $0.8664 per share ($0.8348 short term, $0.0316 long term) 2006 Distribution:  $0.5171 per share ($0.5103 short term, $0.0068 long term) 2005 Distribution:  $0.00 per share 2004 Distribution:  $0.522 per share ($0.4718 short term, $0.0502 long term) 2003 Distribution:  $0.50 per share 2002 Distribution:  $0.145 per share 2001 Distribution:  $0.35181 per share

The Total Annual Fund Operating Expenses for ARBFX and ARBNX are 3.21% and 2.96%, respectively. The Advisor has agreed to waive fees in excess of 1.69% and 1.44% for ARBFX and ARBNX, respectively, until at least August 31, 2015. Current performance may be higher or lower than performance quoted above. Any performance data quoted represents past performance and the investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Returns do not reflect a 2% redemption fee for shares that are redeemed from the fund within 30 days of purchase, which, if reflected, would reduce the performance quoted. Returns shown above include the reinvestment of all dividends and capital gains. Contractual fee waivers are currently in effect. Without such fee waivers, performance numbers would be reduced. The Arbitrage Fund is offered only by prospectus. The prospectus contains more complete information about the Arbitrage Fund, including objectives, strategies, fees, expenses and risk factors and should be read carefully before investing or sending money. To obtain a prospectus, visit the "Resources" section of this website or call (800) 295-4485. Inception date: ARBFX - 9/17/00, ARBNX - 10/17/03. The Arbitrage Fund is distributed by SEI Investments Distribution Co., which is not affiliated with the advisor or any of its affiliates.