All investments carry a certain degree of risk and an investment in any growth portfolio should be made with an understanding of the risks involved with owning common stocks or other equity securities. These risks include but are not limited to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. In addition, certain growth style portfolios may be concentrated in a specific sector thereby subjecting the portfolio to additional risks. Growth style investing may fall out of favor and underperform other styles of investing over any period of time. The Santa Barbara Growth strategies may hold American Depositary Receipts (ADRs). ADRs are the receipts for the shares of a foreign-based company traded on U.S. exchanges. The strategy's potential investment in non-U.S. stocks presents risks such as political risk, exchange rate risk and inflationary risk, which include the risks of economic change, social unrest, changes in government relations, and different accounting standards. ADRs do not eliminate the currency and economic risks for the underlying shares in another country.