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The IVA Worldwide Fund Class A (NAV) ended the quarter on June 30, 2013 with a return o 0.47%compared to the MSCI All Country World Index (Index) return o -0.42%. This brings our year-to-date return to 6.67% versus the Index return o 6.05% or the same period.

It was a tale o two halves this quarter. Global equity markets rose until May 22 then primarily ell onindications that the Federal Reserve might scale back its bond buying program and end it by mid-2014earlier than expected, i the U.S. economy continues to improve and the unemployment rate alls to 7%The MSCI All Country World Index (Net) ell 6.02% rom May 22, 2013 through June 30, 2013,while the IVA Worldwide Fund Class A (NAV) ell 2.58%, capturing only 43% o the downside. Ouresiliency over this period was largely due to our multi-asset class approach, especially cash, which helpsmitigate overall portolio volatility and protects the portolio on the downside. Despite the equity markesello at the end o the quarter, which provided an opportunity to initiate or add to a ew positions, manysecurities we own got closer to our intrinsic value estimate over the period and, as disciplined investorswe trimmed or exited these positions, thus raising cash. Our cash exposure rose to 28.4% on June 30rom 21.1% on March 31. Cash is a byproduct o manipulated interest rates, ully priced equity marketsand our inability to nd mispriced securities.

Because o good stock selection as well as minimal exposure to emerging markets and materials stocks, ourequities averaged gains o 2.9% versus the Index at -0.4%. Our U.S. stocks added the most to our return,1.2%, by averaging gains o 4.2% versus the Index average return o 2.6%. This was mainly attributedto good perormance rom our U.S. tech names as well as a ew o our top positions. In addition, ouJapanese equities perormed well, averaging a return o 3.2% versus the Index at 4.4% in USD, and added0.4% to our return. On the other hand, a ew o our holdings in South Korea and Switzerland perormedpoorly and, collectively, they detracted about -0.2% rom our return. On a relative basis, our minimalexposure to emerging markets beneted us this quarter as Brazil, South Korea, and China were among theworst perorming countries in the Index. By sector, in addition to our technology stocks perorming wellaveraging gains o 5.4% versus the Index at 0.8%, our industrials stocks also outperormed with averagegains o 7.8% versus the Index at -0.4%. Conversely, our consumer staples stocks underperormed thosein the benchmark, averaging a return o 3.9% versus -2.1% respectively, and detracted -0.2% rom ourreturn. Financials was the only other equity sector to detract rom our return.

Over the quarter, gold bullion averaged a return o -22.8%. During the quarter, gold suered rom risinginterest rates and the announced roadmap to end quantitative easing by mid-2014. We view gold as acurrency that central bankers cannot debase and we still believe it provides a good portolio hedge in aninfationary or defationary environment. Our allocation was 4.0% at quarter-end with no exposure togold mining stocks. We recognize that gold has been behaving poorly given its increased correlation toequities and we have not trimmed or added to our bullion position during the quarter. When put in thecontext o the whole portolio, with our decreased equity exposure and increased cash levels, we believeour gold position is appropriately sized. Since inception o the Fund, gold has played an important rolein the portolio and has created value or our shareholders.

A number o our corporate bonds were called this quarter as most o these are remnants o investmentrom 2008/2009 and since we arent nding any new opportunities, our corporate bond exposuredeclined to 7.8% at quarter-end, rom 9.7% on March 31. The duration on our corporate bonds is only2.5 to 3 years, so there is low interest rate risk. Over the period our corporate bonds averaged gains o0.5%, while our sovereign bonds averaged a return o -1.8%, mostly due to a weakening Singapore dollar

Our sovereign government bond exposure was 6.4% on June 30.

Because o the Japanese equity market appreciation since November 2012, we sold a ew holdings thareached what we believe is ull valuation. We also reduced exposure to some less liquid investments and toa ew companies that have not demonstrated an ability to allocate capital properly. Our Japanese equityexposure ell to 9.5% on June 30 rom 10.5% on March 31. However, during the market correctionin the latter hal o the quarter, we were net buyers in Japan, and in many cases we added to existingpositions that we trimmed earlier. We are happy to own more Japanese equities at the right price and wecontinue to avor stocks o mostly small and mid-cap local companies. In June, we increased our hedgeagainst the Japanese yen to 47.3%, rom 40.8% on March 31. Other currency hedges include: euro39.3% and South Korean won 27.6%, and collectively our currency hedges added almost 0.2% to ourreturn this quarter. Despite the rally over the past seven months, we believe the Japanese equity markestill trades at attractive valuations and what we believe will make a dierence over the long-term is bettecapital allocation among Japanese companies in addition to some structural reorms.

IVA Worldwide Fund Second Quarter 2013

Quarterly Review

Investment Risks

There are risks associated withinvesting in unds that invest insecurities o oreign countries,such as erratic market conditions,economic and political instability

and uctuations in currencyexchange rates. Value-basedinvestments are subject to the riskthat the broad market may notrecognize their intrinsic value.

Class Ticker CUSIPA IVWAX 45070A107

C IVWCX 45070A503

I IVWIX 45070A206

Eective February 22, 2011, thisund is closed to new investors.

7/27/2019 IVA Worldwide QR 2Q13

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www.ivafunds.com Q2 | 2013

International Value Advisers, LLC

717 Fith Avenue, 10th Floor

New York, NY 10022

877.874.2999

Since inception, the Fund has had minimal exposure to emerging markets. Ater several quarters opoor perormance, valuations in emerging countries came down (as o June 2013, Brazil traded at 1.4xprice/book value and China at 1.5x, compared to January 2010 when Brazil traded at 2.7x and China a3.1x, Source: FactSet). We ound a ew new opportunities in China and Brazil this year, though we areproceeding cautiously on a stock-by-stock basis. Our position sizes remain small and at quarter-end ourexposure was 0.6% in China and 0.5% in Brazil.

We ound a ew opportunities in U.S. stocks towards the end o the quarter. We initiated positions intwo preerred stocks with attractive yields and increased our exposure to a technology holding (strongranchise, good capital allocator, less cyclical), now a top 10 position, in June ater some volatilityprovided an opportunity to add at a lower price. However, this is being oset by the selling o holdings

whose discount to our intrinsic value estimate narrowed substantially over the quarter. Our U.S. equityexposure ell to 25.1% at quarter-end, rom 28.4% on March 31.

Overall, we are comortable being underweight equities today (53.4% as o June 30) given valuationswhich are partly a refection o repeated liquidity injections by central bankers worldwide that wonlast orever. For the most part, we believe stocks in the U.S. are ully priced and the stocks we view ashigh quality in Europe remain expensive, while valuations are more reasonable in Japan and perhapssome emerging markets as well. As always, we remain ocused on individual stock picking and look orcompanies with solid balance sheets, good management teams, strong moats, and pricing power. As long-term investors who attempt to deliver absolute returns to our clients, we will continue waiting patientlyor the opportunity to buy securities that we view as undervalued.

Perormance Inormation(as of June 30, 2013)

Average Annual Total Returns

Class 3 Months YTD 1 Year 3 Year Since Inception

10/1/08

A (NAV) 0.47% 6.67% 12.35% 9.22% 11.11%

A (w/ 5% sales charge) -4.56% 1.31% 6.72% 7.37% 9.92%

C 0.30% 6.26% 11.50% 8.39% 10.27%

I 0.53% 6.73% 12.61% 9.48% 11.36%

MSCI All Country

World Index (Net) -0.42% 6.05% 16.57% 12.36% 6.42%

Past performance does not guarantee future results. The perormance data quoted represents past per

ormance and current returns may be lower or higher. Returns shown are net o ees and expenses and assumereinvestment o dividends and other income. The investment return and principal value will uctuate so thaan investors shares, when redeemed, may be worth more or less than the original cost. To obtain perormanceinormation current to the most recent month-end, please call 1-866-941-4482.

Maximum sales charge or the A shares is 5.00%. C shares include a 1% CDSC ee or the frst year only. Theexpense ratios or the und are as ollows: 1.28% (A Shares); 2.03% (C Shares); 1.03% (I Shares).

MSCI All Country World Index (Net) is an unmanaged index comprised o 45 country indices comprising24 developed and 21 emerging market country indices and is calculated with dividends reinvested ater deduction o withholding tax. The Index is a trademark o Morgan Stanley Capital International and is noavailable or direct investment.

Price/book value is a ratio used to compare a stocks market value to its book value.

The views expressed in this document reect those o the portolio manager(s) only through the end o the

period as stated on the cover and do not necessarily represent the views o IVA or any other person in the IVAorganization. Any such views are subject to change at any time based upon market or other conditions andIVA disclaims any responsibility to update such views. These views may not be relied on as investment advicand, because investment decisions or an IVA und are based on numerous actors, may not be relied on asan indication o trading intent on behal o any IVA und. The securities mentioned are not necessarily hold-ings invested in by the portolio manager(s) or IVA. Reerences to specifc company securities should not beconstrued as recommendations or investment advice.

An investor should read and consider the funds investment objectives, risks, charges and expenses carefully before investing. This and other important information are detailed in ourprospectus and summary prospectus, which can be obtained by ca lling 1-866-941-4482 or visiting www.ivafunds.com. The IVA Funds are oered by IVA Funds Distributors, LLC.