FIXED INCOME OVERVIEW

On July 30, 2010, two of the funds described above (AIFBX and APGXX) were among the Cavanal Hill Funds which received proceeds as part of a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. This distribution was not in respect of the performance of securities invested by the funds. As a result, the yield numbers for the funds were affected, in some instances materially, by this distribution. The income associated with the distribution is non-recurring and the effect is not expected to be duplicated. Information about the settlement may be obtained at www.bisysfairfund.com. Cavanal Hill Investment Management, Inc. is an SEC registered investment adviser and a wholly-owned subsidiary of BOKF, NA, a wholly-owned subsidiary of BOK Financial Corporation, a financial holding company (“BOKF”). SEC registration does not imply a certain level of skill or training. BOKF, NA serves as the custodian for the Cavanal Hill Funds. BOKF holdings also include BOSC, Inc., the distributor for the Cavanal Hill Funds (the Funds). BOSC, Inc. a registered Broker/Dealer, member FINRA/SIPC. BOSC, Inc. is wholly-owned subsidiary of BOK Financial Corporation, and an affiliate of BOKF, NA and Cavanal Hill Investment Management, Inc. Past performance does not guarantee future results. Investments and insurance are not insured by FDIC, are not deposits or other obligations of, and are not guaranteed by, any bank affiliate. Investments are subject to risks, including possible loss of principal amount invested. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment company can be found in the Fund’s prospectus or summary prospectus. To obtain a prospectus or summary prospectus online, please visit www.cavanalhillfunds. com or call 1-800-762-7085. Please read the prospectus or summary prospectus carefully before investing.

The return of principal for bond funds and funds with significant underlying bond holdings is not guaranteed. Fund shares are subject to the same interest rate,

UNLEASHING OPPORTUNITY,

EARNING RESULTS

As a beacon of capitalism and freedom, the U.S. capital markets offer equal

opportunities for all investors. But, as a tenet of capitalism, the markets do not

guarantee equal results. Investors must earn them.

At Cavanal Hill Funds our Fixed Income Management Team has an average of

15 years of investment experience. Our professionals have managed investments

through various economic cycles and interest rate environments, always striving

to deliver competitive results while seeking to limit risk.

Utilizing what we believe is a disciplined proprietary investment and risk

management process, we search the bond market for opportunities that

we believe have the potential to generate long-term performance potential

for your clients.

A FOCUSED FUND FAMILY

We operate in select areas of the investment-grade fixed income market—

segments where we believe long-term return potential is the most attractive.

You and your clients may access this potential through four diversified fixed

income mutual funds:

FOCUSED

FUND FAMILY

• Short-Term Income Fund

• Intermediate Bond Fund

“Our investment philosophy is rooted in the time-tested values of

integrity, experience and discipline. We believe the pursuit of superior

long-term investment performance requires a concrete strategy

with a robust risk management process. It is on this foundation that

Cavanal Hill has been able to weather various economic storms and

emerge stronger and wiser.”

CORE PRINCIPLES DRIVE OUR STRATEGIES

Behind each Cavanal Hill fixed income fund are the beliefs that:

• Market inefficiencies create opportunities to add “alpha,” or excess return.

• To recognize and take advantage of these opportunities, we must monitor all sectors of the high-quality investment-grade bond market.

• Alpha is good, but risk-adjusted alpha is better. Therefore, we incorporate, what we believe to be stringent risk controls in pursuit of what we consider to be superior returns.

A DISCIPLINED FUND CONSTRUCTION PROCESS

Cavanal Hill’s fixed income management process is fundamentally driven, diversified and value-oriented. Four key elements guide each fund’s construction:

• Duration management • Yield curve positioning • Sector allocation • Security selection

ASSESSING THE MACRO ENVIRONMENT TO SET DURATION,

YIELD CURVE STRATEGIES

We look for opportunities to add value by examining and considering the economic cycle, monetary and fiscal policies, inflation and interest rate expectations. Significant opportunities to take advantage of duration and yield curve positioning often occur at turning points in the economic cycle, such as when the market expects higher or lower interest rates than what our research deems reasonable. We will make a duration call only if we determine an excess-return opportunity exists.

MARKET RESEARCH IDENTIFIES

SECTOR AND SECURITY OPPORTUNITIES

Our fixed income team looks for what we consider excellent values among high-quality,

U.S.-dollar-denominated fixed income securities rated “A” or better. Our search for value often takes us to less-researched areas of the market. Generally, our investment professionals find the most opportunities among mortgage- and asset-backed securities, U.S. Government agencies and corporate securities. In our tax-free fund, the team typically prefers high-quality general obligation bonds. Each fund’s sector weightings reflect where the team is finding value in the market.

SECURITY ANALYSIS IDENTIFIES VALUE AND RISK

Within our preferred fixed income sectors, we assess and test the relative value of each security against the risks associated with the potential return. Among other factors, we test the risk/return profile of each security against duration-equivalent U.S. Treasury securities. Allocations to non-Treasury sectors depend on the value we believe they would add relative to Treasuries. Their yield advantage and/or price appreciation potential must be compelling and outweigh the risks. Although we seek to limit the risks and maximize returns of the funds, performance will vary. There is no guarantee that we will achieve our objectives.

ONGOING MONITORING AND EVALUATING

We monitor our current performance drivers against new performance-generating opportunities. We seek to make sure our existing drivers are still valid and offer more opportunity than other options currently available. If we believe a security reaches or exceeds full valuation, we will sell it. We may also sell a security to take advantage of a new opportunity with a preferred risk/return profile.

HISTORY OF DEBT-FUNDED ECONOMIC DEVELOPMENT

HIGHLIGHTS IMPORTANCE OF CREDIT QUALITY

Among the many characteristics that we believe make the United States the greatest country in history is a rich heritage of economic development. Much of the economic success of the United States is owed to a strong infrastructure. The Nation’s roads, factories, skyscrapers, airports, schools, hospitals, power plants and more, are among the finest in the world.

In examining how these world-class facilities and engines of economic growth came to be, we can’t ignore the contribution of debt. Bond issuance has financed many things from local road improvements

to corporate headquarters to cutting-edge research and educational facilities. Without the responsible issuance of debt, it’s safe to say the United States wouldn’t be the accomplished nation it is today.

STRIVING TO INVEST IN THE ‘GOOD’ DEBT

Although debt remains a crucial component of U.S. economic growth, history demonstrates that all debt is not created equally. There is good, productive debt, and there is irresponsible, questionable debt. Our experienced fixed income portfolio managers are keenly aware of the differences.

CREDIT QUALITY IS KING

Among the major risk factors associated with bonds, we believe the risks posed by credit quality are most important. Therefore, by maintaining high credit quality within our funds, we believe we are better able to manage the other risks associated with bond investing.

J. Brian Henderson,

Brian Henderson oversees the taxable fixed income, tax-free fixed income and the equity management teams for Cavanal Hill Investment Management. In 1993, Mr. Henderson established Cavanal Hill’s fixed income philosophy and processes while serving as the firm’s Director of Fixed Income Strategy and as a Portfolio Manager for the taxable and tax-exempt fixed income and money market strategies. Under Mr. Henderson’s leadership, Cavanal Hill’s fixed income performance has been highlighted in several national publications. Prior to joining Cavanal Hill, Mr. Henderson was the Head Taxable Fixed Income Trader for BOK Financial’s Capital Markets group. In 1989, Mr. Henderson earned a Bachelor of Business Administration Degree in Finance from Southern Methodist University. Mr. Henderson holds the Chartered Financial Analyst designation and has served as a CFA exam grader. He is the past President and a former Board Member of the local CFA Society.

Michael P. Maurer,

Michael Maurer is responsible for the management of the team that executes the taxable fixed income funds for Cavanal Hill Investment Management. The fixed income investments that Mr. Maurer is responsible for include Cavanal Hill’s Short-Term Income Fund, the Cavanal Hill Intermediate Bond Fund, and the Cavanal Hill Bond Fund. Additionally he co-manages the Cavanal Hill Balanced Fund. He also provides taxable fixed income analysis and investment management for the Cavanal Hill World Energy Fund. Prior to joining Cavanal Hill in 2002, Mr. Maurer was a senior high-grade and high-yield corporate bond trader for nine years with AG Edwards & Sons. While at AG Edwards, Mr. Maurer was promoted to Fixed Income Strategist and presented insightful analysis on the fixed income markets. Mr. Maurer is a 1993 graduate of Saint Louis University where he received a Bachelor of Science Degree in Finance and a Bachelor of Science Degree in Management. He also acquired a Masters Degree in Business Administration from Saint Louis University in 1997. Mr. Maurer holds the Chartered Financial Analyst designation.

Russell L. Knox,

Russell Knox supports the execution of the taxable fixed income process including conducting research and analysis on the mortgage and asset-backed markets. The fixed income investments that Mr. Knox contributes towards include Cavanal Hill‘s Short-Term Income Fund, the Cavanal Hill Intermediate Bond Fund, and the Cavanal Hill Bond Fund. Prior to joining Cavanal Hill in 2005, Mr. Knox was a graduate assistant in Oklahoma State University’s finance department. Mr. Knox also interned with Citigroup Global Markets’ Yield Book desk. Mr. Knox received a Bachelor of Science in Finance in 2003 and a Master’s of Science in Quantitative Financial Economics in 2005 from Oklahoma State University. Mr. Knox holds the Chartered Financial Analyst designation.

Richard Williams,

To learn more, please visit us at

www.cavanalhillfunds.com

or call

855.359.1898.

CAVANAL HILL: FIXED INCOME

EXPERTISE YOU CAN COUNT ON

At Cavanal Hill, we believe fixed income funds should offer important

elements of stability, income and total return to well-rounded portfolios.

Our funds offer your clients:

• A focus on securities with credit quality ratings of “A” or better at

the time of purchase

• Knowledgeable, experienced and proven portfolio managers

• Diversification among high-quality, U.S.-dollar-denominated securities

• Low overall volatility

On July 30, 2010, two of the funds described above (AIFBX and APGXX) were among the Cavanal Hill Funds which received proceeds as part of a distribution from a “fair fund” established by the SEC in connection with a consent order against BISYS Fund Services, Inc. This distribution was not in respect of the performance of securities invested by the funds. As a result, the yield numbers for the funds were affected, in some instances materially, by this distribution. The income associated with the distribution is non-recurring and the effect is not expected to be duplicated. Information about the settlement may be obtained at www.bisysfairfund.com. Cavanal Hill Investment Management, Inc. is an SEC registered investment adviser and a wholly-owned subsidiary of BOKF, NA, a wholly-owned subsidiary of BOK Financial Corporation, a financial holding company (“BOKF”). SEC registration does not imply a certain level of skill or training. BOKF, NA serves as the custodian for the Cavanal Hill Funds. BOKF holdings also include BOSC, Inc., the distributor for the Cavanal Hill Funds (the Funds). BOSC, Inc. a registered Broker/Dealer, member FINRA/SIPC. BOSC, Inc. is wholly-owned subsidiary of BOK Financial Corporation, and an affiliate of BOKF, NA and Cavanal Hill Investment Management, Inc. Past performance does not guarantee future results. Investments and insurance are not insured by FDIC, are not deposits or other obligations of, and are not guaranteed by, any bank affiliate. Investments are subject to risks, including possible loss of principal amount invested. An investor should consider the Fund’s investment objectives, risks, and charges and expenses carefully before investing or sending money. This and other important information about the investment