I can't do anything about the market but we can lower fees on our mutual fund

09/19/2011 5:58 pm EST


Jim Jubak

Founder and Editor, JubakPicks.com

We’re lowering the fees at my mutual fund, the Jubak Global Equity Fund (JUBAX).

New funds always—and ours started up in June 2010—talk about how they need to charge investors a higher fee because they have to spread fixed costs over fewer assets. Our portfolio tracking software costs us the same each month, for example, whether I’m tracking $40 million or $400 million or $4 billion.

That’s why when we started the Jubak Global Equity Fund I had to charge a net expense ratio* of 1.75% of assets. That’s higher than I’d like and it was above the average of 1.51% for global funds as calculated by Morningstar.

But we’re a bit bigger now--$40 million under management is more than $0—and so this year, starting on July 1, I decided to do what little funds don’t do as frequently and as quickly as they should—I cut our net expense ratio. Not by a whole lot, grant you. Those bills aren’t getting spread over billions in assets. But enough to bring us closer to the average for a fund in our category.

Starting on July 1 the net expense ratio for Jubak Global Equity Fund—the fee that you pay to us to manage your money—went to 1.65% from 1.75%.

I think it will always be more expensive to run a global fund than the average U.S. domestic equity fund. (To trade in some of the more obscure markets where I think I can find bargains for the fund I’ve got to pay higher commissions and then there are always those foreign exchange charges.) But I’m committed to bringing the investors in my fund value whether it’s by buying stocks that you can’t buy yourself or by lowering fees.

Thanks for helping the fund get rolling.

*The Fund’s gross expense ratio is 2.07%.  Effective July 1, 2011, the Fund’s advisor has contractually agreed to waive its fees and/or absorb expenses of the Fund to ensure that total annual fund operating expenses (excluding taxes, leverage interest, brokerage commissions, dividend expenses on short sales, acquired fund fees and expenses as determined in accordance with Form N-1A, expenses incurred in connection with any merger or reorganization, or extraordinary expenses such as litigation) do not exceed 1.65% of average daily net assets of the Fund. This agreement is in effect until September 30, 2012, and it may be terminated before that date only by the Trust’s Board of Trustees. The Fund’s advisor is permitted to seek reimbursement from the Fund, subject to limitations, for fees it waived and Fund expenses it paid for three years from the date of any such waiver or payment.

You should consider the fund’s investment objectives, risks, charges and expenses carefully before investing. For a prospectus, that contains this and other information about the Funds, call 1-888-885-8225 or click here. Please read the prospectus carefully before investing. Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

An investor’s shares, when redeemed, may be worth more or less than their original cost. Foreign investments present additional risks due to currency fluctuations, economic and political factors, lower liquidity, government regulations, differences in securities regulations and accounting standards, possible changes in taxation, limited public information and other factors. The risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economies. This Fund is also more susceptible to market volatility because small- and mid-cap company stocks tend to be sold less often and in smaller amounts than larger company stocks. Smaller companies also may not have the management experience, financial resources, product diversification and competitive strengths of larger companies.

The Jubak Global Equity Fund is distributed by Grand Distribution Services, LLC.
803 W. Michigan St., Milwaukee, WI 53233

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