2. What is the minimum for an initial investment in the Muhlenkamp Fund?
$1,500 for all account types. $200 if you enroll in the Automatic Investment Plan.*
*A program of regular investing can not assure a profit or protect against a loss in a declining market.
3. What is the minimum for a subsequent investment in the Muhlenkamp Fund?
The minimum is $50 for all account types, and may be submitted at any time. This is the minimum subsequent investment whether you invest periodically using the Automatic Investment Plan*, send a check in the mail, wire money, etc.
*A program of regular investing can not assure a profit or protect against a loss in a declining market.
4. Must I be a resident of the United States to own shares?
Shares of our 100% mutual fund are offered only for sale in the United States and the information on this web site is intended only for persons in the United States. While you may obtain prospectuses and other information about our Fund at this web site, our Fund is not registered for sale in any other country. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of our 100% mutual fund in any jurisdiction where the offer or solicitation would be unlawful under the laws of such jurisdiction.
- Every time there is activity in your account;
First Class Mail:
U.S. Bank Global Fund Services
P.O. Box 701
Milwaukee WI 53201
U.S. Bank Global Fund Services
615 E Michigan Street
Milwaukee, WI 53202
7. Can I purchase shares over the telephone/online?
Yes, but you must first enroll by completing the Telephone/Online Options section of a new account application. If you have an existing account, complete the purchase area of an Account Options Form. The Fund will electronically transfer the specified dollar amount from your bank account through the Electronic Funds Transfer (EFT) program.
8. Can I check my account balance and last transaction over the telephone or online?
The Fund’s automated telephone system can be accessed at (800)860-3863. Online account access is available on our website, www.muhlenkamp.com under “Our Mutual Fund” section (CLICK HERE to go directly to Account Access). Both methods offer 24-hour access to account information, including balances and last transactions. The daily Net Value (NAV) per of the Fund is posted each business day by 6 p.m. EST.
9. How can I wire money to my account?
Provide your bank with money and the following information:
U.S. Bank, National Association
For credit to account # 112-952-137
For further credit to shareholder account number.
Shareholder’s name as it appears on the first line of the account registration.
Attn: Mutual Fund Services
10. Can I query my account online?
Online Account Access is available to Muhlenkamp Fund shareholders. You can enroll by selecting “Our Mutual Fund” from www.muhlenkamp.com and then clicking on “Account Access” (CLICK HERE to go directly to Account Access).
Once you have established a user ID and password, you will be able to:
- View your account history;
- Purchase shares (must first provide bank information);
- Redeem shares;
- and Enroll in e-delivery of your statements and tax forms.
Please contact our Shareholder Services Team at U.S. Bank Global Fund Services if you need help gaining access. They can be reached at (800) 860-3863 option 0 between the hours of 8:00 a.m.–7:00 p.m. CST Monday through Friday.
- We are a 100% mutual fund. We do not charge any front-end or back-end sales fees, nor do we charge any 12b-1 fees.
- As an investor, you pay certain fees and expenses in connection with the Fund, which are described in the table below and example that follows. In the table you will see the fees and expenses you would incur if you bought, held, and sold shares of the Fund. Shareholder fees are paid directly from your investment. Annual Fund operating expenses are paid out of the Fund assets, so their effect is included in the Fund’s price.
SHAREHOLDER FEES* (fees paid directly from your investment)
- Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) NONE
- Redemption Fees (as a percentage of amount redeemed) NONE
- Maximum Sales Charge (Load) Imposed on Reinvested and other Distributions NONE
- Maximum Deferred Sales Charge (Load) NONE
ANNUAL FUND OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment)
- Management Fees 1.00%
- Distribution and Service (Rule 12b-1) Fees NONE
- Other Expenses 0.28%
- Acquired Fund Fees and Expenses** 0.06%
- Total Annual Fund Operating Expenses 1.34%
- Less: Fee Waiver*** (0.18%)
- Total Annual Fund Operating Expenses After Fee Waiver**** 1.16%
*Investors may be charged an annual account maintenance fee if their account falls below the established minimums. Investors may be charged a fee by their broker or agent if they effect transactions through a broker or agent. There are certain annual charges and other fees associated with retirement accounts offered by the Fund.
**The Total Annual Fund Operating Expenses for the Fund do not correlate to the ratio of operating expenses to average net assets in the “Financial Highlights” section of the Fund’s Statutory Prospectus, which reflects the operating expenses of the Fund and does not include acquired fund fees and expenses (“AFFE”).
***Muhlenkamp & Company, Inc. (the “Adviser”) has contractually agreed to waive its management fees, and may reimburse the Fund for its operating expenses, in order to ensure that Total Annual Fund Operating Expenses (excluding AFFE, leverage/borrowing interest, interest expense, taxes, brokerage commissions, and extraordinary expenses) do not exceed 1.10% of the Fund’s average daily net assets. Fees waived and expenses paid by the Adviser may be recouped by the Adviser for a period of three fiscal years following the fiscal year during which such fee waiver and expense payment was made, if such recoupment can be achieved without exceeding the expense limit in effect at the time the fee waiver and expense payment occurred and the expense limit in place at the time of recoupment. The Operating Expenses Limitation Agreement is indefinite, but cannot be terminated through at least February 28, 2021. Thereafter, the agreement may be terminated at any time upon 60 days’ written notice by the Trust’s Board of Trustees (the “Board”) or the Adviser, with the consent of the Board.
****Total Annual Fund Operating Expenses After Fee Waiver have been restated to reflect the current Operating Expenses Limitation Agreement.
Example:This example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
- 1 Year: $118
- 3 Years: $407
- 5 Years: $717
- 10 Years: $1,597
- Federal Wire Fee: $15 per wire.
- Traditional and Roth IRA annual maintenance fee per account $15.00 (not to exceed $30 per social security number).
- Transfer to successor trustee $25.00.
- Distribution to IRA participant (exclusive of systematic withdrawal plan) $25.00.
- Refund of excess contribution $25.00.
- Reconversion/Recharacterization $25.00.
- Investors may be charged an annual account maintenance fee if their account falls below the established minimums. By November 30th of each year, all accounts must have net investments (purchases less redemptions) totaling $1,500 or more, an account value greater than $1,500, or be enrolled in the Automatic Investment Program. Accounts that do not meet one of these three criterion will be charged a $15 fee, paid to the Fund to lower expenses. The Fund will check accounts and charge this fee annually.
- Investors may be charged a fee by their broker if they effect transactions through a broker or agent.
12. How will I know if my account will be charged a fee?
On November 30th of each year, all accounts must have net investments (purchases less redemptions) totaling $1,500 or more; an account value greater than $1,500 or be enrolled in the Automatic Investment Program. (The balance requirement is reduced to $200 if you participate in the Automatic Investment Program.) Accounts that do not meet one of these criterions will be charged a $15 fee. Such fees will be used to lower Fund expenses. The Fund will check accounts and charge this fee annually.
13. How do I redeem shares from my account?
You may sell all or some of your shares, by mail, online, or by telephone, on any day that the Fund is open for business. Your shares will be sold at the next calculated NAV after the Fund’s transfer agent accepts your order. You will generally receive the proceeds within a week. You may receive your payment by check, wire transfer, or EFT (if previously enrolled in this program). The Fund reserves the right to delay sending out redemption proceeds for up to seven calendar days. Before selling recently purchased shares, please know that if the Fund’s transfer agent has not yet collected payment for the shares you are selling, there may be a delay sending the proceeds until the payment is collected, which may take up to 12 calendar days from the purchase date. To protect the Fund and its shareholders, a signature guarantee is required in the following situations:
- If the ownership is changed on your account;
- When redemption proceeds are sent to a different address than that registered on the account;
- If the proceeds are to be made payable to someone other than the account’s owner(s);
- Any redemption transmitted by federal wire transfer to a bank other than the bank of record;
- If a change of address request has been received by the Fund’s transfer agent within the last 15 days;
- When adding a telephone/online redemption to an existing account;
- When adding or changing federal wire or electronic funds transfer instructions on an account; and/or
- For all redemptions of $100,000 or more from any account.
Signature(s) on the redemption request must be guaranteed by an “eligible guarantor institution.” These include banks, broker-dealers, credit unions and savings institutions. A broker-dealer guaranteeing signatures must be a member of a clearing corporation or maintain net capital of at least $100,000. Credit unions must be authorized to issue signature guarantees. Signature guarantees will be accepted from any eligible guarantor institution that participates in a signature guarantee program. A notary public is not an acceptable guarantor.
Redemption requests may be made by: telephone, by calling the Fund at (800) 860-3863; online, by visiting our website, www.muhlenkamp.com under “Our Mutual Fund” section (CLICK HERE to go directly to Account Access); or in writing, by mailing instructions to:
U.S. Bank Global Fund Services
PO. Box 701
Milwaukee, WI 53201-0701.
The letter should include the shareholder(s) original signature, the account number, Social Security number, and either a dollar amount oramount to be redeemed. Shares are sold at the net value next determined after your request is received in good order by the Muhlenkamp Fund. There is no fee to redeem shares, unless you are redeeming shares from your IRA account and you are not using the System Withdrawal Plan, then there is a $25.00 fee for each redemption.
14. How quickly can I receive the proceeds from my redemption request?
Shares are sold at the net value next determined after your request is received in good order by the Muhlenkamp Fund. Checks are generally mailed to your address of record within two business days of receiving your request.
The Fund offers an address for express/overnight letters and will overnight the redemption check if requested. For this service we subtract $15 from the proceeds of the redemption.
If you are participating in the Electronic Funds Transfer (EFT) Program you may request that the redemption proceeds be sent electronically to your designated bank account.
16. What is your policy for mailing Fund reports to multiple shareholders from the same household?
In an effort to increase efficiency and reduce the number of duplicate prospectuses, annual and semi-annual reports and other regulatory documents you receive, the Fund will utilize a householding policy where it will send only one copy of each document to those addresses shared by two or more accounts and to shareholders the transfer agent reasonably believes are from the same household. If you wish to receive individual copies, call toll-free at 1-800-860-3863 and request individual copies of these documents. The Fund’s transfer agent will honor your request within thirty days after receiving your request. This policy does not apply to account statements.
21. What are your top twenty holdings?
Click HERE to see the “Top Twenty Holdings”.
22. When has the Fund paid ?
Click here for the Fund’s Distribution History.
23. What kind of a fund are you?
The Fund is a fund that has a Value orientation. The Fund attempts to maximize the to its shareholders, while limiting downside , and limiting and deferring taxes. This is achieved by primarily buying the of highly profitable companies that are selling at value prices, and holding them for a period of 3-5 years on average. Fixed- are used as stock substitutes when, and if, stocks are overpriced and are not likely to produce desired returns.
24. How do you minimize the impact of taxes?
We work at it. We try to keep our losses short-term and our profits long-term. We also choose companies and trends with a long-term view. We don’t just trade stocks.
- As a “parking place” between the sale of one position and the purchase of another.
- As a portfolio when we see in the marketplace.
In 1972, the group I was working with saw increasingcausing a major negative in the big picture (we would now call it a climate change) and went to 50% . At various times, when we’ve seen the Fed raise interest rates to slow the economy (raising risks in the intermediate term), we’ve gone to 20-25% . When the big picture and intermediate picture look good, but we see psychology in the current market, we’ll hold 5-15% .
27. How do you conduct your research?
We begin with various databases, looking for companies with good (ROE) and modest (P/E) ratios. As a working definition, ROE is the rate of return of based on the capital. It has averaged roughly 14% since WW II, so that becomes our starting point. If the numbers look good, we dig deeper by checking financial statements and annual reports. If satisfied, we call the company’s management. Our three favorite questions are:
- Are there analysts on Wall Street who do a good job covering your company? (That saves us time because we can work off their efforts.)
- What metrics do you use to judge your company’s performance? (Some use ROE, some use , others use , and so forth; all those are valid, but we want to know what they use.)
- At what point on that metric do your executives or employees start earning a bonus? We want to know what they’re trying to accomplish with shareholder money. (Sometimes they set their hurdles too low, in which case we’re not interested. Our job is to figure out whether the company will reach its goals and figure out what we’re willing to pay for that.)
Finally, we talk with the company’s customers. If the customers are happy, the company is doing something right.
28. Have you changed your style over time?
No, our style hasn’t changed in thirty years. But we define style as good investments at good prices. At various times this has included , foreign stocks, real estate and what some people call “growth”stocks. Some people may include size (i.e. market ) in their definition of style. We think size is irrelevant.
29. Is your investment style value-oriented or growth-oriented?
Both. Growth is part of the value calculation. But we consider profitability (return on shareholder ) more important than growth. We then try to get that profitability at a value price.
30. Why is ROE so important to you?
We’ve done studies and concluded that over time prices revert to values of companies –and values of companies are heavily determined by their (ROE). Plus, ROE is relatively stable –and useable across industry lines. For example, if we look only at margins, the margins in a grocery store are a whole lot different than the margins in a steel business because the turnover is so different. When you use ROE, the numbers allow comparisons that are valid across a broad list of companies and industries.
31. Under what circumstances would you close the Fund to new investors?
We would close the Fund if we had more money than we had good places to invest it. Generally speaking, size is only a problem if you restrict yourself to narrow areas or you trade a lot.