|
|
Frontier Equity Mutual Fund Charges High Costs (and Long-Term Losses)
Given its small size ($1.8 million in assets), one would expect that the fund would need to charge more than the average 1.54% that the average small cap growth fund charges. But Frontier Equity charges an 8% upfront sales charge, bringing total expenses to a whopping 14.14%.
While performance this year (and for the last 12 months) has been enviable – beating all but one of the nation’s 10,871 mutual funds, its long-term record has lagged substantially. The fund lost nearly 30% and nearly 40% in 1997 and 1998, respectively.
One potential problem moving forward is the fund’s making concentrated bets on relatively small companies. For example, the fund has 25% of its assets in Mitek Systems, a software developer with only $90 million in market capitalization.
Source: Investment News, April 17, 2000
|
About Us
|
News
|
Alerts
|
Articles
|
Caveat Emptor
|
SNSFE News
|
Contact
|
Search
Register
|
Free Opinion
Sponsored by James J. Eccleston, an attorney representing stockbrokers, financial planners and
investors nationwide in arbitration, litigation and regulatory matters, and a shareholder with the law firm
Shaheen, Novoselsky, Staat, Filipowski & Eccleston
P.C.(www.snsfe-law.com). This Web site contains material
of general interest. It is neither intended to, nor constitutes, either legal advice or investment advice.
Always consult an attorney and/or investment advisor when building and protecting your wealth.
All content Copyright © 2008 Advocate Capital Management, Inc. except where noted. All rights reserved.
20 North Wacker Drive, Suite 2900, Chicago, Illinois 60606
Telephone: 312-621-4400 | Fax: 312-621-0268
|
|
|
|
