Muhlenkamp Fund Frequently Asked Questions

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. Today, we are seeing far more opportunities than we have money to spend. Generally speaking, size is only a problem if you restrict yourself to narrow areas or you trade a lot.

Back to Top

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.

Back to Top

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 return on equity (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.

Back to Top

How do you conduct your research?

We begin with various databases, looking for companies with good return on equity (ROE) and modest price-to-earnings (P/E) ratios. As a working definition, ROE is the rate of return of earnings based on the equity 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 Discounted Cash Flow, others use Economic Value Added, 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.

Back to Top

To what extent do you use cash?

We use cash in two ways:

     
  • As a “parking place” between the sale of one position and the purchase of another.
    •  
  • As a portfolio hedge when we see risk in the marketplace.

In 1972, the group I was working with saw increasing inflation causing a major negative in the big picture (we would now call it a climate change) and went to 50% cash. 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% cash. When the big picture and intermediate picture look good, but we see psychology risk in the current market, we’ll hold 5-15% cash.

Back to Top

Do you buy foreign securities?

We buy foreign securities, but only when they meet our criteria and they look better than their domestic counterparts.

Back to Top

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 bonds, foreign stocks, real estate and what some people call “growth”stocks. Some people may include size (i.e. market capitalization) in their definition of style. We think size is irrelevant.

Back to Top

Is your investment style value-oriented or growth-oriented?

Both. Growth is part of the value calculation. But we consider profitability (return on shareholder equity) more important than growth. We then try to get that profitability at a value price.

Back to Top

Must I be a resident of the United States to own shares?

Shares of our 100% no-load 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% no-load mutual fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.

Back to Top

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.

Back to Top

What are your top ten holdings?

Click Here to see Top Ten Holdings.

Back to Top

How often do you send out statements?

  • Every time there is activity in your account
    • .
  • Quarterly.
Back to Top

What is the portfolio turnover rate?

Historically, the turnover rate has averaged less than 30% annually. See the current annual report  for the year-by-year figures.

Back to Top

How long has the Fund been in operation?

The Fund’s inception date is November 1, 1988.

Back to Top

Why are you not listed in my local paper?

If after searching in the Mutual Funds listing of your local paper you cannot locate us, it is possible that we are not listed in your paper. You may call the business editor of your local paper and ask him/her to track the Muhlenkamp Fund. We are listed in many major publications including the Wall Street Journal, Investors Business Daily, NY Times, and USA Today. We post the NAV daily at 6:00 p.m. EST on our automated telephone answering system at (800) 860-3863 as well as on our web site.

Back to Top

Where are you listed in the newspaper?

In the Mutual Funds section, we are listed under Muhlenkamp (just before Munder Funds, and right after Mosaic). As we have only one Fund, and are seldom placed in bold face type, you may need to look closely. We post the NAV daily at 6:00 p.m. EST on our automated telephone answering system at (800) 860-3863 as well as on our web site.

Back to Top

What is the Cusip number?

9 6 2 0 9 6 1 0 3

Back to Top

What is the Fund’s Symbol?

MUHLX

Back to Top

How can I wire money to my account?

Provide your bank with money and the following information:

U.S. Bank, National Association
ABA# 075000022
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.
Muhlenkamp Fund
Attn: Mutual Fund Services

Back to Top

Where do I mail additional purchases, redemption requests, account applications changes of address?

First Class Mail Overnight Mail
Muhlenkamp Fund
U.S. Bancorp Fund Services, LLC.
PO Box 701
Milwaukee WI 53201		 Muhlenkamp Fund
U.S. Bancorp Fund Services, LLC
615 E Michigan Street
Milwaukee, WI 53202
Back to Top

How quickly can I receive the proceeds from my redemption request?

Shares are sold at the net asset 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.

Back to Top

Can I check my account balance and last transaction over the telephone?

The Fund’s automated telephone system, (800)860-3863, offers 24-hour access to account information, including balances and last transactions. The daily Net Asset Value (NAV) per share of the Fund is also posted on the system each business day by 6 p.m. EST.

Back to Top

How do I redeem shares from my account?

You may sell all or some of your shares, by mail or 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 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 $50,000 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. Written requests may be mailed to:

Muhlenkamp Fund,
U.S. Bancorp Fund Services, LLC.,
P. O. Box 701, Milwaukee, WI 53201-0701.

The letter should include the shareholder(s) original signature, the account number, Social Security # and either a dollar amount or share amount to be remitted. Shares are sold at the net asset 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.

Back to Top

Can I purchase shares over the telephone?

Yes, you must first enroll in the Electronic Funds Transfer (EFT) program. Upon receiving a telephone purchase request, the Fund will electronically transfer the assets from your bank account.

Back to Top

When does the Fund pay dividends?

Click here for the Fund’s Distribution History.

Back to Top

What kind of a fund are you?

The Fund is a Total Return fund that has a Value orientation.  The Fund attempts to maximize the total return to its shareholders, while limiting downside risk, and limiting and deferring taxes. This is achieved by primarily buying the common stock of highly profitable companies that are selling at value prices, and holding them for a period of 3-5 years on average. Fixed-income securities are used as stock substitutes when, and if, stocks are overpriced and are not likely to produce desired returns.

Back to Top

Can I query my account online?

We do not offer this service at this time.

Back to Top

What are your fees, expenses, and loads?

  • We are a 100% no-load 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 transaction fees are paid from your account. Annual Fund operating expenses are paid out of the Fund assets, so their effect is included in the Fund’s shareprice.

    SHAREHOLDER FEES* (expenses that are deducted from your account)                  

    Sales Charge (Load) Imposed on Purchases

    NONE
    Sales Charge (Load) Imposed on Reinvested Dividends
    NONE
    Deferred Sales Charge (Load)
    NONE
    Redemption Fees (shares held longer than 30 days from purchase date)
    NONE
    Redemption Fees (shares redeemed within 30 days of purchase date)
    NONE

    ANNUAL FUND OPERATING EXPENSES (Expenses that are deducted from Fund assets)<
    Management Fee 1.00%**
    Distribution (12b-1) Fees
    NONE
    Other Expenses
    0.25%
    Acquired Fund Fees and Expenses 0.02%***
    Total Annual Fund Operating Expenses
    1.24%
    *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.

    **Effective January 1, 2005, the Adviser charges a management fee equal to 1% per annum of the average daily market value of the Fund’s net assets up to $1 billion, and 0.9% per annum on Fund assets in excess of $1 billion. The management fee reflected above is for the Fund’s prior fiscal year.

    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. This 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, that you reinvest all dividends and distributions, 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
    3 Years
    5 Years
    10 Years
    $129
    $403
    $697
    $1,534


     

***Acquired Fund Fees and Expenses are indirect fees and expenses that funds incur from investing in the shares of other mutual fund. Acquired Fund Fees and Expenses are not reflected in the Fund’s financial statements, with the result that the information presented in the expense table may differ from that presented in the financial highlights.

  • 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 criterions 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.

 

Back to Top

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.

Back to Top

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.*

Back to Top

What type of accounts do you offer?

Individual, Joint, Tenant, UGMA/UTMA, Trust, Corporate, IRA, Spousal IRA, Roth IRA, SEP IRA, SIMPLE IRA, and Coverdell Education Savings Accounts.

Back to Top

How do I contact the Fund with questions about my account, for a prospectus, or applications?

You can reach us toll free at (877)935-5520.

Back to Top

Automatic Investment Plans do not assure a profit and do not protect against a loss in a declining market.

While the Fund is no-load, management fees and other expenses will apply. Please refer to the prospectus for further details.

Growth stocks typically are more volatile than value stocks; however, value stocks have a lower expected growth rate in earnings and sales.

References to other mutual funds should not be interpreted as an offer of these securities.