Announcing a mutual fund from Jim Jubak
It’s named the Jubak Global Equity Fund (JUBAX). It’s available now. Today. This minute.
Follow this link to find out more about how to invest. Or read more here.
So why am I starting a mutual fund?
Three reasons, really.
First, a lot of readers have asked over the more than 13 years that I’ve run the Jubak’s Picks portfolio. They’ve asked for a fund because it would make it easier to track my picks and because they felt that they’d like me to invest for them. Let Jim do it, they said. And now I will. You can invest today by following this link to the Jubak Global Equity Fund site.
And because I want as many of the readers who asked for a fund to be able to invest in my fund, the minimum is just $500 and there’s no commission charge. (Learn how to invest in my fund by following this link.)
Second, a mutual fund will let me put your money to work in global stocks trading on global markets that are tough for individual investors to research or buy. As I’ve become more and more convinced that investors need to put a bigger share of their money into the world’s up-and-coming developing markets (and the economies such as Australia and Canada that ride with them), I’ve become increasingly frustrated with the stocks that I couldn’t recommend on Jubak’s Picks because they were too thinly traded, too illiquid, or just too hard for U.S. investors to buy.* I’ve set up Jubak Global Equity so that I can buy and sell on those markets for you.
And, third, I’m selfish. I wanted to find a big group of investors who would pay me what I consider a modest fee to do what I like best: Learn new and obscure things about companies and industries in out-of-the-way places and then turn them into investing ideas. I admit that learning the ins and outs of the rare earth mining industry, for example, is really exciting. Did you know that neodymium and dysprosium, two rare earth metals, are critical components in building hybrid cars and wind turbines? Or that China controls 95% of the world’s supply of rare earth metals? Well, neither did I—once upon a time. And now I know not only those facts but the stock tickers for two Australian companies that mine rare earth metals.
A desire to know everything, and the more obscure the better, is a terrible character flaw. And indulging it costs money.
Which is where you and the mutual fund come in. (Find how to invest in the Jubak Global Equity Fund by following this link.)
In a perfect world I’d be able to spend hours digging into the guts of the exploding Asian dairy sector—did you know that in 1998 India became the world’s biggest producer of milk, surpassing the United States – without worrying about where my next rupee was coming from. But in this imperfect world I have to find a patron. And with the world currently experiencing a serious shortage of Cosimo de Medici and other Renaissance princes, I’m afraid it means you’re on the hook.
So what do you get in exchange? You get the gladly and freely given hard work of someone who thinks it’s fascinating to discover that 65% of the milk consumed in India is now unpackaged, and that while milk consumption is growing at an annual rate of 2.4% a year, consumption of packaged UHT milk—the kind that doesn’t need refrigeration before it’s opened—is projected to grow at an annual rate of 5.2% a year through 2012 and beyond. And then thinks that finding the stock of a company that will profit from this trend is a really engaging challenge.
So, that’s the deal: fund investors pay me a fee, and I try to find out cool stuff to turn into investment ideas. With, of course, one goal: to make money. (I fully appreciate that Renaissance princes didn’t sponsor people like Vasco da Gama to find a sea route to India just out of intellectual curiosity, so you get the same bargain.)
And I also give every investor in my Jubak Global Equity Fund a free subscription to my new online Jubak Asset Management JAM Letter. Every weekday and once every weekend, my JAM Letter will deliver the best of my thinking on markets, industry and sector trends, obscure companies you should know about, and videos shot at my famously uncluttered desk that explain the day’s breaking news. All this normally costs $299 a year—but to investors in my new fund it’s free.
I don’t think there’s much you or I can add to the market’s knowledge of IBM or Wal-Mart. Some twenty-three Wall Street analysts study IBM’s every move. Even more – twenty-nine –follow Wal-Mart.
But a Chinese fruit-juice company? The biggest little Australian coal mining company in Mozambique? The owner of the biggest selling vodka brands in Eastern Europe?
Ah, those you have to dig for. And if you find them before the world does, the stocks of those companies can be very profitable when the world finally does discover them.
So come along. It may not be the beginning of a beautiful friendship, but I do hope it will be the start of a very profitable relationship. (Find out how to invest in my fund by following this link.)
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 Fund, call 1-888-88JUBAK or visit our website at www.jubakfund.com. 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.
*Please note that the Fund’s investment in these types of securities is limited and that you can find more information about these limitations in the Fund’s Prospectus and Statement of Additional Information.
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.
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I think 1.75% is a very high fee. I will not be investing. I have a money manager who gets good results and only charges 1%
I had missed the point that Jubax was available to US investors only.
That leaves me with JAM: when, and how can I subscribe?
Awesome news! Please let us know when this is available on Scottrade. I’m so in!
Good luck Jim!
For people like me who are not in the US (I am in Canada), would you please consider managing an ETF so we can invest with you as well!?
I agree with you Algalli. the 1.75% is very high even for an international fund. If the fee waiver goes away in January 2011 then its a very stiff 2.15% fee. but if Jim succeeds in bringing the “internet age” to the Mutual Fund Industry then that fee may be justifiable.
Algalli, how is your manager that charges 1% Bruce Berkowitz???
It’s typical for a startup fund to have to charge a relatively high initial fee because with so few assets under management it’s tough to cover expenses at a lower percentage level. I hope to bring down the fee with time and assets.
We decided to start with a plain vanilla mutual fund because while they are hghly regulated the rules are pretty clear. That makes it easy to figur out what we can do and what we can’t do on the Internet. I realize that this leaves my readers ouitside the U.S. outside the fund. They still have the Jubak’s Picks portfolio and the new infornation in the JAM newsletter. More on how to subscribe to that tomorrow.
That leaves me with JAM: when, and how can I subscribe?
The bottom right hand corner on jubakfund.com there is a link to JAM.
Mr. Jubak,
You suggest this fund as a “core of one’s portfolio to give balance between U.S. and overseas stocks, and to give a bond-heavy portfolio exposure to equities.”
“The trend that the Fund is built around—the relative outperformance of developing economies and therefore the outperformance of emerging market stocks—is a relatively long-term trend. I think it will play out over the course not of quarters but of a decade or more.”
For someone who plans to retire in 2 years. would JUBAX be the place for some IRA funds for a 10 years?
Thanks.
Jim:
I don’t see the SIPC acronym anywhere in the fund site (or umb site btw). This type of sites indicate their registration to the SEC (which is not mentioned directly) and that they’re SIPC regulated.
It is clear why it is not FDIC insured but Should not it be SIPC insured ?
1.75% does seem high. I hope you can bring this down as Assets Under Management increases.
Jim – I like it and will most likey invest. One question though – Why not go for a big 4 auditor for investors’ comfort sake? Thanks
Wow. Not the ringing endorsement I was expecting from posters. Personally, I think this is an excellent use of your talents. I really enjoy your passion for this stuff and making a return on my investment is an added bonus. Don’t expect me to bet the farm but I’ll be throwing my hat into the mix for sure.
Shocking responses/comments indeed….
I will invest just to get JAM newsletter and who knows, it might just turn out to be a home-run!!
Jim, expect a relatively small amount from my side!
Maybe if this was a corporate fund managed by T. Rowe or the like, then 1.75 would be high. I think of the Jubak site somewhat like Public Radio. Jim dispenses very valuable and interesting reads for free. So, for me to pay $17.50 per year on a $1K investment is peanuts in the big scheme of things.
I will gladly pay a modest “loyalty fee” to any enterprise that demonstrates value and pure intent and doesn’t demand anything in return. Jim, you got some of my money. Rob
I got signed up for the fund as soon as possible – as rsteckbeck said, the charge is “peanuts” especially when I compare it to the endless charges and fees for other things in life. Besides, the insight and knowledge will be well worth the investment! Thanks for making this OPTION available to those who want it, Jim!
To add a little perspective to the 1.75% fee, back during the Dot com boom, I toyed with the idea of starting a tech mutual fund (I’m an engineer). Didn’t go down that path, but found it took $75K just to register to form a mutual fund, plus tens of thousands per year to pay a firm to do shareholder communications (mail out propectuses and quarterly reports, answer shareholder questions, etc), and tens of thousands more for services of a securities attorney. And at least $1M in assets needed to start. (Note that these costs vary and might have been inflated during the Dot Com bubble era.) So if Jim’s fund has $1M in assets and earns $17.5K in fees, that’s not unreasonable considering the potential ballpark of expenses his fund incurs, at least initially.
Now, 1.75% would be quite high if this is years down the road when the fund has sizable assets. But most funds lower the expense ratio as assets grow, and Jim has already said he’d do that.
Jim, I love that you are starting JUBAX and that you are bundling it with JAM.
One question: the website is unclear as to how long of a JAM membership you get for being an investor in JUBAX. Is this a newsletter that I will receive as long as I stay invested?
Subscription to JAM: the site does not recognize my username, password or e-mail.
Jim,
I will invest as soon as JUBAX fund will be open to non US resident investors.
In the meantime I am waiting for the coupon code in order to subscribe to the Jam Letter.
BTW, did I miss your email with the coupon code?
Jim,
how much of YOUR OWN MONEY are you putting into JUBAX?
I contacted Schwab, because JUBAX was not available to purchase through them.
This was their response.
“I contacted our Mutual Fund Support Department on your behalf. Regretfully, the Jubak Global Equity Fund (JUBAX) cannot be purchased through Schwab at this time. We hope to make this possible in the near future.”
TO Mr. Juback
You need to explain what a person does to register an account under a Trust Fund. This usually invilves sending paperwork. YOU NEED MORE PHONE LINES. I cannot get in contact with anyone!!!!!!!!!!!
To Jim from Canada
Very disappointed we can not come to the party, maybe someday soon. Really enjoy your newsletters, thank you. Will look at subscribing to Jam.
I only wonder if people realized that owning a mutual fund with all the stocks will not give the same return as owning all those stocks?
After all the price of a mutual fund is “the value of the assets” – costs / number of shares.
uhm … I just realized that this post caused more responses than much more informative posts. I wonder why?
Here is my personal take on Jubak’s site and ideas. I like some of the idea, which do make sense to me, but I do not like all of them. I Read through ALL (and I repeat, all the discussion here), but I follow myself in making any purchasing decisions.
I do not buy mutual funds. It is just a matter of principle. I’ve never seen a single fund, which had all the stocks I wanted to own and none of those, which I didn’t want. I am not saying that I am always right, but .. I am trying to making a purchasing decision in assumption that I am right in choosing this stock or portfolio of stocks.
To make a long story short, I really like this site, but there is no way I will be purchasing mutual fund. Those two ideas just simply contradict each other.
Why is the daily NAV of the fund not updated? I looked at Yahoo finance and the website for the past two days and it shows unchanged????
Jim,
Since you are going to vacation until 8/24, when will the fund start investing? I will join in.
I am also curious why the NAV remains unchanged. Any help?
Mr. Jubak,
Thank you for clarifying why the expense ratio is so high. I will surely consider investing once the fund assets grow to the point where the expense ratio comes down to a more reasonable level. Best of luck to you!