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.
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 ?
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.
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.
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.
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.
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???
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!?
Awesome news! Please let us know when this is available on Scottrade. I’m so in!
I had missed the point that Jubax was available to US investors only.
That leaves me with JAM: when, and how can I subscribe?
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%
Many Congratulations !
I always wished you start a fund for your picks. Count me in.
lotteollie,
Spoke to customer service and they told me to check back in about a month. Told them that was unacceptable and they need to authorize it sooner.
pk
Great news!
Will the JUBAX fund emulate the “Jubak Picks”, “Jubak 50” portfolios or neither? Will some of the stocks overlap?
Jim, I have invested but your free subscription process is not working. I have tried everyway to get connected and nothing seems to work. I look forward to reading your JAM newsletter, just be sure I am on the list.
I checked online with Vanguard and JUBAX didn’t show as a fund that I could get through them. Maybe I need to give it a few days. Don’t let the price run up too high before I have a chance to jump on board.
Congrats Jim…I will definitely look into it!
Congratulations Jim!
Happy for you and wish you much success , plan on coming along for the ride as soon as Vanguard gets JUBAX on their authorized mutual fund purchase list. Think I may be having the same problem Ed has buying in. Maybe you can help expedite Vanguards approval process so we can climb on board.
Aloha,
pk
JimB – I had the same issue when I opened my account today – Error activating JAM subscription, contact info@…. then the e-mail to info@… gets kicked back as undeliverable. I e-mailed the contact us link at JUBAX – that did not get kicked back and i am awaiting a response. i’m sure they will get it sorted Jim would never leave us hangin.
Congrats, Jim. I’m in as soon as it’s available on E*Trade, as I like to try and keep my investments in (as close to) one place.
I wouldn’t expect too much in the way of answers on the website. Fund offerings are fairly strictly regulated and communication will likely be limited to the prospectus lest Jim run a-foul of the SEC and the 1933 Securities Act.
I would merely comment that 1.75% is a bit high, but it’s all relative to performance. Many times as a fund ages and has a greater pool of capital the fees come down as a percentage to overall holdings. Hopefully this fund will follow that trend as well (not to mention 12b-1 fees are about to be severely limited by the SEC).
My major concern is the required subsequent investment of $250 each time. I like to kick over random sums of money (leftovers, bonuses, etc.) into my investments and that $250 threshold limits me. Most funds only impose a $100 limit. I hope some of the fund particulars will be subject to change as it becomes more successful/stable/capitalied etc.
I would love to invest, but after hitting the site it looks like Canadian investors are left out? Strange since Canadians are easily able to purchase US shares/mutuals?
Shares of JUBAX are currently offered only in the United States to U.S. investors and are not available for sale in any jurisdiction other than the United States.
You’ve had a tough year and you’re setting off to unfamiliar territory but I like your approach and you’re fun to read so I opened an account. Good luck to you and all of us new investors!!! We’ll enjoy the ride.
Congrats. Saw a posting about this a while ago as a hint it was going to happen so now it is real. Lets see where the journey goes.
HOORAY! Just in time. After 10 years of following your directions and managing my portfolios alone, I am ready to “hand over the reins” to the expert. This couldn’t have happened at a better time. One question: Are you doing this alone or are you including fund managers as well?
Congrats! This put a little extra bounce in my step today.
Being fairly new to some of this… is there any advantage to getting in early aside from missing out on any gains? I’m definitely in, but I’d prefer to wait until Scottrade is available. If there is benefit to getting in earlier, I would consider opening a new account.
Jim,
Would you be interviewing companies’ CEOs as part of running JUBAX? I would think you wouldn’t need to do too much of that, since the information that you’ve been uncovering and your analysis for Jubak’s Picks over the years did NOT depend on CEO interviews or actual visits to companies. Besides, CEOs will naturally be biased. Still, I’m just curious whether you plan on talking to select CEOs or senior people at companies as part of your research, since they will now have an incentive to meet with you.
Of course not; a little dust just got into my eyes…
Excellent Jim! I have been hoping you would do a move just like this. If I can buy JUBAX through Schwab, Scottrade, or Merrill, I am in!
Kudos.
Count me in. Can I invest thru fidelity?
and the expense is only around 2%