The Teberg Fund (Vol. 1)
Thus far, the response to the Mutual Fund Minute has been very positive. We’ve had some readers ask us what it is exactly that we do at First Associated Investment Advisors, Inc. (“FAIA”), so in this edition we’ll explain. FAIA is a professional investment management firm. Our primary focus is on the efficient management of our publicly traded investment portfolio, The Teberg Fund. The Teberg Fund is a diversified, actively managed portfolio of mutual funds. The portfolio is put together with an emphasis on managing risk and preserving capital. It is designed for the investor who wants to own a distinct mix of mutual funds but wants a seasoned professional to do the research, pick the funds and to decide when to buy and when to sell. I have put together the below Q & A which I hope will answer some of the many questions asked about FAIA and The Teberg Fund. Due to space concerns, this will be the first edition of an ongoing, periodic Q&A column regarding The Teberg Fund.
What is your investment philosophy? Our overall investment philosophy is rooted within our mid-western values, conservative and cautious. This approach means making every effort to protect the accumulated wealth of our shareholders, while trying to grow the funds they have entrusted us with. We do so in a conservative manner which means we try to avoid the huge swings in the market. Overall, what we try to do is ride the roller coaster up, but then try to get out before it gets to the top. When we get out we know we are leaving some possible gains on the table, but we hope to avoid the freefall of the ride on the other side. We’ll get back in, but on our terms. This actively managed approach allows us to realize some gains, book those gains, then use them to get back in at our discretion. In a perfect world we would like to ride it all the way up, however very few know when you are actually at the top, and the risk of getting caught in the ride down is too much for us. The way down is always much scarier than the way up.
What is a fund of funds? Simply stated a fund of funds is a mutual fund which invests in other mutual funds. The Teberg Fund, rather than investing in equities and bonds directly, invests in mutual funds that fit within its investment objective. We believe that being a fund of funds allows us the flexibility to adjust our investment model so that we are able to take advantage of developing economic trends. For example, unlike a small cap equity fund, when small cap stocks fall out of favor, we do not have to ride that roller coaster down. We can get out where as the small cap fund, per its Prospectus, must stay on the ride. We believe this is a distinct advantage for an actively managed portfolio like ours.
Who are your shareholders? Our shareholders come from all walks of life and are the focus of all we do. Most of our shareholders are what is called direct shareholders. They have bought into our fund directly through us. Although our fund is available via broker dealers and trading websites etc., we have found that our shareholders like to know the people they are entrusting their savings with. Also, we are shareholders of The Teberg Fund. Everyone at FAIA , and their families, are invested directly alongside our shareholder base. We believe in what we do and put our money where our mouth is. All that being said, in our opinion, just about anyone can invest in our fund. If you would like additional information on The Teberg Fund, please call me at my Wauwatosa office at (414)771-3340.
How is your performance? I would love to talk about it. However the disclosure required would simply overload the available space. So, for performance information, please visit our website www.tebergfund.com. Performance figures and comparisons for several different time periods can be found in the performance section of the website, as well as in the Prospectus, Annual Report etc., all with the necessary disclosure.
As always, thank you for your continued interest in The Mutual Fund Minute. For additional information on The Teberg Fund, give us a call. I can be reached at (414) 771-3340. Located in the village, I am usually available for lunch if you would like to meet and discuss The Teberg Fund; I’ll buy.
John
TO BE CONTINUED…………………
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DISCLOSURE:
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The fund's prospectus contains this and other important information and may be obtained by calling 866.209.1964, or visiting tebergfund.com. Read it carefully before investing.
Mutual Fund Investing Involves Risk. Loss of Principal is Possible. Because The Teberg Fund is a “fund of funds,” your cost of investing in the Fund will generally be higher than the cost of investing directly in the shares of the mutual funds in which it invests. By investing in the Fund, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risk of those funds. These risks include, but are not limited to, risks involved with non-diversification and investments in smaller capitalization companies. The fund may also commit up to 80% of its assets to high yield funds containing lower rated securities that are subject to a higher risk of default.
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