PFS funds

The Mutual Fund Experts

Cost

The cost of securing the necessary expert help in getting a mutual fund started and keeping it running is now within reach of nearly any fee advisor or investment manager who wants to start their own fund.

Initial setup cost for a mutual fund through our service is approximately $20,000 to $25,000. This includes legal fees, prospectus and SAI development, SEC filings, contracts for service providers, 500 investor packages (prospectus, application, return envelopes) and web page development. Setup costs typically run between $75,000 to $100,000, and up for other service providers.

The annual costs of running a mutual fund primarily consist of bank custody fees, legal services, annual auditing fees, transfer agent and accounting fees, fund administration fees, trustee fees, state registrations and printing/mailing cost. Below is a typical list of the annual operating costs for running a mutual fund with $10 million in assets through our services group.

 

 

 

 

A $10 million fund with a total operating expense ratio of 1.5% generates $150,000 per year in revenue netting approximately $24,993 in revenue after expenses. As the fund grows, the net income to the advisor dramatically increases as a percentage of operating cost increases at a much lower rate. Actual expenses and net income are for example purposes only.

 

Description 2016 Estimate  
Bank Custody $7,000
Legal Services $12,000
Blue Sky (limited reg.) $5,000
Accounting & Shareholder Servicing $32,000
Administration $30,000
Audit Fee $12,500
Printing/Mailing (Year 1) $2,500
Trustee Fees $3,000
SEC Fees $1,007
Distributor and Compliance Officer $10,000
Misc. Expense  $10,000
           
Total Expenses $125,007