Steben Futures Fund Lowers Fee

We attempt to place our funds with managers that deliver performance, integrity, and low fees.  It’s nice when we succeed. So, when I received the announcement this week that Steben has reduced its management fee on Futures Portfolio Fund B Units from 1.75% to 1.50% effective June 1, 2012, I had to smile.

It’s common for advisors like myself to offer a lower fee on higher amounts of money.  For example, we charge 1.5% of the first $500k of investment net worth, but .4% on the next $4.5 million and .3% on amounts over that.  However, it is not common for mutual fund managers to offer a reduced fee when their amounts under management exceed certain breakpoints.  So, it’s doubly refreshing when a fund manager does lower their fees as their assets grow.

This is the second time this year one of our mangers have lowered their fees, the last one being DFA on their Global Real Estate fund.



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