When a Litman Gregory Masters Funds “soft closes” to new shareholders, can existing shareholders add to their positions?

Initially yes, though it is possible that if too much subsequent asset growth occurs we may “hard close” the fund, which means we would stop accepting all additional investments.

How are fund expense levels determined?

There are three elements to fund expenses:

  1. The sub-advisor fee that is individually negotiated with each sub-advisor.
  2. Our fee which starts at 0.40% and declines when each fund reaches its closing level. The combination of our fee and the sub-advisors’ fees equal the total management fee.
  3. The operating expenses, which are a function of economies of scale as assets grow and our ability to negotiate attractive contract rates with our vendors.