Second according to Morningstar the fund's annual management fee alone is 1.75%. And the fees do not stop here. The fund nominally charges an upfront sales fee of 5.75% of initial value (e.g., a sales load) as well as various additional annual fees such as marketing that bring the total annual fee to 2.17% in 2016.
So let us summarize. Catalyst Hedged Futures Strategy touts it capital protection strategy yet loses 15% in one normal week and charges high fees. Is this the peformance that investors expect? We think not.
This is exactly the problem today. Actively-managed funds are not meeting investors' expectations. As private investors ourselves we demand transparency with consistent performance in terms of both return and risk as well as fair fees that eliminate excessive annual management fees and any sales/redemption loads.
In view of this most recent example we encourage our user community to continually question their funds' performance and fees – including pension fund arrangements such as tax-deferred 401(k) structures in the United States. Furthermore and like our tagline "Democratize Investing" states, we support an on-going democratization of the investment process by giving private investors the necessary tools to bypass expensive underperforming funds and actively manage their own investments.