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Fund Spy

These Funds Have Scary Fees


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We don’t rate the priciest funds. It’s not likely worth the effort to tell you why you shouldn’t buy Nysa (NYSAX) and its 4.57% expense ratio or Midas Magic (MISEX) for 3.49%. (Side note: The SEC name rule requires Midas Magic to be at least 80% magic.) But there are some notable funds with fairly high fees. It’s a shame because these funds do have some appeal outside of their fees. A choosy investor can do better.

 Eventide Gilead (ETGLX)
Until recently, this fund had been a really strong performer. But we gave it a Morningstar Analyst Rating of Neutral even before its recent tailspin in part because it charges an expense ratio of 1.35% and its high turnover rate likely means it racks up above-average trading costs. Manager Finny Kuruvilla also faces the chal­lenge of managing a much larger fund than he had been running. The fund has had inflows of $1.1 billion over the past 12 months through September, which drove assets up to $1.8 billion. The strategy combines Christian screens and an aggres­sive-growth strategy. It will be interesting to see whether the fund’s success is sustainable, but its fees will make that a real challenge.

Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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