To manage superior investment products that improve client portfolios while establishing ethical and fiduciary standards that promote the positive evolution of the portfolio management industry through fair competition and by mitigating conflicts of interest.
Create Valuable Products
TFS will only launch and manage funds that we believe add value to investment portfolios. TFS does not create products based on potential asset flow. Instead, we would manage only products that we think are valuable – ones we would put our own money into and would want our friends and family members to invest in as well.
Align Interests With Investors
TFS is a firm believer in the benefit of its owners and portfolio managers investing in the funds that the firm manages since it provides the clearest indication that our interest is directly aligned with that of our investors. Our internal policies currently require that each principal and Portfolio Manager invest at least fifty percent of his personal liquid assets in the funds managed by TFS.
Build Trust Through Integrity and Higher Fiduciary Standards
Customer trust is the most critical element to the success of our business and, consequently, we embrace the fiduciary responsibility we have to our clients. This philosophy is apparent in all aspects of the organization where TFS seeks to be an industry leader by setting standards that are more stringent than required by law. For example, the mutual funds managed by TFS adopted a policy of maintaining a majority of independent board members before this practice became an industry standard. As another example, TFS greatly restricts personal trading by employees and requires that any employee trades are pre-cleared by the firm’s Chief Compliance Officer.
Educate Through Clear Disclosures and Fee Transparency
In an industry wrought with hidden agendas and poor disclosure, TFS has nothing to hide. Our disclosure documents are written to facilitate client understanding because we believe the key to building a long-term relationship is to establish a good product fit from the start. The funds managed by TFS do not charge any type of sales loads. TFS discourages these fees and believes that they are a threat to the interests of investors and also inhibit progress in the fund industry by allowing inferior products to survive. In addition, TFS does not participate in soft-dollar arrangements with brokerage firms. Although these arrangements are legal and accepted by many of our competitors, TFS believes they do not allow investors to fully understand the costs of owning a mutual fund. Lastly, TFS seeks best execution on behalf of its fund clients.
Invest Heavily in Research & Development
Given the increasingly competitive landscape in the financial services industry, TFS knows that ongoing research and development is critical to our continued success. TFS will continue to invest heavily each year in ongoing strategy research.