OMAHA, Neb.--(EON: Enhanced Online News)--Weitz Investment Management, Inc. (weitzinvestments.com), Advisor to the Weitz Funds, has reduced expenses for its suite of fixed income Funds, including the Short Duration Income Fund, Core Plus Income Fund and Ultra Short Government Fund. These expense limitation agreements (fee caps) are effective December 16, 2016 through July 31, 2018 at which time the renewal of such agreements will be reconsidered.
“The very competitive and persistently low interest rate environment, largely engineered by global central banks, has led to a decrease in the return available from all fixed income securities. Therefore, we believe it is in the best interest of our shareholders to implement this expense limitation agreement”
The fee caps for the Short Duration Income Fund (formerly the Short-Intermediate Income Fund) have been reduced for the Institutional Class (WEFIX) from 0.62% to 0.48% and the Investor Class (WSHNX) from 0.85% to 0.68%.
“The very competitive and persistently low interest rate environment, largely engineered by global central banks, has led to a decrease in the return available from all fixed income securities. Therefore, we believe it is in the best interest of our shareholders to implement this expense limitation agreement,” said Weitz Fixed Income Portfolio Manager Tom Carney, CFA.
Fee caps for the Core Plus Income Fund, which was established July 2014, have been reduced for the Institutional Class (WCPBX) from 0.65% to 0.40% and the Investor Class (WCPNX) from 0.85% to 0.60%.
President of Weitz Investment Management Ken Stoll said, “The Core Plus Income Fund will be coming up on 3 years since inception. With the Fund’s track record to date we hope to initiate more interest in and bring our Core Plus Income Fund to scale.”
Weitz also converted its Government Money Market Fund to the Ultra Short Government Fund (SAFEX) in an effort to better align fixed income offerings, provide more clarity and streamline fixed income solutions for its investors. The Fund will no longer operate as a ‘money market fund’ under Rule 2a-7 of the Investment Company Act of 1940.
“Regulations and requirements for money market funds have become progressively more onerous. We evaluated various options and believe the best solution for our shareholders was to convert our money market fund to the Ultra Short Government Fund, retaining the investment objective of current income consistent with the preservation of capital and maintenance of liquidity,” said Ken Stoll.
For more information on Weitz Investment Management or the Weitz Funds, please visit weitzinvestments.com.
About the Weitz Fixed Income Portfolio Managers
Tom Carney, CFA, joined Weitz Investment Management, Inc. in 1995. Since January 1, 1996, Tom has served as the portfolio manager of the Short Duration Income Fund, Ultra Short Government Fund and Nebraska Tax-Free Income Fund. In addition, he has co-managed the Core Plus Income Fund since its inception (July 31, 2014). Tom began his investment career in 1982 at Chiles, Heider & Co., Inc., a regional brokerage firm in Omaha, where he held several positions. In 1986, he became a municipal securities professional with Smith Barney in Omaha. He received a bachelor’s in finance from the University of Nebraska Omaha. Tom has been a CFA® charterholder since 1999 and was the president of the CFA Society of Nebraska from 2005-2006.
Nolan Anderson joined Weitz Investment Management, Inc. in November 2011. He has co-managed the Core Plus Income Fund since its inception (July 31, 2014) and, as of December 16, 2016, Nolan is co-manager of the Ultra Short Government Fund. Prior to joining the Firm, Nolan performed financial modeling and due diligence on leveraged buyout transactions for Wells Fargo Bank in San Francisco and worked as a commercial real estate research analyst for Woodmen of the World Life Insurance Society in Omaha (2004-2007). He holds a bachelor’s in real estate and land use economics and an MBA from the University of Nebraska Omaha.
Founded by value investor Wally Weitz in 1983, Weitz Investment Management, Inc. is a boutique, employee-owned asset management firm headquartered in Omaha, Nebraska.
Over the past three decades, Weitz has leveraged its research-driven approach to capitalize on opportunities that arise out of market inefficiencies. Decisions are backed by thorough research, logical strategies, extensive debate and our team’s personal commitment to long-term results.
We build and manage concentrated, high-conviction, actively managed portfolios. Through bottom-up, proprietary research that emphasizes fundamentals, we focus on creating positive results over the long term and offer a variety of options for investors with different investment objectives.
The Weitz family of funds includes the Value Fund (WVAIX and WVALX), Partners Value Fund (WPVIX and WPVLX), Partners III Opportunity Fund (WPOPX and WPOIX), Research Fund (WRESX), Hickory Fund (WEHIX), Balanced Fund (WBALX), Core Plus Income Fund (WCPBX and WCPNX), Short Duration Income Fund (WEFIX and WSHNX), Ultra Short Government Fund (SAFEX) and Nebraska Tax-Free Income Fund (WNTFX).
Annual operating expenses as stated in the most recent Prospectus, and expressed as a percentage of the Funds’ net assets are: Short Duration Income-Institutional 0.63% (gross); Short Duration Income-Investor 0.92% (gross); Core Plus Income-Institutional 1.38% (gross); Core Plus Income-Investor 2.36% (gross); and Ultra Short Government Fund 0.60% (gross).
Actual annualized expense ratios for the six months ended September 30, 2016 are as follows: Short Duration Income-Institutional Class, 0.62%; Short Duration Income-Investor Class, 0.93% (gross) and 0.85% (net); Core Plus Income-Institutional Class, 1.28% (gross) and 0.65% (net); Core Plus Income-Investor Class, 2.24% (gross) and 0.85% (net); and Ultra Short Government, 0.70% (gross) and 0.13% (net). The investment advisor has agreed in writing to limit the total annual fund operating expenses (excluding taxes, interest, brokerage costs, acquired fund fees and expenses and extraordinary expenses) of each Class’s average daily net assets through July 31, 2018 to: Short Duration Income-Institutional Class, 0.48%; Short Duration Income-Investor Class, 0.68%; Core Plus Income-Institutional Class, 0.40%; Core Plus Income-Investor Class, 0.60%; and Ultra Short Government 0.20%.
Investors should consider carefully each Fund’s investment objectives, risks, and charges and expenses before investing. Each Fund’s preliminary Prospectus or Summary Prospectus contains this and other information about each Fund and should be read carefully before investing. The preliminary Prospectus or Summary Prospectus, and a copy of each Fund’s final Prospectus or Summary Prospectus, when available, can be obtained from Weitz Investment Management, Inc., 1125 South 103rd Street, Suite 200, Omaha NE 68124-1071 or weitzinvestments.com. You may call us at (402) 391-1980 or (800) 304-9745. Weitz Securities, Inc. is the distributor of the Weitz Funds.