https://www.sec.gov/Archives/edgar/data/1090372/000089418923008223/jacobinternetfundshareclas.htm497 1 jacobinternetfundshareclas.htm 497
Jacob Internet Fund
Institutional Class Shares (JAMIX)
November 3, 2023
Supplement to the Prospectus and Statement of Additional Information (“SAI”)
dated January 5, 2023
This supplement amends the Prospectus and SAI of the Fund.
The Board of Directors of Jacob Funds Inc. (the “Company”) have determined to liquidate and dissolve the Institutional Class Shares of the Jacob Internet Fund series of the Company (the “Fund”) effective on or about November 17, 2023 (the “Liquidation Date”). The liquidation proceeds will be distributed to any remaining shareholders of Institutional Class Shares of the Fund (the “Shareholders”) on or about the Liquidation Date.
Until the Liquidation Date, Shareholders will have the opportunity to exchange their shares for shares of any other Jacob Fund on any business day by contacting the Fund’s transfer agent, U.S. Bank Global Fund Services, at 1-888-JACOB-FX (1-888-522-6239). Please see “Exchange of Fund Shares” in the Prospectus for additional information about such exchanges. Shareholders may redeem their Fund shares at any time prior to the Liquidation Date.
The Institutional Class Shares of the Fund are now closed to new investors due to the planned liquidation. Additionally, the Fund will no longer accept additional investments in Institutional Class Shares of the Fund from existing shareholders.
Please retain this Supplement with your Prospectus and Statement of Additional Information for future reference.
Comments
Odd that instead of combining share classes (there's still investor class shares JAMFX), the board decided to liquidate one class of shares. Based on ERs, I suspect that there are few institutional shares outstanding. "Other expenses" are 0.22% higher for the institutional shares than for the retail shares. As a result, the ERs of the two share classes are almost identical.
Prospectus
OTOH, at $40M total AUM, this one star fund may not be long for this world.
First, Jacob Internet JAMFX (12/1999- ; ER 2.02%, min $2.5K) is the ORIGINAL dot.com era hot fund that crashed-&-burned-&-burned-over. It is still around as a fund even smaller than its shadow.
Then Institutional class JAMIX (12/2021- ; ER 1.99%, min $100K) was started in 12/2021. So, who was anxious to get in for just 3 bps ER reduction? It seems that there was only 1 victim who has since withdrawn most of the money.
1/5/23 Prospectus filing showed AUMs as of 8/31/23:
JAMFX $69.1 million
JAMIX $133K
Fido shows 9/30/23 class AUM of $44.75 million for JAMFX, total $44.76 million for all classes. My math says that JAMIX now has AUM of $10K+ only.
M* and Yahoo Finance just show total AUM, so their data weren't helpful for this.
The filing says JAMIX is liquidating (not merged into the other class). I checked SEC/Edgar and there is no filing that I could find related to the closure/liquidation of JAMFX. So, I suppose that JAMFX will continue.
Then, the filing is just to shake out the residuals of JAMIX. A strange way of doing things, i.e. liquidating one class when there is another continuing class.