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FAQ
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| General Information |
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Can I contact you by e-mail?
Absolutely. Send us an e-mail anytime at investing@firsthandfunds.com.
Do you have a toll-free number?
You can call us toll free at 1.888.884.2675. This is the number to call if you have questions about opening a direct account with Firsthand Funds, if you have questions about any Firsthand Fund, or to conduct business in an existing direct account. You can also call this number to get Fund share prices.
How old is Firsthand?
Firsthand Capital Management, Inc., was co-founded by our CEO and Chief Investment Officer, Kevin Landis, in 1993. Our oldest Fund, Firsthand Technology Value Fund, commenced operations on May 20, 1994.
How does your "firsthand" industry experience help you pick stocks?
Most importantly, our hands-on industry experience gives us a strong understanding of the technologies in which we invest. Secondly, we have developed a large network of working-level contacts within the industry whom we can call upon. Finally, having spent many years working within the industry has taught us the challenges and keys to success in running a technology company.
Is firsthand experience relevant to analyzing foreign companies?
We believe industry experience is just as meaningful when investing in international companies as in domestic ones. The fact is that we're tech-centric, not geographically focused. When we analyze a technology or a market, we look at all of the suppliers, customers, and competitors, not just the domestic ones, or the ones that Wall Street analysts track.
Silicon Valley is at the crossroads of the global technology industry and, in our opinion, our position here gives us a great vantage point into the technology industries in which we invest. In fact, many major international technology corporations seem to agree, and have set up offices here in Silicon Valley to stay plugged in to what is going on among their customers, suppliers, and competitors.
What are the ticker symbols for your funds?
Firsthand Alternative Energy Fund: ALTEX
Firsthand Technology Value Fund: TVFQX
Firsthand Technology Leaders Fund: TLFQX
Firsthand e-Commerce Fund: TEFQX
Where can I learn more about members of your investment team?
Please visit our investment team page. |
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| Prospectuses and Reports |
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What is an SAI?
A Statement of Additional Information ("SAI") contains detailed information on fund policies, the management company, risks, and operations.
How can I obtain a copy of the prospectus and SAI?
Both documents can be downloaded from our website's prospectus page. You can also receive a printed copy of the prospectus and/or SAI via regular mail by calling Shareholder Services toll free at 1.888.884.2675, option 2. Shareholders may also sign up for e-delivery to receive these documents electronically. To learn more about e-delivery, please visit the sign-up page. How can I get a copy of the annual and semi-annual reports?
You may review and print a copy of these reports from our website by visiting our publications page. You can also call Shareholder Services toll free at 1.888.884.2675, option 2, to have them sent to you via U.S. mail. Shareholders may also sign up for e-delivery to receive these documents electronically. To learn more about e-delivery, please visit the sign-up page. What is the Investor Alert e-mail?
The Investor Alert e-mail is a complimentary e-mail service used to inform subscribers of changes at Firsthand Funds and to provide market news and commentary. Alert e-mails are sent out once per quarter.
How do I subscribe (or unsubscribe) to the Investor Alert e-mail?
Please visit the Investor Alert sign-up page. After you enter your e-mail address, you will receive an e-mail from Firsthand Funds confirming your request. Do you sell collected e-mail addresses?
No. Your privacy is very important to us, and we do not sell your e-mail addresses. Please read our Privacy Policy for more information. |
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| Distributions |
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How are capital gains taxed?
Short-term capital gains are taxed as ordinary income at the Federal level. Long-term capital gains are taxed at a lower rate, depending on your tax bracket.
What is a capital gains distribution?
Capital gains distributed to shareholders are the net profits made on the sale of individual securities in a mutual fund's portfolio. Each time a mutual fund sells a portfolio holding, a capital gain or loss is incurred for that investment. All mutual funds, regardless of performance, must distribute to shareholders any net realized gains from the sale of individual securities in their portfolios at least once a year.
What is a record date?
The record date is the date on which an individual must own shares in order to be entitled to receive a distribution. It is also known as the "date of record." Investors who purchase shares on the ex-dividend date do not receive that year's distributions.
Why does the NAV of a fund drop on the day of the distribution?
On the day that a fund distributes capital gains, the fund's NAV drops to reflect the distribution that has been paid out. This drop indicates that a portion of the fund's value has been distributed to shareholders as a realized capital gain. You will notice that if you have chosen to reinvest the distribution, the value of your account has not changed as a result of the distribution. You will receive a confirmation statement showing the amount of the distribution and the current value of your Firsthand Funds account. |
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| Investing |
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Can I access my Firsthand Funds account(s) online?
Yes, shareholders may access their account information 24 hours a day, 7 days a week, by going to our Account Access page. You are able to buy, exchange, and sell shares; check account balances; review previous account activity; order account statements; and view and order duplicate tax forms.
To read more about these online account access features, visit our Account Help pages. Can I purchase your Funds through brokerage firms' mutual fund supermarkets?
You are able to purchase our Funds through many brokerage firms. Please see our Invest With a Broker page for a list of some brokerage firms that carry our Funds. You may also call Shareholder Services toll free at 1.888.884.2675, option 1, to inquire about a firm not on the list. Do you offer telephone exchanges and redemptions?
Yes, direct shareholders may request an exchange to another Firsthand Fund over the telephone.
You may redeem shares having a value less than $50,000 by telephone. Please read the prospectus for details or contact Shareholder Services at 1.888.884.2675, option 1, with any further questions.
You may also conduct transactions online. Visit our Account Help pages to learn more. How can I change the address on my account?
You may call Shareholder Services toll free at 1.888.884.2675, option 1.
How can I redeem (sell) shares?
You may sell shares online through our Account Access pages. You may also contact Shareholder Services toll free at 1.888.884.2675, option 1, or redeem shares by sending a written request to:
Shareholder Services
Firsthand Funds
P.O. Box 183120
Columbus, OH 43218-3120
What is the minimum to open a new account?
If you purchase shares directly from Firsthand Funds, the initial investment minimum is $2,000 per Fund. For Individual Retirement Accounts (IRAs), the initial investment is $3,000. Lower minimums are available through some brokerage firms. See Invest Via Broker for more information on broker minimums. For more complete information on fees, expenses, and risks, please read our prospectus. |
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| Performance |
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Do you manage the Funds differently during a bear market?
No, our goal is to remain fully invested regardless of market conditions. We do not attempt to time the market. We believe our job is to manage the technology portion of an investor's portfolio—not the asset allocation between stocks and cash.
What causes you to sell a stock?
A Fund may sell securities of a company if we determine that the current market price exceeds the value of the company, or alternative investments present better potential for capital appreciation. We also may sell a security owned by a Fund when there is a negative development in a company's competitive, regulatory, or economic environment or when we believe there is a deterioration of a company's growth prospects or financial situation.
Where can I find the daily net asset values?
Our NAVs are updated daily online, on every Fund page of our site. If you are interested in receiving the NAVs daily via e-mail, you can sign up for the service here. You can also check the daily NAV using our automated voice response system by calling 1.888.884.2675, option 3. Which market index do you use to benchmark your Funds?
Market indices include hundreds, if not thousands, of companies, while our Funds have significantly fewer holdings. So, on a day-to-day basis, our Funds will not necessarily follow any index. The primary benchmark index can be considered the NASDAQ Composite Index, due to its high concentration of technology stocks.
The NASDAQ Composite Index was up today, but your Funds weren't up as much (or were down). Why?
The NASDAQ Composite Index is composed of more than 4,000 companies, not exclusively in the technology sector, and is weighted toward the companies with the largest market capitalization.
The portfolio composition of Firsthand Funds is derived solely from the technology sector, and the number of holdings generally ranges from 25 to 75 technology companies per Fund. It is not appropriate to look strictly at NASDAQ and compare the performance to our Funds on a daily basis. While the NASDAQ is rich in technology stocks, non-technology stocks may drive significant movements. These differences work in both directions: Our Funds may have a better day than the NASDAQ, or the NASDAQ may outperform our Funds. Historically, our Funds have generally displayed greater volatility than the NASDAQ Composite Index.
How do I subscribe (or unsubscribe) to the daily NAV e-mail?
Please visit the NAV e-mail sign-up page. |
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| Portfolios |
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How do you decide which stocks to pick for your Funds?
We begin by identifying emerging trends within technology and the industries that may benefit from these trends. When we find companies we feel have the best business plans in each of these areas, we take a look at the fundamentals of each company and set a target price at which we would like to own them.
How can I find the complete portfolio holdings for Firsthand Funds?
For the most current portfolio holdings available for each of our Funds, please click the portfolio holdings button on each Fund page or click here. Updated portfolio holdings are released quarterly after a 45-day delay. For more information on our holdings release dates, please see our Portfolio Disclosure Policy. What is your policy on releasing the top 10 holdings on your Funds?
The top 10 holdings for all of our Funds are released quarterly after a 45-day delay. The top 10 holdings are published on the individual Fund pages. Firsthand includes only public companies in listings of top 10 holdings. For more information on our holdings release dates, please see our Portfolio Disclosure Policy. Why is there some overlap between some of the Funds?
We do not manage our Funds to complement each other. There may be some overlap between our Funds because a particular company may meet the investment strategy of multiple Funds.
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| Fees and Expenses |
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Does Firsthand Funds charge redemption fees?
No. Firsthand Funds eliminated redemption fees for its funds on April 30, 2003.
If you have invested in Firsthand Funds through a broker, please be aware that some brokers may charge a fee to buy, sell, or exchange shares. Please contact your broker for more information.
If I purchased shares of a Firsthand Fund on March 1, 2003, and I sold them on April 28, 2003, would I still pay a redemption fee?
Yes. If you bought shares on March 1, 2003, and sold them on April 28, 2003, the 2% fee would be applied because you held the shares for less than 180 days and sold them before April 30, 2003 (the day the redemption fee elimination goes into effect). However, if you sold these same shares on April 30 or later, you would not be charged a redemption fee.
For more information on exchanges and redemptions, please read our prospectus. |
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| Retirement Accounts |
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Can I transfer or rollover a distribution from my employer's 401(k) plan into an IRA with Firsthand Funds?
Yes, you may establish a Firsthand IRA account through a 401(k) rollover. The minimum to establish an IRA with Firsthand Funds is $3,000. You can download the IRA form and prospectus from our website or contact Shareholder Services toll free at 1.888.884.2675, option 2, to request an IRA kit in the mail. Please read the prospectus carefully before investing.
Can I open a Roth IRA with Firsthand Funds?
Yes, you may open a Roth IRA for a minimum of $3,000. You may download the application, along with a prospectus, from our website or request one by contacting Shareholder Services toll free at 1.888.884.2675, option 2. Please read the prospectus carefully before investing.
What are the annual maintenance fees for a traditional IRA and a Roth IRA?
The annual maintenance fee for both a traditional IRA and a Roth IRA is $10. This fee is per type of account. So, for example, if you have a traditional IRA account with money invested in each of five funds, your annual maintenance fee would be $10. If you have a traditional IRA account and a Roth IRA account, each with investments in one or more funds, your maintenance fee would be $20. The fee for termination, rollover, or transfer of account to a successor custodian is $10. |
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| Other Questions |
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Call Shareholder Services toll-free at 1.888.884.2675, option 1. Our associates are available to assist you Monday through Friday, 5:00 A.M. to 5:00 P.M. Pacific Time. Or e-mail them to our webmaster and we may add them to this page. |
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