BUFFALO FUNDS
SHAREHOLDER INFO

(FAQs)

Find answers to common mutual fund questions

This information should only be used as a reference for current and prospective shareholders and not be relied on solely when making a decision whether or not to invest in any mutual fund. Please refer to the Buffalo Funds prospectus for additional information.

We’re happy to answer your questions. Please call us at (800) 492-8332.

GENERAL INFO

A mutual fund is an SEC-registered open-end investment company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined securities and assets the mutual fund owns are known as its portfolio, which is managed by an SEC-registered investment adviser. Each mutual fund share represents an investor’s proportionate ownership of the mutual fund’s portfolio and the income the portfolio generates. The Securities and Exchange Commission (SEC) does not approve, endorse, nor indemnify any security.

Professional Management – Most funds are managed by investment advisers who are registered with the SEC.

Diversification – Spreading investments across a wide range of companies or industry sectors can help lower risk if a company or sector fails. Many investors find it less expensive to achieve such diversification through ownership of certain mutual funds than through ownership of individual stocks or bonds. Diversification does not assure a profit, nor does it protect against a loss in a declining market.

Low Minimum Investment – Some mutual funds accommodate investors who don’t have a lot of money to invest by setting relatively low dollar amounts for the initial purchase, subsequent monthly purchases, or both.

Liquidity and Trading Convenience – Mutual fund investors can readily redeem their shares at the next calculated NAV, minus any fees and charges assessed on redemption, on any business day. Mutual funds must send investors payment for the shares within seven days, but many funds provide payment sooner.

Costs Despite Negative Returns – Investors in some mutual funds must pay sales charges, annual fees, management fees and other expenses, regardless of how the mutual fund performs. Investors may also have to pay taxes on any capital gains distribution they receive.

Lack of Control – Investors in mutual funds cannot directly influence which securities are included in the funds’ portfolios.

Potential Price Uncertainty – With an individual stock an investor can obtain real-time (or close to real-time) pricing information with relative ease by checking financial websites or by calling a broker. By contrast, with a mutual fund, the price at which an investor purchases or redeems shares will depend on the fund’s NAV, which the fund might not calculate until many hours after an order has been placed.

As with any mutual fund, the value of a fund’s investments may fluctuate. If the value of a fund’s investments decreases, the value of the fund’s shares will also decrease and you may lose money.

The Buffalo Funds cannot guarantee that they will achieve their investment objectives. Please refer to our prospectus for more detailed information on risks related to the Buffalo Funds.

Open-end funds (like all Buffalo Funds) are the most common type of mutual fund. Most open-end funds sell shares to the public every day, priced at NAV. A professional investment manager oversees the portfolio, buying and selling securities as appropriate. The total investment in the fund will vary based on share purchases, share redemptions and fluctuation in market valuation. There is no legal limit on the number of shares that can be issued.

Closed-end funds generally issue shares to the public only once, when they are created through an initial public offering. Their shares are then listed for trading on a stock exchange. Investors who no longer wish to invest in the fund cannot sell their shares back to the fund (as they can with an open-end fund). Instead, they must sell their shares to another investor in the market. A professional investment manager oversees the portfolio, buying and selling securities as appropriate.

Exchange-traded funds combine characteristics of both closed-end funds and open-end funds. ETFs are traded throughout the day on a stock exchange. An arbitrage mechanism is used to keep the trading price close to net asset value of the ETF holdings.

Mutual funds can have a variety of transaction fees (purchase, redemption, exchange) and periodic fees (management, account, 12b-1 distribution and service) as well as other operating expenses and loads. A load is a type of commission, charged to the investor at time of purchase (front-end load), time of sale (back-end load), or a mix of both.

All Buffalo Funds are no-load, however management and other expenses still apply. Please refer to the prospectus for further details.

Class A shares typically impose a front-end sales load. They also tend to have a lower 12b-1 fee and lower annual expenses than other mutual fund share classes.

Class B shares typically do not have a front-end sales load. Instead, they may impose a contingent deferred sales load and a 12b-1 fee (along with other annual expenses).

Class C shares might have a 12b-1 fee, other annual expenses, and either a front- or back-end sales load. But the front- or back-end load for Class C shares tends to be lower than for Class A or Class B shares, respectively.

Class I shares are usually subject to very high minimum investment requirements and are, therefore, known as “institutional” shares. They are no-load shares.

Class R shares are usually for use in retirement plans such as 401(k) plans. They typically do not charge loads, but do charge a small distribution and services fee.

An actively managed fund seeks to outperform a relevant index through superior security selection. Expenses are generally higher than index funds. An index fund or passively managed fund seeks to match the performance of a market index, such as the S&P 500 index.

A Net Asset Value is calculated by subtracting from the fund’s total assets any liabilities and then dividing this amount by the total outstanding shares as of the date of the calculation. The NAV is computed once daily, Monday through Friday, at 4:00 p.m. (Eastern time), on days when the fund is open for business.

The Buffalo Funds are closed on weekends, days when the NYSE is not open for unrestricted trading, and certain national holidays as disclosed in the Statement of Additional Information.

Smaller denominations of mutual funds provide mutual fund investors the ability to make periodic investments through monthly purchase plans while taking advantage of dollar-cost averaging. So, rather than having to wait until you have enough money to buy higher-cost investments, you can invest right away with mutual funds.

The Buffalo Funds offer the option for periodic investing through our Automatic Investment Plan. Plans do not assure a profit, nor do they protect against a loss in declining markets.

 

Shareholder Info

Yes. The Buffalo Funds allows you to own shares directly. Simply choose the application appropriate for your account type, complete and sign it, and send it together with your contribution to:

Regular Mail:
Buffalo Funds
c/o U.S. Bank Global Fund Services
PO Box 219252
Kansas City, MO 64121-9252

Overnight:
Buffalo Funds
c/o U.S. Bank Global Fund Services
801 Pennsylvania Ave, Suite 219252
Kansas City, MO 64105-1307

Subsequent purchases and redemptions may be made by logging into your account.   

The minimum initial investment amounts for the Investor Shares of the Buffalo Funds are shown below:

Initial
Regular Accounts (unless opened via an exchange) $2,500
Exchange from another Buffalo Fund $1,000
Automatic Investment Plan $100
IRA and Uniform Transfer/Gifts to Minors Accounts $250
SEPs, Coverdell ESAs, and SAR-SEPs $250

 

If you use a broker or financial intermediary, you may contact them. If you wish, you may own shares directly. Simply choose the application appropriate for your account type, complete and sign it, and send it together with your contribution to:

Regular Mail:

Buffalo Funds
c/o U.S. Bank Global Fund Services
PO Box 219252
Kansas City, MO 64121-9252

Overnight:

Buffalo Funds
c/o U.S. Bank Global Fund Services
801 Pennsylvania Ave, Suite 219252
Kansas City, MO 64105-1307

You may check your balance by calling us at 800-492-8332 or by logging into your account.

You can change your beneficiaries either by completing the appropriate form or by writing us a letter. In either case, the form or letter must be signed by all owners.

There are many methods for determining your cost basis. Some of these are (but not limited to): average cost, first in/first out, high cost, etc. Consult your tax advisor for the method most appropriate for you. To assist you in your cost-basis determination, you may wish to reference the Dividends & Distributions section of our website.

You may obtain a Prospectus, Annual Report, or Statement of Additional Information (SAI) by calling the Buffalo Funds at 800-492-8332 or by downloading them here.

Please see the fund information page on our website.

If you are a direct shareholder, confirmation statements will be mailed to you within two days of placing your trade. You may also call us at 800-492-8332 or log into your account.

You may view daily prices and fund performance on our website here.

As stated in the prospectus, the investment objective for the Buffalo Blue Chip Growth, Early Stage Growth, Growth, International, Mid Cap Discovery, Mid Cap Growth, and Small Cap Growth Funds is simply long-term growth of capital. The objective of the Buffalo Growth & Income and High Yield Funds is to seek current income, with long-term growth of capital as a secondary objective. The objective of the Buffalo Flexible Allocation Fund is to seek to generate high current income and, as a secondary objective, long-term growth of capital.

Please refer to the prospectus for more information.

We publish a listing of securities held in each Fund as of the most recent calendar-quarter end, with a 60-day lag depending on the portfolio. A list of each Fund’s top 10 holdings as well as full holdings are accessible on their respective webpages, including a description of the individual security and the most recent holdings report for each Fund. Please note we may exclude any portion of holdings from publication when deemed in the best interest of the portfolio, and holdings are subject to change without notice and are not recommendations to buy or sell any securities. Also, the portfolio data may differ from the complete schedules of investments in regulatory filings due to differing accounting and reporting requirements. If you have any questions, please call us at (800) 492-8332 or Chat With Us online during business hours.

We provide some tax information on our website here. However, please consult with your tax advisor for full Fund-related taxation information.

The Buffalo Funds are managed by Kornitzer Capital Management, an investment management firm founded in 1989, which continues to act as adviser to the Funds. Each Fund has one to several professional investment managers, supported by a team of research analysts, whose goal is to outperform a relevant index through superior security selection. A bio for each manager can be found on the Our Team page or on the individual Fund webpage.

Each quarter, the Funds publish Highlights & Commentaries.

BUFFALO FUNDS IS PROUD to be the OFFICIAL INVESTMENT SERVICES PARTNER OF SPORTING KANSAS CITY