Institutional Class Shares – FAQs
On July 1, 2019, shares of the Buffalo Funds were re-designated as “Investor Class” shares and new “Institutional Class” shares were created. Accounts that met the eligibility requirements were automatically converted to the new Institutional Class of shares on July 1st.
New Ticker Symbols, CUSIPs, Expense Ratios
|As of July 29, 2021||Symbol||CUSIP||Expense Ratio||Symbol||CUSIP||Expense Ratio|
|EARLY STAGE GROWTH||BUIOX||119530889||1.36%||BUFOX||119530301||1.51%|
All expense ratios are current as of July 1, 2019. For additional information, please review the updated Prospectus.
Frequently Asked Questions
Why is Buffalo doing this? ▼
Buffalo Funds is doing this in response to consistent and increasing demand from the investment community for an institutional class of shares from fund families. Many fee-based investment advisors, such as RIAs and independent financial planners, are increasingly using institutional shares exclusively when making investment allocations for client accounts. Along with you as a direct shareholder, the investment advisor community has always been a cherished distributional channel for Buffalo Funds. Additionally, we believe most qualified group retirement plans (such as 401K plans) require an institutional class of shares to be eligible in the plan’s fund line-up. The decision to launch institutional shares is in response to the ever evolving investment marketplace and the desire to meet client expectations to the greatest extent possible. In short, institutional shares should increase the marketability of the funds going forward and help to ensure Buffalo Funds ability to thrive long into the future.
Am I being converted to the new class? ▼
If the combined total of all your Buffalo Funds investments on 6/27/19 is at least $250,000, you can expect to be converted. If you reach that threshold at a later date, you can call us for instructions on how to convert.
Will my account number change because of this conversion? ▼
No, but the fund number will change. See table above.
Can I aggregate my various accounts to reach the Institutional threshold? ▼
All accounts under the same SSN or TID, regardless of actual registration, can be aggregated.
If I reach the threshold after 7/1/19, will you automatically convert me? ▼
No, you must contact Buffalo Funds Shareholder Services to convert if you believe you are eligible.
Must I maintain my $250,000 balance once I’m in the Institutional Class? ▼
The minimum investment is $250,000. Buffalo reserves the right to redeem accounts if their value falls below the minimum due to redemptions, but this is not automatic. If Buffalo ever chose to do that, there would be ample notice of the event; this would give you the opportunity to make appropriate trades to bring up the value of your account.
In the Institutional Class, is the minimum per fund $1,000 so long as the overall investment is at least $250,000? ▼
Is this conversion a taxable event? ▼
It is not a taxable event.
Does this conversion impact my cost-basis? ▼
The cost basis is not impacted.
Can I claim a stepped-up cost-basis to the account value as of July 1st for taxes? ▼
There would be no step up in basis allowed to be claimed, as long as there was no additional shareholder death or other issue that would normally allow for a step up in basis.
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