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● AS TO A FUND THAT IS A FUND OF FUNDS, THE INVESMENT MANAGER HAS COMPLETE DISCRETION TO INVEST IN VARIOUS SUB-FUNDS WITHOUT DISCLOSURE THEREOF TO INVESTORS OR TO PERKINS. BECAUSE OF THIS LACK OF TRANSPARENCY, THERE IS NO WAY FOR INVESTORS TO MONITOR THE SPECIFIC INVESTMENTS MADE BY THE FUND OF FUNDS OR TO KNOW WHETHER A SUB-FUND’S INVESTMENTS ARE CONSISTENT WITH THE SUB-FUND'S INVESTMENT PHILOSOPHY. FUND OF FUNDS INVEST IN OTHER FUNDS AND FEES MAY BE CHARGED AT BOTH THE FUND OF FUNDS AND SUB-FUND LEVELS. THUS THE OVERALL FEES INVESTORS WILL PAY MAY BE HIGHER THAN INVESTORS WOULD PAY BY INVESTING DIRECTLY IN THE SUB-FUNDS. IN ADDITION, EACH SUB-FUND WILL LIKELY CHARGE AN INCENTIVE FEE ON PROFITS REGARDLESS OF WHETHER THE OVERALL OPERATIONS OF THE FUND OF FUNDS ARE PROFITABLE.
● THERE IS NO SECONDARY MARKET FOR FUND INTERESTS. TRANSFERS OF FUND INTERESTS ARE SUBJECT TO LIMITATIONS. A FUND'S MANAGER MAY DENY A REQUEST TO TRANSFER FOR ANY REASON.
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