New York City, New York Apr 29, 2021 (Issuewire.com) - Don Chambers, a shareholder of Firsthand Technology Value Fund (Nasdaq: SVVC) today stated: "The shareholders of Firsthand Technology Value Fund have suffered huge losses despite the long-term bull market in US equities. One of the key problems is SVVC's massive expense ratio."

Mr. Chambers continued:  "SVVC's most recent annual report reveals SVVC's devastating expenses of $3.03 million over the full year of 2020. Those expenses work out to roughly $0.44  per share based on the 12/31/2020 shares outstanding of 6,893,056 shares. Based on the 12/31/2020 closing share price of $4.47 that generates a whopping expense ratio of 9.8% per year!"

"How could investors in a fund receive value with such massive expenses? Of course, they couldn't...and didn't. The fund's estimated year-end net asset value fell from $17.70 in 2019 to $14.82 in 2020."

"Roughly two-thirds of SVVC's 2020 expenses appear to be due to the enormous investment advisory fees which totaled $2.02 million for 2020. Note that SVVC collects advisory fees on the gross asset value of the fund as estimated via a process overseen by SVVC. In recent years SVVC's stock price has often been less than half of the fund's net asset value. For example, the 2020 year-end net asset value for SVVC was $14.82 per share while the year-end market price was $4.47 per share. The market price was a whopping 70% discount from the fund's estimated net asset value."

Chambers stated that: "The fees, other expenses, and poor investment performance are ravaging SVVC." He notes that:  "The price data on page 25 of SVVC's 2020 annual report indicates that the cumulative total return from$10,000 invested in SVVC v. two major equity indices since SVVC's 2011 inception to 12/31/2020 is as follows":

Invested in NASDAQ Composite: $52,517

Invested in S&P 500:                    $34,747 

Invested in SVVC:                        $  2,190

Mr. Chambers noted:   "Last year I submitted a shareholder proposal at SVVC's annual meeting requesting that SVVC's Board liquidate or terminate the Fund at or near its NAV.   The proposal was overwhelmingly approved by shareholders, but it appears to have been completely ignored by Board Members of SVVC. I have submitted a shareholder proposal for the next annual meeting to terminate all investment advisory and management agreements between the Fund and Firsthand Capital Management."

Mr. Chambers concluded: "It appears that the Board of Firsthand Capital Management has failed its shareholders.  It appears that it is in the best interest of all shareholders to terminate the relationship between the Fund and Firsthand Capital Management. I intend to vote in favor of the proposal to terminate all investment advisory and management agreements between the Fund and Firsthand Capital Management. Termination of the existing contract seems to me to be a way to reverse SVVC's devastating decline." 

Media Contact

Concerned Firsthand Technology Value Fund (SVVC) shareholders

DonaldRChambers@gmail.com