The Mutual Fund Store claims to actively manage assets for clients. And during the initial client interviews they continue to push their expertise in selecting quality mutual funds based on performance.

Their wweb site reinforces this mantra: This excerpt if from your company documents: “ “Fee-based: Because we receive a quarterly fee based upon the assets we manage for a client, our advisors are motivated to monitor the portfolio on an ongoing basis. Furthermore, our advisors are bound by their fiduciary responsibility to keep their clients' interest first.""

I have been a client of The Mutual Fund Store since May 29th 2008. With an initial investment of $100,000.00. As of November 20th, 2008 the account has lost over $51,000.00 in value and is dropping fast. Eric Harpsoe has never initiated a call to alert me of the rapid and significantly large decline.

Last week I contacted their Corporate Offices via email, they continue to instruct me to stay the course. They claim to have selected the investments based on each funds merits.

I took it upon myself to research the funds that they selected and have found that the Lipper Ratings of their selected funds are extremely poor.
In fact several funds rank in the bottom 10% in year to date performance (see details below).

Is it legal for an investment advisor who claims to actively manage funds to keep a clients investment in such under performing funds?

Supporting Data

LIPPER RATING 1= Best 100= Worst

CMTFZ Columbia Technology Z

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -52.50 -51.48 -12.91 -1.68 NA
Classification
-46.21 -45.95 -12.92 -5.78 -1.93
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
93 84 45 15 NA

UMBIX COLUMBIA VALUE & RESTRUCTURING CL Z

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -49.86 -49.38 -12.96 -2.02 3.84
Classification
-41.61 -41.75 -10.57 -2.62 1.13
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
94 93 84 44 17

KSCVX KEELEY SMALL CAP VALUE FUND CL A

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -44.17 -44.35 -8.86 3.78 7.38
Classification
-41.44 -42.69 -12.01 -2.31 4.22
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
74 67 18 4 16

WWNPX KINETICS PARADIGM FUND

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -54.02 -54.29 -9.50 1.85 NA
Classification
-42.69 -43.54 -11.80 -1.32 4.59
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
96 96 16 6 NA

MXXIX MARSICO 21ST CENTURY FD

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -46.73 -47.09 -8.45 0.60 NA
Classification
-44.40 -43.65 -10.97 -2.85 -0.41
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
76 84 20 8 NA

PRPFX PERMANENT PORTFOLIO

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -18.29 -18.39 2.78 5.70 6.93
Classification
-19.54 -19.39 -2.72 0.49 2.18
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
38 38 2 2 3

CVFCX PIONEER CULLEN VALUE FUND CL A

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -34.25 -34.30 -5.88 2.92 NA
Classification
-40.13 -40.51 -9.76 -1.48 0.50
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
4 5 7 2 NA

RIMMX RAINIER MID CAP EQUITY PORT ORIGINAL CL

Total Returns (As of 11/14/2008)
YTD 1Yr 3Yr 5Yr 10Yr
Fund -49.21 -48.01 NA NA NA
Classification
-47.37 -46.73 -11.96 -3.16 0.92
Index (S&P 500) -39.30 -39.30 -9.10 -1.80 -0.90
% Rank in Class (1-best,100=worst)
62 59 NA NA NA

Jeff
Brunswick, Ohio
U.S.A.