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Tweedy, Browne Global Value Fund II (Currency Unhedged) to close to new investors

TheShadowTheShadow
in Fund Discussions
http://www.sec.gov/Archives/edgar/data/896975/000119312514283727/d761568d497.htm

497 1 d761568d497.htm TWEEDY, BROWNE FUND INC.



TWEEDY, BROWNE FUND INC.

TWEEDY, BROWNE GLOBAL VALUE FUND II — CURRENCY UNHEDGED (the “Fund”)

Supplement dated July 29, 2014

to the Prospectus dated July 29, 2014 (the “Prospectus”)

Effective August 11, 2014 at 4:00 p.m. Eastern Time, the Fund will close to most new investors until further notice.

The Fund will remain open to existing shareholders (up to certain daily limits) as follows:


• Existing shareholders of the Fund may add to their accounts, including through reinvestment of distributions.

• Existing shareholders of other Tweedy, Browne Funds may establish an investment in the Fund.

• Financial Advisors who currently have clients invested in the Fund may open new accounts and add to such accounts where operationally feasible.

• Participants in retirement plans utilizing a Tweedy, Browne Fund as an investment option on August 11, 2014 may also designate the Fund, where operationally feasible.

• Investors may purchase the Fund through certain sponsored fee-based programs, provided that the sponsor has received permission from Tweedy, Browne that shares may continue to be offered through the program.

• Employees of Tweedy, Browne and their family members may open new accounts and add to such accounts.

• Existing separate account clients of Tweedy, Browne may open new accounts in the Fund.


The Fund reserves the right to make additional exceptions or otherwise modify the foregoing closure policy at any time and to reject any investment for any reason.

This Supplement should be retained with your Prospectus for future reference.

Comments

  • David_Snowball
    Oddly, not Global Value, too. I've got a query into the fund about that one since they share a portfolio and Global Value is 16x larger.

    Odd.

    David
  • TheShadowTheShadow
    edited July 2014
    From Tweedy Browne web site:

    http://www.tweedy.com/resources/library_docs/general/TBGVFIIFundClosurePressReleaseWEB29Jul2014.pdf
  • David_Snowball
    Talked with Tom Schrager, Tweedy's president, this morning. Short version: they have no net inflows into Global Value but significant net inflows into Global Value II. As a result, the cash level at GV II is 26% while GV sits at 20% cash. While they've "invested recently in a couple of stocks," GV II's net cash level climbed from 21% at the end of Q1 to 26% at the end of Q2. They tried adding a "governor" to the fund (you're not allowed to buy $4 million or more a day without prior clearance) which didn't work.

    Mr. Schrager describes the sudden popularity of GV II as "a mystery to us" since its prime attraction over GV would be as a currency play and Tweedy doesn't see any evidence of a particular opportunity there. Indeed, GV II has trailed GV over the past quarter and YTD while matching it over the past 12 months.

    At the same time, Tweedy reports no particular interest in either Value (TWEBX, top 20% YTD) or High Dividend Yield Value (TBHDX, top 50% YTD), both at 11% cash.

    For what interest it holds,

    David
  • rjb112
    Thanks David. Appreciate these reports.
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