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We prefer not to hold less than 5% of a particular investment area; with the understanding that smaller amounts won't do much for a portfolio; to the plus or minus.
GPROX, effectively will become; a buy and hold investment.
Our current "toe-hold" is via Fidelity brokerage.
Still pondering the future of this fund, at this house.
Kinda defeats the purpose don't you think? They leave Wasatch because they don't want to worry about Asset bloat. Then launch 7 funds. They could have just had 2 with more assets.
However, they timed it perfectly. I keep mentioning "when" vs "what". They sure got the "when" right as far as launching their fund is concerned.
GPROX is 10% of our portfolio...trying to decide if I want to transfer some shares from TDA directly to GP before month end so we can continue adding dollars in the future, or selling some of our position in a small/midcap moderate allocation fund (ICMBX) and add those funds to GPROX in order to keep everything in-house at TDA. We can always rebuild our position in ICMBX in the future. ICMBX is around 12% of our portfolio but currently only holds around half it's holdings in equities.
Concerning expense ratios...GPROX is killing it's peers despite the 1.60% expense ratio and as long as that continues...who cares!
FWIW, I do think GP does something different than almost any manager out there, and it's something I'm willing to pay for.
Look at the avg market cap of GP's funds, compared to any other foreign/global SC. It is the smallest I am aware of, even smaller than Wasatch. If the small cap premium is down to illiquidity, you want to be in the smallest markets possible. Being in EM and frontier markets should, theoretically anyway, add to that Alpha.
If the goal is to have something that acts differently than other equity holdings, GP would seem to hit the sweet spot of what you want in an active manager. So far the results have been very good. I'm transferring my holdings directly to them in order to continue to accumulate. We'll see how it works out.
So is the idea to keep each fund small so the fees remain high, then open a new fund every so often? I hope they will be like Wasatch and reduce fees.
I'm not sure about "being like wasatch". The 10 year charts of lot of their funds do not look too hot. They seem to be outperforming only with market tailwinds behind their backs and likewise underperforming their index.
I'm transferring my holdings directly to them in order to continue to accumulate. We'll see how it works out.
@mrdarcey and MFOers, I'm under the impression that if one only owns this fund in a taxable account, it won't do any good to transfer that account from a brokerage to them. Would only benefit if it is in a tax deferred account.
Looks like if you have an AIP in place, it may be okay in taxable, as they say below - assuming it's all "OR's" between the bullets. This is from the PDF hard-close announcement on the GP site:
So you need the AIP in place to make it work for a taxable account? Would have to look up the details of the AIP. I assume you set up a 'minimum' amount to invest automatically, and then can you add to that whenever you want?
@mrdarcey and MFOers, I'm under the impression that if one only owns this fund in a taxable account, it won't do any good to transfer that account from a brokerage to them. Would only benefit if it is in a tax deferred account.
Do I have that correct?
Think AndyJ is correct, but its worth asking them about Roy's question. I'm not sure if you have GPROX in a brokerage and moved it whether they'd let you establish an AIP before the end of the month or not. They're letting me do an AIP, but the fund is held in a Roth.
It's probably been linked elsewhere, but here is the announcement.
Comments
Around here it's 4%, on its way to 5 by the end of the month.
Regards- OJ
However, they timed it perfectly. I keep mentioning "when" vs "what". They sure got the "when" right as far as launching their fund is concerned.
* Foreign: WAIOX 2.25%, GPIOX 1.73%
* Global: WAGOX 1.80%, GPGOX 1.68%, GPROX 1.60%.
Concerning expense ratios...GPROX is killing it's peers despite the 1.60% expense ratio and as long as that continues...who cares!
Look at the avg market cap of GP's funds, compared to any other foreign/global SC. It is the smallest I am aware of, even smaller than Wasatch. If the small cap premium is down to illiquidity, you want to be in the smallest markets possible. Being in EM and frontier markets should, theoretically anyway, add to that Alpha.
If the goal is to have something that acts differently than other equity holdings, GP would seem to hit the sweet spot of what you want in an active manager. So far the results have been very good. I'm transferring my holdings directly to them in order to continue to accumulate. We'll see how it works out.
Do I have that correct?
"Retail Shareholders (Direct Shareholders Only):
• Retirement Accounts
• Education Savings Accounts
• Minor Accounts (UTMA/UGMA)
• Pre-established Automatic Investment Plans"
It's probably been linked elsewhere, but here is the announcement.