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Is there a backdoor entry to T Rowe Price Capital Appreciation - PRWCX - as it is closed ?

learningcurve
in Fund Discussions
I know the fund closed in June 2014; however, I am trying to see if anyone knows or has found a "backdoor" to get into the fund?

I find with its track record and long history of a single manager (I believe the only fund me manages and its variations).

This would be for a taxable account (there is a backdoor for moving a 401k to a T Rowe Price IRA) - so not looking for an "income oriented" comparable fund.

Any and all help is appreciated.

Comments

  • LewisBraham
    The backdoor entry to funds that are closed to new investors is to buy a share off someone and have that person transfer that share into your account. There are also other ways. Click here: bloomberg.com/bw/stories/2001-11-04/unlocking-the-door-to-closed-funds
  • little5beelittle5bee
    Does TRP offer a "fund of funds" that includes PRWCX? Not a perfect solution, but at least you could gain some exposure to it.
  • TedTed
    edited July 2015
    @little5bee: Unfortunately, the two TRP Spectrum Fund-Of Funds growth and international do not contain PRWCX as a holding. Purchasing a share of a fund from an individual is not as easy as it sounds. Many fund firms will not be a third party between a buyer and a seller. Furthur, the paper work and cost involved in the transfer process is not worth the effort. There is no such thing as a must have fund, period. There are a number of excellent moderate allocation, and for your information I have linked their ranking order from U.S. News & World Report.
    Regards,
    Ted
    http://money.usnews.com/funds/mutual-funds/rankings/moderate-allocation
  • hank
    edited July 2015
    little5bee said:

    Does TRP offer a "fund of funds" that includes PRWCX?

    Most likely not - from what I've seen.

    One reason - To an extent PRWCX "mimics" some of their funds-of-funds' objectives through its own diversified/moderate-risk approach. Adding it to a fund-of-funds might seem redundant. (Of course, it's able to invest directly in the various asset classes rather than indirectly through other funds, giving the manager greater latitude)

    Another reason - Price may not want to add to the AUM this behemoth already commands by including it in their fund-of-funds.




  • little5beelittle5bee
    thanks for info...I already own PRWCX...was just trying to help learningcurve.
  • msf
    LewisBraham said:

    The backdoor entry to funds that are closed to new investors is to buy a share off someone and have that person transfer that share into your account. There are also other ways. Click here: bloomberg.com/bw/stories/2001-11-04/unlocking-the-door-to-closed-funds

    In addition to the obstacles mentioned in the article, some funds require you to have continuously owned shares from the closure date (or on the closure date). For example, according to its prospectus eligible purchasers of MDISX (class Z shares) include:
    • Current shareholders who owned shares of any Mutual Series Fund on October 31, 1996
    • Shareholders who owned shares of any Mutual Series Fund through a broker-dealer or service agent omnibus account on October 31, 1996
  • hank
    edited July 2015
    little5bee said:

    thanks for info...I already own PRWCX...was just trying to help learningcurve.

    Little5bee: Happy to help. Just happen to have held PRWCX & a number of their funds-of-funds for many years. PRWCX dates back almost to inception.

    Yours is an interesting question/suggestion - as a purely academic pursuit (the spirit in which I responded). As a practical matter, however, it's unlikely one would purchase 10 shares of a fund they don't need to secure an interest in one share of PRWCX. And it's uncommon (but not unheard of) for their fund-of-funds to hold much over 10-15% of any one fund.

    Regards

  • VintageFreakVintageFreak
    May I suggest TRPs Global Allocation fund instead?
  • kevindowkevindow
    Gifting one share of a closed fund held in a taxable account at a given brokerage to another shareholder's taxable account held at the same brokerage is too easy, and only a matter of faxing a one page document. I have done this several times for family members and for a few trusted folks that I have met on forums. Now there is always a chance that the mutual fund company will refuse the transfer, but that has never been the case in my experience. Likely because the brokerage holds numerous shares of the fund held by numerous investors.

    The manager of PRWCX also manages clone funds ITRAX/ITRIX/ITCSX/ITCTX and JCAVX, so interested investors may investigate the availability of these funds at the various brokerages.

    Kevin
  • VintageFreakVintageFreak
    If we want same manager, just buy RPBAX. Honestly, I thought we were all beyond falling in love with a fund:-)
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