http://www.sec.gov/Archives/edgar/data/896975/000119312515267440/d948002d497.htm497 1 d948002d497.htm TWEEDY, BROWNE FUND INC.
TWEEDY, BROWNE FUND INC.
Tweedy, Browne Global Value Fund II -
Currency Unhedged (the “Fund”)
Supplement dated July 29, 2015 to the Prospectus dated July 29, 2015 (the “Prospectus”)
The Fund is closed to most new investors until further notice.
The Fund remains 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 currently utilizing a Tweedy, Browne Fund as an investment option 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
Regards,
Ted
http://www.tweedy.com/resources/library_docs/general/TBGVFIIFundClosurePressReleaseWEB29Jul2014.pdf
That sounds like a pretty big back door. (If it had said that you had to be an existing shareholder as of July 29, 2015, that would have made more sense.) So all I need to open an account in TBCUX is to first open an account in TBGVX?
The supplement reads as though it was thrown together in a hurry. The wording above is one item that suggests this. Another is the parenthetical remark that existing shareholders can add (up to certain daily limits) without specifying those limits. You won't know what the limit is until you try to add too much?
Finally, who puts out a supplement on the same day as the prospectus it is supplementing (both are dated July 29, 2015)? That's the strongest indication that this was a hurry-up job. I wonder why.
P.S. Artisan has a similar back door, but only for significant fund investors. They'll generally let you invest in closed funds if you have at least $100K invested in family funds. (Artisan Prospectus: "You may open a new account in a closed Fund [except Artisan Global Value Fund] if ... you are a shareholder with combined balances of $100,000 in any of the Funds".)
I thought it was strange that the supplement as of 7/29/15 is in addition to the prospectus dated 7/29/15.
@Ted
Maybe there will be a filing tomorrow amending this filing like Vulcan Value Partners filed an amendment after announcing they were going to close the funds immediately?
After looking at the 7/29/15 prospectus, there is no mention in it that the Tweedy, Browne Global Value Fund II - Currency Unhedged is closed. That is why the supplement, dated 7/29/15 indicates that the fund is closed.
Too bad it was not included in the prospectus in the first place.
7/29/15 Prospectus:
http://www.sec.gov/Archives/edgar/data/896975/000119312515267402/d948002d485bpos.htm