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For what interest it holds, Seafarer is NTF at Scottrade and on the OneSource platform through Schwab, though the fund profile does not yet reflect that fact.
Dear David Would you kindly let us know if you do plan to purchase this fund and do you think the 1.6% fee is worth it? thanks http://www.seafarerfunds.com/fund/
I move slowly, but do anticipate splitting my current MACSX holdings between Seafarer and Matthews Asia Strategic Income (MAINX). Sometime in May, maybe? And I guess the implication is that, yes, I do think so.
Reply to @David_Snowball: As an investor of Matthews Asia Strategic Income fund, do you feel that the 30 day yield 2.83% is adequately compensated as compared to that of Vanguard Total Bond Market Index (30 day yield 2.17%)?
Strategic Income (in which I have not yet invested) is not a pure bond fund. It can invest in stocks, convertibles and preferred shares as a way of adding some element of growth to income. That likely will decrease yield (as will fund expenses) though it might add to total return.
I've recently opened a couple accounts directly with Seafarer. Very easy website to use and responsive staff. I’m tired, once again, of Schwab's high fees…$75 transaction fee for non-OneSource Funds, which is a non-starter for yearly IRA contributions and small account holders. I've also noticed that Schwab’s OneSource fees are higher than direct fees with funds, though not sure this is case with SFGIX. Also, they will often not carry institutional class on such funds, like SIGIX and WGRIX. As for Scottrade, beware, they take a week to settle funds upon sale, even for trading. All that said, glad to see more purchase outlets available for SeaFarer. Thanks for timely info. Charles
There some things I'd knock Schwab for, just as every service has its issues. But fund availability is not one of them. Historically at least, Schwab has been adamant about being able to offer the lowest cost retail share class on its platform. Perhaps that's changed. What funds do you find more costly with OneSource?
Schwab makes more load funds available without loads (or transaction fees) than I've seen elsewhere. Calamos, Diamond Hill, Eaton Vance, Federated, Nuveen (lots of state specific munis, Tradewinds, etc.), Principal, Victory. Some of these are NTF at TD Ameritrade, some at Scottrade. I'm sure there are other load-waived funds at Schwab;these are just the ones that come immediately to mind.
Regarding SIGIX - according to Seafarer's website, they have not made it available through any third party, so that may not be Schwab's doing. Of course, their own website doesn't even say that the retail class (only) is available through Scottrade, so who knows what the truth is?
Regarding WGRIX - Schwab lists its availability as open. Never trust 3rd party information (here, M*) when it's easy to validate the information directly.
Reply to @00BY: Unless something happens to change my mind (oh, look! a butterfly!!), that's likely. To be clear: that's not dissatisfaction with MACSX per se. In part it's my reluctance to become a collector of funds - I tend toward a "one in / one out" approach unless there's a fundamentally new approach that complements what my managers are already doing. In part it's my interest in adding e.m. bond exposure and my suspicion that Mr. Foster will succeed with his broader fund. David
Hi msf. I suspect few people are more motivated than I to like Schwab. At one point I've had every account in our household at Schwab: 2 IRAs, a rollover, a Joint Savings/Brokerage, a checking, a Visa Signature, and through my work a Personal Choice Retirement Account (PCRA). All these accounts were linked on a convenient on-line summary page.
Hands-down, the PCRA is best account with diverse fund selection, low fees, fast settlements, and very responsive staff that really takes pride in the select service they offer. Maybe because of the first-rate PCRA, I have recognized the short-comings of some of the other services. For example, the $50 fee to buy or sell a fund not on the OneSource list. This applies for IRA accounts as well, which have limited yearly deposits. The $50 fee was effectively a 1% load each way on a $5000 transaction, making the option a non-starter.
OneSource is a good service offering, I agree. A few times I noticed fees appeared higher than advertised on MS. For example, Parnassus Equity Income PRBLX, TCW Select Equities TGCNX, and Matthews Asia Dividend MAPIX are 0.04-0.05% higher. But after double-checking, that difference may just be a manifestation of reporting source. MS publishes expense reported in annual report, while Schwab uses the prospectus. So I stand-corrected, which is good thing in this case. Now Schwab does up the redemption fee period to 90 days for OneSource funds, which is longer than the 60 days typically used by the fund houses.
As for WGRIX, the institutional class of Wintergreen WGRNX, it was not available at Schwab shortly after it was established. Since I own WGRNX, I checked right away. But it is available now, as you point out, and that availability is a good thing too.
Today, I just maintain the PCRA and brokerage accounts at Schwab. I recently transferred the 401 and IRAs directly to the fund houses, Dodge & Cox, Fairholme, and Seafarer. Schwab stopped offering its Visa, which was a disappointment, after which I closed the checking account also.
Trust all that provides a better perspective of my early post.
Thanks, Charles
PS. Schwab website still says Seafarer SFGIX is not available.
Reply to @Charles: Hi, Charles. I talked with Michelle Foster, who handles a lot of the fund's business and admin work tonight. They've noticed the same thing and are frustrated by it. As I note in my April essay, Schwab says they only update some parts of the website every four weeks and so the error may persist until April 11. Sorry 'bout that. David
Reply to @David_Snowball: Hey, some progress. SFGIX now available on-line at Schwab, and as a OneSource offering (no load, no transaction fee)...see below. That said, symbols SFGIX and SIGIX not supported by Goggle Finance, which seems weird.
Comments
Would you kindly let us know if you do plan to purchase this fund and do you think the 1.6% fee is worth it?
thanks
http://www.seafarerfunds.com/fund/
I move slowly, but do anticipate splitting my current MACSX holdings between Seafarer and Matthews Asia Strategic Income (MAINX). Sometime in May, maybe? And I guess the implication is that, yes, I do think so.
David
While it is not an apple-to-apple comparison, iShares JPMorgan USD Emerg Markets Bond (EMB) yields 4.69%.
http://quicktake.morningstar.com/fundnet/PrintReport.aspx?Country=USA&Symbol=emb
Strategic Income (in which I have not yet invested) is not a pure bond fund. It can invest in stocks, convertibles and preferred shares as a way of adding some element of growth to income. That likely will decrease yield (as will fund expenses) though it might add to total return.
For what it's worth,
David
Schwab makes more load funds available without loads (or transaction fees) than I've seen elsewhere. Calamos, Diamond Hill, Eaton Vance, Federated, Nuveen (lots of state specific munis, Tradewinds, etc.), Principal, Victory. Some of these are NTF at TD Ameritrade, some at Scottrade. I'm sure there are other load-waived funds at Schwab;these are just the ones that come immediately to mind.
Regarding SIGIX - according to Seafarer's website, they have not made it available through any third party, so that may not be Schwab's doing. Of course, their own website doesn't even say that the retail class (only) is available through Scottrade, so who knows what the truth is?
Regarding WGRIX - Schwab lists its availability as open. Never trust 3rd party information (here, M*) when it's easy to validate the information directly.
Hands-down, the PCRA is best account with diverse fund selection, low fees, fast settlements, and very responsive staff that really takes pride in the select service they offer. Maybe because of the first-rate PCRA, I have recognized the short-comings of some of the other services. For example, the $50 fee to buy or sell a fund not on the OneSource list. This applies for IRA accounts as well, which have limited yearly deposits. The $50 fee was effectively a 1% load each way on a $5000 transaction, making the option a non-starter.
OneSource is a good service offering, I agree. A few times I noticed fees appeared higher than advertised on MS. For example, Parnassus Equity Income PRBLX, TCW Select Equities TGCNX, and Matthews Asia Dividend MAPIX are 0.04-0.05% higher. But after double-checking, that difference may just be a manifestation of reporting source. MS publishes expense reported in annual report, while Schwab uses the prospectus. So I stand-corrected, which is good thing in this case. Now Schwab does up the redemption fee period to 90 days for OneSource funds, which is longer than the 60 days typically used by the fund houses.
As for WGRIX, the institutional class of Wintergreen WGRNX, it was not available at Schwab shortly after it was established. Since I own WGRNX, I checked right away. But it is available now, as you point out, and that availability is a good thing too.
Today, I just maintain the PCRA and brokerage accounts at Schwab. I recently transferred the 401 and IRAs directly to the fund houses, Dodge & Cox, Fairholme, and Seafarer. Schwab stopped offering its Visa, which was a disappointment, after which I closed the checking account also.
Trust all that provides a better perspective of my early post.
Thanks, Charles
PS. Schwab website still says Seafarer SFGIX is not available.