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Did we get suckered by FPA?

VintageFreakVintageFreak
edited March 2012 in Fund Discussions
FPACX and FPIVX are supposed to be the only no load funds from FPA. Are they?
I see a 2% deferred redemption fee in the prospectus right now. It does NOT seem to be an early redemption fee. It seems to be an ABSOLUTE REDEMPTION FEE.

Someone feel free to tell me I'm wrong. I'll fee a lot better. I own both FPACX and FPIVX. FPACX I have owned for some time. FPIVX I bought recently and was about to buy more, but am holding off now.

Yes PLEASE tell me I'm wrong:-(

Comments

  • zenbrewzenbrew
    For FPACX the redemption fee is for shares held less than 90 days.

    This is in their prospectus (page 14):
    "2% Redemption Fee. The Fund will deduct a 2% redemption fee from the redemption proceeds of any shareholder redeeming shares of the Fund held for less than 90 days. In determining how long shares of the Fund have been held, the Fund assumes that shares held by the investor the longest period of time will be sold first."

    also look at morningstar
    http://financials.morningstar.com/fund/expense.html?t=FPACX&region=USA&culture=en-US

    Hope this helps.
  • VintageFreakVintageFreak
    Morningstar itself lists a 2% redemption fee AND a "deferred load" of 2%. Look at FPA Capital page on M*. Front Load and 2% redemption fee BUT no deferred load.

    I'm happy if you are saying there is no deferred load on FPACX and FPIVX, but then M* stinks - which I know it does for various other reasons. I don't see M* listing deferred load on top of other redemption fees or confusing the two for other funds with redemption fee.

    Again, redemption fee is different than deferred load. It is regarding deferred load that I'm concerned. Even in the prospectus, it says "deferred load".
  • zenbrewzenbrew
    Page 3 of FPA prospectus doesn't list any deferred fee just a redemption fee.
    http://www.fpafunds.com/docs/default-document-library/fpa_crescent_prospectus

    None listed on Schwab's website either.

    Never noticed morninstar's listing of a deferred load before.
  • xgamer27
    For what it's worth, I sold some FPA Crescent (FPACX) yesterday at Fidelity and wasn't charged deferred load or redemption fee of any kind (I'd held the fund for a number of years).
  • VintageFreakVintageFreak
    okay gamer, but now I have to ask why you would sell FPACX after "a number of years". what was your alternative? please share.
  • xgamer27
    Alas, nothing so exciting. Just rolling out an old 401k. Fidelity told me that I'm not able to transfer the brokerage assets in my Roth 401k in kind, so I was forced to liquidate.
  • AndyJ
    edited March 2012
    M* just in the last couple of weeks has botched the "load" figure on the quote pages for funds that have early redemption fees: many? most? all? funds with erf's have those shown as loads on the quote pages for the funds.

    M* motto: proudly botching new categories of data each and every week of the year!
  • AndyJ
    Reply to @AndyJ: Followup: the ERF data snafu is apparently fixed today, after a number of complaints on the M*.com discussion forum.
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