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RiverPark Short Term High Yield: an opportunity for MFO members to speak directly with the manager
Reply to @claimui: Nice going- now that you bring that up, I also remember seeing something of that sort, but also can't remember where. Might have been a comment from David at some point but I can't run it down. He does mention that money-market funds are not going to be interested because they are not allowed to hold securities of this lower grade.
"Trading Practices. Currently, the Funds reserve the right, in their sole discretion, to identify trading practices as abusive. The Funds may deem the sale of all or a substantial portion of a shareholder’s purchase of fund shares to be abusive. In addition, the Funds reserve the right to reject purchase and exchange requests by any investor or group of investors for any reason without prior notice, including, in particular, if the Funds or the Adviser reasonably believes that the trading activity would be harmful or disruptive to the Fund(s).
The Funds monitor selected trades in an effort to detect excessive short-term trading activities. If, as a result of this monitoring, the Funds believe that a shareholder has engaged in excessive short-term trading, they may, in their discretion, ask the shareholder to stop such activities or refuse to process purchases or exchanges in the shareholder’s accounts other than exchanges into a money market fund. In making such judgments, the Funds seek to act in a manner that they believe is consistent with the best interests of shareholders."
FWIW: Funds routinely insert language re frequent trading (as well as disclaimers it won't always be effective). Appears in large measure CYA aimed at avoiding shareholder lawsuits, but also in compliance with SEC mandates that they address issue. Some like T Rowe Price put very specific "trigger points" (days and numbers) on what constitutes frequent trading. Others like Riverpark use this more generalized approach. Many, like T Rowe Price, specifically exempt their money market funds from the language.
Reply to @hank: Yup, got it, thanks ... see additional posts below where the prospectus and boilerplate are discussed.
TRP changed their methodology about a year back, to a vastly simpler trigger than they previously used: if you sell shares of a Price fund, you're blocked from new online purchases for 30 days after the sale. Price exempts only MM funds; Vanguard's 60-day block (same principle) also exempts short term bond funds.
Comments
http://quote.morningstar.com/fund-filing/Prospectus/2012/1/30/t.aspx?t=RPHYX&ft=485BPOS&d=f3d5eda2070106c2f697e523b37e757b
(See "Tools to Prevent Frequent Transactions")
"Trading Practices. Currently, the Funds reserve the right, in their sole discretion, to identify trading practices as abusive. The Funds may deem the sale of all or a substantial portion of a shareholder’s purchase of fund shares to be abusive. In addition, the Funds reserve the right to reject purchase and exchange requests by any investor or group of investors for any reason without prior notice, including, in particular, if the Funds or the Adviser reasonably believes that the trading activity would be harmful or disruptive to the Fund(s).
The Funds monitor selected trades in an effort to detect excessive short-term trading activities. If, as a result of this monitoring, the Funds believe that a shareholder has engaged in excessive short-term trading, they may, in their discretion, ask the shareholder to stop such activities or refuse to process purchases or exchanges in the shareholder’s accounts other than exchanges into a money market fund. In making such judgments, the Funds seek to act in a manner that they believe is consistent with the best interests of shareholders."
Statutory Prospectus at Riverpark, January 30, 2012 - (same language - see page 40)
http://www.riverparkfunds.com/downloads/Prospectus/RiverPark_Statutory-Prospectus.pdf
FWIW: Funds routinely insert language re frequent trading (as well as disclaimers it won't always be effective). Appears in large measure CYA aimed at avoiding shareholder lawsuits, but also in compliance with SEC mandates that they address issue. Some like T Rowe Price put very specific "trigger points" (days and numbers) on what constitutes frequent trading. Others like Riverpark use this more generalized approach. Many, like T Rowe Price, specifically exempt their money market funds from the language.
TRP changed their methodology about a year back, to a vastly simpler trigger than they previously used: if you sell shares of a Price fund, you're blocked from new online purchases for 30 days after the sale. Price exempts only MM funds; Vanguard's 60-day block (same principle) also exempts short term bond funds.