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FPA Launches FPA Flexible Fixed Income Fund

TedTed
in Fund Discussions
FYI: First Pacific Advisors, LP (“FPA”) announced today that it launched FPA Flexible Fixed Income Fund (FPFIX) (“the Fund”).

This marks FPA’s first new bond fund since becoming adviser to FPA New Income, Inc. (FPNIX) in 1984. FPA New Income, Inc. is the only fund in Morningstar’s Short-Term Bond category to post positive returns in every calendar year since 1984.1

FPA partners Thomas Atteberry and Abhijeet (Abhi) Patwardhan manage both funds with the same investment philosophy, process and team.
Regards,
Ted
https://www.businesswire.com/news/home/20190102005423/en

Comments

  • David_Snowball
    The fund has a curious profile: up to 75% high yield (sibling New Income is 25%) with the goal of adding 100 basis points to returns. While it maintains FPA's signature "absolute return" focus, the 100 bps pushes the window from AR over a 12 month period to AR over a 36 month period. That implies the prospect for noticeably more volatility.

    I've got a call scheduled with the FPA folks next week to see what they were thinking. I'll share what I learn.

    David
  • TheShadowTheShadow
    edited December 2019
    Recently issued prospectus:

    https://www.sec.gov/Archives/edgar/data/924727/000110465919075560/a19-25191_4497.htm

    supplement:
    https://www.sec.gov/Archives/edgar/data/924727/000110465919075557/a19-25191_1497.htm


  • FD1000
    The following 2 great funds SEMMX+DHEIX invest mainly in securitized bonds (just like FPFIX) + ST duration + have better performance + better risk attributes. See this (link) results since the inception of FPFIX
  • dtconroe
    I have watched FPFIX since inception. It is available through Schwab for $100k in taxable accounts, but you can get it for $5000 in IRAs. It is a nontraditional bond oef, and is from a company that has a heavy emphasis on "absolute" return objectives. The ER is pretty much in line with most nontraditional bond oefs, although higher than I would prefer to pay. I would prefer a nontraditional bond oef that pays a little higher yield, but it is a little too early in its history to draw too many conclusions about how this fund will perform. For me, I will wait and watch, and form my opinions a little later, after I have seen more performance to evaluate.
  • Gary
    I saw that "Flexible Fixed" I guess anything is possible ya oxymoron
  • CrashCrash
    $100k minimum to get in. See ya later...
  • ShostakovichShostakovich
    edited December 2019
    For $100k minimum, I'd want a free coffee and a Danish with that purchase, served up fresh by Atteberry.
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