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Dodge and Cox to offer an X class in registration

https://www.sec.gov/Archives/edgar/data/29440/000119312522045497/d233985d485apos.htm#toc233985_14

Class X Shares may be purchased only by eligible defined contribution employee retirement benefit plans that have contractual relationships with Dodge & Cox.

Comments

  • How many share classes does anybody need? Silliness--- although taken for granted and accepted, universally.
  • Why not offer a N or S class that would allow D&C funds to be sold ntf at Fido, Schwab and Vanguard. I for one would tolerate a higher expense ratio to increase my access to these funds.
  • It may be hard to beat American Funds with 19 or more classes. http://financials.morningstar.com/fund/purchase-info.html?t=BALFX&region=usa&culture=en-US

    Agreed. I like (and hold several) AFs but having 19 share classes is beyond insane.
  • Bummer. I always liked their one ER for all approach. c
  • carew388 said:

    Why not offer a N or S class that would allow D&C funds to be sold ntf at Fido, Schwab and Vanguard. I for one would tolerate a higher expense ratio to increase my access to these funds.

    Fidelity already provides access to all seven D&C funds, as do Schwab and Vanguard.

    It's not access you're looking for, rather it's access at a lower cost. Fidelity's charge of $5 to buy, $0 to sell seems pretty cheap. Even purchasing in $2,000 or greater chunks comes out at least as cheap as D&C adding a 12b-1 fee, assuming one's average investment period is just a year: $2,000 x 0.25% = $5.

    An extra added bonus is that unlike the way Fidelity handles NTF funds, there's no $49.95 fee if one decides to sell shares within 60 days.
    https://www.fidelity.com/mutual-funds/all-mutual-funds/fees
  • “Fidelity's charge of $5 to buy, $0 to sell seems pretty cheap.”

    However, I just ran a test at Fido by hypothetically buying 2 different D&C funds (DODIX, DODFX) with 2 different imputed amounts ($2500 & &5,000). In all 4 cases the cost to buy would have been $75.00 each.
  • msf
    edited February 19
    The $5 charge is for incremental (additional) purchases via automatic investment. An initial investment in a TF fund costs either $49.95 (for most TF funds) or $75 (for Schwab, Vanguard, and D&C funds).

    But there's a way around that, by purchasing an initial position elsewhere and transferring in kind. (Don't cringe - I know we've both had recent problems transferring assets.)

    Generally, funds purchased directly from a fund family can be transferred with no cost to a brokerage. Or one can use a brokerage that charges a low transaction fee and does free transfers such as Merrill Edge ($19.95 to buy, $0 for partial transfer; just leave a little cash in the account) or Vanguard ($20 to buy, $0 to transfer).

    I mention these brokerages because I have experience transferring assets in kind (ACAT) between them and Fidelity in both directions at no cost. (Merrill has been problematic in handling fractional shares even of mutual funds, though they may have improved their system since the last time I transferred assets.)

    Here's a page with a table of brokerages and their ACAT transfer fees.
    https://topratedfirms.com/brokers/fees/brokerage-account-transfer-fees.aspx

    Take it with a grain of salt, and always check with the brokerage directly. For example, the table says that Robinhood does not charge for partial transfers. Robinhood says "There is a $75 fee for partial and full ACATS out of Robinhood."
    https://robinhood.com/us/en/support/articles/transfer-stocks-out-of-your-robinhood-account/
  • Thanks @msf -

    FWIW I’ve now moved all except D&C to Fido. The small / modest sum at D&C is fine where it is - spread across DODIX, DODBX, DODLX. I like their funds a lot - but that’s another topic.

    Should we get a really nasty “downdraft” across the global economy (10-20% more down) I’d shift from DODIX into one of their 3 international / global funds.

    All’s well. Thanks again for the explanation.
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