Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Giroux “has been able to find pockets of value in areas where other asset allocators aren’t venturing,” says Morningstar analyst Adam Millson. “That’s coupled with his ability and willingness to move swiftly in such scenarios to capture the opportunity.” Link
M* has now become even more confusing. Articles at main home morningstar.com should be open (as in the OP Link), but those at investor.morningstar.com may require M* Investor subscription (even if the same article is posted there).
These are the pains as M* is now becoming a mini-Bloomberg. My guess is that eventually, NOTHING will be free at M*.
M* has now become even more confusing. Articles at main home morningstar.com should be open (as in the OP Link), but those at investor.morningstar.com may require M* Investor subscription (even if the same article is posted there).
These are the pains as M* is now becoming a mini-Bloomberg. My guess is that eventually, NOTHING will be free at M*.
In terms of most things outside of equity/fund research, IMO Morningstar has nothing on Bloomberg and will barely register as a serious Bloomie competitor. Bloomberg is a distant aspiration for them at best. M* will remain in the league with Zacks, ValueLine, et.al.
Great article that summarizes David Giruox’s many interviews he gave in last several years. In light of this large asset base ($47.4) fund, he manages to move and to execute very well in his portfolio in order to deliver this remarkable results over the tenure as the fund manager.
Great article that summarizes David Giruox’s many interviews he gave in last several years. In light of this large asset base ($47.4) fund, he manages to move and to execute very well in his portfolio in order to deliver this remarkable results over the tenure as the fund manager. [snip]
PRWCX has generated exemplary performance (risk/reward) during David Giroux's tenure. Mr. Giroux seems to have an uncanny ability to deftly position the PRWCX portfolio to take advantage of opportunities that others overlook.
Just correct PRWCX’s asset base in dollar term, $47.6billion! Over the years many funds including Fidelity Magellan, Contra, and Low-priced stocks funds slowed down in their performance when their asset base gotten into billion $.
The MStar article never mentions that PRWCX is closed to new investors. (Or is that just at Fidelity?) I envision somebody reading the article and getting all excited about buying some. Oh wait -- you can't.
Good point - PRWCX is closed to most new investors.
The fund is closed to new accounts other than investors whose accounts meet any of the following criteria: • Participants in an employer-sponsored retirement plan where the fund already serves as an investment option; • Direct rollovers from an employer-sponsored retirement plan to a new T. Rowe Price IRA; • Accounts held directly with T. Rowe Price that qualify through participation in certain T. Rowe Price programs; • T. Rowe Price multi-asset products (such as funds-of-funds); • Discretionary accounts managed by T. Rowe Price or one of its affiliates; • Wrap, asset allocation, and other advisory programs, if permitted by T. Rowe Price.
T. Rowe Price submitted an SEC filing (dated 03/22/2023) for Capital Appreciation Equity ETF. David Giroux will be the portfolio manager. The new ETF will normally invest at least 80% of its net asset in equity securities. PRWCX normally invests at least 50% of its total assets in stocks while the remaining assets are generally invested in corporate/government debt and bank loans. Consequently, this ETF will not be a clone of PRWCX. MFO Link
M* does show PRWCX status as "Limited". It is closed to new investors but open to existing investors; I have also read that people may transfer 401k/403b into PRWCX at Price.
Ticker for forthcoming PRWCX cousin ETF will be TCAF.
Just as Vanguard Flagship customers ($1M+ invested in VG funds directly at Vanguard) may open new Primecap-managed fund (VHCOX, VPMCX, VPCCX) accounts, T. Rowe Price Summit Select customers ($250K+ invested in TRP funds directly at Price) may open new accounts in TRP's closed funds including PRWCX.
There is also another means to start a position. An existing investor can transfer 1 unit into the account of a new investor and voila new investor can now build a position.
I don't know if PRWCX or TRAIX have minimums on the retail side, the entry path I described worked a few years back for RIA managed accounts.
Has anyone heard of a TRP affiliation with a mutual fund boutique called Thirvent Funds? They have a whole gamete of funds, some of them 3 to 4 star allocation funds. Some of their funds managed by TRP managers.
I only mention this because if you start to type in Giroux's new ETF, TCAF, the Thrivent funds start to show. Maybe just coincidence. Maybe not? Does anyone know if this new Giroux ETF is through TRP or is it managed by Giroux byway of an investment subadvisory agreement with TRP?
A couple other Thrivent funds managed by TRP:
Investment Subadvisory Agreement with T. Rowe Price Associates with respect to Thrivent Partner Small Cap Value Fund (12)
Investment Subadvisory Agreement with T. Rowe Price International, Inc. with respect to Thrivent Partner International Stock Fund (12)
Wow. Thrivent. If I recall correctly, that's a family of funds created for Lutherans in their 403b offerings, aimed at Lutheran pastors and families. https://en.wikipedia.org/wiki/Thrivent
That may be coincidence as Thrivent also has a conservative allocation fund with ticker TCAIX (note similarity with TCAF). But I have checked and, as far as I can see, Thrivent ALLOCATION fund team doesn't have any Price connection(s).
I see that @MikeM has posted info about some OTHER Thrivent funds that may be subadvised by Price. I will check on those.
There is only one Thrivent mutual fund currently submanaged. That is TWAAX, submanaged by Goldman Sachs. All the other submangers (e.g. Turner, TRP, Mercator, Principal, Aberdeen, DuPoint) used by various funds in 2014 have been jettisoned. https://www.thriventfunds.com/about-us/our-fund-managers.html
Effective April 30, 2019, Thrivent Partner Worldwide Allocation Fund changed its name to Thrivent International Allocation Fund. Principal Global Investors, LLC (“Principal”) and Aberdeen Asset Managers Limited (“Aberdeen”) no longer serve as subadvisers to the Fund. Goldman Sachs Asset Management, L.P. will continue to subadvise the Fund. Thrivent Asset Management, LLC currently manages a portion of the Fund and will also manage the portions previously managed by Principal and Aberdeen.
Thrivent (“Thrivent Financial for Lutherans”) ... is a membership-owned fraternal organization. ... We welcome Christians* seeking to live out their faith. *For more information on Thrivent's Christian Common Bond, visit thrivent.com/christiancalling
I own PRWCX in a Roth IRA as well as in a Traditional IRA with one brokerage firm. Meanwhile at a different brokerage firm, I also own its Institutional class shares TRAIX in a brokerage link account connected to a 401a account which is now landlocked; I am not allowed to buy more TRAIX ("not available to retail accounts") or to perform a "share class exchange" for a few shares into PRWCX ("Closed to new investors"), so the only action the broker will allow me to do with TRAIX is to sell it. (I have repeatedly spoken with the brokerage firm's "mutual fund traders," none of whom has offered a suggestion of how I can add to my position of TRP Capital Appreciation fund. I've accepted the fact that the only way I can add to the fund is through my separate IRAs by buying more PRWCX. Does anyone have a suggestion for adding to my TRAIX in my brokerage link account?
@Jim0445. That sounds very strange. The fund is supposed to be open to additional purchases for existing shareholders. You could call a different brokerage and ask that if you transferred your account would they allow you to add to your shares. Heck I'd be interested in buying a few shares... Been wanting to get into TRAIX for years...
Mike, You're correct. TRAIX is open for additional purchases for existing shareholders. The problem is that TRP has apparently canceled sales agreements for TRAIX with at least some brokerage firms. Specifically, Fidelity insists that they no longer have a sales agreement forTRAIX. And I've called Fidelity at least six times over the last 18 months to make my request, only to get the same response each time. And because this account is a brokerage link tied to a large employer 401a, I can't just elect to move it to another broker of my choice. I can continue to add to my PRWCX in IRAs at another brokerage.
That may be the restriction of your specific 401a plan, not a general restriction by the brokerage firm. It seems that your 401k plan had a change and the old options are frozen - i.e. cannot add but can withdraw.
Yogi, I hear what you're saying but neither Price Capital Appreciation Fund was ever an option within the 401a options but rather a holding within the brokerage link account associated with the 401a that allows participants to invest in any mutual fund offered by the brokerage firm (Fidelity). Years ago, I had to beg and plead with Fidelity's mutual fund traders to let me do a share class exchange from PRWCX into TRAIX and then, I suspect, lost their sales agreement with Price to offer TRAIX. (If I had exchanged all but one share of the PRWCX, I could now invest additional money into PRWCX. And as I said, Price will not now allow a new share class exchange from TRAIX into PRWCX (because PRWCX is closed to new investors.) At least I can continue to reinvest TRAIX dividends each year into new shares. Lesson learned: If you ever do a share class exchange to get the lower fees associated with the Institutional class shares, hold back a few shares of the Investor class so that you'll be permitted to invest new money in the event the fund family changes their relationship with your broker.
Barron’s notes this week that like other ”balanced” funds (their depiction not mine) PRWCX has experienced outflows over the past year. I don’t know what this says about the fund, if anything. Just reporting.
Excerpt: Memories of last year's poor showing might be causing investors to miss out. The average “moderate” allocation fund tracked by Morningstar lost 13.6% in 2022. And, over the past 12 months, net outflows for the 568 balanced funds that company follows totaled $72.3 billion at the end of March. … Some top-performing funds haven't been spared. Consider the venerable $49 billion T. Rowe Price Capital Appreciation fund (PRWCX). It had net outflows of about $1.6 billion for the 12 months ended on March 31, according to Morningstar.
Article: “Funds are Back” by Lawerence C. Strauss - Barron’s April 17, 2023 (Print Ed)
It would seem to mean little more than average investors fleeing investments at their low points only to buy back at higher prices. Add this data point to the "even more evidence about not beating the market" thread.
PRWCX bottomed out on Oct 12th (M* graph). Largest outflow quarter was 4Q 2022 after right at the bottom. The largest outflow month (by around a factor of 2) was December 2022. Each month of 2023 has seen (microscopic) inflows. Data are estimated from M*'s cash flow bar chart on the fund's performance page. (Much of the Dec. outflow could have been due to investors keeping divs.)
From 12/31/2021 through 10/12/22, PRWCX lost 16.91%. Since then it has gained 13.54%.
”It would seem to mean little more than average investors fleeing investments at their low points only to buy back at higher prices. Add this data point to the "even more evidence about not beating the market" thread.”
Absolute!
Yes - That’s the underlying gist of the whole article I’d say. I didn’t quote it, but OAKBX was another “balanced” fund cited as having lost assets. I’m a bit surprised, in the case of PRWCX because i get the feeling from many posts here over the years that folks have practically been “knocking the doors down “ to get in. Resorting to schemes like transferring a single share to someone else so they could open an account.
The excerpt might well have been better placed in the "even more evidence about not beating the market" thread. BTW - I probably should have noted that the article is very positive towards balanced funds - largely because of the higher interest rate background today.
As PRWCX has risen lately, I redistributed some of my shares to where I wanted them in other TRP funds, but still within the T-IRA. PRWCX is up (per Morningstar) YTD by +7.13%. I've been in since 2013. Quite very satisfied. Down-years are to be expected from time to time. The amount I'm holding in terms of proportion within my portfolio is getting uncomfortably high, which is why I moved some $$$ around. PRWCX is still almost 38% of my total. My other balanced fund is BRUFX: almost at break-even today, YTD.
Lean years, sure. Down years, not so much. Aside from last year, the last calendar year in which PRWCX lost money was in 2008, when it lost 27.17%. The only other calendar year in which it lost money was 1990 when it lost 1.3%. (Inception was in 1986.)
Comments
https://investor.morningstar.com/articles/1147944
These are the pains as M* is now becoming a mini-Bloomberg. My guess is that eventually, NOTHING will be free at M*.
I was wondering if this link would be open as we have a free subscription to Investor through TRP.
Giruox also written on a book on “Capital allocation” and is available at Amazon that describes how companies can execute successfully in their business.
https://amazon.com/Capital-Allocation-Principles-Strategies-Shareholder/dp/1264270062
I envision somebody reading the article and getting all excited about buying some. Oh wait -- you can't.
Is there an ETF clone of PWRCX?
The fund is closed to new accounts other than investors whose accounts meet any of the following criteria:
• Participants in an employer-sponsored retirement plan where the fund already serves as an investment option;
• Direct rollovers from an employer-sponsored retirement plan to a new T. Rowe Price IRA;
• Accounts held directly with T. Rowe Price that qualify through participation in certain T. Rowe Price programs;
• T. Rowe Price multi-asset products (such as funds-of-funds);
• Discretionary accounts managed by T. Rowe Price or one of its affiliates;
• Wrap, asset allocation, and other advisory programs, if permitted by T. Rowe Price.
T. Rowe Price submitted an SEC filing (dated 03/22/2023) for Capital Appreciation Equity ETF.
David Giroux will be the portfolio manager.
The new ETF will normally invest at least 80% of its net asset in equity securities.
PRWCX normally invests at least 50% of its total assets in stocks while the remaining assets
are generally invested in corporate/government debt and bank loans.
Consequently, this ETF will not be a clone of PRWCX.
MFO Link
Just having Giroux as a manager of the new ETF might be good reason to buy some when it becomes available.
David
Ticker for forthcoming PRWCX cousin ETF will be TCAF.
(A couple of closed funds, but not PRWCX, will reopen later this month.)
https://mutualfundobserver.com/discuss/discussion/60860/t-rowe-price-new-horizons-and-emerging-markets-funds-reopening-to-new-investors
At the Summit Personal Services level ($500K), investors may open new accounts in TRAIX with a $50K min.
I don't know if PRWCX or TRAIX have minimums on the retail side, the entry path I described worked a few years back for RIA managed accounts.
I only mention this because if you start to type in Giroux's new ETF, TCAF, the Thrivent funds start to show. Maybe just coincidence. Maybe not? Does anyone know if this new Giroux ETF is through TRP or is it managed by Giroux byway of an investment subadvisory agreement with TRP?
A couple other Thrivent funds managed by TRP:
Investment Subadvisory Agreement with T. Rowe Price Associates with respect to Thrivent Partner Small Cap Value Fund (12)
Investment Subadvisory Agreement with T. Rowe Price International, Inc. with respect to Thrivent Partner International Stock Fund (12)
https://en.wikipedia.org/wiki/Thrivent
I see that @MikeM has posted info about some OTHER Thrivent funds that may be subadvised by Price. I will check on those.
Thrivent Partner International Stock Fund AAITX merged into Thrivent Partner Worldwide Allocation TWAAX in 2011, which was renamed Thrivent International Allocation in 2019.
https://fp.thriventfunds.com/resources/fund-changes-and-mergers.html
There is only one Thrivent mutual fund currently submanaged. That is TWAAX, submanaged by Goldman Sachs. All the other submangers (e.g. Turner, TRP, Mercator, Principal, Aberdeen, DuPoint) used by various funds in 2014 have been jettisoned.
https://www.thriventfunds.com/about-us/our-fund-managers.html https://www.sec.gov/Archives/edgar/data/811869/000119312519126040/d735543d497.htm
Information about Thrivent from its membership application: Until recently, Thrivent offered an interval fund with this in mind: Thrivent Church Loan and Income Fund. But it has recently closed that fund and is winding it down.
I don't have a lot of money in this account, but might add to ITCSX at next market swoon.
Still law of big numbers makes his previous outperformance harder to continue
Excerpt: Memories of last year's poor showing might be causing investors to miss out. The average “moderate” allocation fund tracked by Morningstar lost 13.6% in 2022. And, over the past 12 months, net outflows for the 568 balanced funds that company follows totaled $72.3 billion at the end of March. … Some top-performing funds haven't been spared. Consider the venerable $49 billion T. Rowe Price Capital Appreciation fund (PRWCX). It had net outflows of about $1.6 billion for the 12 months ended on March 31, according to Morningstar.
Article: “Funds are Back” by Lawerence C. Strauss - Barron’s April 17, 2023 (Print Ed)
PRWCX bottomed out on Oct 12th (M* graph). Largest outflow quarter was 4Q 2022 after right at the bottom. The largest outflow month (by around a factor of 2) was December 2022. Each month of 2023 has seen (microscopic) inflows. Data are estimated from M*'s cash flow bar chart on the fund's performance page. (Much of the Dec. outflow could have been due to investors keeping divs.)
From 12/31/2021 through 10/12/22, PRWCX lost 16.91%. Since then it has gained 13.54%.
Absolute!
Yes - That’s the underlying gist of the whole article I’d say. I didn’t quote it, but OAKBX was another “balanced” fund cited as having lost assets. I’m a bit surprised, in the case of PRWCX because i get the feeling from many posts here over the years that folks have practically been “knocking the doors down “ to get in. Resorting to schemes like transferring a single share to someone else so they could open an account.
The excerpt might well have been better placed in the "even more evidence about not beating the market" thread. BTW - I probably should have noted that the article is very positive towards balanced funds - largely because of the higher interest rate background today.
(*Edited.)
Lean years, sure. Down years, not so much. Aside from last year, the last calendar year in which PRWCX lost money was in 2008, when it lost 27.17%. The only other calendar year in which it lost money was 1990 when it lost 1.3%. (Inception was in 1986.)