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.
Support MFO
Donate through PayPal
TCIFX TCAPX TCAMX-T Rowe Price Capital Appreciation & Income Fund Inc
One can't help wonder if Giroux's prowess over the years (or at least his name?) is getting over-extended by TRP? I don't like being around 'rock star' fund advisors b/c sooner or later they all end up flying too close to the sun and crashing. Of course, Giroux may be different ... my sense is that he's not comfortable doing publicity and only rarely does interviews/talks, which does put my mind at a little bit of ease as a longtime and large-position PRWCX owner.
There's a difference between complexity and transparency. Transparency calls for, at a minimum, the availability of information. Complexity impedes transparency (if something is there but hard to find, it's less transparent). But the alternative, not providing that information, is worse.
"Internally cross-linked mumbo-jumbo" may be referring to all the links that one finds in filings such as 485 forms (statutory prospectus/SAI). Frequent visitors to the site get to know that the first link is the document itself, and the other links are legal attachments. Perhaps a navigation guide from the SEC would help.
Following the second link in the 485 filing, one gets to an agreement between T. Rowe Price Associates (the fund adviser, responsible to the fund for all services) and T Rowe Price Investment Management (the subadviser, responsible to TRP Associates for managing the fund portfolio). These are two separate corporations. The document spells out their rights and obligations; it also includes a limit on subadviser fees.
Does anyone care about this? Probably not, except for the bean counters and the lawyers. But transparency demands it be made available. So it given as an attachment that is "cross-linked".
The gist also show up in the statutory prospectus itself. for each TRP fund with this arrangement. For example, on p. 9 of the PRWCX prospectus (from the TRP website), is:
T. Rowe Price [Associates] entered into a subadvisory agreement with Price Investment Management under which Price Investment Management is authorized to trade securities and make discretionary investment and voting decisions with respect to all or a portion of the fund’s portfolio. Price Investment Management is an SEC-registered investment adviser that provides investment management services to individual and institutional investors and sponsors; and serves as adviser and subadviser to registered investment companies, institutional separate accounts, and common trust funds. Price Investment Management is a subsidiary of T. Rowe Price
That tells investors who the players are and what they do without getting into the legal "mumbo-jumbo". But does the average investor care about even this much? The SEC doesn't think so. That's why it offers funds the option of providing stripped down (IMHO fairly useless) summary prospectuses. If this simplified, non-cross-referenced doc isn't there, blame the fund sponsor, not the SEC. (Until a fund goes live, there doesn't seem to be much point in a fund expending time and effort composing a summary prospectus.)
The SEC site even makes it easy to find these documents with a "Summary Prospectuses" search button.
Getting back to the OP ...
The tickers for the fund are PRCFX (investor shares) and PRCHX (I shares). Dates have not changed much between the original prospectus filed (7/17/23) and the current filing (9/22/23). They both give an effective date for the prospectus of October 1, 2023. The original filing gives a probably public offering date of November 28, 2023. This has been delayed in the new filing to November 29, 2023.
These filings for T. Rowe Price Capital Appreciation and Income Fund are separate from the Capital Appreciation & Income Fund from a few years ago (with the old tickers TCIFX, etc.). That fund would have included an Advisor share class that is missing from the 2023 version. More important is that the co-manager of that older fund was Paul M. Massaro; the current filing names Farris G. Shuggi co-manager.
Comments
From the SEC concerning the Capital Appreciation and Income Fund:
https://www.sec.gov/cgi-bin/browse-edgar?CIK=C000245159&action=getcompany&scd=filings
"Internally cross-linked mumbo-jumbo" may be referring to all the links that one finds in filings such as 485 forms (statutory prospectus/SAI). Frequent visitors to the site get to know that the first link is the document itself, and the other links are legal attachments. Perhaps a navigation guide from the SEC would help.
Following the second link in the 485 filing, one gets to an agreement between T. Rowe Price Associates (the fund adviser, responsible to the fund for all services) and T Rowe Price Investment Management (the subadviser, responsible to TRP Associates for managing the fund portfolio). These are two separate corporations. The document spells out their rights and obligations; it also includes a limit on subadviser fees.
Does anyone care about this? Probably not, except for the bean counters and the lawyers. But transparency demands it be made available. So it given as an attachment that is "cross-linked".
The gist also show up in the statutory prospectus itself. for each TRP fund with this arrangement. For example, on p. 9 of the PRWCX prospectus (from the TRP website), is: That tells investors who the players are and what they do without getting into the legal "mumbo-jumbo". But does the average investor care about even this much? The SEC doesn't think so. That's why it offers funds the option of providing stripped down (IMHO fairly useless) summary prospectuses. If this simplified, non-cross-referenced doc isn't there, blame the fund sponsor, not the SEC. (Until a fund goes live, there doesn't seem to be much point in a fund expending time and effort composing a summary prospectus.)
The SEC site even makes it easy to find these documents with a "Summary Prospectuses" search button.
Getting back to the OP ...
The tickers for the fund are PRCFX (investor shares) and PRCHX (I shares). Dates have not changed much between the original prospectus filed (7/17/23) and the current filing (9/22/23). They both give an effective date for the prospectus of October 1, 2023. The original filing gives a probably public offering date of November 28, 2023. This has been delayed in the new filing to November 29, 2023.
These filings for T. Rowe Price Capital Appreciation and Income Fund are separate from the Capital Appreciation & Income Fund from a few years ago (with the old tickers TCIFX, etc.). That fund would have included an Advisor share class that is missing from the 2023 version. More important is that the co-manager of that older fund was Paul M. Massaro; the current filing names Farris G. Shuggi co-manager.
Here are the filings for the earlier version of the fund:
https://www.sec.gov/cgi-bin/browse-edgar?CIK=S000059017&action=getcompany&scd=filings
The Summary Prospectuses button even pulls up a couple of summary prospectuses for the older version.
Capital Appreciation & Income Fund ceased operation in mid 2019.
https://www.sec.gov/Archives/edgar/data/1689311/999999999719005819/filename1.pdf