Scout Funds has opened up a new share class of SUBFX. Its SUBYX. The minimum initial investment through them is $1,000. The minimum through Fidelity is $2500. Here's some info from their website:
Class Y
Ticker
SUBYX
Cusip:
81063U743
Inception Date
12/31/12
The Scout Unconstrained Bond Fund Class Y's gross and net expense ratios, as of the most recent Prospectus, were 1.92% and 0.80%, respectively.
The Advisor has agreed to waive fees/certain fund expenses through December 31, 2013, and may recoup previously waived expenses that it assumed during the previous three fiscal years.
http://www.scoutfunds.com/Funds/FixedIncomeFunds/UnconstrainedBond/index.htm
Comments
Good catch. And good news. It appears that the new "Y" shares are no-load with the same minimum investment as the old shares, but also with a substantial expense reduction. When we profiled the fund in November, the after-waiver e.r. was 99 basis points while the "Y" shares are at 80 bps. Excerpts from the revised prospectus are below.
Thanks!
David
Effective December 31, 2012, all existing and outstanding shares of the Fund will be designated as “Institutional Class” shares and a new class of shares of the Fund (“Class Y” shares) will be offered to investors.
The Advisor has entered into a contractual agreement to waive all or a portion of its advisory fees and, if necessary, to assume certain other expenses through December 31, 2013 for the Fund to the extent necessary so that Total Annual Fund Operating Expenses (excluding any acquired fund fees and expenses, taxes, interest, brokerage fees, short sale dividend and interest expenses, and non-routine expenses) do not exceed 0.50% for Institutional Class shares and 0.80% for Class Y shares of the Fund’s average daily net assets.
To make regular investing more convenient, you can open an AIP with an initial investment of $100 for Class Y shares of the Fund ($100,000 in the case of Institutional Class shares of the Fund) and a minimum of $50 per transaction after you start your plan.
SUBFX continues to be available at Scottrade for minimums of $1000 and $250 in taxable and retirement accounts, respectively. I purchased a starter position inn SUBFX last week.
Kevin
I bought SUBFX on 12/26/12 in my Rollover IRA account at Fidelity. Now, that the new retail class is being introduced, it will probably be a transaction fund going forward.
Right: SUBYX > SUBFX. My point was that the old retail shares (SUBFX before 12/31) are more expensive than the new retail shares (SUBYX now).
David
Negative duration of -2.1 years.
We used bond futures to manage the Fund’s duration, which
fluctuated among very low levels during the period.
http://www.scoutfunds.com/Funds/FixedIncomeFunds/UnconstrainedBond/029258
Barron's profile
http://webreprints.djreprints.com/3022551511669.pdf
The role of bonds in my portfolio is to produce income and to provide downside protection from equity funds. A bond fund that has a negative duration will likely fall just when you need it most (i.e, when equities tank). No thanks.
Mike_E
I can see potential advantage to investing in an actively managed bond fund such as SUBFX. It currently has about 1/2 its funds in a money market account. So it has cash available for investment when the timing is right. And, its negative duration should mitigate losses on its bond investments if rates tend to rise. To me, its a cousin to AVIRX on the stock side. Both seem to me to have a place in this type of market. Quality of management is a key to success. But, both funds have the potential to smooth out the ride during the next few years.