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FPA funds eliminate front end sales charges

edited March 2013 in Fund Discussions

http://www.sec.gov/Archives/edgar/data/99203/000110465913016523/a13-6195_10497.htm

FPA NEW INCOME, INC.
SUPPLEMENT DATED MARCH 1, 2013, TO PROSPECTUS DATED JANUARY 30, 2013

The Board of Directors of FPA New Income, Inc. (the “Fund”), has approved the elimination of all front-end sales charges effective for purchases of Fund shares beginning April 1, 2013. In addition, beginning April 1, 2013, Fund shares will no longer be subject to deferred sales charges if redeemed within one year of purchase. Also, effective on that date, all purchases of shares of the Fund will be processed at net asset value on the trade date…



http://www.sec.gov/Archives/edgar/data/76210/000110465913016522/a13-6195_13497.htm

FPA PARAMOUNT FUND, INC.
SUPPLEMENT DATED MARCH 1, 2013, TO PROSPECTUS DATED JANUARY 30, 2013

The Board of Directors of FPA Paramount Fund, Inc. (the “Fund”), has approved the elimination of all front-end sales charges effective for purchases of Fund shares beginning April 1, 2013. In addition, beginning April 1, 2013, Fund shares will no longer be subject to deferred sales charges if redeemed within one year of purchase. Also, effective on that date, all purchases of shares of the Fund will be processed at net asset value on the trade date…


http://www.sec.gov/Archives/edgar/data/99188/000110465913016521/a13-6195_7497.htm

FPA CAPITAL FUND, INC.
SUPPLEMENT DATED MARCH 1, 2013, TO PROSPECTUS DATED JULY 30, 2012

The Board of Directors of FPA Capital Fund, Inc. (the “Fund”), has approved the elimination of all front-end sales charges effective for purchases of Fund shares beginning April 1, 2013. In addition, beginning April 1, 2013, Fund shares will no longer be subject to deferred sales charges if redeemed within one year of purchase. Also, effective on that date, all purchases of shares of the Fund will be processed at net asset value on the trade date. Shares of the Fund are presently offered for sale only to existing shareholders and to directors, officers and employees of the Fund, the Adviser, and affiliated companies, and their immediate relatives…



http://www.sec.gov/Archives/edgar/data/732041/000110465913016520/a13-6195_16497.htm

FPA PERENNIAL FUND, INC.
SUPPLEMENT DATED MARCH 1, 2013, TO PROSPECTUS DATED APRIL 30, 2012

The Board of Directors of FPA Perennial Fund, Inc. (the “Fund”), has approved the elimination of all front-end sales charges effective for purchases of Fund shares beginning April 1, 2013. In addition, beginning April 1, 2013, Fund shares will no longer be subject to deferred sales charges if redeemed within one year of purchase. Also, effective on that date, all purchases of shares of the Fund will be processed at net asset value on the trade date…

Comments

  • Has anyone heard if FPACX will be NTF at Fund companies, like Fidelity?
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  • New Income seems to remain, despite Rodriguez's gradual departure, one of the most distinctive and defensive bond funds around. Won't make a ton of money, but will protect you well. Seems ideal for today's environment. Best one star fund you may ever find.

    http://www.morningstar.com/cover/videocenter.aspx?id=577102
    (Recent M* video interview with lead manager Atteberry.)

    http://blogs.marketwatch.com/fundmastery/2011/03/31/fpaa-bob-rodriguez-is-worried/
    (Rodriguez now serving in more of an advisory than managerial role)

    If you can find a negative article, ever, anywhere on this fund, I'd like to read it.

  • I'll ask the same question for FPNIX. Will FPNIX still have a transaction fee at Fidelity and Schwab? Even if it's no load, I still wouldn't be willing to pay a $75 transaction fee.
  • I wonder whether there is any reason to buy FPNIX as compared to RPHYX, which is equally steady and yields almost twice as much as FPNIX?
  • Completely different strategies.

    River Park is a new twist on the concept of enhanced cash funds (which generally imploded in 2008; some notoriously, others just got caught in the hurricane). It gets its yield from junk bonds (80% or more of portfolio rated BB or below, per prospectus), and its protection from very short maturities, sinking funds, etc. While one hopes the risk is being well managed (and so far, appears to be), the only significant price movement possible would seem to be to the downside. That is, because of the short maturity, you won't get price appreciation; the only potential price movement would seem to be downward should something unexpectedly bad happened.

    In contrast, New Income is a traditional bond fund with upside as well as downside potential. It is managed with capital preservation as a guiding objective. But that doesn't mean it is conservative in its holdings. It can hold up to 15% in IO bonds and inverse floaters. These give it the ability to appreciate as interest rates rise (and are part of the reason I find the fund so interesting). The quality of its portfolio is of course higher than BB.

    New Income can serve as a good conservative bond fund. River Park can serve as a cash+ fund. Different objectives, different portfolios, different ways of investing. Each has its role.
  • Hi, Maurice - We have owned the FPA Capital Fund (FPPTX) for almost 9 years. It has been a wild ride at times, but in the long run it has done well. It's about 16% of our portfolio, and is surrounded by less exciting stuff.

    Archaic
  • Reply to @msf: I believe that RPHYX has a more sophisticated strategy, it is not just short maturity bonds, see http://www.mutualfundobserver.com/2012/09/riverpark-short-term-high-yield-fund-rphyx-july-2011-updated-october-2012/
  • I'm still trying to find out if FPACX and FPNIX will be NTF at fund companies after they go no load. I left a message with FPA funds Friday and this morning and nobody has bothered to call me back. Also among the millions of people that follow MFO, nobody seems to know. I'm shocked that there isn't more interest.
  • Art
    edited March 2013
    3yards

    FPACX is a no-load at this time. Just happens at Fidelity it is a TF fund. Once you pay the first transaction fee you can add monthly with no additional fees if set up as an automatic investment. You can always set it up, put in one months contributions and then cancel next months.See link for details.

    Art


    http://www.fpafunds.com/docs/fund-announcements/fpa-press-release-no-load-final.pdf?sfvrsn=2
  • Thank you Art. You are correct. I just got a hold of someone at FPA funds and they said it will continue to be a TF fund at Fidelity. I am aware of the automatic investment option.
  • The user and all related content has been deleted.
  • FPACX is NTF fund at TD Ameritrade.
  • Reply to @Art: Fidelity does not charge a fee for automatic investments in Fidelity funds or No Transaction Fee (NTF) FundsNetwork funds. After the initial investment, a $5 fee is charged per automatic investment into a FundsNetwork transaction fee fund.
  • Reply to @andrei: The post indicates that over 50% of the bonds mature ("roll to cash") in 30 days or so. As to the rest, they have various features that one might say make them "synthetic" short maturity bonds. I mentioned sinking funds as one example (this is in the prospectus).

    Interestingly, cushion bonds (which the fund also uses) have the opposite attribute. They may be redeemed further in the future than expected.

    These are bonds that trade at a premium (because of an above market rate coupon), but have a call feature. They're expected to be redeemed on the call date (again, because of the above market rate coupon), and priced accordingly. If they're not called, they remain outstanding longer than expected and the owner continues to get above market rate returns. Nice feature - right now I have a cushion bond in my portfolio that has passed its call date. And more with call dates coming up soon.
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