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Just FYI, according to a filing with the SEC, it went live today. It's the vehicle for the two former Janus Triton managers, Brian Staub and Chad Meade, to do what they like most. Morningstar has not yet activated any of the four listed share classes, nor has Meridian updated their webpage (as of 7:45 CST, Monday).
Reply to @goldenwaterox: Good question. Scottrade shows MISGX as no-load, retail but not (yet?) open for purchase. I'll see if I can get an answer for you.
I’m investing in MISGX, and I invested in MERDX last month. I’m doing it the old fashioned way: I’m sending my check by mail [most of my “core” fund investments were made directly with the funds I own, so I’m less inclined to sell when the market is in a panic and, in some cases, I obtain a lower cost structure.]
I’ve been a longtime holder of MVALX and MEIFX, so I was intrigued by the change in management. I’m adding some seed money to MISGX and MERDX to round out my investments with Meridian. I qualify for “Legacy shares” because I’ve been a Meridian fund holder. Morningstar ran a recent article touting the new managers as a “good fit,” but Morningstar also points out that the new classes of shares will be a bit expensive. The prospectus gives this guidance on the fees that can be expected on a $10,000 investment:
Legacy Class Shares: year 1, $127; year 3, $456; year 5, $ 808; year 10, $1,800 Institutional Class Shares: year 1, $137; year 3, $499; year 5, $ 886; year 10, $1,969 Advisor Class Shares: year 1, $163; year 3, $576; year 5, $1,016; year 10, $2,237 Retirement Class Shares: year 1, $188; year 3, $652; year 5, $1,144; year 10, $2,497
I hope the managers’ Janus record carries over to the Meridian Funds. You never know how much past performance is attributable to the managers and how much to the fund company (its analysts and oversight).
Janus doesn’t have a strong record in down markets. So that is a concern. But I like the fact that these managers will now have an ownership stake in building the reputation of Meridian funds. We can always hope that we’re getting the next Michael Price (who bought Mutual Shares from his mentor and went on to achieve a great long term record).
It is sobering to see the costs in dollar terms (see above--which is taken from the prospectus). The small percentage funds charge doesn't seem like much, until you put it in dollars and cents.
I just called Meridian to see whether there is a way to invest directly with them. Unfortunately that option is no more available. It looks like there is no way to open an account in the Legacy class (MSGGX) for this fund. In fact, there is no way any investor could have opened an account in this fund in the Legacy class because the fund opened after the multi-class structure was created. So no one could have been grandfathered into the Legacy class of this fund. It is unfortunate that it is not possible to get into this fund at the lower expense ratio (of MSGGX) without paying transaction fees at the different brokerages.
Legacy shareholders of any Meridian Fund can buy the legacy shares of the new Small Cap Growth Fund. The technical language is on page 31 of the Prospectus:
“...Legacy Class shares of the Fund are available to shareholders having, as of the date the Fund first publicly offered shares of another class, an investment in Legacy Class shares of any Fund and who have continuously maintained the investment in such Fund as of the date of a proposed purchase of Legacy Class shares of a Fund...”
Mutual Series funds provided the same benefit for long-term investors, after Michael Price sold the funds to Templeton Franklin. Years later, I still enjoy the lower fee structure and the right to buy any Mutual Series fund at the legacy class.
It’s unfortunate that new investors cannot buy into the Meridian legacy shares. But for those who already own a Meridian fund, this is a benefit of investing in the new fund.
Comments
Now that Arrowpoint took over Meridan, I am not sure how individual investors like us can invest in Meridian funds.
I do not see an application n their website either.
The prospectus says that there are 4 classes: Legacy, Institutional, Advisor, and Retirement.
David
I’ve been a longtime holder of MVALX and MEIFX, so I was intrigued by the change in management. I’m adding some seed money to MISGX and MERDX to round out my investments with Meridian. I qualify for “Legacy shares” because I’ve been a Meridian fund holder. Morningstar ran a recent article touting the new managers as a “good fit,” but Morningstar also points out that the new classes of shares will be a bit expensive. The prospectus gives this guidance on the fees that can be expected on a $10,000 investment:
Legacy Class Shares: year 1, $127; year 3, $456; year 5, $ 808; year 10, $1,800
Institutional Class Shares: year 1, $137; year 3, $499; year 5, $ 886; year 10, $1,969
Advisor Class Shares: year 1, $163; year 3, $576; year 5, $1,016; year 10, $2,237
Retirement Class Shares: year 1, $188; year 3, $652; year 5, $1,144; year 10, $2,497
The two managers (Brian Staub and Chad Meade) are very good. They had a great track record in Janus Venture.
Janus doesn’t have a strong record in down markets. So that is a concern. But I like the fact that these managers will now have an ownership stake in building the reputation of Meridian funds. We can always hope that we’re getting the next Michael Price (who bought Mutual Shares from his mentor and went on to achieve a great long term record).
It is sobering to see the costs in dollar terms (see above--which is taken from the prospectus). The small percentage funds charge doesn't seem like much, until you put it in dollars and cents.
“...Legacy Class shares of the Fund are available to shareholders having, as of the date the Fund first publicly offered shares of another class, an investment in Legacy Class shares of any Fund and who have continuously maintained the investment in such Fund as of the date of a proposed purchase of Legacy Class shares of a Fund...”
Mutual Series funds provided the same benefit for long-term investors, after Michael Price sold the funds to Templeton Franklin. Years later, I still enjoy the lower fee structure and the right to buy any Mutual Series fund at the legacy class.
It’s unfortunate that new investors cannot buy into the Meridian legacy shares. But for those who already own a Meridian fund, this is a benefit of investing in the new fund.