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.
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First Eagle Flexible Risk Allocation Fund in registration
I have a lot of respect for several of the First Eagle mutual funds, especially First Eagle Global (SGENX), which has a long history of good risk adjusted returns in all markets.
This one has super high expense ratios: The Class A shares have an expense ratio of 2.69% prior to expense waivers. These expense waivers on inception of funds concern me. The issue is, when will they drop the expense waivers? So I have to count on the full 2.69% going into effect at some point.
Then there is the troubling Load........fine if that's how you pay your investment adviser. Not fine if you are a DIY investor like I believe most MFO participants are. So add 5% to the costs, or an extra 1% a year for the first 5 years, however you want to account for that 5%.
Then this type of fund (goes long and short, etc) will have increased brokerage expenses on top of it.
So a fund family with a lot going for it, but a mutual fund with lots of expenses.
I have owned First Eagle Overseas Fund since 2001. I was lucky to get into the institutional class share without meeting the $1 million min.; the I class share as an expense of .90. I am very happy with it. However, First Eagle is changing. It added a high yield bond fund past few years and last year the income builder fund which, like the new fund mentioned by rjb, has a very high expense ratio (over 2.50%) but has a waiver for a limited time. Finally, paying a load for any fund simply cannot be justified. First Eagle is changing, adding new players on staff and funds.
"I was lucky to get into the institutional class share without meeting the $1 million min"
How were you able to do that?
I know that for those with an account at discount broker TD Ameritrade, there are a limited number of institutional share class funds that can be invested in without the high initial amounts.
Regarding Loads: I think it's a real shame that load funds don't routinely have no load share classes for those who do not use a financial adviser or full service broker.
Comments
This one has super high expense ratios: The Class A shares have an expense ratio of 2.69% prior to expense waivers. These expense waivers on inception of funds concern me. The issue is, when will they drop the expense waivers? So I have to count on the full 2.69% going into effect at some point.
Then there is the troubling Load........fine if that's how you pay your investment adviser. Not fine if you are a DIY investor like I believe most MFO participants are. So add 5% to the costs, or an extra 1% a year for the first 5 years, however you want to account for that 5%.
Then this type of fund (goes long and short, etc) will have increased brokerage expenses on top of it.
So a fund family with a lot going for it, but a mutual fund with lots of expenses.
How were you able to do that?
I know that for those with an account at discount broker TD Ameritrade, there are a limited number of institutional share class funds that can be invested in without the high initial amounts.
Regarding Loads: I think it's a real shame that load funds don't routinely have no load share classes for those who do not use a financial adviser or full service broker.
Regards,
Ted
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