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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.
  • Investors Are Piling Into This Hot Real Estate ETF
    Hi @bee
    As we know the markets are sometimes silly, funny and most times difficult to attempt to find proper paths for our money (adjusted for one's risk style). Since the market melt, anticipated and accepted gains have been found in many areas. This is not rocket science (at least in hind sight). :) ........ was one helluva "value" market in March, 2009, yes?.
    The following graph is one that I have constructed/viewed previous, is of interest; at least to me, as how areas have changed here and there. This graph are funds I have selected as long term real estate active managed funds for a "fair" comparison. I've also included SPY.
    In particular for me, is that the time period for this chart (Sept. 2008 to date) shows very favorable for total return of FRIFX against the other funds, including SPY. However, if one moves the "left" slider adjustment (on the day bar, showing 2,326 days) all the way left to 2003; one will see how different the return of FRIFX was from 2003-early 2009 was during this period and also, overall from 2003 to date showing FRIFX got its butt kicked by other real estate funds. Those who have held the other RE funds since or before the 2003 date are still doing okay.
    So, what happened to the other fine managers of RE funds since March, 2009 vs lonely FRIFX? Are the managers having that much difficulty sorting and trying to find where in the world of American real estate they should be invested? Two very different periods of returns, eh?

    http://stockcharts.com/freecharts/perf.php?VGSIX,FRIFX,CSRSX,FRESX,SPY&n=2326&O=011000

    FRIFX fund composition has been about 50/50 equity/bonds for as long as I can remember. Although much less showy than other RE funds, this fund just chugs along as of the past 9 years, not unlike PIMIX and other funds out there, of which I am not aware.
    Composition: https://fundresearch.fidelity.com/mutual-funds/composition/316389865?type=o-NavBar
    FRIFX remains a much different RE fund from its peers. I have not plowed through the holdings of the other funds charted here; but FRIFX has some of the same holdings as other funds, with the variance being the bond holdings. There is investment grade, mortgage and junk (a fairly big chunk) bonds.
    The only year FRIFX was #1 in the category is 2008. The average RE fund was down about -40% and FRIFX was down -31%. Generally, the fund is always in the last 10% of the category per M*. The current 30 day SEC yield is about 3.8%, average bond duration of 2.55 years and has an annualized 10 year return of 7.34%.
    The fund is still about 10% of our total portfolio.
    Lastly, a quick look chart which includes FREL. This chart only goes back to Feb. 2015, as FREL is quite new. IYR and FREL travel together at this time.
    http://stockcharts.com/freecharts/perf.php?FRIFX,FREL,IYR,SPY&n=709&O=011000
    Well, anyway; I recall @Ted wondering why we weren't playing with the big dogs in the world of RE. The charts speak for themselves at this point in time. We'll see, eh?
    This time remains different, IMHO.
    I didn't proofread this.....pick my write for errors or omissions.
    Take care,
    Catch
  • Will the step=up basis be eliminated?
    Regarding cap gains on homes - interviewee (at 5:54) states correctly: "it's also important - always important - for individuals who own their homes to keep great records of the improvements they've put into their homes in order to try to eliminate or reduce part of the gain."
    The proposed changes would not make the record keeping tasks any more onerous than they are now or have been in the past. Regardless of how home cap gains are taxed, you always want to show as little gain as possible. Just like stocks, where you keep track of your purchase prices, buying and selling commissions, net proceeds (after other taxes/fees are taken out), you should be keeping track of similar home costs. The purchase price, improvements, additions, special assessments, etc.
    A proposed House change to the law would only affect high income people ($250K/$500K per year income). Those people likely own homes that already have big gains that are taxable (more than the $250K/$500K that homeowners can exclude). So this proposed change would have no effect on record keeping needs.
    Both House and Senate are proposing requiring people to stay longer in their homes to qualify for the $250K/$500K exclusion. The main people this change would affect are those who are flipping houses to keep their gains under the exclusion amount. They don't get much sympathy for me, and they're probably already keeping detailed records to achieve their objective of avoiding taxation on their home gains.
    Longer term, more and more people will need those records. The amount of gain you can exclude, $250K/$500K, was set in 1997. At the time, that sounded like a lot of money. Now, $250K won't buy you an entry level home in some neighborhoods, though it's still above the median price of a home in 80% of the states, including New York ($247K). In another 20 years, lots of people may have taxable gains in their homes.
  • Will the step=up basis be eliminated?
    Thanks, Ted and Bee and msf, for the link and the info.
    It seems to me that having the step-up in basis at death is important for two reasons:
    (1) the heirs don't owe tax on the the appreciated gain (duh)
    (2) the heirs don't have the huge hassle and hopeless task of figuring out the true basis from Mom and Dad's incomplete records of purchases and reinvested dividends.
    On the other hand, according to Consuelo's interviewee, such complications are being re-introduced for homeowners who sell their house at an appreciated value after living in it a long time: you'll owe capital gains now.
    So trying to go back and find the original price and figure how much capital improvements you made through the years ....... Ugh.
    Best to will the house to the kids so they get the step up basis.
    Like many other things Congress does, these bills make me want to scream. I don't believe it's fair to pay taxes on taxes, so property taxes and state and local income taxes should all be deductible from Federal tax consideration. I don't care whether it's blue state or red state -- it's just not fair.
    The issue that bothers me the most is the elimination of the estate tax. Our ancestors fought for freedom from a system in which an aristocracy based on blood lines ruled over everybody. If huge -- multi-billions of dollars -- can be passed on from generation to generation, we run a huge risk of living under a new aristocracy based on overwhelming wealth.
    Maybe I went a little off-topic there.
    David
  • Consuelo Mack's WealthTrack: Guest: Elda Di Re, EY National Tax Department
    Is this where "re-gifting" finally loses it's negative connotation?

    Estate planning moves main stream (...not really):

    No way I will ever challenge the present $5M nor the proposed $10M limit, but why not sell assets keeping the new tax proposal (stepped up basis provision for transfer of estate) in mind.
    So, if I have 100 shares of xyz stock that I need to sell for income. Instead of selling them from my taxable portfolio and paying the taxes on the capital gain, I instead, gift them "in kind" to my family member first.
    -They receive the gift (with a stepped up basis),
    -They then sell the xyz stock at the stepped up basis price,
    -They pay no taxes on the capital gain since it was eliminated when I first gifted xyz stock to them,
    -They then "re-gift" the proceeds back to me (cash proceeds)...minus a steak dinner and a few nights of sleepovers for the grand kids.
    This sounds a lot like how a Roth IRA works, but better. It doesn't have pedestrian contribution limits ($20M for a couple), no withdrawal (age) limits, nor any Roth conversion costs (income tax).
  • Jason Zweig: When A 10% Gain Makes You Feel Like A Loser
    FYI: Big gains can be hard to find in the financial markets. Nowadays, though, they seem to be everywhere — and that could change how you feel about taking risks.
    Regards,
    Ted
    http://jasonzweig.com/when-a-10-gain-makes-you-feel-like-a-loser/
  • Buy - Sell - and - Ponder November 2017
    Hello,
    I do my monthly close on the last Friday of each month with the exception being in December where I use the 31st. My report follows.
    For November Old_Skeet's barometer closed the month with a reading of 145 indicating that the S&P 500 Index is overvalued. The barometer consist of three feeds. A breadth feed, an earnings feed along with a technical score feed. At times other technical indicators are used along with a short interest reading. Currently, short interest for SPY is reported at 2.5 days to cover and currently is not a detractor to the reading.
    The barometer from a technical basis reflects there are no major sectors within the 500 Index being scored undervalued or oversold. For the month the three best performing sectors were technology (XLK), consumer discretionary (XLY) and real estate (XLRE).
    Within my own portfolio I have noticed that my bond duration has fallen from 3.4 years to 3.0 years over the past month. Many may remember my reporting that I have begun to move towards using a good number of hybrid type funds along with some multi sector income funds within my portfolio to make it more dynamic and adaptive to ever changing market conditions. So far, the addition of hybrid funds has now grown to the point where their use has enough influence on the portfolio to make it more dynamic. In addition, based upon a seasonal investment strategy I am overweight equities, at this time by 4%, over what my equity weighting matrix is calling for.
    With the overvalued stock market, as measured by Old_Skeet's barometer, for now, I remain in a cash build mode while I await the next stock market pullback. However, with many of my mutual funds making some sizeable capital gain distributions come December I may reinvest some of this money towards the first of the year. One area I plan to look at is hybrid type funds both (convertibles and multialternative).
    Listed below are what my five year average investment returns have been by sleeve and for two bogeys. The first percent number is the average yearly return and the second number is the sleeve's current yield. Notice, the higher yielding sleeves generally have lower yearly returns.
    Income Area, Income sleeve ... 5.2% ... 3.26%
    Income Area, Hybrid Income sleeve ... 7.5% ... 4.15%
    G&I Area, Global Hybrid sleeve ... 8.4% ... 3.66%
    G&I Area, Domestic Hybrid sleeve ... 9.7% ... 2.95%
    G&I Area, Global Equity sleeve ... 11.4% ... 2.31%
    G&I Area, Domestic Equity sleeve ... 12.7% ... 2.78%
    Growth Area, Global Growth sleeve ... 14.7% ... 0.47%
    Growth Area, Large/Mid Cap sleeve ... 17.0% ... 0.21%
    Growth Area, Small/Mid Cap sleeve ... 13.8% ... 1.71%
    Growth Area, Specialty sleeve ... 11.7% ... 1.18%
    Master Portfolio (as a whole including cash sleeves, equity adjustment range +/-5%) ... 9.6% ... 2.5%
    Investment Portfolio (without cash sleeves, equity adjustment range +/-5%) ... 11.2% ... 3.0%
    Bogey Static 50/50 Index Mix (portfolio with no cash position, rebalance annually) ... 9.0% ... 1.8%
    Bogey Active 50/50 Index Mix (portfolio with no cash position, equity adjustment range +/- 20%) ... 9.8% ... 1.6%
    A recent Morningstar Instant Xray analysis listed my asset allocation as Cash 17%, U S Srocks 31%, Foreign Stocks 20%, Bonds 25% and Other 7% along with the yield being 2.51%. Five years ago the porfolio's yield was in the 3.25% range with the distribution yield being north of 5%. This year I'm thinking the distribution yield will be around 4% which includes interest, dividends and capital gain distributions.
    For those looking for a way to consolidate multiple accounts into a consolidated report I have found Morningstar's Portfolio Mananger a good and accurate way to track investment performance along with other investment and portfolio metrics. Year-to-date both Portfolio Manager and a manual tabulation of account statements are producing the same total return number of 9.6% through Friday November 24th.
    Thanks for stopping by and reading.
    I wish all ... "Good Investing."
    Old_Skeet
    Note: Edited with current yield percent on 11/26/2017 and consolidated statement summary on 11/29/2017.
  • M*: Do Foreign Small Caps Offer Better Diversification?
    I purchased OSMYX in my retirement account at what was WellsTrade for a fairly low minimum.
    Also own ARTJX, which just received some significant capital gains in a taxable account.
  • Just Turned Three
    There were 35 mutual funds and ETFs that turned 3 years old thru October.
    Like it or not, the first 3 year performance mark can be crucial to a fund's commercial success and continued viability, since that's when Morningstar assigns its star rating.
    Below please find leaders by AUM and leaders by MFO ratings (risk adjusted return based on Martin).
    Three overlap: AQR Equity Market Neutral Fund R6 (QMNRX), SEI Emerging Markets Equity Fund A (SMQFX), and Ivy Mid Cap Income Opportunities Fund N (IVOSX).
    Four get MFO Great Owl designations, which also first get determined at the 3 year mark: Leland Thomson Reuters Venture Capital Index Fund I (LDVIX), AQR Equity Market Neutral Fund R6 (QMNRX), First Trust Eurozone AlphaDEX ETF (FEUZ), and Schwab Fundamental Global Real Estate Index Fund (SFREX).
    image
    image
  • John Waggoner: Year's Best Performing Alternative Funds
    Hi @jerry and others,
    I don't track a 60/40 but the 50/50 Index mix that I do track has had the following returns. They follow: 2012/9.96% ... 2013/17.31% ... 2014/5.60% ... 2015/0.54% ... 2016/7.04% ... 2017(ytd)/10.87%. The cumulative return for this period is 53.85% with the average being 8.98%.
    The reason I use the 50/50 mix is that now in retirement I only move my equity allocation +/- 5% from its neutral position of 50% unless market conditions warrant otherwise. Years back I'd go +/-10% from the neutral position thus a 60/40 mix might be a better allocation for this adjustment range.
    My cumulative return on my own portfolio for the above period has been 57.47% with the average being 9.58%. Some will ask ... Has it been worth it to be active? For me, it has been as it has put a good bit of extra cash in my pocket vs. running with a static 50/50 mix. Plus being a student of the market has been rewarding in of that itself.
    In addition, I use American Funds' Capital Income Builder (CAIBX), my third largest holding, as my global hybrid fund bogey because of its global allocation and yield. Its cumulative return is 49.55% for the period with the average being 8.26%. My return over the 50/50 mix is about 6% and over CAIBX about 16%. Generally, I have found, higher yielding hybrid funds offer lower returns. And, my portfolio does kick off a good yield and has a global orientation. I also, use the Lipper Balanced Index as another standard.
    In looking at a sampling of some of the funds listed in the article the two I looked at GSOFX & USMYX did not have the history necessary for a compairson. However, I did do one against KCMTX listed by Morningstar as a multialternative fund. I found it's cumulative return for the period to be 67.01% with the average being 11.17%. KCMTX is co-run; and, one of its managers Parker Binion has started posting on our board. Parker's handle is @PBKCM in case you did not, and would like to, know. Interestingly, I was asked (in another thread) by another poster as to why I'd be a buyer of this fund? It is pretty simple ... in spite of its expense ratio ... it is putting up some good numbers for a multialternative fund plus it is currently carrying 5 stars by Morningstar. Folks, it cost money to actively engage the markets. It also reminds me of two other funds I invested in early on (but, no longer own) one being Ivy Asset Strategy and the other being Marketfield. They got to the size where they could no longer effectively position in a timely manner with the ever changing market conditions. So, I let them go as their performance waned.
    Below is a link to the Morningstar report on Parker's fund.
    http://www.morningstar.com/funds/XNAS/KCMTX/quote.html
    Notice it is ranked in the top 1% on the rolling 1 year return period ... top 2% on year-to-date returns ... top 2% on the 3 year period ... and, top 1% for the 5 year period.
    For me, the big question is ... How did a good skilled seasoned writer such as John Waggoner miss by not including Parker's fund? Perhaps, Mr. Waggoner reads the board? And, will kindly make comment.
    And, so it goes.
    I wish all ... "Good Investing."
  • Sterling Capital Long/Short Equity Fund to liquidate
    https://www.sec.gov/Archives/edgar/data/889284/000119312517349112/d497145d497.htm
    497 1 d497145d497.htm STERLING CAPITAL FUNDS
    LOGO
    STERLING CAPITAL LONG/SHORT EQUITY FUND
    SUPPLEMENT DATED NOVEMBER 21, 2017
    TO THE CLASS A AND CLASS C SHARES SUMMARY PROSPECTUS,
    INSTITUTIONAL SHARES SUMMARY PROSPECTUS,
    CLASS A AND CLASS C SHARES PROSPECTUS,
    INSTITUTIONAL SHARES PROSPECTUS,
    AND STATEMENT OF ADDITIONAL INFORMATION,
    EACH DATED FEBRUARY 1, 2017, AS SUPPLEMENTED
    This Supplement provides the following amended and supplemental information and supersedes any information to the contrary with respect to the Sterling Capital Long/Short Equity Fund in the Class A and Class S Shares Summary Prospectus, Institutional Shares Summary Prospectus, the Class A and Class C Shares Prospectus, Institutional Shares Prospectus, and Statement of Additional Information, each dated February 1, 2017, as supplemented:
    The Board of Trustees of Sterling Capital Funds has approved the liquidation of the Sterling Capital Long/Short Equity Fund (the “Fund”). The liquidation is expected to occur on or about January 26, 2018.
    As of the date hereof, shares of the Fund are no longer being offered for sale.
    Please contact your financial advisor or Sterling Capital Funds at 1-800-228-1872 if you have any questions.
    SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUSES
    AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
    SUPPLS-1117
  • Terrific Twos and the illusion of safety
    Thanks for this Thread.
    Wow...ICMAX...Almost 60% Cash, 20% Bonds...ER=1.4% while the 1 Yr Investor Return was 1.44%.
    Another way of putting it is that the fund investors spent $2.475 M in management fees to achieve a CD rate return of 1.44% (or $2.5 M of net gains for the entire fund). What could be more equitable?
  • Terrific Twos and the illusion of safety
    In response to an emailed question, here are the US equity funds with the highest Martin ratios over the full market cycle that began in October 2007:
    Reynolds Blue Chip Growth (RBCGX), 1.75
    Intrepid Endurance (ICMAX), 1.67 (which I own shares of, fyi)
    Yacktman Focused (YAFFX), 1.31
    Eaton Vance Atlanta Capital SMID-Cap (EISMX),1.25, also a Great Owl
    Parnassus Endeavor (PARWX), 1.20, Great Owl
    Madison Dividend Income (BHBFX), 1.15, Great Owl
    AMG Yacktman (YACKX), 1.14
    Monetta Young Investor (MYIFX), 1.12
    Brown Capital Mgt Small Cap (BCSIX), 1.11, Great Owl
    Prospector Opportunity (POPFX), 1.08, Great Owl
    Charles's "Great Owl" designation tracks the consistency with which a fund posts outstanding risk-adjusted returns. Technically, they are "top qunitile funds in their categories based on Martin for periods of 20, 10, 5 and 3 years, as applicable." All of the funds above have records of 10 or more years.
    For what interest that holds,
    David
  • Jonathan Clements: All The Right Reasons
    My university employer recently sold most of my Fidelity funds (I was limited to TIAA or Fido, I chose Fido) and placed my money in Vanguard index funds (not previously available and probably not the best time to invest in index funds), but all my European and Asian bond funds seemed to become stateside, so I sold the bond funds and went to cash for that amount aside from (over)restoring my investment in FNMIX. Minus 1.3% later, I'm happy with the cash funds.
    The only Fido fund of my multiple holdings they held was Contra, FWIW.
    Now, i assume they had good consultants, and I really like Vanguard, but I do wish they had access to Primecap and Capital Opp, which I hold in an IRA.
    Since I am retiring next year, and since I remember an episode in the late 70's when one of Rukeyser's panelists said the market was a "table pounding buy" (he was correct), I feel confident that people with a long horizon (like Eric Cinnamond, whose blog I read) who aren't trying to time the market, are saving their money.
    If you are very (remember that you are competing with smarter people with computer programs) sure you have a have a hot stock, don't buy more than you can afford to lose .
  • Want suggestions for dividend focused mutual fund
    Hi @Art,
    Below are some funds that I own (by sleeve and my classification) that kick off some good income.
    In world equity I use CWGIX, DEQAX & EADIX
    In domestic equity I use ANCFX, FDSAX & SVAAX
    In global hybrid I use CAIBX, PMAIX & TIBAX
    In domestic hybrid three I favor of seven owned are AMECX, FRINX & HWIAX.
    In hybrid income three I favor of seven owned are APIUX, FKINX & PGBAX
    In tactical hybrids (income) I use BAICX & PCGAX
    Funds of funds I use CTFAX, ISFAX & LABFX
    Multi sector bond funds I use LBNDX, NEFZX & TSIAX
    I am not saying these are the current very best funds to own; but, they are the ones I have would up with through my many years of investing; and, I feel they have treated me well.
    Know that I own some other funds as well (in the growth area of my portfolio) that kick off some good income in the form of capital gains with some paying dividends as well
    Global growth sleeve I own ANWPX, SMCWX & THOAX
    Large mid cap sleeve I own AGTHX, AMCPX & SPECX
    Small mid cap sleeve I own IIVAX, PCVAX & PMDAX
    Specialty & theme sleeve I own LPEFX, NEWFX & PGUAX
    In short words most funds that I own kick off some good income in some form and fashion. Usually, my portfolio's distribution yield usually runs from a range of 4 to 6 percent which includes interest, dividends and capital gain distributions. Over the past five years my total return ranges form 8 to 12 percent. Generally, I take no more than one half of my five year average return has been. In this way, principal builds over time.
    Old_Skeet
  • ZEOIX mixed?
    Hi Ben. I'm afraid I am the culprit here. I read each of David's profiles and make an "objective" assessment. At the time, he mentioned a few dings, which influenced my assessment. If I recall, here are some of the statements:
    Management’s stake in the fund
    As of the last Statement of Additional Information (April 2013), Mr. Reddy and Mr. Cook each had between $1 – 10,000 invested in the fund. The manager’s commitment is vastly greater than that outdated stat reveals. Effectively all of his personal capital is tied up in the fund or Zeo Capital’s fund operations. None of the fund’s directors had any investment in it. That’s no particular indictment of the fund since the directors had no investment in any of the 98 funds they oversaw.
    Expense ratio
    The reported expense ratio is 1.50% which substantially overstates the expenses current investors are likely to encounter.
    Fund website
    Effectively none. Zeo.com contains the same information you’d find on a business card. (Yeah, I know.) Because most of their investors come through referrals and personal interactions it’s not a really high priority for them. They aspire to a nicely minimalist site at some point in the foreseeable future. Until then you’re best off calling and chatting with them.
    Break, break.
    Venk and Paige were kind enough to provide an update via telecom last month and after discussion with David, we're trying to set-up a visit with them in mid December for a profile update in January commentary.
    Since 2014, they've doubled in AUM ... much better website now, lower er (if not low enough), not sure of director stake yet. But, in any case, they remain genuinely thoughtful in approach to investing and investor solicitation.
    Here are some of their impressive risk numbers (click screen to enlarge):
    image
  • The Breakfast Briefing: Weekly Win For U.S. Stocks In Jeopardy As Russia Probe Moves Closer To Trump
    FYI: U.S. stocks were setting up for a slight pullback Friday, putting weekly gains for the S&P and Dow average in jeopardy, as traders assessed the latest developments in an ongoing investigation into Russia’s interference in the U.S. presidential election last year.
    Regards,
    Ted
    U.S.: (MarketWatch)
    https://www.marketwatch.com/story/weekly-win-for-us-stocks-in-jeopardy-as-russia-probe-moves-closer-to-trump-2017-11-17/print
    U.S.: (IBD)
    https://www.investors.com/market-trend/stock-market-today/the-new-growth-stocks-are-wal-mart-cisco-gm-sp-500-futures/
    U.S.: (CNBC)
    https://www.cnbc.com/2017/11/17/us-stock-futures-earnings-data-tax-on-the-agenda.html
    Asia-Europe-U.S.: (Bloomberg)
    https://www.bloomberg.com/news/articles/2017-11-16/stocks-in-asia-to-climb-in-end-to-tumultuous-week-markets-wrap
    Europe: (MarketWatch)
    https://www.marketwatch.com/story/european-stocks-stumble-on-company-news-broker-downgrades-2017-11-17/print
    Europe: (Reuters)
    https://www.reuters.com/article/us-global-markets/world-stocks-claw-back-losses-but-set-for-second-weekly-fall-idUSKBN1DH02Y
    Europe: (CNBC)
    https://www.cnbc.com/2017/11/17/european-markets-earnings-data-draghi-speech.html
    Asia: MarketWatch)
    https://www.marketwatch.com/story/nikkei-rallies-looks-to-notch-10th-straight-weekly-gain-2017-11-16/print
    Asia: (Reuters)
    https://www.reuters.com/article/japan-stocks-close/nikkei-rises-to-1-week-high-but-breaks-9-week-winning-streak-idUSL3N1NN2CP
    Asia: (CNBC)
    https://www.cnbc.com/2017/11/16/asia-markets-global-equities-tax-reform-oil-prices-in--focus.html
    Current Futures: Mixed
    https://finviz.com/futures.ashx
  • Baird LargeCap Fund to liquidate
    https://www.sec.gov/Archives/edgar/data/1282693/000089418917006085/baird-lrgcap_497e.htm
    497 1 baird-lrgcap_497e.htm SUPPLEMENTARY MATERIALS
    Rule 497(e)
    1940 Act File No. 811-09997
    1933 Act Registration No. 333-40128
    BAIRD FUNDS, INC.
    Supplement to Prospectus dated May 1, 2017
    and Summary Prospectus dated May 1, 2017
    As Previously Supplemented September 29, 2017
    Baird LargeCap Fund
    (Investor Class: BHGSX)
    (Institutional Class: BHGIX)
    The Board of Directors of Baird Funds, Inc. (the “Company”), based upon the recommendation of Robert W. Baird & Co. Incorporated (“Baird”), the investment adviser to the Baird LargeCap Fund (the “Fund”), has determined to close and liquidate the Fund. The Board has concluded that it would be in the best interests of the Fund and its shareholders that the Fund be closed and liquidated as a series of the Company effective as of the close of business on or about December 28, 2017 (the “liquidation date”). As previously announced, Baird and L2 Asset Management, LLC (“L2”), the Fund’s subadviser, have mutually agreed to terminate the Sub-Advisory Agreement between Baird and L2 and the Fund was closed to new purchases and incoming exchanges effective after market close on October 4, 2017 (except purchases made by existing accounts of current shareholders of the Fund and purchases made through the automatic reinvestment of Fund distributions).
    The Board has approved a Plan of Liquidation (the “Plan”) that determines the manner in which the Fund will be liquidated. Although the Fund is closed to most new purchases, you may continue to redeem your shares of the Fund as provided in the Fund’s Prospectus.
    The Fund’s portfolio managers will likely increase the Fund’s assets held in cash and cash equivalents in order to prepare for the orderly liquidation of the Fund. As a result, the Fund is expected to deviate from its stated investment objective, policies and strategies. All remaining assets held by the Fund will be liquidated as of the close of business no later than December 22, 2017. Baird will bear all expenses of the liquidation to the extent such expenses are not part of the Fund’s customary fees and operating expenses.
    Pursuant to the Plan, shareholders who have not exchanged or redeemed their shares of the Fund prior to the liquidation date will have their shares redeemed in cash and will receive one or more payments representing the shareholder’s proportionate interest in the net assets of the Fund as of the liquidation date, subject to any required withholdings. Shareholders (other than tax-qualified plans or tax-exempt accounts) will recognize gain or loss for federal income tax purposes on the redemption of their Fund shares in the liquidation. In addition, the Fund and its shareholders will bear the transaction costs and tax consequences associated with the disposition of the Fund’s portfolio holdings prior to the liquidation date. The Fund expects to make a distribution of net capital gains and net investment income, if any, on December 26, 2017, with a final distribution of the proceeds from the liquidation of the Fund to be made promptly following the liquidation date. Shareholders should consult their tax adviser for further information about federal, state and local tax consequences relative to their specific situation.
    Important Information for Retirement Plan Investors
    If you are a retirement plan investor, you should consult your tax adviser regarding the consequences of redeeming Fund shares. If you hold your Fund shares through a tax-deferred retirement account, you should consult with your tax adviser or account custodian to determine how you may reinvest your redemption proceeds on a tax-deferred basis. If you will receive a distribution from an Individual Retirement Account (IRA) or a Simplified Employee Pension (SEP) IRA that is terminating as a result of the liquidation of the Fund, you must either roll the proceeds into another IRA within 60 days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year, if applicable, or request the distribution be made directly to another IRA or eligible retirement plan. Please note you can make only one tax-free rollover of a distribution you receive from an IRA to another (or the same) IRA in any 12-month period, regardless of the number of IRAs you own. If you receive a distribution from a 403(b)(7) custodian account (tax-sheltered account) or a Keogh account, you must roll the distribution into an eligible retirement plan within 60 days in order to avoid disqualification of the plan and inclusion of the distribution in your taxable income for the year. If you are the trustee of a qualified retirement plan or the custodian of a 403(b)(7) custodian account (tax-sheltered account) or a Keogh account, you may reinvest the proceeds in any way permitted by its governing instrument.
    This Supplement should be retained with your Prospectus for future reference.
    The date of this Prospectus Supplement is November 16, 2017.
  • Your Choice: One Mutual Fund to Hold For the Next 10-15 Years
    Because I'm trying to maximize by return over that time period. And if I'm on an island, I'm making no additional income so wouldn't have any additional capital to add to the fund anyways... Therefore, the hard close doesn't impact me.
    If you're going to get caught up in the technicalities of funds closing then my answer would be just stick everything in a passive global equity instrument.
  • Three Frost Funds liquidated
    https://www.sec.gov/Archives/edgar/data/890540/000113542817001052/frost-497.txt
    TYPE>497
    1
    frost-497.txt
    THE ADVISORS' INNER CIRCLE FUND II (THE "TRUST")
    FROST CONSERVATIVE ALLOCATION FUND
    FROST MODERATE ALLOCATION FUND
    FROST AGGRESSIVE ALLOCATION FUND (THE "FUNDS")
    SUPPLEMENT DATED NOVEMBER 15, 2017 TO THE
    INSTITUTIONAL CLASS SHARES PROSPECTUS AND THE INVESTOR CLASS SHARES PROSPECTUS,
    EACH DATED NOVEMBER 28, 2016, AS SUPPLEMENTED NOVEMBER 29, 2016, FEBRUARY 6,
    2017, MARCH 8, 2017, JUNE 7, 2017 AND AUGUST 31, 2017 (THE "PROSPECTUSES") AND
    THE STATEMENT OF ADDITIONAL INFORMATION, DATED NOVEMBER 28, 2016, AS
    SUPPLEMENTED NOVEMBER 29, 2016, FEBRUARY 6, 2017, MARCH 8, 2017, JUNE 7, 2017
    AND AUGUST 31, 2017 (THE "SAI")
    THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
    IN THE PROSPECTUSES AND SAI, AND SHOULD BE READ IN CONJUNCTION WITH THE
    PROSPECTUSES AND SAI.
    The Board of Trustees of the Trust, at the recommendation of Frost Investment
    Advisors, LLC (the "Adviser"), the investment adviser of the Funds, has approved
    a plan of liquidation providing for the liquidation of each Fund's assets and
    the distribution of the net proceeds pro rata to the Fund's shareholders. In
    connection therewith, the Funds are closed to new investments. The Funds are
    expected to cease operations and liquidate on or about December 22, 2017 (the
    "Liquidation Date").
    Prior to the Liquidation Date, shareholders may redeem (sell) their shares in
    the manner described in the "How to Redeem Fund Shares" section of each
    Prospectus. For those Fund shareholders that do not redeem (sell) their shares
    prior to the Liquidation Date, the Funds will distribute to each such
    shareholder, on or promptly after the Liquidation Date, a liquidating cash
    distribution equal in value to the shareholder's interest in the net assets of
    the Funds as of the Liquidation Date.
    In anticipation of the liquidation of the Funds, the Adviser may manage each
    Fund in a manner intended to facilitate its orderly liquidation, such as by
    holding cash or making investments in other highly liquid assets. As a result,
    during this time, all or a portion of each Fund may not be invested in a manner
    consistent with its stated investment strategies, which may prevent the Fund
    from achieving its investment objective.
    The liquidation distribution amounts will include any accrued income and
    capital gains, will be treated as a payment in exchange for shares and will
    generally be a taxable event. You should consult your personal tax advisor
    concerning your particular tax situation. Shareholders remaining in a Fund on
    the Liquidation Date will not be charged any transaction fees by the Fund.
    However, the net asset value of each Fund on the Liquidation Date will reflect
    costs of liquidating the Fund.
    PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
    FIA-SK-045-0100
  • Favorite Fund Exposure for Europe?
    BCSVX is new, but it is strong out of the gate. 65% developed and developing Europe. The current portfolio has sizable dollops of large caps and mid caps, despite its stated small cap orientation. I am surprised that Brown Capital has done as well as it has with this fund because its other international offering is run-of-the-mill. From what I could glean from their website, no new manager(s) were hired to run this fund. I own some.