MutualFundWire.com: Rodriguez Goes No-Load
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Friday, March 01, 2013|
Rodriguez Goes No-Load
Robert Rodriguez's FPA [profile] is switching to the no-load distribution model for its funds as of April 1st.
“After careful consideration and analysis, we believe this decision is in the best interests of all FPA Fund shareholders by creating a better alignment of the Funds’ structure with their needs. Most significantly, this change combined with our low $1,500 minimum removes costly barriers for smaller investors who choose to manage their own investments," stated Rich Atwood, chief operating officer and one of FPA's managing partners.
According to the company the switch will affect the FPA Capital Fund, the FPA New Income, the FPA Paramount Fund and the FPA Perennial Fund, since these funds are currently structured as front-load mutual funds.
Meanwhile, the FPA Capital Fund will remain closed to new investors. In addition, shareholders of the FPA Crescent Fund and the FPA International Value Fund will now be able to exchange between the other FPA Funds without having to pay the front-end sales charge.
Here is the press release:
Company Press Release
FPA Announces Conversion to No-Load Fund Family
Los Angeles (March 1, 2013) – FPA, a leading practitioner of value investing, is pleased to announce that
effective April 1, 2013, all of the FPA Funds will be available as no-load funds. This means that each FPA
Fund will all be available for direct purchase by the public without any front-end sales charges.
“After careful consideration and analysis, we believe this decision is in the best interests of all FPA Fund
shareholders by creating a better alignment of the Funds’ structure with their needs. Most significantly,
this change combined with our low $1,500 minimum removes costly barriers for smaller investors who
choose to manage their own investments," said Rich Atwood, Chief Operating Officer and one of FPA's
This change will only affect FPA Capital Fund [FPPTX], FPA New Income [FPNIX], FPA Paramount Fund
[FPRAX] and FPA Perennial Fund [FPPFX], since these funds are currently structured as front-load mutual
funds. Note that FPA Capital Fund will remain closed to new investors. In addition, shareholders of FPA
Crescent Fund [FPACX] and FPA International Value Fund [FPIVX] will now be able to exchange between
the other FPA Funds without the hurdle of having to pay the front-end sales charge.
The transition will be effective as of April 1, 2013. It is important to note that any trade or trade
adjustment transmitted to the Funds or UMB Fund Services after March 28, 2013 will be processed
without a sales charge regardless of the actual trade date.
Financial advisors and individual investors interested in further information may contact FPA client
relations at firstname.lastname@example.org or at 310.473.0225.
Direct shareholders may contact UMB Fund Services, Inc., the Funds’ transfer agent, directly at
FPA is a leading practitioner of value investing. Providing a prudent place to invest, the firm focuses on
generating superior returns over the long-term, coupled with capital preservation. FPA fosters a culture
that promotes high ethical standards.
Located in Los Angeles, California, FPA is independently owned, with 26 investment professionals and 69
employees in total. Currently, FPA manages $22 billion across four equity strategies and one fixed
FPA's equity and fixed income styles are linked by a common fundamental value orientation. Our goal is
to provide a consistent, risk-averse and disciplined approach to long-term investing in individual
securities with the objective of achieving superior total returns for client portfolios.
You should consider the Fund’s investment objectives, risks, and charges and expenses carefully
before you invest. The Prospectus details the Fund's objective and policies, sales charges, and other
matters of interest to the prospective investor. Please read this Prospectus carefully before investing.
The Prospectus may be obtained by visiting the fund literature tab on this website, by email at
email@example.com, toll-free by calling 1-800-982-4372 or by contacting the Fund in writing.Investments in mutual funds carry risks and investors may lose principal value. Stock markets are
volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or
economic developments. Certain funds may purchase foreign securities, including American Depository
Receipts (ADRs) and other depository receipts, which are subject to interest rate, currency exchange
rate, economic and political risks; this may be enhanced when investing in emerging markets. Small and
mid cap stocks involve greater risks and they can fluctuate in price more than larger company stocks.
Groups of stocks, such as value and growth, go in and out of favor which may cause certain funds to
underperform other equity funds.
The return of principal in a bond fund is not guaranteed. Bond funds have the same issuer, interest rate,
inflation and credit risks that are associated with underlying bonds owned by the fund. Lower rated
bonds, convertible securities and other types of debt obligations involve greater risks than higher rated
bonds. Mortgage securities and collateralized mortgage obligations (CMOs) are subject to prepayment
risk and the risk of default on the underlying mortgages or other assets; derivatives may increase
The FPA Funds are distributed by UMB Distribution Services, LLC, 803 W. Michigan Street, Milwaukee,
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