FYI: When talking to active managers, fund investors can focus on the wrong things – we are heavily biased toward the short-term, and obsess over issues that are recent and salient. We also drastically overvalue confidence as a characteristic, whilst punishing circumspection, realism and humility. Given this, it is unsurprising that conversations with active managers are often shaped in a manner that is entirely at odds with the capricious and unpredictable nature of financial markets, and do little to help identify skill.
Regards,
Ted
https://behaviouralinvestment.com/2018/03/27/things-that-fund-managers-dont-say-enough/

Many load families, like many noload families, enter into bilateral agreements with individual brokerages to sell a class of funds NTF. For example, LCEAX is available NTF at Fidelity but is sold with a load at TD Ameritrade.. Likewise, the same noload fund may be sold without a fee at one brokerage, but you'll have to pay a fee at another brokerage. For example, HOVLX, NTF at TD Ameritrade, but Fidelity charges a fee.
The best thing you can hope to see in a prospectus or SAI concerning NTF load waivers is just that the fund is allowed to enter into these agreements with brokerages.
For example, Blackrock permits front end load waivers for shares sold through "Financial Intermediaries who have entered into an agreement with the Distributor and have been approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not charge a transaction fee".
http://quote.morningstar.com/fund-filing/Prospectus/2017/11/28/t.aspx?t=MDDVX&ft=485BPOS&d=b0560dd20f97785f3e555c63cbc03440 (MDDVX prospectus)
Similarly, PIMCO allows load waivers in its SAIs: "Each Fund may sell its Class A shares at net asset value without a sales charge to ... client accounts of broker-dealers ... with which the Distributor or PIMCO has an agreement for the use of Class A shares ... in particular situations in which the broker-dealer will make Class A shares available for purchase at NAV."
http://quote.morningstar.com/fund-filing/SAI/2018/3/23/t.aspx?t=PONAX&ft=497&d=081d50585090e2443fe13f6a9c05c8c4 (PIMCO SAI)
broker-dealer = financial intermediary
has an agreement = entered into an agreement
particular situations = self-directed brokerage accounts
Sure, nothing required PIMCO to offer A shares load waived at Fidelity or elsewhere. If it hadn't though, it would have been bucking an industry trend by moving from no load to load. That's what the industry was doing 20 years ago (e.g. American Century, Invesco adding loads), not now.
PIMCO was already selling A shares NTF, so this was simply a question of where, not if, A shares would be available NTF. Terminating NTF arrangements with brokerages would have been the bigger change; keeping the funds available NTF maintained the status quo.
Was there no plan at PIMCO, or simply no plan that the rep was at liberty to tell you about?

"...The key is not retirement itself, in other words, but what you do in retirement. When thinking about whether to retire, Fitzpatrick emphasized, “We need to focus on more than financial health alone.”

@MFO Members: "You only need to read the last paragraph, this is just an advertisement for a financial adviser." Mike is right on the money, this is nothing more than a spin on the original article that appeared in the WSJ.
Regards,
Ted
https://www.nytimes.com/2015/03/15/your-money/how-many-mutual-funds-routinely-rout-the-market-zero.html

FYI: Billy Kaderli separated a delicious–looking piece of cheesecake with his fork. That’s when he turned to me and smiled. “A financial reporter recently interviewed me,” he said. “I explained that we live off the proceeds of our investment portfolio. She was surprised when I told her we have more money now than we did when we first retired.”
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/the-biggest-risks-of-the-4-percent-retirement-rule

You only need to read the last paragraph, this is just an advertisement for a financial adviser.

Ted does not have a mole inside Morningstar. Here's the Financial Advisors article I think he intended to link to:
https://www.fa-mag.com/news/morningstar-ratings-to-expand-six-fold--to-10k-funds-37760.html?print
I get the feeling that M* is flinging around terms to make things sound more impressive. The FA article, like M*'s FAQ, speaks of a rules-based system. But M*'s paper on this system (linked to in the FA article) talks about statistical models, and says it makes minimal use of rules - just to avoid anomalies (two different share classes of one fundhaving different Process or Parent ratings, taking Analyst Parent rating if it exists over the statistical rating in case they differ).
The FA article talks about "how the automated methodology performs with out-of-sample data, that is, in real time". Out of sample and real time are simply different concepts. The former deals with testing a model using data other than that used to build the model; the latter deals with speed, e.g. is the analysis batched overnight (likely, since MF data is reported daily), or is it processed as it comes in.
Whatever. A drawback of statistical models is that they're lousy at explanations. That's what analyst reports do, and why I am skeptical of the value in these "quantitative" ratings. Single numbers such as star ratings convey fairly limited information. Here where the information is already speculative (forward looking) to begin with, "Gold", "Silver" and "Bronze" ratings without explanation likely won't help much.

Meh ... I wouldn't describe it as "fake" at all, in the sense that JC has no financial stake and clearly identifies the costs and benefits of membership. Not "news," but Humble Dollar doesn't claim to be a news source. It's a long-time columnist's personal platform for encouraging better behalf from investors.
The question is why you'd become a member. Judged by financial returns, the SMI strategies - embodied in several mutual funds - is only okay. If the case is that they help you think more clearly and provide risk-moderated platforms for pursuing your goal, it might be more compelling.
David

Updated
https://www.sec.gov/Archives/edgar/data/763852/000119312518088631/d553787d497.htm
497 1 d553787d497.htm JPMORGAN TRUST II
J.P. MORGAN U.S. EQUITY FUNDS
JPMorgan Multi-Cap Market Neutral Fund
(All Share Classes)
(a series of JPMorgan Trust II)
Supplement dated March 20, 2018 to the
Summary Prospectus, Prospectus and Statement of
Additional Information dated November 1, 2017, as supplemented
NOTICE OF CHANGE TO LIQUIDATION DATE FOR JPMORGAN MULTI-CAP MARKET NEUTRAL FUND (the “Fund”). The Board of Trustees of the Fund had previously approved the liquidation and dissolution of the Fund, which was scheduled to occur on or about April 6, 2018. The Board has approved the advancement of the liquidation distribution due to redemption activity. The liquidating distribution is now scheduled to occur on or about March 28, 2018 (the “Liquidation Date”). The information contained in this supplement replaces the information contained in the supplement dated March 15, 2018 for the Fund.
The Fund may continue to depart from its stated investment objective and strategies as it increases its cash holdings in preparation for its liquidation. Unless you have an individual retirement account (“IRA”) where UMB Bank n.a. currently serves as the custodian, on the Liquidation Date, the Fund shall distribute pro rata to its shareholders of record all of the assets of the Fund in complete cancellation and redemption of all of the outstanding shares of beneficial interest, except for any proceeds from any securities that cannot be liquidated on the Liquidation Date, cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s books on the Liquidation Date, including, but not limited to, income dividends and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the officers of the Fund deem appropriate subject to ratification by the Board. Capital gain distributions, if any, may be paid on or prior to the Liquidation Date. If you have a Fund direct IRA account, your shares will be exchanged for Morgan Shares of the JPMorgan U.S. Government Money Market Fund unless you provide alternative direction prior to the Liquidation Date. For all other IRA accounts, the proceeds will be invested based upon guidelines of the applicable Plan administrator.
Upon liquidation, shareholders may purchase any class of another J.P. Morgan Fund for which they are eligible with the proceeds of the liquidating distribution. Shareholders holding Class A Shares or Class I Shares will be permitted to use their proceeds from the liquidation to purchase Class A Shares of another J.P. Morgan Fund at net asset value within 90 days of the liquidating distribution, provided that they remain eligible to purchase Class A Shares. They may also purchase other share classes for which they are eligible. If shareholders of Class C Shares purchase Class C Shares of another J.P. Morgan Fund within 90 days of the liquidating distribution, no contingent deferred sales charge will be imposed on those new Class C Shares. At the time of the purchase you must inform your Financial Intermediary or the Funds that the proceeds are from the liquidated fund.
FOR EXISTING SHAREHOLDERS OF RECORD OF THE FUND AS OF MARCH 19, 2018, ADDITIONAL PURCHASES OF FUND SHARES WILL BE ACCEPTED UP TO OR AROUND MARCH 23, 2018, AFTER WHICH NO NEW PURCHASES WILL BE ACCEPTED. FOR ALL OTHER INVESTORS, PURCHASES OF FUND SHARES ARE NO LONGER ACCEPTED.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE SUMMARY PROSPECTUS, PROSPECTUS AND
STATEMENT OF INFORMATION FOR FUTURE REFERENCE
SUP-MCMN-LIQ-318-2

Thx for this. Ahh, memories.
"SEPTEMBER 29, 2008: The US House of Representatives defeats a proposed $700 billion emergency bailout package, 228-205. Stocks sink as the votes are counted live. The Dow plunges by 777.68 points in its largest single day point loss ever."
... I remember trading futures that afternoon and doing so while totally incredulous and in a state of muted disbelief. C-SPAN was truly the financial network that day. As I recall, that was the first time during the crisis when I felt existential, systemic, dread that the global system indeed might well collapse. I live 2 blocks from the Pentagon, and even with post-911 smoke blowing across my balcony that week, I didn't feel the same sense of dread as I did that day in '08.
(I did quite well that afternoon, though - I was shorting the S&P futures hard.)

FYI: Nine years ago, the US economy sank into a recession, the housing market crashed, and credit markets seized, bringing the banking industry to its knees. Businesses were going down. Workers were losing jobs. Americans were losing hope. For many, the psychologically critical low moment was the Lehman Brothers bankruptcy on September 15, 2008. But the memory of events before and after that day is slowly fading.
Business Insider outlined the 27 major moments, from 2007 to 2009, and added some context. From the initial reports of subprime defaults to AIG's second bailout, here are the scariest moments of the financial crisis.
Regards,
Ted
http://www.businessinsider.com/financial-crisis-scariest-moments-2017-9#february-8-2007-hsbc-says-its-bad-debt-provisions-for-2006-will-be-20-higher-than-expected-because-of-a-slump-in-the-us-housing-market-nonfinance-people-start-paying-attention-to-what-subprime-is-1

I'm gonna disagree...mostly.
Problem 1- Roth IRAs have income limits: If your income is too high to contribute to a Roth IRA (a good problem) you have the financial ability to contribute to a taxable retirement account and then orchestrate a "back door" Roth strategy...problem solved.
Source:

Since the income limits on Roth conversions were removed in 2010, higher-income individuals who are not eligible to make a Roth IRA contribution have been able to make an indirect “backdoor Roth contribution” instead, by simply contributing to a non-deductible IRA (which can always be done regardless of income) and converting it shortly thereafter.

https://kitces.com/blog/how-to-do-a-backdoor-roth-ira-contribution-while-avoiding-the-ira-aggregation-rule-and-the-step-transaction-doctrine/
Problem 2 - Roth IRA benefits can be limited: Roth death benefits are tax free for the beneficiary. Tax deferred IRAs are taxable upon death to the beneficiary. If you die early...your dead... regardless. I would agree that if your beneficiaries are non - profit organizations, then, by all means, contribute to tax deductible IRAs and pass the entire tax deferred account on the the non-profit tax free.
Problem 3 - The time value of money can be hard to beat:
Time value is the very reason Roth IRAs are such a great long term retirement investment. You pay less "real dollars" in taxes. When you contribute to your Roth IRA you pay taxes in today's dollars. A $5500 contribution at the 15% tax rate would equate to $825 additional income tax...at 20% rate would equate to $1100...at 25% rate would equate to $1375. The 2018 lower brackets look like this:

If you will fall within these lower brackets it make tax sense to contribute to the Roth. It also makes sense to lower yourself into these brackets by deducting income on contributions to tax deferred IRAs. A combination of the two is also a good strategy.
Fast forward to age 60 (30 years of compounding growth @ 7%):
This one Roth contribution ($5500) would have a value of about $39K (tax free) and has no RMD requirements at age 70. At age 70, it will have grown to almost $77K. This money can help you strategically lower your taxable withdrawals from other taxable accounts to further minimize taxes. This can also help you avoid many income based costs (i.e.- income based medicaid premiums) or qualify for income based subsidies (too many to list).
Fidelity article on Strategic Income Withdrawals:
https://fidelity.com/viewpoints/retirement/tax-savvy-withdrawals
Had this contribution grown in a tax deferred IRA, the deferred tax liabilities at age 60 would be - $5850 (@15% rate), $7800 (@20% rate), and $9750 (@25% rate) and about twice that at age 70. Roth locks in the tax rate at the point of contribution...tax deferred is always the differential between what you saved on contributions (your tax deductions) verse what you paid on withdrawals (your tax liability on your withdrawals). RMDs force your income higher so you have less control over income levels.
If you can lock in a low tax rate on a contribution with either or both tax free (Roth) or tax deferred (401K, 403b, 457, etc.) this is a tax bird 'in the hand". The real problem is not knowing what your taxable income will be on your tax deferred withdrawals in retirement... that is the "tax bird in the bush." and not having a mechanism to help strategically live on some tax free income when it is to your advantage. Saving 15% on contributions to then, 30 years later, pay a higher tax rate on withdrawals is a real long term loss of capital (withdrawal tax rate - contribution tax rate) compared to the Roth IRA (contribution tax rate).
I like to think of the taxes paid on a Roth contribution that permanently locks in the cost of taxes. Obviously, there are many other advantages to a Roth IRA such as access to you contributions at any time tax free, no RMDs, and the ability to fine tune your retirement income with regard to tax liabilities by accessing tax free dollars.

FYI: U.S. stocks edged higher Friday after several days of losses. Energy companies rose with the price of oil and banks and industrial companies are also up. While retailers are mostly higher, jewelry chain Tiffany fell after a weak sales report and disappointing forecast. The S&P 500 has slipped for four days in a row and is still down 1 percent this week.
Regards,
Ted
Bloomberg:
https://www.bloomberg.com/news/articles/2018-03-15/asia-stocks-face-mixed-friday-dollar-strengthens-markets-wrap
Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-advances-as-financial-energy-stocks-gain-idUSKCN1GS1HP
MarketWatch:
https://www.marketwatch.com/story/us-stock-futures-struggle-as-political-worries-return-to-haunt-investors-2018-03-16/print
IBD:
https://www.investors.com/market-trend/stock-market-today/nasdaq-ends-higher-in-cliffhanger-as-these-3-chip-names-soar/
CNBC:
https://www.cnbc.com/2018/03/15/us-stock-futures-dow-data-and-politics-on-the-agenda.html
AP:
http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-03-16/your-evening-briefing
Bonds: CNBC:
https://www.cnbc.com/2018/03/16/bonds-and-fixed-income-data-on-the-agenda.html
Curriencies: CNBC:
https://www.cnbc.com/2018/03/15/forex-markets-dollar-in-focus-ahead-of-feds-policy-meeting.html
Oil: CNBC:
https://www.cnbc.com/2018/03/15/oil-markets-focus-on-crude-demand-while-higher-output-caps-rise.html
Gold: (Reuters)
https://www.reuters.com/article/global-precious/precious-gold-dips-down-for-week-market-braces-for-fed-rate-hike-idUSL8N1QY3NB
WSJ: MarketS At A Glance:
http://markets.wsj.com/us
SPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker
SPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectors
Current Futures: Mixed
https://finviz.com/futures.ashx
Quote

Great discussion.
At least these are 'normal' vanilla-looking notes and not more of those ducky 'Principal Protection Notes' or 'Barrier Notes' the big guys were foisting on retail investors before the financial crisis. You know, those creative investment vehicles that ended up imploding and causing several lawsuits over.
I still have the product literature from my then-UBS guy, which I read for yukks every now and then.

https://www.sec.gov/Archives/edgar/data/763852/000119312518083422/d552167d497.htm
497 1 d552167d497.htm JPMORGAN TRUST II
J.P. MORGAN U.S. EQUITY FUNDS
JPMorgan Multi-Cap Market Neutral Fund
(All Share Classes)
(a series of JPMorgan Trust II)
Supplement dated March 15, 2018
to the Summary Prospectus, Prospectus and Statement of Additional Information
dated November 1, 2017, as supplemented
NOTICE OF LIQUIDATION OF THE JPMORGAN MULTI-CAP MARKET NEUTRAL FUND. The Board of Trustees (the “Board”) of the JPMorgan Multi-Cap Market Neutral Fund (the “Fund”) has determined that it is in the best interests of the Fund to terminate the previously approved proposed plan of reorganization and cancel the related special meeting of shareholders.
Instead, the Board has approved the liquidation and dissolution of the Fund on or about April 6, 2018 (the “Liquidation Date”). Effective immediately, the Fund may depart from its stated investment objective and strategies as it increases its cash holdings in preparation for its liquidation. Unless you have an individual retirement account (“IRA”) where UMB Bank n.a. currently serves as the custodian, on the Liquidation Date, the Fund shall distribute pro rata to its shareholders of record all of the assets of the Fund in complete cancellation and redemption of all of the outstanding shares of beneficial interest, except for any proceeds from any securities that cannot be liquidated on the Liquidation Date, cash, bank deposits or cash equivalents in an estimated amount necessary to (i) discharge any unpaid liabilities and obligations of the Fund on the Fund’s books on the Liquidation Date, including, but not limited to, income dividends and capital gains distributions, if any, payable through the Liquidation Date, and (ii) pay such contingent liabilities as the officers of the Fund deem appropriate subject to ratification by the Board. Capital gain distributions, if any, may be paid on or prior to the Liquidation Date. If you have a Fund direct IRA account, your shares will be exchanged for Morgan Shares of the JPMorgan U.S. Government Money Market Fund unless you provide alternative direction prior to the Liquidation Date. For all other IRA accounts, the proceeds will be invested based upon guidelines of the applicable Plan administrator.
Upon liquidation, shareholders may purchase any class of another J.P. Morgan Fund for which they are eligible with the proceeds of the liquidating distribution. Shareholders holding Class A Shares or Class I Shares will be permitted to use their proceeds from the liquidation to purchase Class A Shares of another J.P. Morgan Fund at net asset value within 90 days of the liquidating distribution, provided that they remain eligible to purchase Class A Shares. They may also purchase other share classes for which they are eligible. If shareholders of Class C Shares purchase Class C Shares of another J.P. Morgan Fund within 90 days of the liquidating distribution, no contingent deferred sales charge will be imposed on those new Class C Shares. At the time of the purchase you must inform your Financial Intermediary or the Funds that the proceeds are from the liquidated fund.
FOR EXISTING SHAREHOLDERS OF RECORD OF THE FUND AS OF MARCH 19, 2018, ADDITIONAL PURCHASES OF FUND SHARES WILL BE ACCEPTED UP TO OR AROUND APRIL 3, 2018 AFTER WHICH NO NEW PURCHASES WILL BE ACCEPTED. FOR ALL OTHER INVESTORS, PURCHASES OF FUND SHARES WILL NO LONGER BE ACCEPTED AFTER MARCH 19, 2018.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
FOR FUTURE REFERENCE
SUP-MCMN-LIQ-318

This is an example of what are called "Retail Notes". They're frequently offered by large, recognizable, primarily financial institutions.
Fidelity calls its program for selling these Corporate Notes℠. It has a good description of these bonds:
https://www.fidelity.com/fixed-income-bonds/individual-bonds/corporate-bonds/corporate-notes-program
Unlike ordinary corporate notes, these are sliced into manageable $1K pieces and sold "without commission" (the underwriting costs are baked into the rates). Another difference is that these are typically junior (subordinated) notes, meaning that in the case of default, you stand in line behind holders of other notes. The GS note here is rated BBB+ by S&P.
I did a look on Fidelity's site for secondary issue GS notes and found that I could buy $2K or more (in $1K increments) of a note maturing 2/15/18, yielding 2.54% including fees. So the rate isn't anything special.
Here's that bond's listing on TDA. Note that the pricing there vs. Fidelity is waaay worse. The min offered at TDA is $5K (vs. $2K) and the best yield is under 2.1%. Same bond, different broker. At least with new issue retail notes, you're getting the same price ($1K, par) wherever it is sold. Still, different brokers will offer different bonds.
Recognize that because of the call option in the retail bond, buying it is somewhat of a heads GS wins, tails you lose. If interest rates don't go up much, GS will call the bond and you'll have a ½ - 1 year bond at 2.5%. if interest rates go up more than 1%, you'll be locked into 3.5% for another year.
IMHO retail bonds are designed as simple easy to use investments for people who don't want to deal with commissions, accrued interest, amortization, tax complexities, market discounts and premiums, OID, etc. that come with "real" bonds. Retail bonds are more like savings bonds issued by corporations. They tend to have respectable but not the best rates. They can be a good way to get your toes in the water.

Nice post. Maybe I missed it but have you ever posted on your background/profession? CFA?

This is an example of what are called "Retail Notes". They're frequently offered by large, recognizable, primarily financial institutions.
Fidelity calls its program for selling these Corporate Notes℠. It has a good description of these bonds:
https://www.fidelity.com/fixed-income-bonds/individual-bonds/corporate-bonds/corporate-notes-program
Unlike ordinary corporate notes, these are sliced into manageable $1K pieces and sold "without commission" (the underwriting costs are baked into the rates). Another difference is that these are typically junior (subordinated) notes, meaning that in the case of default, you stand in line behind holders of other notes. The GS note here is rated BBB+ by S&P.
I did a look on Fidelity's site for secondary issue GS notes and found that I could buy $2K or more (in $1K increments) of a note maturing 2/15/18, yielding 2.54% including fees. So the rate isn't anything special.
Here's that bond's listing on TDA. Note that the pricing there vs. Fidelity is waaay worse. The min offered at TDA is $5K (vs. $2K) and the best yield is under 2.1%. Same bond, different broker. At least with new issue retail notes, you're getting the same price ($1K, par) wherever it is sold. Still, different brokers will offer different bonds.
Recognize that because of the call option in the retail bond, buying it is somewhat of a heads GS wins, tails you lose. If interest rates don't go up much, GS will call the bond and you'll have a ½ - 1 year bond at 2.5%. if interest rates go up more than 1%, you'll be locked into 3.5% for another year.
IMHO retail bonds are designed as simple easy to use investments for people who don't want to deal with commissions, accrued interest, amortization, tax complexities, market discounts and premiums, OID, etc. that come with "real" bonds. Retail bonds are more like savings bonds issued by corporations. They tend to have respectable but not the best rates. They can be a good way to get your toes in the water.

FYI: On this week’s Animal Spirits with Michael & Ben we discuss:
.Why the flash correction was so rare.
.The growing chasm between the haves and the have-nots.
.The huge following of Dave Ramsey.
.Why rising interest rates are a double-edged sword.
.Why crypto index funds don’t make sense.
.The potential move into financial services by Amazon.
.The problem with trading on hedge fund manager headlines.
.Wealthfront’s new risk parity strategy.
.How to hit the reset button on your career.
.Our favorite children’s books to read to our kids & much more.
Regards,
Ted
http://awealthofcommonsense.com/2018/03/animal-spirits-episode-20-goodnight-moon/

FYI: As investors grow increasingly bullish on financial stocks they’re flocking to an exchange-traded fund that tracks a specific niche on Wall.
Regards,
Ted
https://www.bloomberg.com/news/articles/2018-03-14/fund-tracking-broker-dealers-exchanges-rakes-in-cash-etf-watch

FYI: -ALPS, a subsidiary of DST Systems, Inc. (NYSE: DST) providing products and services to the financial services industry, today announced the liquidation of one Fund of the Elevation ETF Trust.
The Fund -- Summit Water Infrastructure Multifactor ETF (NYSE ARCA: WTRX) -- will close to new investors on March 26, 2018 and liquidate on April 2, 2018.
Regards,
Ted
https://www.businesswire.com/news/home/20180312006216/en
M* Snapshot WTRX:
http://www.morningstar.com/etfs/ARCX/WTRX/quote.html