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Should one buy a load fund such as SGENX or SGOVX?

edited August 2011 in Fund Discussions
Should one buy a load fund such as SGENX or SGOVX?


  • They are good funds. But rather than pay the 5% load, I'd find a good no-load fund. Matthews has some good ones, such as MAPIX Pacific Tiger. Others that stand out are Columbia Acorn Intl ACINX, and Manning&Napier has a couple, and Scout Intl.
  • There are so many good no-load funds out there, I can't see any reason to buy a load fund.
  • Howdy,

    I'm not familiar with these particular funds, but I have never found a loaded fund that didn't have an equivalent if not better NoLoad alternative. Randy has listed some good int'l funds. Note that a Global fund will include U.S. companies while an Int'l fund will not. This can and does make a difference with your Asset Allocation.


  • edited August 2011
    But what is difficult to find is a Global Bond fund or a US + International Bond Fund combo that can match Hassenstab.

    p.s. For a while there was a window of opportunity to get into the no-load IVWIX (Institutional share class) for a low minimum at a few brokerages. I got mine's thru Fidelity. Of course, IVWIX is now closed to new investors.

  • SGENX is the only loaded fund I've ever bought -- no regrets here. I purchased shares in the late 80s for my 1987-born son's college fund and for my IRA. Sold the college shares after 17 years or so with something like a 16% annual return -- turned $2k into 2 years of in-state expenses. Of course I was buying Jean Marie Eviellard's management and got 20 great years of it. Who knows if his successors will be similarily successful (SGENX was #1 in its category for most of the long periods I've owned it). So I got lucky -- although Jean Marie was being widely lauded at the time of my purchase, so it wasn't blind luck. Some prefer IVA, which is run by Jean Marie's hand picked successors, also loaded, also closed to new investors. For the past five years I've been adding to both through my Schwab retirement plan brokerage account, load waived. These funds held up very well in 2008 and are are happy holdings year-to-date. So the answer is, maybe.
  • edited August 2011
    Reply to @Kenster1_GlobalValue: Essentially what Kenster said. I think that one should consider load funds if the fund uses a unique strategy (HDCCX in the commodity space, for example) or if the management has demonstrated a consistent level of excellence. I think the First Eagle funds would fall into the latter category.
  • Nope, don't buy a loaded fund. It's against my religion. It ought to be against your religion, too. Hee hee. Seriously.
  • Reply to @Kenster1_GlobalValue: IVA Worldwide, (institutional share) has done very well in today's market condition. Now that it is closed and will likely to be closed for sometime to come. Few remaining world allocation funds available: Thornburg Income Builder (institutional share), TIBIX. Several MFO including BobC recommended this fund in the past.

    Personally I will not pay front end load as a dop-it-yourself investor. There are plenty solid no load MFs.
  • Anonymous Larry T

    I've been adding to both through my Schwab retirement plan brokerage account, load waived.

    I am a Schwab client also, but have not found a way to get access to the load waived funds such IVWIX.
    I purchased it at Think or Swim and transferred it to Schwab, but cannot add to it.
    Do you have an investor advisor?
  • I don't have any great ideas about getting into the institutional share class -- my company's retirement account is considered institutional. I was also able to open up direct no-load IRA accounts with IVA (and got both my sons load-waived IRA accounts) as a registered investment advisor (I have a series 6 license). That door is probably closed as well now, since both of their funds are no longer available to new investors.
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