FPA today filed for an international value fund. Likely launch is the end of December (though these things are never guaranteed: funds cannot delay these things one month at a time or quietly scuttle them before launch).
Upside: FPA. Professional and deeply skeptical. They'll only buy high quality businesses selling for absolutely (rather than relatively) low prices. Both of the managers were Oakmark (Harris Associates) analysts and those folks have gone on to manager fine funds elsewhere (e.g., Artisan International Value).
Downside: starting expense ratio of 1.98% (100 bp management fee) and two untried managers (Eric J. Bokota and Pierre O. Py).
I'll do the more complete precis in the November fund list. For now,
http://www.sec.gov/Archives/edgar/data/924727/000110465911055678/a11-27798_1485apos.htm For what interest it holds,
David
Comments
Pierre O. Py's Experience
International Portfolio Manager
First Pacific Advisors LLC
Investment Management industry
September 2011 – Present (2 months) Los Angeles, CA
Started the FPA International Equity Team.
Portfolio manager of the FPA International Value Fund.
Co-portfolio manager of the FPA Paramount Global Fund.
I have to admit to being a bit puzzled by this. So far as I can tell, there is no FPA Paramount Global fund. In May 2011, FPA did announce a refocusing of Paramount so that it would be global (see: http://www.fpafunds.com/articles/5_20_11_transition_to_global.html) but I can't find any record on their website or at the SEC to a separate fund.
Likewise, I don't see any reference at their website to Mr. Py (http://www.fpafunds.com/team.html). The only place I found a reference to Py and a Global Fund is at Py's Linked-in page.
All of which feels odd.
Hmmm. . .
David
Hi Maurice,
I have been following FPACX for a while, and it has not experienced a drop in the management fee ever. Furthermore, it has maintained a stubbornly high expense ratio (ER) despite the fund's ballooning AUM: On 3/31/2008 the ER was 1.34% with $1.2B AUM, and now the ER is minimally lower at 1.28% with $6.5B AUM. M* gives the fund stewardship a grade of C as shown here:
http://money.usnews.com/funds/fpa-crescent-portfolio-fund/fpacx
And I previously criticized the fund stewardship here:
http://socialize.morningstar.com/NewSocialize/forums/t/266373.aspx
Bottom line: I would not hold my breath waiting for the FPA folks to lower the ER of their new offering.
Kevin
I was surprised but then I found in some reports of FPA Paramount that it is going to be a global fund, but Perennial is going to remain US oriented.
Sorry for the strange name Anonymous; I forgot my password, will take care of it later.
FPA Nabs Ex-Oakmark Vets to Launch Foreign Fund
For the first time in more than 25 years, iconoclastic asset manager FPA has filed to launch a new fund. FPA's ability to carve its own path has led to superior returns for some of its funds, so it wouldn't be surprising if the new fund, FPA International Value (registration required) has a distinctive profile.
FPA nabbed two former Oakmark analysts--Pierre Py and Eric Bokota--to run the new strategy. While this is the duo's first time managing an open-end mutual fund, its expected they'll be given the same amount of freedom to run their portfolio as other FPA managers. Founder Bob Rodriguez and other FPA principals, like Steve Romick, manager of FPA Crescent (FPACX), have patiently shaped the hiring process at FPA, taking their time to find the right fit for each strategy when needed. Given FPA's contrarian investment approach, the firm manager's tend to be distinctive investors.
http://fpafunds.com/pdfs/press/FPIVX_Press_Release.pdf
"Py and Bokota will also assist with FPA Paramount Fund's new global focus."