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RiverPark Short Term High Yield Fund to close to new investors through financial intermediaries

edited May 20 in Fund Discussions
https://www.sec.gov/Archives/edgar/data/1494928/000139834421011115/fp0065693_497.htm

RiverPark Funds Trust

RiverPark Short Term High Yield Fund
Institutional Class (RPHIX)
Retail Class (RPHYX)

Supplement dated May 20, 2021 to the Summary Prospectus, Prospectus and Statement of Additional Information (“SAI”) dated January 28, 2021.

This supplement provides new and additional information beyond that contained in the Summary Prospectus, Prospectus and SAI and should be read in conjunction with the Summary Prospectus, Prospectus and SAI.

IMPORTANT NOTICE ON PURCHASE OF FUND SHARES

Effective as of 4 p.m. on June 18, 2021 (the "Closing Date"), Retail and Institutional Class Shares of the RiverPark Short Term High Yield Fund (the "Fund") are closed to new investors.

After the Closing Date, existing shareholders of Retail and Institutional Class Shares of the Fund and certain eligible investors, as set forth below, may purchase additional Retail and Institutional Class Shares of the Fund through existing or new accounts and may reinvest dividends and capital gains distributions.

Existing shareholders include:

• Shareholders of record of the Fund as of the Closing Date (although if a shareholder closes all accounts in the Fund, additional investments into the Fund may not be accepted).

• Clients of a financial adviser or planner who had client assets invested in the Fund as of the Closing Date.

After the Closing Date, the following eligible investors may open new accounts:

• New shareholders may open Fund accounts and purchase shares directly from the Fund (i.e. not through a financial intermediary).

• Any trustee of RiverPark Funds Trust, or employee of RiverPark Advisors, LLC or Cohanzick Management, LLC, or an investor who is an immediate family member of any of these individuals.


The Fund reserves the right, in its sole discretion, to determine the criteria for qualification as an eligible investor and to reject any purchase order. Sales of Retail Class Shares and Institutional Class Shares of the Fund may be further restricted or reopened in the future.



PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.

Comments

  • I am thinking of utilizing RPHYX for some cash in a taxable brokerage account. I used this fund in retirement account so I did not care much about tax efficiency and cost base accounting. But in a taxable account one needs to be more careful not to be surprised.

    Any tips on using RPHYX in a taxable account?
  • In terms of general tax efficiency, it's like any other short term bond fund - the divs are ordinary income and share price fluctuates mildly.

    My approach to handling cost basis with short term bond funds is:
    • Send divs to a MMF or bank account (do not reinvest) - to avoid creating a monthly small lot nightmare
    • Set the account to use specific lot identification - for full control, to optimize recognition of cap gains
    • Sell as needed in mid size blocks and use MMF or bank as buffer - to avoid a nearly daily stream of tiny transactions; identify lots appropriate for your cap gains objective
    • Purchase in larger blocks - simplifies identifying lots when selling
    P.S. I haven't seen you posting in years. Welcome back.
  • Thanks, yes, I do not want to deal with small lot nightmares (especially since I am the one doing the taxes at home!)

    This is in a a Fidelity brokerage account. Cash goes directly into SPAXX (Fidelity Government Money Market). For me, it is OK if dividends go there.

    I just checked this account is setup for actual cost for stocks/etfs/options and fixed income (and can be changed) but for Mutual Funds it is average cost (and cannot be changed). Curiously, for my Roth and Rollover IRA, mutual funds are setup for actual cost.

    I have to reach out to Fidelity support to see if mutual fund in taxable account can be changed to actual cost as well. Maybe I should have done when the account was first opened before funding it.
  • Since I have a Fidelity taxable account that is set up for actual cost, I can say without fear of contradiction that this is possible.

    Most of my accounts are set up for actual cost basis. One that isn't is a CMA account. Curiously I also don't see an option online to convert it to actual cost basis. That might be because all I keep in it is mad money (cash to feed the ATM). Or it could be a bug in Fidelity's system.

    Definitely call Fidelity and insist that the account be set up for actual cost basis.
    account owners or their investment advisors can instruct Fidelity to determine the cost basis for securities, including shares of open-end mutual funds in nonretirement accounts, in one of two ways: 1) setting up their accounts with one of our 11 tax lot disposal methods available to investors and converting cost basis for mutual funds from average cost to lot-level accounting, or 2) identifying specific tax lots to sell at the time of a transaction (available to clients who have previously converted from the average cost method to a lot-level method).
    https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/cost_basis_legislation.pdf
  • Distribution for May, $.0065 !! Hard closed needed by looking at this distribution.
    Derf
  • edited June 3
    Derf said:

    Distribution for May, $.0065 !! Hard closed needed by looking at this distribution.
    Derf

    Do you think that low distribution was a one-off and income will return to the usual (if fluctuating) levels when the fund is closed? Like several others I've been mulling over this fund for months but never pulled the trigger. Thanks.

  • Another filing as of 8/24/21:

    https://www.sec.gov/Archives/edgar/data/1494928/000139834421016711/fp0068207_497.htm

    497 1 fp0068207_497.htm
    RiverPark Funds Trust

    RiverPark Short Term High Yield Fund

    Institutional Class (RPHIX)
    Retail Class (RPHYX)

    Supplement dated August 24, 2021 to the Summary Prospectus, Prospectus and Statement of Additional Information (“SAI”) dated January 28, 2021.

    This supplement provides new and additional information beyond that contained in the Summary Prospectus, Prospectus and SAI and should be read in conjunction with the Summary Prospectus, Prospectus and SAI.

    IMPORTANT NOTICE ON PURCHASE OF FUND SHARES

    Further to the Supplement dated May 20, 2021, effective as of 4 p.m. on August 27, 2021 (the "Revised Closing Date"), the definition of existing shareholders who may purchase Retail and Institutional Class Shares of the RiverPark Short Term High Yield Fund (the "Fund") is modified as follows:

    Existing shareholders will only include shareholders of record of the Fund as of the Revised Closing Date (although if a shareholder closes all accounts in the Fund, additional investments into the Fund may not be accepted).

    After the Revised Closing Date, the following eligible investors may also open new accounts:

    ·New shareholders may open Fund accounts and purchase shares directly from the Fund (i.e. not through a financial intermediary).


    ·Any trustee of RiverPark Funds Trust, or employee of RiverPark Advisors, LLC or Cohanzick Management, LLC, or an investor who is an immediate family member of any of these individuals.

    The Fund reserves the right, in its sole discretion, to determine the criteria for qualification as an eligible investor and to reject or accept any purchase order. Sales of Retail Class Shares and Institutional Class Shares of the Fund may be further restricted or reopened in the future.



    PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE



  • I bought RPHIX in 2021, as a CD like alternative, for my cash holdings at Schwab. I do not expect it to make an impressive total return for my investment, but my experience thus far, is that it has done a good job of exceeding the total return that my bank has been paying for savings, HY checking, CDs, etc. and it is fluid enough for me to access the holdings when needed. Of course there are no absolute principal protections which will scare off many investors.
  • Interesting that Schwab shows the fund closed today, a day ahead of the official closing. That's significant because Schwab allowed one to get in with a $2500 min.

    Now that investors will have to go directly to RiverPark to open an account, they won't be able to get the cheaper shares for anything less than $50K.
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