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CrossingBridge lowers initial minimum for institutional share class
Lowering from $50k to $5k is indeed very good news for retail investors. CrossBridge funds are on transaction fee fund platform at many brokerages. Fidelity customers can use their automatic investment features for additional purchases for $5; no fee for selling. Other brokerages charge fee on both ends of transaction.
The majority of our clients are institutional investors. But, various folks (including my son) have complained the minimum was exclusionary. Therefore, we felt those who appreciate our approach and offerings (ideally, by doing their own research and due diligence) should have the ability to access the funds to their portfolio in an appropriate allocation.
What has come out of this? A lot more than just lowering our minimums. A number of the comments on the Board have mentioned that there still are transactions fees. As it pertains to Schwab/Fidelity/TD: - Schwab/TD: Only opened up their No-Transaction Fee (NTF) platform to a select list of fund companies. We anticipate Schwab/TD will allow NTF platform for institutional class shares sometime in 2024 for the broader funs community in which we hope to participate.
- Fidelity: Good News/Bad News: We just moved all of our Funds to NTF on Fidelity’s platform. Good News: All of our funds now trade without any transaction fees at Fidelity. Bad News: This is only for institutional investors/advisors purchasing on behalf of their clients, and is not available for retail investors.
- Vanguard: Now this is great news. There are now NO TRANSACTION FEES for any investor that purchases through their retail platform.
I think someone mentioned in this forum about No transactions fees for mutual funds at Firstrade: retail or institutional class. Good to know that the big brokerages are leaning that way too. Definitely helps those that had lowered fees at TD and worry about migration to Schwab.
Comments
The majority of our clients are institutional investors. But, various folks (including my son) have complained the minimum was exclusionary. Therefore, we felt those who appreciate our approach and offerings (ideally, by doing their own research and due diligence) should have the ability to access the funds to their portfolio in an appropriate allocation.
What has come out of this? A lot more than just lowering our minimums. A number of the comments on the Board have mentioned that there still are transactions fees. As it pertains to Schwab/Fidelity/TD:
- Schwab/TD: Only opened up their No-Transaction Fee (NTF) platform to a select list of fund companies. We anticipate Schwab/TD will allow NTF platform for institutional class shares sometime in 2024 for the broader funs community in which we hope to participate.
- Fidelity: Good News/Bad News: We just moved all of our Funds to NTF on Fidelity’s platform. Good News: All of our funds now trade without any transaction fees at Fidelity. Bad News: This is only for institutional investors/advisors purchasing on behalf of their clients, and is not available for retail investors.
- Vanguard: Now this is great news. There are now NO TRANSACTION FEES for any investor that purchases through their retail platform.
They also continue to list it as closed to new investors.
I think someone mentioned in this forum about No transactions fees for mutual funds at Firstrade: retail or institutional class. Good to know that the big brokerages are leaning that way too. Definitely helps those that had lowered fees at TD and worry about migration to Schwab.