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PRIMECAP Odyssey Aggressive Growth Fund to close to new investors

edited January 2014 in Fund Discussions
http://www.sec.gov/Archives/edgar/data/1293967/000089418914000157/primecap_497e.htm

PRIMECAP ODYSSEY FUNDS

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SUPPLEMENT DATED JANUARY 13, 2014 TO THE
PROSPECTUS DATED FEBRUARY 28, 2013

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This supplement provides new and additional information that affects information contained in the Prospectus and should be read in conjunction with the Prospectus.

Effective January 20, 2014, the PRIMECAP Odyssey Aggressive Growth Fund (the “Aggressive Growth Fund” or “Fund”) will be closed to most new investors. PRIMECAP Management Company (“PRIMECAP”), the Fund’s investment advisor, believes that it is in the best interest of the shareholders of the Aggressive Growth Fund to reduce the amount and pace of investments into the Fund. In addition, in most cases you will not be permitted to exchange shares of another PRIMECAP Odyssey Fund into the Aggressive Growth Fund unless you are already a shareholder of the Aggressive Growth Fund.


You may continue to purchase shares of the Aggressive Growth Fund, or open a new account to do so, only if:
- You are an existing shareholder of the Aggressive Growth Fund (either directly or through a financial intermediary) and you:

o Add to your account through the purchase of additional shares;

o Add to your account through the reinvestment of dividends or capital gain distributions;

o Open a new account that is registered in your name or has the same taxpayer identification or social security number assigned to it as an existing Fund account (this includes UGMA/UTMA accounts with you as custodian). This applies only to individuals or organizations opening accounts for their own benefit. It does not apply to institutions opening accounts on behalf of their clients, except as follows: institutions that maintain omnibus account arrangements with the Aggressive Growth Fund may purchase shares of the Aggressive Growth Fund in their omnibus accounts for clients who currently own shares of the Aggressive Growth Fund through such accounts.

- You are a separately managed account client of PRIMECAP.

- You are a participant in a qualified defined contribution retirement plan (for example, 401(k) plans, profit sharing plans, and money purchase plans), 403(b) plan, or 457 plan that invests through existing accounts in the Fund (each, a “Plan”). A Plan may open new participant accounts within the Plan. IRA transfers and rollovers from a Plan can be used to open new accounts in the Aggressive Growth Fund. PRIMECAP also may selectively allow new retirement plan accounts to invest in the Fund, but it reserves the right without further notice to restrict purchases by retirement plans that did not previously own shares of the Fund.

- You are a current trustee or officer of the Aggressive Growth Fund, or an employee of PRIMECAP, or a member of the immediate family (spouse or child) of any of these persons.

- You are a client of an investment advisor that invests client assets in the Funds.


Once you close an account with the Fund, the Fund will not accept additional investments from you unless you meet one of the specified criteria above. PRIMECAP reserves the right to: (i) make additional exceptions that, in its judgment, do not adversely affect its ability to manage the Aggressive Growth Fund; (ii) reject any investment or refuse any exception, including those detailed above, that it believes will adversely affect its ability to manage the Aggressive Growth Fund; and (iii) close and re-open the Fund to new or existing shareholders at any time. You may be required to demonstrate eligibility to buy shares of the Aggressive Growth Fund before an investment is accepted.


The PRIMECAP Odyssey Stock Fund and PRIMECAP Odyssey Growth Fund remain open to all investors, and you may purchase shares of those Funds at any time.


* * * * *
Please retain this supplement for future reference.

Comments

  • Thanks shadow this fund is on my buy list...now I need to act.
  • Reply to @bee: Let's just hope this fund doesn't turn into another VHCOX and swell with AUM.
  • Reply to @bee:
    Indeed a good move. I bought this for my kids' IRAs last year - just a toe in - fearing this would happen. I will be adding to their accounts (although I don't like the run-up price right now.) Some folks comment on the ages of the managers, but I believe they have a succession plan in place, somewhat like Tweedy, and Matthews as well. Do you concur?
    Also got them Artisan Global Value ARTGX at the same time for the same reason.
  • Reply to @bee: I didn't follow Weiner's advice before the Vanguard version closed but I invested when the Primecap Odyssey funds opened and have not been disappointed by their performance since. Have recently had some concerns with the death of one manager and announced retirement of another so will be monitoring for any impacts going forward.
  • Reply to @sligo: Much of their success is being invested in the right sectors, namely healthcare & technology.
    regards,
    Ted
  • ted's right. in my portfolio, i largely count it as part of my heathcare holdings.
  • Seems like it is already too late for it to be able to carry on with the same investment profile....I don't think that this is going to stem the flow of assets that much...granted it has a lower turnover strategy...it jsut can't take meaningful positions in the microcap area like it did earlier on.
  • beebee
    edited January 2014
    Reply to @Heathbob: Do you have any favorites in the micro space.

    I own BUFOX which seems to focus on the tech sector...

    Another impressive microcap fund is Essex Sml / Micro, MBRSX, focuses a bit more on healthcare sector and is off to another strong start.

    Also, Manager's Micro, MMCFX, Industrial/Tech focus.
  • I've wanted to invest in this fund for a long time. But I've put it off because I was waiting for a market decline. So I put some money in it today while I still have the opportunity. Now that I'm in, the market will probably crash! My market timing efforts have always resulted in my adding a little at the top and selling a little at the bottom. Oh well.
  • edited January 2014
    Reply to @bee: Regarding micro caps, I probably have too many and too much overlap but many of mine are closed with a few still open. I have a foothold in some of the following except others available:

    closed:BUFOX, BRUSX, WSCVX, FRMCX
    open: TMCGX, SATMX, AUMIX, AMCIX, BRSIX, WMICX, WAMVX, PVFIX
    others available: OBMCX, PRCGX/PREOX , PDFDX, HRTVX, DMCRX, ANCIX/ANCCX, LMIYX/LMVYX, IGWAX/IGWIX, THBVX, WEMMX, MIMFX/MMCFX

  • Reply to @TheShadow: Thanks Shadow...nice list to explore.

    Now Ted has me chasing down nano caps...linked here.

    How many dozens of these do you own?
  • edited January 2014
    Reply to @bee: Can't say I own any of the nano cap companies listed. That is why I let the M/F professionals handle my $$$. Wouldn't mind investing in a nano cap fund if one were available. It wouldn't be open for long. I do subscribe to the Bowser Report as it has some interesting companies and research.
  • Reply to @hawkmountain: It's been a long time. Glad to see you're still hanging in there.
  • Reply to @Mark:
    I'm around...took a while for this old brain to transition to MFO. Glad you saw me.
    Off to Chili, the Horn, Antarctica, Falklands...get an idea of Minnesota maybe LOL
    How dem puppies?
    best, hawk
  • Reply to @hawkmountain: You know all too well they are the loves of my life but I did lose my best, Kodiak, to cancer a little over a year ago. Bryson, the new pup, picked up right where Kodiak left off so life is good.

    Have fun on your trip. It sounds exciting. I'll be headed to Australia this year to visit with daughter and her boyfriend. The kicker - he's paying and the trip includes Springsteen tickets.
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