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Explorer ○

FPIVX-Reorganization into a New (non-FPA) Family?

Hello all. I am a shareholder in FPA Intl Value, and have been since 2014. Despite the ER, it seems to be holding its own in an out of favor category. I enjoy the shareholder letters and their selection discipline/explanations. Regardless, recently I received a letter saying it was being put to a shareholder vote if the fund would migrate to a newly created fund investment company, Datum One Series Trust. In turn, if it is approved, a Phaeacian Partners LLC will be the fund investment adviser, which is a subsidiary of one Polar Capitol Holdings, which the current FPIVX portfolio manager is part owner. 

The letter expressly states this potential transfer will be tax free, NAV will be the same, and the investment style will be "substantially simliar". NO word on if the expense

I have heard of fund managers striking out on their own and forming a new fund, but this appears to be a move of a fund to a newly created fund family. 

Should I sell? Please chime in if you hold FPIVX and let me know if my interpretation is wrong.

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8 Replies
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Frequent Contributor

Re: FPIVX-Reorganization into a New (non-FPA) Family?

UK's Polar Capital has acquired FPA's international and global value equity teams/business and formed a new joint venture Phaecian Partners.

https://citywireusa.com/professional-buyer/news/fpa-international-equity-team-set-to-join-polar-capi...

https://portfolio-adviser.com/polar-capital-acquires-global-value-team-from-little-known-us-boutique...

YBB
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Frequent Contributor

Re: FPIVX-Reorganization into a New (non-FPA) Family?

Did you receive this notice?

STATEMENT OF ADDITIONAL INFORMATION FPA PARAMOUNT FUND, INC.( FPRAX)

I think the expense is 1.35%

https://fpa.com/funds/overview/international-value

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Highlighted
Explorer ○

Re: FPIVX-Reorganization into a New (non-FPA) Family?

Yogi- your links were very helpful in seeing the machinations behind this move. Thank you.GT

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Explorer ○

Re: FPIVX-Reorganization into a New (non-FPA) Family?

FatKat-thanks for the info and link. I confess I must have missed the SAI in all my covid updates. If you are a shareholder in FPIVX (or Paramount)- are you sticking or bailing? GT 

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Explorer ○

Re: FPIVX-Reorganization into a New (non-FPA) Family?

You may want to look at MFO which had a discussion about the reorganization as well as an article this past April.

 

https://www.mutualfundobserver.com/2020/04/taking-the-polar-plunge/

 

This SEC filing link which shows the registration of the funds also came from MFO courtesy of the poster TheShadow:

 

https://www.sec.gov/Archives/edgar/data/1806095/000168386320003311/f3560d1.htm

 

 

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Frequent Contributor

Re: FPIVX-Reorganization into a New (non-FPA) Family?

@GranTorinoI had a small amount of FPA Paramount, (FPRAX). which I sold part of my RMDs for late 2017. Not sure I would keep, or sell it, since I hold little international and what I hold is a bit of a growth and blend mix, with one Vanguard fund. I think international is less important when you are well into retirement. My opinion would be biased, although i would not like paying higher expenses.

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Explorer ○

Re: FPIVX-Reorganization into a New (non-FPA) Family?

Thanks Mr. BB. I read MFO, but I did not click on the article because I thought based on the title it would not pertain to me or FPIVX. One should never count MFO (or The Shadow) out of the mix! GT

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Follower ○○

Re: FPIVX-Reorganization into a New (non-FPA) Family?

If you've been happy with the investment team and their unique approach, and subsequent performance, I would say don't sell. I would keep an eye on assets, but this change is essentially a new fund brand and parent company for this investment team. With the JV set-up, the team actually has more incentive for success

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