For some strange reason, Brinker added T. Rowe Price New Horizon Fund (PRNHX) to his two equity model portfolios in spite of the fact that it cannot be purchased at Schwab, Fidelity and Vanguard.
Brinker recommended the Price Fund to replace Meridan Growth Fund (MERDX). He said that Meridian Fund has been a good performer but its founder, Richard Aster, Jr. passed away earlier this year, so he was "more comfortable" with the Price Fund..
I investigated and found that T. Rowe Price New Horizon Fund can be purchased directly from T. Rowe Price
Why would Brinker recommend a fund that cannot be purchased from Vanguard, Schwab or Fidelity? Here are some comments from people who have tried to buy this fund:
Chuck said...
This fund IS CLOSED to new investors...at least it is at Schwab.
This fund is closed to new investors. Only accounts which currently have a position in this fund may place a buy order at this time.
I think this fund is closed to new investors at Schwab and Fidelity because T. Rowe Price wants to closely monitor the inflows into this fund. This is a small-cap fund so size can become an issue fast. By making it only available directly through T. Rowe Price they can closely monitor who gets in and also allow more shares to be available for customers who have accounts directly with T. Rowe Price.
While this has been a fine fund, IMO Bob Brinker should have chosen another fund which is smaller in size. T.Rowe Price could close this at any time, and then he must find a replacement. I think anyone considering this fund should act fast.
bobs victim said...
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