Thursday, September 13, 2012

September 13, 2012....T. Rowe Price New Horizons Fund Closed at Schwab, Fidelity and Vanguard

September 13. 2012....Bob Brinker's latest Marketimer mutual fund recommendation has become quite controversial based on some of the mail and comments that I have received.

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.


Jim said...
This fund is closed at Schwab and Fidelity. Here is the reason I believe:

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.
Tried to buy new horizons via my vanguard account. IT IS CLOSED. Bob is getting very sloppy or careless. I don't think I will renew my newsletter come March 2013.
bobs victim said...
Here's a follow-up that's left me more than a little disappointed. I spoke to a T Rowe Price rep.and they told me that customers who use Vanguard or Fidelity cannot access the New Horizons fund. It is not like they are just temporarily closed to new investors but this has gone on for some time. They also told me that they were getting a lot of calls and complaints based on the Marketimer newsletter. I called the Marketimer office and  (they) were doing damage control sounding like they were caught flat footed. It makes me wonder whether Bob is even engaged at this point. This seems very sloppy and indicates poor attention to detail. These are not traits that make for good money management.

No comments: