Flagship access to closed funds?

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SpringMan
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Flagship access to closed funds?

Post by SpringMan » Thu Mar 23, 2017 10:57 am

I recall PRIMECAP managed Vanguard funds being available to Flagship clients though they are closed to others. PRIMECAP core fund has no admiral shares, Cap Op, and PRIMECAP do. My recollection is there is a max of 25K per year allowed on the ones with admiral shares. Tried Vanguard's website and all I found was about this is "Access to select Vanguard mutual funds that are closed to other investors." I know I could call Vanguard and ask but first I wanted to check here. Also curious about availability of Vanguard Dividend Growth fund has recently closed too.
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myleaf
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Re: Flagship access to closed funds?

Post by myleaf » Thu Mar 23, 2017 11:01 am

I tried to get into the closed dividend growth but was told that fund was not available to Flagship. I was able to get into Primecap. I would be interested to know if Dividend Growth is now available.
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SpringMan
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Re: Flagship access to closed funds?

Post by SpringMan » Thu Mar 23, 2017 11:34 am

I tried out some scenarios on Vanguard's website. Dividend Growth is indeed closed to Flagship and comes up grayed out. PRIMECAPs are open to Flagship, but Cap Opp and PRIMECAP are limited to 25K per year. Looks like there is no max limit on PRIMECAP Core.
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Vanguard Fan 1367
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Re: Flagship access to closed funds?

Post by Vanguard Fan 1367 » Thu Mar 23, 2017 2:10 pm

To my regret I bought into Vanguard's Metals fund a few years ago when it was "closed". My Flagship status enabled me to lose some significant cash by buying that fund.

I have since become a Boglehead and wouldn't bother with Metals.

deeppizza
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Re: Flagship access to closed funds?

Post by deeppizza » Tue Mar 28, 2017 11:33 pm

I wonder if one were to gift someone a share of a closed fund (dividend growth, Primecap, etc...), would they then be able to purchase shares afterwords?

Rader
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Re: Flagship access to closed funds?

Post by Rader » Tue Mar 28, 2017 11:40 pm

I too want to purchase PRIMECAP so I have looked into this...
"A" share wouldn't work.... i think you need $3000 worth of share gifted to you, and if i remember correctly, has to be a non-retirement account...
Someone please correct me if I am wrong.

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Tyler Aspect
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Re: Flagship access to closed funds?

Post by Tyler Aspect » Tue Mar 28, 2017 11:44 pm

deeppizza wrote:I wonder if one were to gift someone a share of a closed fund (dividend growth, Primecap, etc...), would they then be able to purchase shares afterwords?
There is not much point in that. When an active managed fund becomes so large that it closes, then its composition would have to contain many large cap stocks, and trend toward a closet S&P 500 fund. In my opinion it is not a good idea to saddle your friends with such unwieldy funds.
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Re: Flagship access to closed funds?

Post by Vanguard Fan 1367 » Wed Mar 29, 2017 7:21 am

Tyler Aspect wrote:
deeppizza wrote:I wonder if one were to gift someone a share of a closed fund (dividend growth, Primecap, etc...), would they then be able to purchase shares afterwords?
There is not much point in that. When an active managed fund becomes so large that it closes, then its composition would have to contain many large cap stocks, and trend toward a closet S&P 500 fund. In my opinion it is not a good idea to saddle your friends with such unwieldy funds.
I agree. Vanguard is nice enough to let us buy the Total Stock Market or the S & P 500 fund and only charge .05% to do that with Admiral shares. As a Boglehead I think that is a better deal than the .33 percent charged for the Primecap Admiral Shares.

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TomatoTomahto
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Re: Flagship access to closed funds?

Post by TomatoTomahto » Wed Mar 29, 2017 7:33 am

I don't know if it's because we are Flagship or because we are grandfathered in, but we buy $25k, per account, of PRIMECAP. Our son, in an account that was opened before he turned 21, can also buy PRIMECAP. He has since turned 21, with his account now unassociated with us, so we will see if he's still grandfathered or not.

Flagship status doesn't pass down through family, does it?

PRIMECAP is the only active fund, other than quasi-active bond funds,that we own. It has done well enough for us to make the 0.33% ER acceptable.
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