anyone convert PONAX to PIMIX at Fidelity?

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SpideyIndexer
Posts: 379
Joined: Thu Apr 02, 2015 10:13 pm

anyone convert PONAX to PIMIX at Fidelity?

Post by SpideyIndexer » Mon Apr 23, 2018 2:04 pm

I have had a fairly small percentage of my bond allocation invested in PONDX (PIMCO income fund D class) in a couple of retirement accounts at Fido. PIMCO has done away with D class so these were converted to A class which has a slightly high ER. I would like to convert the holdings to PIMIX, the institutional class for its lower ER though that may entail consolidating the holdings into one account as there is a 100K minimum on PIMIX purchases. It seems difficult to get a straight answer from the Fidelity reps if this can be done without any fees. Does anyone have any information on this?

Since I may not be able to do in-kind transfers to or from one of the accounts, my play is to do some buys and sells to reach 100K of PONAX in one account, then have the PONAX shares converted to PIMIX.

CRTR
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by CRTR » Mon Apr 23, 2018 3:35 pm

Funny you should ask/post this today. I sent a message to my Vanguard rep with the same question. For whatever reason, the minimum purchase of PIMIX in a Vanguard brokerage account is only $25k. I'll let you know as soon as I get word back.

rongos
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by rongos » Mon Apr 23, 2018 3:51 pm

With regard to your buying and selling of PONAX, the front load fee for PONAX is supposed to be waived for all future purchases in your accounts that had PONDX. Accounts that had PONDX converted to PONAX are supposedly grandfathered in to this privilege. Whether Fidelity implemented this fee waiving correctly is a question I can't answer. For example, at another brokerage where I held PONDX, I can see that the front load is clearly indicated as waived when I go through the purchase dialogue, but I don't see the same at Fidelity. Also, PONAX is a NTF ("No Transaction Fee" fund) at Fidelity, so you don't have to worry about that.

SpideyIndexer
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by SpideyIndexer » Tue Apr 24, 2018 1:01 pm

I see the following on Fidelity's site: PONAX is NTF but has a 3.75% front end load with a 2.5K minimum to invest. PIMIX has a $50 TF, no load, with a 100K minimum to invest.

Share class conversions usually require a discussion with a rep and may require further communication between Fidelity and PIMCO. I believe the Fidelity rep had previously mentioned the front end load waiver for accounts holding converted PONAX shares. But I haven't verified this with a purchase.

SlowMovingInvestor
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by SlowMovingInvestor » Tue Apr 24, 2018 1:10 pm

rongos wrote:
Mon Apr 23, 2018 3:51 pm
With regard to your buying and selling of PONAX, the front load fee for PONAX is supposed to be waived for all future purchases in your accounts that had PONDX. Accounts that had PONDX converted to PONAX are supposedly grandfathered in to this privilege. Whether Fidelity implemented this fee waiving correctly is a question I can't answer. For example, at another brokerage where I held PONDX, I can see that the front load is clearly indicated as waived when I go through the purchase dialogue, but I don't see the same at Fidelity. Also, PONAX is a NTF ("No Transaction Fee" fund) at Fidelity, so you don't have to worry about that.
It shows me 'offered load waived through Fidelity' for PONAX', although I don't think I had ever held PONDX at Fido. I am Fidelity Private Client, but I doubt that makes a difference ..

abner kravitz
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by abner kravitz » Tue Apr 24, 2018 1:29 pm

SlowMovingInvestor wrote:
Tue Apr 24, 2018 1:10 pm
rongos wrote:
Mon Apr 23, 2018 3:51 pm
With regard to your buying and selling of PONAX, the front load fee for PONAX is supposed to be waived for all future purchases in your accounts that had PONDX. Accounts that had PONDX converted to PONAX are supposedly grandfathered in to this privilege. Whether Fidelity implemented this fee waiving correctly is a question I can't answer. For example, at another brokerage where I held PONDX, I can see that the front load is clearly indicated as waived when I go through the purchase dialogue, but I don't see the same at Fidelity. Also, PONAX is a NTF ("No Transaction Fee" fund) at Fidelity, so you don't have to worry about that.
It shows me 'offered load waived through Fidelity' for PONAX', although I don't think I had ever held PONDX at Fido. I am Fidelity Private Client, but I doubt that makes a difference ..
I went to the PONAX page from Fidelity without logging in, and it says "offered load waived", so I assume it is waived for everybody.

I was always very happy with PONDX (now PONAX). Pretty high expense ratio, but it has pretty much always outperformed the indices. Of course, past performance is not a guarantee etc etc.

brokendirtdart
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by brokendirtdart » Tue Apr 24, 2018 6:37 pm

CRTR wrote:
Mon Apr 23, 2018 3:35 pm
Funny you should ask/post this today. I sent a message to my Vanguard rep with the same question. For whatever reason, the minimum purchase of PIMIX in a Vanguard brokerage account is only $25k. I'll let you know as soon as I get word back.

I did this a couple of years ago with Vanguard. While it was PONDX to PIMIX vs PONAX to PIMIX, it was a painless five minute phone conversation to convert. PIMIX showed in my account a couple business days later.

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WoodSpinner
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by WoodSpinner » Wed Apr 25, 2018 9:23 am

SpideyIndexer wrote:
Mon Apr 23, 2018 2:04 pm
I have had a fairly small percentage of my bond allocation invested in PONDX (PIMCO income fund D class) in a couple of retirement accounts at Fido. PIMCO has done away with D class so these were converted to A class which has a slightly high ER. I would like to convert the holdings to PIMIX, the institutional class for its lower ER though that may entail consolidating the holdings into one account as there is a 100K minimum on PIMIX purchases. It seems difficult to get a straight answer from the Fidelity reps if this can be done without any fees. Does anyone have any information on this?

Since I may not be able to do in-kind transfers to or from one of the accounts, my play is to do some buys and sells to reach 100K of PONAX in one account, then have the PONAX shares converted to PIMIX.
I took this approach as well but already had the initial investment funds available. No complaints and I was happy to be able to continue holding this investment—at a better ER.

WodSpinner

CRTR
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by CRTR » Wed Apr 25, 2018 8:29 pm

brokendirtdart wrote:
Tue Apr 24, 2018 6:37 pm
CRTR wrote:
Mon Apr 23, 2018 3:35 pm
Funny you should ask/post this today. I sent a message to my Vanguard rep with the same question. For whatever reason, the minimum purchase of PIMIX in a Vanguard brokerage account is only $25k. I'll let you know as soon as I get word back.

I did this a couple of years ago with Vanguard. While it was PONDX to PIMIX vs PONAX to PIMIX, it was a painless five minute phone conversation to convert. PIMIX showed in my account a couple business days later.
I'm happy to report that nothing has changed! Converted share class this AM with a short phone call. Wish I had done so >6 years ago when I first bought the fund although, in my own defense, I thought the minimum purchase, per the prospectus, was $1000k . . . didn't know Vanguard had a special deal. Don't see why it would be much different at Fidelity . . .

SpideyIndexer
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Re: anyone convert PONAX to PIMIX at Fidelity?

Post by SpideyIndexer » Thu May 10, 2018 1:15 pm

Guess no one did it at Fido.

SpideyIndexer
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Joined: Thu Apr 02, 2015 10:13 pm

Re: anyone convert PONAX to PIMIX at Fidelity?

Post by SpideyIndexer » Thu May 10, 2018 1:39 pm

Guess no one did it at Fido.

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