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Soft Closure
Posted: 01 February 2013 19:53:20(UTC)

Joined: 11/03/2010(UTC)
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Today I received an email saying one of the funds (Troy Trojan Income) is "soft closing".

I can see this news in one of several ways ...

1. The manager is admitting that the fund is now bigger than s/he would like
2. The manager is doing really well and everyone is piling in

So - would people be inclined to sell, buy more or hold such a fund?

Thoughs appreciated

Clive B
Posted: 01 February 2013 23:30:07(UTC)

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As you probably spotted, soft closure usually means you can't avoid the initial commission (circa 4-5%) on purchase, so I probably wouldn't buy more unless the fund was beating the competition by at least that amount. As to sell/hold, I don't see soft closure comes into that decision, simply apply your normal criteria
Posted: 04 February 2013 16:28:28(UTC)

Joined: 05/10/2010(UTC)
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I agree that you should consider whether the fund fits your usual criteria in decisions about buying, selling or holding.
However, if you already hold it, I think you'll find that 'soft closure' doesn't apply to existing investors, so you can add to your position if you like without worrying about the large initial investment that creates 'soft closure'.
If you like this fund but haven't yet bought it, you have a chance now before it 'soft closes'.

A C Wiltshire
Posted: 04 February 2013 19:39:03(UTC)

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If you wish to add to your holding of this fund after the soft closure takes effect you can do so as an existing holder of the fund on the current terms. As far as I am concerned I intend to keep my holdings in this fund and am likely to add to my holdings in the future.
Posted: 04 February 2013 22:52:25(UTC)

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In this case the soft closure is achieved, I understand, by a minimum investment for new investors of £250,000.00 which would suggest that the reason is excess popularity rather than excess size.
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