Skip to Content
Fund Spy: Morningstar Medalist Edition

These Medalists Are Closed but Left the Backdoor Open

You can get into these great funds if you really want to.

Mentioned: , , , , , ,

In recent years, fund companies have experimented with various ways of closing funds. One thing I’ve seen more often is funds closing their doors halfway: They close the fund to investors using fund super­markets but leave them open to those who invest directly with the fund company.

This really serves two purposes. First, it slows down the rate of inflows. Second, it leaves more profits for the fund company because it doesn’t have to pay a No Transaction Fee plan provider like Schwab or Fidelity the usual 35 basis points in fees. I don’t really mind the practice, except that whenever I write about those funds, some readers complain to me that the funds are closed because that’s what it says when you pull up the fund in the NTF supermarkets. So to clear the decks, I thought I’d write about a few of the very best funds in this camp. If you don’t already have an account with that firm, you’ve got to decide whether it’s worth the extra difficulty of having another account.

Russel Kinnel has a position in the following securities mentioned above: WAAEX. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.