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2 Fine Global Funds Have Just Reopened

Closed since 2011, Silver-rated IVA Worldwide and IVA International are now available to new investors.

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IVA announced this week that IVA Worldwide and IVA International, both of which have been closed to new investors since 2011, have reopened. The move should not affect the managers' investment strategy, and the funds retain their Morningstar Analyst Ratings of Silver.

When the funds closed in February 2011, they and related vehicles, such as institutional accounts using the same strategies, had roughly $15 billion in assets. Comanager Charles de Vaulx said at the time that he and comanager Charles de Lardemelle thought the capacity of the strategies was actually significantly higher than that, but that in order to retain the ability to easily invest in small and midsize stocks and high-yield bonds, the pace of inflows needed to be slowed and growth was restricted to existing shareholders and capital appreciation.

As of June 30, 2018, the strategies had $17.7 billion, but de Vaulx says that outflows have increased substantially in 2018, requiring sales of stocks, which can have tax consequences for current shareholders. IVA wants to reduce that tax hit by using new inflows to offset the outflows and pay departing shareholders. Both funds have high cash stakes, but de Vaulx says using that money to pay departing shareholders would mean existing stock weightings would go higher than the managers want.

Morningstar.com does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.