Usually I only read the Prospectus for a fund, but I've heard that the SAI (Statement of Additional Information) can have more information about hidden fees and other policies that don't have to appear in the Prospectus. I decided to take a look at PRPFX's SAI today, and it's chock-full of information on how the fund works. The SAI tells us how the fund moves its money around. How it offsets taxes. How it calculates taxes. What kinds of trading techniques it can use. How the NAV is calculated. What kinds of things it can invest in (PFICs for example). What kinds of things the manager can and can't do without shareholder approval. etc.
So, I encourage everyone who owns some PRPFX to take a look:
http://www.permanentportfoliofunds.com/ ... 202011.pdf
There is a section on fees to Pacific Heights, the advisors of the fund. It's a bit confusing, but it seems that the language written in this section, and the size of the total assets managed, is what determines the expense ratio of the fund.
In any case, the SAI appears to have much more information about the inner workings of the fund than the Prospectus does.
Let's look at PRPFX's SAI
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Let's look at PRPFX's SAI
Last edited by Gumby on Fri Sep 09, 2011 7:56 am, edited 1 time in total.
Nothing I say should be construed as advice or expertise. I am only sharing opinions which may or may not be applicable in any given case.