Permanent Portfolio Mutual Fund becoming like real Harry Browne PP?

[Indices]

Now that the Swiss Franc seems to be ending its time as a currency safe haven, perhaps it is time for the PP Mutual Fund to become more like the passively managed real permanent portfolio. The stock picking aspect of the mutual fund doesn't work as we all know, and the fund lacks LT treasuries. It also has a somewhat high expense ratio.

Is there a way we could convince them to change? The fund would almost certainly make more money over the long run and that would attract more investors as well.

[TripleB]

I think the better question is, can they legally change? Or are they required to hold what they've been holding all along as is delineated by their prospectus?

If you want them to open a new HBPP fund, then the way to do it is to take your money out of PRPFX. Once they have no customers, they will re-evaluate the market, learn of the opportunity in HBPP, and open a new fund.

[Jan Van]

I thought we peoples on this board were going to set up the real HBPP mutual fund (and ETF)... 

[Indices]

I thought we peoples on this board were going to set up the real HBPP mutual fund (and ETF)... 

If I had the money I would. Setting up a mutual fund/ETF is very difficult.

[Gumby]

I think the better question is, can they legally change? Or are they required to hold what they've been holding all along as is delineated by their prospectus?

If you want them to open a new HBPP fund, then the way to do it is to take your money out of PRPFX. Once they have no customers, they will re-evaluate the market, learn of the opportunity in HBPP, and open a new fund.

The prospectus and SAI says they can only change the fund if they get shareholder approval. I'm not sure they'll want to do something that drastic until they have to. They are waiting to see what the Swiss really plan on doing with their currency over the next few months. The Swiss probably aren't going to commit currency suicide if push comes to shove.

Obviously it would be great if PRPFX became more like the 4x25. But, I don't think that will happen. At the moment, the confusing allocation of PRPFX makes it seem more complicated than it really is. It makes the fund seem like its doing something that nobody else can do. If the fund were a simple 4x25, there would be a lot of copycats, and it would be hard to justify the expenses that they want to charge.

If you listen to the PRPFX conference calls, there are analysts — whose job is to research PRPFX — who think that Cuggino is always making the right calls. They don't understand how PRPFX works — that's it's just a recipe that was invented years ago and never changes.

I think PRPFX wants to keep that complexity to make the management seem like something that deserves a premium.