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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25318  
Subject: Re: 401k questions Date: 4/18/2012 12:11 PM
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I guess the rates aren't that bad. These are the rates posted on Fidelity's site. Not sure why they are different from morningstar.

It's because you're getting the institutional rates rather than the retail rates.

There are economies of scale in dealing with millions/billions of dollars in a large company's 401(k) plan as opposed to a few hundred or thousand dollars in an individual's IRA. That's why big company 401(k)s get better deals than small company 401(k)s. Additionally the retail rates generally have signficantly higher advertising/marketing costs that need to be covered, in comparison to the funds that are being managed - the institutional funds have very little advertising or marketing that they have to pay for.

They do offer another fund called Intech Large Cap Growth that seems to do well but I can't find a rating on it anywhere. Here is the summary:

The Fund invests in Large Company Growth stocks. INTECH utilizes a mathematical investment process, which seeks to build a potentially more efficient portfolio than its benchmark, the S&P 500/Citigroup Growth Index (formerly known as the S&P 500/Barra Growth Index). This process does not attempt to predict the direction of the market, nor does it have a particular view of any company in the portfolio. Instead, the process uses the relative volatilities of the individual stocks as well as their correlation (or relationship to one another) to build a portfolio that attempts to outperform the index without increasing relative risk. Unit price and return will vary.


It also says the expense ratio is 0.00% which doesn't seem feasable. Any thoughts on this?


It's a hedge fund.

While it may not give an expense ratio, you can derive it from their website https://ww3.intechjanus.com/Janus/Intech/intech?tabSelected=...

Subtract the 'returns net of advisory fees' from the 'returns gross of advisory fees' - the difference is the fee expense rate.

Funds can choose to absorb part/all of the expenses, depending on their deal with the adminstrators, so a 0% ratio is possible.

AJ
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