It looks like you're new here. If you want to get involved, click one of these buttons!
The Morningstar Peer Group for PRWCX is "Moderate Allocation No Load."
The lowest quintile fee level for this group is <0.50% while the expense ratio for PRWCX is 0.71%.
The Morningstar Peer Group for TRAIX is "Moderate Allocation Institutional."
The lowest quintile fee level for this group is <0.60% while the expense ratio for TRAIX is 0.59%.
Source: Morningstar Managed Investment Reports</blockquote>
Assuming there are no typos there, that's a curious though not impossible situation - institutional shares averaging a higher cost than retail shares. One possibility is that there might be some expensive funds offering only institutional class shares.
No matter. What these numbers represent is what M* calls "Morningstar Fee Level - Distribution". M* has three different fee level groupings, the other two being "Morningstar Fee Level - Broad" and "Morningstar Fee level - Variable Products". The question is which one Kinnel is using.
He writes only that FDIVX's ER of 0.65% takes it "into the cheapest quintile of its category" without further refinement. It's that terse description without more that tells us he is using M*'s "Broad" category grouping...
In its US Fee Level Methodology doc M* writes:TRAIX does not fail Kinnel's screen. The tool and database he is using fail to precisely execute that screen. It's a common problem when M* (or anyone else) uses tools mechanically.Morningstar Fee Level–Broad ranks funds using only the Morningstar category groupings as comparison groups to determine the rank of each fund. Morningstar Fee Level–Distribution, however, further isolates mutual funds with similar distribution channels and expense structures to create smaller comparison groups within each category grouping.
Here, the database semantics do not match his stated criterion of accessibility. The actual min, not the official min (what's in the database), determines whether a share class is accessible.
Consider PIMIX. $0 min, NTF at E*Trade. One can't get more accessible than that. But M*'s database says that you need $1M to play. So the tool fails to find PIMIX.
PONAX flunks the screen because, though its ER is in the lowest quintile of its distribution peers (higher cost front end load funds), its ER is too high relative to the fund's broad category (multisector bond) peers.
(Source: M* new screener)
Following your TRAIX price page link it seems I misread the price quintile score, which I had sourced from an earlier post by commenter @Observant1. However, that same Morningstar price page lists the "Min. Initial Investment" at $500,000.00, which explains why TRAIX failed Kinnel's screen.TRAIX management fee is 59 basis points, still not the lowest quintile. It would have to be below 50 basis points to qualify.
Source?
On the TRAIX M* price page is a bar graph divided into quintiles that labels the price of TRAIX as "low" (first quintile).
Personal finance master Jonathan Clements is turning his recent terminal cancer diagnosis into an important teaching opportunity on money and life.
Also,
Previous Clements interview:
Personal finance master Jonathan Clements is turning his recent terminal cancer diagnosis into an important teaching opportunity on money and life.
W/E September 6, 2024..... Weak equity = +++ returns for quality bondsMy intention, at this time; is to present the data for the select bond sectors, as listed; through the end of the year (2024). This 'end date' will take us through the U.S. elections period, pending actions/legislation dependent upon the election results, pending Federal Reserve actions and market movers trying to 'guess' future directions of the U.S. economy. As important during this period, are any number of global circumstances that may take a path that is not expected; and/or 'new' circumstances. In the 'cooking pot' we currently have the big ingredients of the middle east and also, how much damage Ukraine may inflict upon Russia and the response.
+1. Excellent.The typos in the cover essay have been corrected.
I'm in the East Valley, where Satan buys his hinges."Positions in FSUTX, GLIFX, and IYK have been keeping me cool during the long Arizona summer."
Don't know if you're in the Phoenix area, but Phoenix experienced 100 consecutive days
with temperatures over 100 degrees as of several days ago.
This shattered the previous record of 76 consecutive days set in 1993.
Stay cool!
@BaluBalu - “Not looking” is commendable. But you must take note of BRK’s price movement sometimes. How else could you have known it was down 3% yesterday? Here’s your post from a day ago:I do not track it daily or even yearly, though I have owned it for more than 15 years.
down nearly 3% today.
© 2015 Mutual Fund Observer. All rights reserved.
© 2015 Mutual Fund Observer. All rights reserved. Powered by Vanilla
