New funds available in my 401k

Often times companies have people onboard specifically put there to make sure they’re getting the right allocations and options in their 401k plans. I know my company has a group that determines that. Why? I assume it is because people have sent emails to them about funds they’d like to be involved in, alongside fund managers sending them info enticing them to join the fund. I’m not privvy to the setup, but I’d imagine large companies can have a pretty substantial impact on a fund if they’ve got 50,000+ people with the option to invest in a fund.

On the flipside, I’m sure fund managers don’t mind having a group onboard that adds that kind of $$$ to their fund to draw more attention to it. Heck, there may even be some kickback setup between a big company and a fund manager to switch over to their fund… Either way, with it we ride the waves and choose what we’ve been given; and it’s not all bad. That’s pretty much all speculation, but probably carries some weight – if anyone has any more info on how that whole “shift” works, please let us know…

So as of last month our 401k options included:
ALMRX – (1.13% expense ratio, 29.12% YTD, 5 star Mid/Growth from Morningstar)
REREX – (0.83% expense ratio, 19.07% YTD, 4 star Large/Blend from Morningstar)
PRFDX – (0.69% expense ratio, 2.34% YTD, 3 star Large/Value from Morningstar)
PEXMX -(0.40% expense ratio, 4.55% YTD, 4 star Mid/Growth from Morningstar)
GSHIX – (0.75% expense ratio, 3.28% YTD, 5 star Mid/Value from Morningstar)
PRGFX – (0.70% expense ratio, 8.31% YTD, 4 star Large/Growth from Morningstar)
TRMCX – (0.80% expense ratio, 1.85% YTD, 4 star Mid/Blend from Morningstar)
MSSMX – (1.26% expense ratio, 5.04% YTD, 4 star Small/Growth from Morningstar)
PTRAX – (0.68% expense ratio, 6.87% YTD, 5 star from Morningstar)
TRRIX – (0.56% expense ratio, 5.37% YTD, 4 star Large/Blend from Morningstar)
TRRAX – (0.63% expense ratio, 5.92% YTD, 4 star Large/Blend from Morningstar)
TRRBX – (0.69% expense ratio, 6.17% YTD, 4 star Large/Blend from Morningstar)
TRRCX – (0.73% expense ratio, 6.40% YTD, 4 star Large/Blend from Morningstar)
TRRDX – (0.74% expense ratio, 6.35% YTD, 5 star Large/Growth from Morningstar)
TRRMX – (RETIREMENT2050 N/A)
VIPSX – (0.20% expense ratio, 10.16% YTD, 4 star from Morningstar)

The new kids on the block are:
MPSCX – (0.81% expense ratio, 2.39% YTD, 4 star Small/Blend from MorningStar)
DODFX – (0.66% expense ratio, 11.09% YTD, 5 star Large/Value from MorningStar)
TMDIX – (1.17% expense ratio, 8.44% YTD, N/A from MorningStar)
VDMIX – (0.27% expense ratio, 12.32% YTD, 4 star Large/Blend from MorningStar)
VBMFX – (0.20% expense ratio, 5.46% YTD, 4 star from MorningStar)

So beginning on Nov1, our shakedown changed around a good part of my 401k allocation options. I was previously invested in:
(50%) ALMRX (1.13% expense ratio, 29.12% YTD, 5 star Mid/Growth from Morningstar)
(25%) REREX (0.83% expense ratio, 19.07% YTD, 4 star Large/Blend from Morningstar)
(25%) TRRDX (0.74% expense ratio, 6.35% YTD, 5 star Large/Growth from Morningstar)

But with the new elections, they dumped my big dog Alger MidCap which accounted for 50% of my 401k and returned 29.12% so far this year! By far the biggest of ALL my choices! Why they got rid of it is beyond me; I’ve got an email in now inquiring about it. I’m considering staying in it just through a standard brokerage account – they’ve done really well for me over the 6 years I’ve been with them, and I really liked how they operated for me – MorningStar gave them a 5 star rating, the 1.13% expense ratio (I’m partial to expense ratios under 1.20% at most) always caught my eye, and being a MidCap was also in my favor as I’m still young, and can invest in a bit more risk there – I’d go MORE risky in SmallCap if we had decent ones in our choices, but the only one we (previously) had was MSSMX (1.26% expense ratio, 5.04% YTD, 4 star Small/Growth from Morningstar) which isn’t a horrible fund, but it’s far from great. One of the new kids on the 401k block is MPSCX (0.81% expense ratio, 2.39% YTD, 4 star Small/Blend from MorningStar) has really caught my eye though, and they’re going to see some starting time here in the rotation starting this month.

The new kids on the block spiced things up a bit for us, I hate losing ALMRX, but they’ve given us some good alternates that I’m excited to watch going forward. REREX has been good to me for a few years now too, so it’s going to stay in the loop. The new allocations I’ve decided are going to look like this:

(45%) DODFX – (0.66% expense ratio, 11.09% YTD, 5 star Small/Blend from MorningStar)
(30%) REREX – (0.83% expense ratio, 19.07% YTD, 4 star Large/Blend from Morningstar)
(15%) TRRDX – (0.74% expense ratio, 6.35% YTD, 5 star Large/Growth from Morningstar)
(5%) MPSCX – (0.81% expense ratio, 2.39% YTD, 4 star Small/Blend from MorningStar)
(5%) VDMIX – (0.27% expense ratio, 12.32% YTD, 4 star Large/Blend from MorningStar)

I like being strong in the foreign markets right now. My 2 big dogs (DODFX, and REREX) are both searching to cash in on foreign markets outside the US, but I’m keeping some of the $ home with TRRDX, and stepping into the SmallCap realm with MPSCX. I like how VDMIX has performed this year, and with an expense ratio at 0.27%, I feel bad leaving it out. It looks like a good fund and headed up. I don’t like the look of the US dollar right now, and it probably isn’t going to get any better in the near future, so I’m keeping a good chunk of my change overseas, for now anyway.

My expense ratio total was taking 0.90% of my pie and I’ve reduced that to 0.662%. Yea, it’s not much, but as per my last post about compound interest, it adds up and every bit counts when we’re looking to the future.

Filed Under: 401KInvestingMutual FundsNet WorthPortfolioRetirement