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What's a Money Manager Worth?



November 16, 2011 – Comments (6)

Board: Macro Economics

Author: goofnoff

My company's 401K plan is managed by Fidelity. Fidelity offers us a series of funds and picking one is all the managing we get to do. Most of the funds are fidelity Funds but there are a few others. The funds cover the usual range of equity and bond choices.

They all have one thing in common.

Year to date, not a single fund that is offered is beating the SP 500 index.

Tell me again what a money manager is worth.

6 Comments – Post Your Own

#1) On November 16, 2011 at 10:53 AM, VExplorer (29.02) wrote:

I'm in the same boat (401K is managed by Fidelity). Unfortunately, I don't see any another option, it is a part of benefits package.

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#2) On November 16, 2011 at 11:19 AM, WikiCPA (35.64) wrote:

I was pretty startled by this post so I went to check out my funds in my 401(K) who also is managed by Fidelity. As of 11/11/11, the wells fargo growth fund is up 12.45% ytd...consumer staples is up about 6.45%. Isn't the S&P hovering below 2% ytd?

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#3) On November 16, 2011 at 12:33 PM, VExplorer (29.02) wrote:

WikiCPA, probably, list of available funds are depends on you plan. In my list I have had 31 funds total (20 are Fidelity funds) to select from. The wells fargo growth fund, for example, is not in my list.

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#4) On November 16, 2011 at 2:50 PM, GreenMartianX (< 20) wrote:

large cap was beating small cap ytd but this wasn't true until farily recently - think you ought to make conclusions based on 3 to 5 year returns, not ytd, but that's up to you

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#5) On November 16, 2011 at 4:26 PM, NajdorfSicilian (99.75) wrote:

1) bond funds shouldn't be compared to the S+P index,

2) Measuring anything over a 10-mo period is absurd,

3) Comparing any non-Large Cap funds to a Large-cap index is equally doltish.

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#6) On November 16, 2011 at 7:08 PM, VExplorer (29.02) wrote:

CryingofLot49, you are right. But problem is: options with 401k is limited. So it is an issue if you have not had another account "to add spices to your meal". For example, I'm using 401k to keep bonds market exposure and leaving stock positions for brokerage account.

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