Funds With High Fee Hurdles
These funds are Morningstar Medalists despite their relatively high expenses.
Fund Spy
Mentioned: Baron Growth Retail (BGRFX)
, Tweedy, Browne International Value Fund (TBGVX)
, AMG Yacktman I (YACKX)
, AMG Yacktman Focused N (YAFFX)
, PIMCO Short-Term A (PSHAX)
Expenses are one of the easiest factors for mutual fund investors to control. You can’t be certain how a fund is going to perform, but you can know exactly how much you’re paying for it.
Low fees help a fund’s Morningstar Analyst Rating, because they confer an advantage right off the bat over more-expensive counterparts. However, it’s possible for a fund to have strong people and processes despite high fees. Below are four funds that earn ratings of Bronze or Silver, even though each has a Negative Price Pillar rating. They have Positive Process, People, and Performance ratings, but their high price tags pose a higher hurdle to future outperformance.
Already a member? Sign in.
David Kathman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.