gsgarcia1 wrote:I just need a quick double check on something, please.
I am helping my father in law with consolidating his two 403b's and one 457 into a simpler plan, likely with VG. One of his 403b's is administered by Nationwide and I want to make sure I am reading this correctly:
American Funds Growth Fund American R5 (RGAFX)
Gross Expense Ratio: .39% (not bad)
Net Asset Fee: 1.19 %
YTD performance (as of 12/31/2012): 19.32 %
The .39% expense ratio is already included in the return (and Morningstar confirms that this is the expense ratio). I'm not sure whether the 1.19% is included, but I would expect that it is not, as the return would be the return reported by American Funds.
Morningstar says that the fund has a 20.92% return in 2012, which would be 19.48% after a 1.19% fee.
Regardless of how returns are calulated, the fee is the 0.39% cost imposed by American plus the 1.19% imposed by the plan provider, and that is 1.48%.
2)True or False: The Gross expense ratio is charged by American funds to administer that particular fund ?
3) The Net Asset Fee is charged by Nationwide for their administering that fund as part of the 403b plan?
These are both correct.