New employer - roll over from 401k with CIT options?

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oslocal
Posts: 28
Joined: Sat May 21, 2016 5:30 pm

New employer - roll over from 401k with CIT options?

Post by oslocal » Wed Jan 10, 2018 4:52 pm

I'm considering a 401k rollover and would like some help in critiquing my options in my old plan - a CIT with multiple asset managers. Should I do the rollover or is what I have especially good?

My new employer who uses Schwab as their 401k provider.
The new 401k provides a few good options and a bunch of crappy ones (excluded):
Here are the good ones:
VRNIX - Vanguard Russell 1000 Index I - 0.08%
VIMAX - Vanguard Mid Cap Index Admiral - 0.06%
VSMAX - Vanguard Small Cap Index Adm - 0.06%
VTSNX - Vanguard Total Intl Stock Index I - 0.09%
VBTLX - Vanguard Total Bond Market Index Adm - 0.05%
Schwab PCRA with no annual fee (covered by employer).

My old 401k (about 25% of our overall portfolio) from Aon Hewitt has (other than retirement options) only the following limited choices - all CITs:
Short Term Fixed Income 0.002%
Intermediate Term Fixed Income 0.000%
US Equity 0.001%
Global Equity (roughly 50% US holdings) 0.048%

I'm currently 100% in the Global Equity fund since I prefer to underweight US equities and avoid MBS. It seems rather difficult to understand what the actual expense ratios are for the funds. It is a huge plan with 50,000 participants and $5B in assets. I'm worried that there are hidden fees at the asset manager level, although these may be paid separately by the employer.

What I dislike is the opaque nature of the investments and limited disclosure. It seems to beat (by a sliver) its blended benchmark for the last 5y, 3y, 1y metrics.

Turnover: 34.26%

Asset managers:
Manager - Benchmark - Allocation
Northern Trust - Russell 1000 - 21.14
Altrinsic - MSCI EAFE ND - 11.00
Capital Guardian - MSCI EAFE ND - 11.00
Artisan - MSCI EAFE Value ND - 11.00
Vanguard - MSCI EAFE ND - 10.56
Pimco* - S&P 500 - 9.80
Intech - Russell 1000 Growth - 6.86
Causeway - MSCI Emerging Mkts ND - 5.39
Harding Loevner - MSCI Emerging Mkts ND - 5.39
Cortina - Russell 2000 - 2.77
Fidelity - Russell 2000 - 2.77
Artisan - Russell Midcap Value - 0.69
Iridian - Russell Midcap - 0.69
Northern Trust - MSCI EAFE ND - 0.44
Northern Trust - MSCI Emerging Mkts ND - 0.22
Northern Trust - S&P 500 - 0.20
Northern Trust - Russell 2000 - 0.06
Northern Trust - S&P 400 - 0.03
Last edited by oslocal on Fri Jan 12, 2018 5:45 pm, edited 1 time in total.

oslocal
Posts: 28
Joined: Sat May 21, 2016 5:30 pm

Re: New employer - roll over from 401k with CIT options?

Post by oslocal » Fri Jan 12, 2018 5:43 pm

bump.

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