Same fund, different expenses

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Tony-S
Posts: 64
Joined: Tue Sep 18, 2018 11:48 am

Same fund, different expenses

Post by Tony-S » Tue Jun 11, 2019 7:18 pm

My SO has T Rowe Price's Midcap Value fund in her work retirement managed by Nationwide. Its symbol is RRMVX. The prospectus also lists the retail investor class of this fund, TRMCX. But the fees are quite different:

TRMCX
Management = 0.64%
12b-1 = 0.00%
Other = 0.14%
Total 0.78%

RRMVX
Management = 0.64%
12b-1 = 0.50%
Other = 0.16%
Total 1.30%

I know 12b-1 is for operational expenses and advertisement but I don't understand why if you buy it from Price it's 0.00% whereas Nationwide it's 0.50%. I'd appreciate clarification from those of you in the know. TIA.

fabdog
Posts: 564
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: Same fund, different expenses

Post by fabdog » Tue Jun 11, 2019 7:21 pm

TRP is paying Nationwide .5% to distribute the fund. that's the 12b-1 fee...

Since Nationwide is running your SO's plan they are offering a share class that pays them, vs buying direct from TRP, they will sell you a share class that does not have the 12b-1

Mike

Topic Author
Tony-S
Posts: 64
Joined: Tue Sep 18, 2018 11:48 am

Re: Same fund, different expenses

Post by Tony-S » Wed Jun 12, 2019 7:47 am

OK, thanks for the clarification. Nationwide seems to be a terrible company for retirement plans. They have other selections but with similar fees and their S&P 500 Index fund also has high fees (and not very good performance).

Post Reply