[AFA] Knowledge...Understanding

 Ancona Financial Advisors

What Your Stock Broker Costs You

3. Partial Illustration of Fees and Expenses at a Sampling of Mutual Funds

Asset Category Fund Name
Sales Charges (1) Annual Fees & Exp. (2) 5 Yr Avg Return (3)

US Large Cap Value Funds:

(Wachovia) Evergreen Lg. Value A

5.75%
1.16%
5.12%
Merrill Lynch Basic Value A

5.25%
0.82%
9.3
Legg Mason Amer. Leading Co. Prime
0

1.86

7.76

Morgan Stanley Value A

5.25%

1%

7.94 
(S. Barney)Consulting lg. Val.B
0
0.76

8.34 

Lord Abbett All Value A

5.75%
1.17% 

9.77

Fidelity Advisor Equity Value A

5.75%
1.2

8.54

Guardian (RS Core Equity A)

4.75%
0.91% 
4.32 
DFA US Large Cap Value

0
0.3%
12.6 

US Small Cap Value Funds:

Vanguard Small Cap Value Index

0%

0.23%

12.83
Merrill(Black Rock Opp.A)
5.25%
1.27%

8.7% 

DFA US Small Cap Value 0%
0.55%
18.81 

Foreign Small Cap Value Funds:

Morgan Stanley Intl Small Cap A

5.25%
1.8%
20.05%

Vanguard Int'l Fund

Asset Class
Not
Offered
Dreyfus Founders Passport A

5.75%
2.14%
20.86%
Amex(RiverSource Intl.Sm.Cap A)

5.75%
1.94%
n/a
DFA Intl. Small Cap Value 0%
0.75%
30.25%

(1) includes up-front "A" and deferred "B" sales commissions
(2) Fund Management fees and estimated operating costs
(3) Average annual trailing returns

Data Source: Morningstar.com January 15, 2007

4. Illustration of How Management Fees and Expenses May Cost You Your Nest Egg

Amount Invested Today: $100,000
Holding Period 20 years
Annual Rate of Return 10%
Annual Fees and Expenses
(2%)
Sales Commission (load) (5%)
Value at End of 20 years $442,791
Cost of Loads and Expenses $229,959 <--34% of your money LOST

 

$672,750

$196,321 fees & expenses $229,959 commissions, fees & expenses

$442,791
10% Annual Return
20 years
Subtract 2% Annual
Fees & Expenses
Subtract Annual
2% Fees & Expenses,
and 5% Commissions


  1. The American Institute of Certified Public Accountants Explains Where You Should Look
  2. Costs of Market Timing and Stock Picking Make Sustained Outperformance Impossible
  3. Partial Illustration of Fees and Expenses at a Sampling of Mutual Funds
  4. Illustration of How Management Fees and Expenses May Cost You Your Nest Egg