| Actually, it's concerned me that Windsor is closed to new investors.
While people harp on the perils of the fund being over-subscribed, it
still means that Vanguard is no longer marketing the fund. There's a
great temptation for them to put the fund on auto-pilot, and just let
those captive 401K dollars roll in. If I were Vanguard, I'd put my
talent and energy on new funds that were likely to snatch investors and
market share from Fidelity, not on sleepers like Windsor.
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| re: .2
That's why you got to contantly watch how your fund is doing. When the
fund manager changes or the fund performance slides, it might be a
signal for you to consider to pull part or all of your money out.
As far as Windsor is concerned, it's really a disappointment. But, for
us DEC employees who gets into the 401K, what choices do we have? I
wish DEC can offer us more choices and use some of the better performing
funds instead.
Mike
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| You can see alotof complains in this Notes file. They are not only
about the choices of SAVE funds, but also about many other things
related to Investor Services. Almost all of these complains fell to
deaf ears. Maybe it's because there is no organized voice here.
Everybody are just acting on their own. But, I am sure there are enough
people who are willing to sign a petition. Let's take a poll here in
the Notes file to see how many people are interested in seeing more
change made. I for one would like to see more changes made to our SAVE
plan and Investor Services.
Mike
PS. BTW, I think this discussion should be moved to the DIGITAL_INVESTING
Notes file.
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| A few comments on selection of Windsor for a retirement plan.
First, the folks trusted with manageing retirement monies are expected to place
those monies in investment vehicles that will meet the stated objectives of the
plan, all the while demonstrating prudence in their practices. They are
legally responsible to prove that they are generally accepting no more risks
than are consistent with the plan's goals.
For those who want minimal risk, the plan offers insurance contracts. For
those are willing to accept the risks generally associated with equity
investing, a variety of funds are offered. The Windsor fund was selected as a
fund that invests in large companies. The Windor fund is generally accepted to
be a very well managed fund in that it meets the objectives in its prospectus
maintaining minimal capital risk and with very low management fees.
Clearly, you can get better returns from other vehicles. However, those
returns come at risk, marketing hype notwithstanding. Assuming that you want
the higher returns and that you want to stay within mutual funds, you will need
to very actively "manage" your investments. NO FUND is continually the "best"
fund. You would need to closely monitor the assets in each fund to assess the
expected performance as well as the relative safety. If you question this,
take a look at Kiplinger magazine. Each issue they rate the best funds over 1,
3 and 5 years and, although 1 or 2 funds stay at or near the top for a few
months, everything else floats all over the place. That, in our litiguous
society, is the kind of performance that gives pension fund managers nightmares
Since prudent investors have a diversified portfolio, diversified in risk and
return, use the 401K as the long term conservative portion of your retirement
portfolio.
re .0
>I'm trying to figure out some of the some of the pro's and con's of
>closed end funds. When a fund declares its intent to close to new
Often, a fund is closed to new investors due to its successful
performance. The publicity has caused so many new investors that the
manager is no longer able to meet the fund's stated objectives in the
prospectus. By closing the fund, the inflow of cash is more steady and
more manageable.
>investors, is this a good time to purchase shares, or are the share
Only if the fund still meets YOUR investment objectives.
>prices likely to be inflated just prior to the fund's closing to new
>investors??
No, since share prices are based on the Net Value of the fund divided by
the number of shares outstanding at the end of each day.
re Note 361.2
>Actually, it's concerned me that Windsor is closed to new investors.
>While people harp on the perils of the fund being over-subscribed, it
>still means that Vanguard is no longer marketing the fund. There's a
>great temptation for them to put the fund on auto-pilot, and just let
>those captive 401K dollars roll in. If I were Vanguard, I'd put my
>talent and energy on new funds that were likely to snatch investors and
>market share from Fidelity, not on sleepers like Windsor.
As long as the fund meets the objectives in the prospectus, what is the
problem? "Marketing" the fund not only does not have anything to do with
improving its worth, it actually adds to the cost of manageing.
re notes about complaining.
Just understand that some of us are not unhappy with the selection of funds
int the plan and would feel compleled to offer "attaboys" to offset your
complaints. :-)
That said, however, I would hope our IS managers would pay attention to well
thought out recommendations from the employees.
As always,
FWIW
Dave
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