A Response from USAA
I've been writing a lot about USAA mutual funds lately and now that I re-read my posts, I realize that they seem negative. Let me say, that I've banked and have been insured with USAA for over four years and I think they are great. If they apply that same customer loyalty with their mutual funds, then I would definitely recommend the USAA mutual funds. I recommend checking out all mutual funds including the ones USAA offers.
My main opinion comes from a quick search through Morningstar's mutual fund screener. Here are the details that I picked:
Hi, my name is Lisa Alexander and I am Assistant Vice President of Product Management at USAA. I saw your blog and just wanted to send a note of clarification. Of the USAA mutual funds rated by Morningstar, 16 carry 4 or 5 stars overall as of March 31, 2007. The three-year rating carries the most weight in Morningstar’s formula determining a funds overall rating and we use that as a key measure of USAA’s progress.
Additionally, since you mentioned USAA’s First Start Growth Fund, it’s important to note that the expense ratio is capped so that it does not exceed 1.38%. USAA Investment Management Company, the Fund’s advisor, bears the expense beyond that point (the difference between 1.38 and 2.21% as of March 31, 2007).
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Ratings are based on risk adjusted returns.
Let me know if you have any questions in the future and I’d be happy to help!
My main opinion comes from a quick search through Morningstar's mutual fund screener. Here are the details that I picked:
- Expense Ratio - Less than or equal to .5%
- Star Rating - Equal to five stars
- YTD Return - Greater than category average
- 1 Year Return - Greater than category average
- 3 Year Return - Greater than category average
- 5 Year Return - Greater than category average
- 10 Year Return - Greater than category average
I found 41 mutual funds that meet this category. USAA didn't have any listed on there. This quick search criteria is based on what I would search for. This isn't recommended for everyone.
Here is some information that Lisa Alexander has left me.Hi, my name is Lisa Alexander and I am Assistant Vice President of Product Management at USAA. I saw your blog and just wanted to send a note of clarification. Of the USAA mutual funds rated by Morningstar, 16 carry 4 or 5 stars overall as of March 31, 2007. The three-year rating carries the most weight in Morningstar’s formula determining a funds overall rating and we use that as a key measure of USAA’s progress.
Additionally, since you mentioned USAA’s First Start Growth Fund, it’s important to note that the expense ratio is capped so that it does not exceed 1.38%. USAA Investment Management Company, the Fund’s advisor, bears the expense beyond that point (the difference between 1.38 and 2.21% as of March 31, 2007).
The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Ratings are based on risk adjusted returns.
Let me know if you have any questions in the future and I’d be happy to help!
Labels: usaa
posted by Money for Military at 2:49 AM
2 Comments:
your link to TMF is broke...
The Motley Fool link is working.
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