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  • Home>Research & Insights>Investment Insights>A Fund Family That's Taken a Lot but Delivered Little

    A Fund Family That's Taken a Lot but Delivered Little

    Stadion Funds has collected almost as much in fees as it has delivered in gains and income for more than a decade.

    Jeffrey Ptak, 10/17/2017

    Imagine a fund that's performed like this one has:

    Source: Morningstar Analysts.

    As you can see, it has badly lagged its category average and prospectus benchmark as well as the S&P 500 and Bloomberg Barclays U.S. Aggregate Bond indexes. In fact, it's barely beaten inflation over the 14-plus years of its existence, a low hurdle indeed.

    Now, what if I told you this fund has more than $650 million in assets and the firm behind it manages more than $3 billion in total? Or that the fund hauled in almost as much in fees ($115 million) as its shareholders reaped in income and gains ($160 million) over its lifetime, as shown below?

     Source: Morningstar Analysts.

    Would you believe me? "Nah," you’d say. "Can't happen. Not with passive funds eating active funds' lunch the way they have."

    But you'd be wrong.

    Wait, What?
    OK, so the above isn't a fund, singular. Rather, it's a composite (1) of funds from a single fund family--Stadion. But the numbers are real--the Stadion funds really have performed that poorly in aggregate over time. And the funds really have raked in those fees.

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