My 401(k) Mutual Funds: Part 3 of 6

This is a third installment of a six-part series listing my reviews of mutual funds offered by my employer's 401(k) plan:

JPMorgan International Val I JNUSX

Started In: 1993
Load: No
Yield: 1.37%
Annual Turnover: 92%
Size: $1 billion
Expense Ratio: 0.94%
Cost: $319 per $10,000 over 3 years
MS Stars: 3
Stewardship: NR
Category: Foreign Large Value
Management: Gerd Woort-Menker has been managing it for 7 years now.
Performance: It has returned 11.8% in 2007, 20.8% over 3 years, 23.8% over 5 years, and 9.4% over 10 years. 3-year records ranks #4, 5-year record is at #10, and 10-year is at "whopping" #65. It was negative (double-digit negative) in 2000, 2001, and 2002.
Lipper: The Fund seeks to provide a high total return from a portfolio of equity securities of foreign companies.
Comments: Only 1.5% in Cash. The fund ignores Software, Hardware, Media, Healthcare, Consumer Services, Business Services, and Utilities, while concentrating on Financial Services (36%!), Consumer Goods (13%), Industrial Materials (15%), and Energy (12%). Invests in Giant (61%), Large (28%), and Medium (9%) companies. Is mostrly concentrated in UK, Japan, Germany, France, and the rest of Western Europe. Has a total fo 69 holdings and invested 31.7% in the top 10 holdings.

Morgan Stanley Inst Intl Growth Equity I MNWAX

Started In: 2005
Load: No
Yield: 0.81%
Annual Turnover: ?%
Size: $0.02 billion
Expense Ratio: ?%
Cost: $850 per $10,000 over 3 years
MS Stars: NR
Stewardship: NR
Category: Foreign Large Growth
Management: Has managed it since inception 2 years ago.
Performance: The fund is new, so it has only two full years of performance: 27.9% in 2006 and 15.2% in 2007, which are not overly impressive for its category.
Lipper: The Fund seeks long-term capital appreciation, with a secondary objective of income. Under normal market conditions, the Fund invests at least 80% of its assets in equity securities of issuers from at least three different foreign countries.
Comments: The fund is similar iin its sector weighing to the peers except for a larger stake in Energy. Only 0.3% in Cash, has no room for new picks without selling its current stakes. Investos in UK/Western Europe, Japan, and Asia ex-Japan. Has 72 holdings 21.5% investted in the top 10 holdings. Botoom line is that this fund is too new and way too expensive for the category-average returns.

Morgan Stanley Inst Mid Cap Growth I MPEGX

Started In: 1990
Load: No
Yield: 0.49%
Annual Turnover: 64%
Size: $3.4 billion
Expense Ratio: 0.63%
Cost: $202 per $10,000 over 3 years
MS Stars: 4
Stewardship: C
Category: Mid-Cap Growth
Management: Dennis Lynch has been in charge for the past 6 years. So, he's at least partially responsible for the impressive 5-year returns.
Performance: This fund lhas ost money in 2000, 2001, and 2002. 3-year return is 15.4%, 5-year return is 19.8%, and 10-year return is 11.3%, these return rank this fund #6, #4, and #18, respectively. So, it basically does really bad in the bear environment, although roars back quite well during bull times.
Strategy: This fund's team, led by Dennis Lynch, looks for mid-cap companies with defensible business models and high returns on capital that generate significant cash flow. The fund is fairly concentrated and is willing to go wherever its best stock ideas take it. That means it will often look and act differently from its benchmark.
Lipper: The Fund seeks above-average long-term return (primarily through capital appreciation) relative to broad market indices, and to returns of other managers of mid-cap growth portfolios, through investments in the common stock of small and mid-size companies that have the potential for superior long-term earnings growth. Last time fund's assets peaked was in 2001 and is currently at the highest point in the past 5 years, although still not quite at the 2001 level.
Comments: Has 5% in Cash. Compared with its peers, it has relatively large stakes in consumer services, business services and financial services and rather low stakes in hardware, health care and industrial materials. Invests in Large (19%) and Medium (78%) companies. Has a total of 57 hldings, with 30% of assets in the top 10. Most of the top 25 names don't get me all excited, although I can't say I'm familiar with them all. Managers do seem to be solid stock-pickers, so I will keep my mind open in regard to this fund. Although, I'm suspicious of anything that has done really well during the past 4-5 years. Everything that goes up must come down, right?

Full List of 401(k) Fund Reviews:
Introduction
Part 1 - American Funds Growth, DFA Emerging Markets Value, DFA U.S. Small Cap Value
Part 2 - Fidelity Capital & Income, Fidelity Contrafund, Fidelity Small Cap Independence
Part 3 - JPMorgan International Value, Morgan Stanley Inst Intl Growth Equity, Morgan Stanley Inst Mid Cap Growth
Part 4 - Oppenheimer International Bond, Third Avenue Real Estate Value, Vanguard Developed Markets Index
Part 5 - Vanguard Extended Market Index Signal, Vanguard Inst Total Stock Market Index, Vanguard Small Cap Index Signal
Part 6 - Vanguard Total Bond Market Index Signal, Western Asset Core Bond Institutional, Western Asset Inflation Indexed Plus Bond
My Fund Ratings
Fund Picks and Final 401(k) Allocation