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

Finally, this is the last of the six-part series detailing 18 mutual funds available in my 401(k) plan. (There are actually more funds to choose from, but other funds didn't have public information available for them, so I ignore them.) In the coming days (hopefully tomorrow!) I will post how I personally rank these funds in respect to each other and which funds I chose to allocate my 401(k) contributions to.

Vanguard Total Bond Market Index Signal VBTSX

Started In: 2006
Load: No
Yield: 5.02%
Annual Turnover: 64%
Size: $56 billion
Expense Ratio: 0.11%
Cost: $35 per $10,000 over 3 years
MS Stars: NR
Stewardship: B
Category: Intermediate-Term Bond
Management: Kenneth Volpert has been its manager since inception at the end of 2006
Performance: The fund has no performance history to speak of, but it is showing some promising signs.
Lipper: The Fund seeks to generate returns that track the performance of the Lehman Brothers Aggregate Bond Index, and will maintain a dollar-weighted average maturity consistent with that of the index. The Index measures investment-grade, taxable fixed income securities in the U.S.
Comments: It invests into US Treasuries (24%), Mortgage Pass-Thru (37%), and US Corporate (18%). It has 11068 holdings.

Western Asset Core Bond Institutional WATFX

Started In: 1990
Load: No
Yield: 5.25%
Annual Turnover: 432%
Size: $7 billion
Expense Ratio: 0.47%
Cost: $151 per $10,000 over 3 years
MS Stars: 4
Stewardship: NR
Category: Intermediate-Term Bond
Management: The fund has 5 experienced managers, 3 of whom have managed this fund since its inception. A lot of analysts support these managers.
Performance: This fund hasn't had a bad year as far as I can tell (since 1997). Although the returns aren't exactly stellar, the overall performance is good considering the steady growth. The fund has 10-year return of 6%, 5-year return of 4.8%, and 3-year return of 3.9%. This performance has earned ranks of #9, #29, and #58, respectively.
Strategy: In general, the fund is more aggressive than most of its peers. For example, management makes bolder duration adjustments (plus or minus 20% of its benchmark's duration) than many of the category's more conservative offerings. It also takes on added credit risk on occasion. Overall, though, it is a true core bond holding, with a focus on investment-grade bonds and a broadly diversified portfolio.
Lipper: The Fund seeks to maximize total return, consistent with prudent investment management and liquidity needs, by investing in a broad range of fixed income securities, to obtain the average duration specified for the portfolio. Assets growth has exploded since 2003.
Comments: This fund is an MS Analyst Pick. It has 36% in Cash, 56% in Bonds, and 9% in Other. The fund shorts a significant portion of the assets. It invests in AAA (80%) and BBB (11%) bonds; 35% in Mortgage Pass-Thru, 9% in Mortgage CMO, and 17% in US Corporate. It has a total of 1671 holdings with 53% of assets in top 10 holdings. This one can be considered to be a part of the portfolio due to its steady growth and high-quality management. Although it lagged category peers in 2007, it seems poised for a good run in 2008 with Fed further cutting interest rates,

Western Asset Inflation Indxd Plus Bd WAIIX

Started In: 2001
Load: No
Yield: 4.77%
Annual Turnover: 96%
Size: $0.76 billion
Expense Ratio: 0.25%
Cost: $89 per $10,000 over 3 years
MS Stars: 4
Stewardship: NR
Category: Inflation-Protected Bond
Management: Four seasoned managers have led since inception.
Performance: 5-year return is 6.8% which earns this fund a #9 rank among peers. In 2007 it returned 10.2%.
Lipper: The Fund seeks to maximize total return by investing primarily in inflation-indexed fixed income securities issued in the United States. The average modified duration of the Portfolio is expected to range within 3 years of that of its benchmark, the Lehman Brothers Treasury Inflation Notes Index.
Comments: Almost 10% in Cash. No stock holdings, 90% in Bonds with 11% being shorted. 95% of all bond investments are AAA. Invests into US Treasuries (15%) and TIPS (63%). Seems to be a steady-growing fund, although performance history isn't as extensive as I'd like it to be.

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