The former belongs to TRP. The latter, to Voya. David Giroux's name is attached to both. And both carry the same name, with "Vy" added to the Voya fund. But there are differences in the two portfolios. Very small differences in performance, over time. The Voya fund charges a smaller ER, too.
What is the structure, here, with ITRIX? How are they different? Uncle David is moonlighting? How might one decide which one to choose, at the moment? (PRWCX is closed, I know.)
https://www.morningstar.com/funds/xnas/prwcx/quotehttps://www.morningstar.com/funds/xnas/itrix/quote
Comments
Yes, they are clones.
Voya offers PRWCX or its classes under its own wrappers/tickers ITRAX, ITRIX, etc (5 classes) so that it can set its own (higher) ERs - most for Voya 401k/403b. Another name for such funds may be feeder funds.
The distinction between feeder funds and share classes is one that only wonks would appreciate. Multiple share classes of a fund invest in directly the same underlying portfolio. Feeder funds are funds that invest in the same "master" fund that in turn invests in the target portfolio.
In contrast, rather than investing in the same underlying portfolio (either directly or indirectly), clone funds invest in different underlying portfolios which in turn are "nearly" identical copies of each other. They are distinct portfolios, and though usually managed by the same teams, may have slightly different holdings.
The Voya is a clone of the TRP fund. Each fund offers multiple share classes.
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Wonky detail:
Prior to 1995, funds needed to get an exemption from the SEC to sell multiple classes. https://www.sec.gov/files/rules/final/finend.txt
Summary: https://www.sec.gov/rules-regulations/1995/02/exemption-open-end-management-investment-companies-issuing-multiple-classes-shares-disclosure
The Voya funds are clones of the T. Rowe Price funds. You can tell this by looking at their portfolios (on the same date). They are close but not identical.
For example, Voya's SEC portfolio filing as of Sept 30th shows that MSFT constitutes 5.028296448259% of its fund's portfolio.
In comparison, TRP's filing shows as of Sept 30th, that MSFT constitutes 5.0427048120% of its fund portfolio. (This figure is confirmed on TRP's page).
The clones are close but the underlying portfolios are not identical.
ITRAX / ITRIX looks like a clone - T Rowe Price is listed as a subadvisor. Giroux keeps holdings almost same as PRWCX, but there may be tiny variations. It's part of "Voya Investor Trust" that has several externally subadvised funds.
https://www.sec.gov/Archives/edgar/data/837276/000110465917025956/a17-8811_1485bpos.htm#923ed035-a286-4a4a-8c52-16131f487efb_1
"VY® T. Rowe Price Capital Appreciation Portfolio
Class/Ticker: ADV/ ITRAX; I/ ITRIX; S/ ITCSX; S2/ ITCTX"
If it was a feeder fund, then its holdings would be just 100% of one of the classes of PRWCX.
Anyway, these devices are so that Voya can have a different ERs from the original funds.
A newer way is to simply have a plan level ER/fee and offer the original funds and tickers. Interestingly, these top level ERs may be charges or credits based on plan terms.
If you can't own PRWCX, maybe consider owning a combination of TCAF/PRCFX.
Using a percentage of the eft TCAF in combination with a percentage of PRCFX one can approximate the same portfolio as PRWCX.
PRWCX allocation changes dynamically so this is an imprecise science.
Using PV, you can back test these three funds over the short lifespan of TCAF and PRCFX (1 Year). I found that a combination of approximately (1/3) TCAF and (2/3) PRCFX achieved a slightly better return that PRWCX with similar risk profiles. Maybe, in large part to a lower ER than PRWCX.
Here's the PV link:
https://portfoliovisualizer.com/backtest-portfolio?s=y&sl=3fHSaFUgvCF0hNyOy10GSc
All the other classifications for PRWCX are only opened to existing holders. I'd guess, but have no idea, that would be true of the Voya class also, likely only available at TR Price brokerage.
Per M*, last year the fund performance was the lowest percentile in the last 10 years. There were noticeable net outflows in Dec 2024. 2021 also had meaningful year end distribution but no noticeable net outflows in December 2021. Last year, I reallocated about 20% out of my PRWCX (i.e., reduced, not rebalancing) - none in December though! The fund is big.
@$250K AUM they offer access to their closed funds such as PRWCX
@$500K AUM they offer access to their institutional share class funds such as TRAIX
@BaluBalu is that your understanding?
(Vanguard downgrades Vanguard funds from Admiral shares to investor class but many other fund families I dealt with do not downgrade the institutional class for fall in balances from selling down to below minimum.)
My impression is that this dynamic allocation is part of Giroux's secret sauce. Duplication through static allocations dilutes this sauce. According to PV, the proposed admixtures result in 71% large cap stocks, while "the original' currently keeps only 63% of its equity in large caps.
One year is hardly enough time to get any sort of meaningful impression. Here's the same PV comparison extended back just one extra month, December 2023. Here, PRWCX is the one that achieves a slight better return.
https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=7lfscKm5n0ACQ13fTdpipc
What a difference a month makes. 31 little days.
Schwab says, "Availability - Institutional Customers Only" which I understand means their Advisory clients only.
Fidelity says, "This fund cannot be traded at Fidelity." PRWCX does not have the same notation.
Merrill says, "This fund is closed for initial purchases."
So, Merrill could be a potential for converting PRWCX into TRAIX but needs to be checked out. (I know many funds and brokerages do not allow conversion if the fund is closed to new customers because they test each class on its own for new customers. I could not convert VSCAX into VSMIX.)
As a general rule, if a fund offers retail shares then Merrill Edge (Merrill's DIY platform) does not make the institutional shares of the fund available to investors.
Take a look at the Merrill page for TRAIX (login required)
https://olui2.fs.ml.com/RIMutualFundsUI/RIMFOverview.aspx?Symbol=TRAIX
Under fund availability/minimums, it shows for Merrill Edge accounts that the fund is not available - not for initial purchase and not for subsequent investments.
Thanks.