Eaton Corp. 401k (PIP) Plan PSDS Scan 12-31-2009

The scan last year only included the 5% and up invetments. This year I included most of the smaller investment holdings. The Balanced portfolio is still a lifeboat portfolio with over 70% of the portfolio in the stable value fund VRST in the scan and the money market fund FDRXX. The employee portfolio was not helped by company stock ETN which has high volatility and low annualized returns 5yr APR = 0.68%. Another reminder that volatility kills compounding. In this case the average 5yr APR is 5.48% which confuses some. This is less of an issue for younger employees than retirees.

Roper Industries 401k (RSP) Plan PSDS Scan 12-31-2009

This plan needs work. The Balanced portfolio has everything in just three investment options, company stock ROP, the bond fund PTTRX and the rest in the stable value fund SVF.hpx in the scan. None of the rest of the investment options have a positive 5yr Sharpe ratio. The plan needs better equity funds and there are lots of them available, Morningstar would be a good place for the profit sharing committee to look. That said the Balanced portfolio investments are very good and company stock is 10.1% of the portfolio.

AptarGroup 401k (PSSP) Plan PSDS Scan 12-31-2009

This plan continues to be helped by company stock ATR but not as much as last year. The Balanced portfolio has 8.5% in the stock and the employee portfolio has 20.8% in the stock. A bit too much for a retiree in my opinion. The two largest holdings in the Balanced portfolio are the money market fund FRTXX and the bond fund PTTRX. The two largest in the employee portfolio are company stock ATR and FCNTX.

Quest Communications 401k (SIP) PSDS Scan 12-31-2009

This is a small plan consisting of a large Master Trust organized into 8 investment catagories for plan participants. I spent more time this year on the SEC 11-k report sorting the investments into ETF funds and the State Street S&P 500 index fund. They are the plan Trustee.

Treasury inflation-indexed - TIP

Investment grade bonds - AGG
Synthetic investment contracts - GIC

Quest common stock - Q

Large cap US stocks - SVSPX

Small-mid cap US stocks - IWS

Non-US stocks - EFA

Short term investment fund - SHY

The Balanced portfolio invested most of the plan in the GIC GIC.ekx in the scan and the short term investment fund SHY in the scan with nothing in company stock Q. The employee portfolio had 7.1% of their portfolio in company stock which is very volatile.

Wisconson 457 (DC) Plan PSDS Scan 12-31-2009

Small year over year improvment with the Balanced portfolio 5yr APR = 4.61% and with a few more funds in the portfolio. The three largest holdings are the stable value fund FUNDG in the scan, the income fund FUNDF in the scan and the money market fund VUSXX. The SMA proxy funds FUNDG and FUNDF are from the US Government TSP plan same as in last years scan.

Cephalon Inc. 401k (PSP) Plan PSDS Scan 12-31-2009

This plan had 22.4% of the Balanced portfolio in company stock CEPH last year and only 2.4% this year. The stock had a very bad 2009 which is why volatility is such a big risk for retirees. If you have many years left it is not as important a risk factor but still a risk factor. The plan had a good year and there are 14 funds in the Balanced portfolio this year. The employee portfolio had a positive 5yr APR = 3.33% with a positve 5yr Sharpe ratio. Vanguard is the plan Trustee.

NewMarket Corp. 401k (SP) PSDS Scan 12-31-2009

This company stock NEU has triple digit volatility with a positive 5yr Sharpe ratio. I don't see that very often. The Balanced portfolio has 10.1% of the plan in the stock a bit more than I think prudent. The employee portfolio has 37.9% of the portfolio in the stock producing a 5yr APR = 20% with a positive Sharpe ratio of 0.40. It all makes me nervous but the plan has several very good funds and a retirement preservation trust VRST in the scan that balance things out. The company stock 5yr numbers are APR = 43.41, STD = 112.46, and SR = 0.36. That White Box is way off the chart.

Mattel 401k (PIP) Plan PSDS Scan 12-31-2009

This plan made small improvements year over year and the Balanced portfolio has 1.4% of the plan in company stock MAT and 7 other investment options. Several of the Lifepath funds now have positive 5yr Sharpe ratios and are in the Balanced portfolio. The employee portfolio has a small positve 5yr APR =2.95% and Sharpe ratio =0.09. They have 3.6% of their portfolio in MAT and the stable value fund is their largest holding by far.

Baxter International 401k (IIP) PSDS Scan 12-31-2009

This plan was the top 401k plan scanned in 2008 and company stock BAX continued to do well in 2009. The Balanced portfolio this year invested 28.5% of the plan in the stock and the employee portfolio invested 12.2% of the portfolio in the stock. In the scan the Target Retirement Funds are the Dow Jones retirement funds used by State Street Bank and Trust the plan trustee. The plan stable income fund is again represented by the U.S. Government 401k plan FUNDG. So far in 2010 company stock is down 27.4% which I mention as a reminder of why a retiree needs to consider volatility in making asset allocation decisions.

Chevron 401k (ESIP) Plan PSDS Scan 12-31-2009

This plan was one of the 2008 top 401k plans and was again helped by company stock CVX. The Balanced portfolio invested 9.2% of the plan in company stock and its largest holding was the Vanguard GNMA Fund VFIIX in the scan. The employee portfolio is virtually the same as last year with a 5yr APR = 8.75% and a positive 5yr Sharpe ratio of 0.52. They invested 58.9% of their portfolio in company stock, more than I think prudent for a retiree.

Procter & Gamble 401k (PSRP) PSDS Scan 12-31-2009

This company has done well and acquired many others over the years. The Balanced portfolio has invested 5% of the plan in company stock PG which has a 5yr APR = 4.19%. The employee portfolio has invested 58.3% of their portfolio in company stock, more than I think prudent even for a great company like PG. The 3D scan image shows good improvement year over year.

Pinnacle West Capital 401k (SP) PSDS Scan 12-31-2009

This plan like most was not helped by company stock PNW and the Balanced portfolio invested 91.5% of the plan in the GIC and the bond fund PTTRX. The employee portfolio invested 15.3% of the portfolio in company stock which still managed to produce a small positive 5yr return APR = 3.07% with a very small positive 5yr Sharpe ratio. The plan could use a few more good equity funds besides AEPGX.

Church & Dwight 401k (SPSP) PSDS Scan 12-31-2009

This plan changed trustees and several funds. The stable value fund is now from Vanguard VRST in the scan and so are the Target retirement funds. Company stock continues to help the plan and the Balanced portfolio has invested 16.5% of the plan in the stock. The employee portfolio invested 38.9% in the stock as can be seen in the 3D scan image. This is the Arm & Hammer company and it's logo has been around a very long time.

Cerner Corp. 401k (RP) Plan PSDS Scan 12-31-2009

The plan continues to be helped by company stock CERN which had a very good 2009 producing a 5yr APR = 25.42%. The Balanced portfolio invested 12.5% of the portfolio in the stock and the employee portfolio has 46.9% of their portfolio in the stock. Compared to last year the 3D scan has several more funds in the Balanced portfolio and is more robust. The stable value fund FUNDG in the scan is the largest holding at 58.3% of the Balanced portfolio.

Roth IRA Rebalanced Portfolio PSDS Scan 6-14-2009

This is not a 401k plan but it is what I am working on today instead of the usual scans. The portfolio has 8 investment options and some are stocks. The grandchildren are the plan participants and although they are not retired yet some are over 30.

J.C. Penney 401k (SPSOP) Plan PSDS Scan 12-31-2009

This plan was not helped by company stock JCP but plan perfomance did improve over last year. The Balanced portfolio is still a lifeboat porfolio with 71.4% on the plan in GICs repesented by the index GIC.ekx in the scan but with many more investment options now in the portfolio. The employee portfolio had 11.7% of the portfolio in company stock and had a 5yr APR = 2.32%.

Compass Minerals Intl. 401k (SP) PSDS Scan 12-31-09

This plan continues to be helped by company stock CMP which over the last 5yrs has out performed every company stock I have scanned. The Balanced portfolio invested 22.8% of the plan in the stock and the employee portfolio has 32.3% of their portfolio in the stock. In most plans the equity investments would have the money that is in company stock here. Even as a retiree of this company it might be prudent to keep 20% in the stock.