Tuesday, June 7, 2011

Broadcom 401k Plan PSDS Scan 12-31-2010



Like the last two 401k scans Broadcom stock BRCM is not an investment option in the plan. Howerver, this plan has a bit stronger equity line up and a Balanced portfolio 5yr APR = 7.09% with a Sharpe ratio of 1.33. Broadcom is near UCI where I have served on several advisory boards and I spent a little extra time looking at the plan. The 3D scan image has a shape similar to the Google and Apple scans because the highest return option is a conservative option, the emerging market option DFEVX is a value fund. To better image the plan I used a Sharpe ratio color coded 2D graphic of the scan and focused this scan image. Even though the plan has 28 options the design space scan shows a compact image indicating the plan options are conservative. My usual comment about target date funds applies, they are highly correlated and participants should own no more than two and some plans enforce that limit. A good plan that might be a contender this year for the top 401k plan year end list.

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