The market data are 11-30-2009 and the employee asset allocation data from the 11-k and are as of 12-31-2008. The Balanced portfolio with 2009 data is looking less like a lifeboat portfolio but the largest holding is still the GIC repesented by the index GIC.ekx. The employee portfolio has invested 12.9% of their money in company stock GPS and a simlar amount in ABDAX as of 12-31-2008. This company stock is a perfect foil or me to illustrate how volatility kills compounding. The company stock had a great 2009 up 59% and the AVERAGE 5yr stock APR was 6.16% but the ANNUALIZED 5yr APR was 1.46%. Simple arithmetic will show the 5yr compound stock return was over 23% lower than the average return. Keep that in mind. The employee portfoilo did have a positve 5yr APR = 4.27% but with a STD = 6.17%. I only included investments that were more than 5% of the plan in this scan.
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