Boeing 401k (VIP) New Plan PSDS Scan 12-31-2010

The new Boeing 401k (VIP) plan is a tale of two centuries. The Master Trust makes pension payments to the many retired employees like myself from the last century from large common collective trusts and stable value investments. The Plan now also holds the 401k investments of current employees and has a new investment fund lineup of mostly lifecycle funds and mutual funds with compaatively little money in these new options today. The scan is focused on the new 401k (VIP) investment lineup.

Company Stock BA

Lifecycle Retirement Fund L-INCOME ( US Gov TSP proxy)

Lifecycle 2020 Fund L2020 (US Gov TSP proxy)

Lifecycle 2030 Fund L2030 " "

Lifecycle 2040 Fund L2040 " "

Bond Market Index Fund SSBMX

S&P 500 Index Fund SVSPX

International Index Fund EFA (proxy)

Russell 2000 Index Fund IWM

Stable Value Fund FUNDG (US Gov GFUND proxy)

Short Term Investment STIF

Global Bond Fund (new) TPINX ( PSAIX proxy)

Diversified Real Asset (new) FNARX (proxy)

US Large Companies Fund IWD

Global Equity Fund (new) WGEF ( Wellington SMA fund )

International Companies Fund OSMAX ( proxy )

US Small/Mid Companies Fund REBSX

Science & Technologies Fund WSTAX ( proxy )

Many of the new investment options do not yet have 5yr Market Data and are represented in the scan by proxies that do and are the index they track or the corresponding US Gov 401 (TSP) plan fund or a similar fund. The Balanced portfolio for the new 401k (VIP) lineup looks good to me.

Stanley Black & Decker 401k Plan PSDS Scan 12-31-2010

A lot has happened since the last scan in 2008. Stanley is now Stanley Black & Decker and the Balanced portfolio has a bit more volatility risk but a higher 5yr APR = 5.10%. Company stock SWK has done very well and the Balanced portfolio has 8.7% invested in the stock and the employee portfolio has 55.6% of that portfolio in the stock. Too much for a retiree. A good plan with 17 investment options in the Balanced portfolio as shown in the 3D scan with the largest holding being the Blackrock Temp fund a money market fund PINXX in the scan.

General Mills 401k (PCRA) Plan PSDS Scan 12-31-2010

The Balanced portfolio this years is down a liitle compared to 2009 as was company stock GIS.

The two largest holdings are a government GNMA securities fund SWGSX at 45.2% and company stock at 16.0%. No information on employee asset allocation is available in the SEC 11-k report.

Occidental Petroleum 401k (SP) PSDS Scan 12-31-2010

The OXY plan Balanced portfolio this year has all 8 invetment options. The largest holding by far is the GIC with only 6.8% invested in company stock which has a 5yr APR = 21.5% and a 10yr APR = 25.2%. The employee portfolio again has company stock as its largest holding and they have done very well. Each year I ask myself why I don't own OXY and then remind myself I am retired and the stock is too volatile. I did add it to my SharpeStock fantasy portfolio.

Northrop Grumman 401k (FSSP) Plan PSDS Scan 12-31-2010

Not much has changed since the 12-31-2009 scan. The stable value fund NGSVF and fixed income fund NGFIF have over 90% of the Balanced portfolio which is slighlty less than last year. The plan is well documented online but its perfomance is a little below average. Only the emerging market fund NGEMF has double digit returns but with a very high standard deviation which kills compunding and reduces the risk adjusted return.

Bank of New York Mellon 401k Plan PSDS Scan 12-31-2010

The Balanced portfolio performance improved over last year and company stock BK now has a slightly positive 5yr Sharpe ratio which put o.2% of the portfolio in company stock. The employee portfolio invested 2.0% in the stock and again this year the two portfolios are close to each other on the 2D scan chart. The 3D scan chart has so many investment options they almost required two columns in the asset allocation note. Only 4 investment options did not have positive 5yr Sharpe ratios.

State of Utah 401k (URS) Plan PSDS Scan 12-31-2010

The Utah URS plan Balanced portfolio has improved compared to last year and the WSJ in an editorial 1-19-2011 recommeded the other States of the Union consider the Utah Pension Model. The two largest holdings of the Balanced portfolio (not the Balanced Fund) are the income fund UTINF in the scan and the bond fund UTBDF in the scan. The three asset allocation funds UTH.con, UTH.mod and UTH.agr are now called Horizon funds but they are same funds as last year. A good plan with a good website if you are interested.

The Ford Motor 401k (SSIP) Plan PSDS Scan 12-31-2010

The Ford plan this year was helped by company stock F which as of 12-31-2010 had a 5yr APR = 17.6% but with very high volatility and a Sharpe ratio of only of 0.094. The Balanced portfolio has 1.1% invested in the stock and the employee portfolio has 37.7% of their portfolio in the stock. This year most of the Barclays LifePath funds have 5yr data and only the 2015 fund used a Morningstar proxy M*2015 in the scan. The employee portfolio was not posted at the fund level in the SEC 11-k report but my scan would indicate their return was a bit over 7%. This year I included the large GIC in the scan. Things are looking up.

Teleflex Inc. 401k (SP) Plan PSDS Scan 12-31-2010

Company stock TFX does not have a positive 5yr return and is not in the Balanced portfolio which is invested in 17 Vanguard funds and RYTRX. The plan trustee is Vanguard. The portfolio's largest holding is the stable value fund VRST8 in the scan. The employee portfolio invested 19.8% of its money in company stock which reduced its return and increased its volatility risk. The plan like many others has several target date retirement funds which are correlated strongly by design. That causes the scan to underestimate volatility risk as described in a 2010 technical note posted on this site.

Ennis Inc. 401k Plan PSDS Scan 12-31-2010

This plan was not helped by company stock EBF but does have a good Balanced portfolio with 14 of the plan options producing a 5yr APR = 5.28% with a Sharpe ratio of 1.94. The portfolio largest holding is an ING GIC at 59.1% of the portfolio and a PIMCO Total return bond fund IPCSX in the scan is the second largest holding. The employee portfolio also has the GIC as its largest holding and VPCAX is its second largest holding. That portfolio only has 3% invested in company stock. All in all a good plan with a diversified collection of domestic investment options that could use a good international option like AEPGX.

Compass Minerals Intl. 401k (SP) PSDS Scan 12-31-2010

This plan is dominated by company stock CMP which has a 5yr APR = 32. 87% and with a 5yr average APR = 33.21%. That almost never happens. The company stock has a higher Sharpe ratio than the stable fund and the money market fund. This created a lifeboat like Balanced portfolio with the lifeboat being company stock. In my opinion the model recommendation is not prudent for a retiree. Putting 36.7% of your retirement portfolio in company stock is not prudent. I do own a small amount of CMP in a Roth IRA but own none in my IRA. The Balanced portfolio does have small amounts in vested in almost all the plan options. The employee portfolio as of 12-31-2009 had the stable value fund FMIP as its largest holding with only 4.44% invested in company stock. Interesting.

State of New York 457 DC Plan PSDS Scan 12-31-2010

This is the first scan using 12-31-2010 market data from Thomson Reuters and Morningstar. The scan has 29 of the 32 investment options in the plan as of 12-31-2010. The stable income fund WFSRF in the scan is the largest holding in the Balanced portfolio accounting for 22.8% of the portfolio. There are 27 investment options in the Balanced portfolio which means almost all of the options have positve 5yr Sharpe ratios. That is rare and the 5yr performance is above average with a 5yr APR = 5.19% and a Sharpe ratio = 1.24. In the scan T. Rowe Price target date retirement funds without 5yr data were represented by the corresponding Vanguard fund.

State of Kansas 457 DC Plan PSDS Scan 12-31-2009

The record keeper for the plan is ING and the plan has 18 investment options from several firms. The Balanced portfolio invested in 11 of the options with the stable value fund VRST in the scan being the largest holding at 56.7% of the potfolio. While still a lifeboat portfolio there is growth in equity investments as the economy recovers. A uniform portfolio is provided for comparison purposes as no employee asset allocation data were posted.

Ryder System 401k (SP) PSDS Scan 12-31-2009

The Balanced portfolio this year improved a bit but company stock R 5yr performance did not. Over all the 3D scan shows improvement with 11 investment options in the Balanced portfolio. The employee portfolio invested 10.2% of their money in company stock R which did not help their 5yr return. The plans large GIC is the largest holding of both portfolios at 76.9% in the Balanced portfolio. Fidelity is the trustee and several of their better funds are in the plan.

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

Still a lifeboat Balanced portfolio but with some money invested in 15 plan investment options this year. The largest holding is still the stable value fund but only 33.3% of the portfolio this year compared to 95.9% last year. Company stock PII did not have a postive 5yr APR as of 12-31-2009 but it did have a good 2009 and a great 2010, things are looking up. The employee portfolio had 2.2% of the portfolio in company stock.

HewittEnnisKnupp 401k Index PSDS Scan 12-31-2009

Hewitt acquired Ennis Knupp 9-2-2010 and the Hewitt 401k Index became the HewittEnnisKnupp 401k Index. In this scan the catagory funds often seen last year were updated and in the case of Specialty/Sector I thought PRPFX best fit the catagory for retirees.

GIC.ekx GIC/Stable

FUSEX Large US Equity

VTXVX Lifestyle

PTTRX Bond

AEPGX International

VBINX Balanced

RYSFX Small US Equity

VMVXX Money Market

FEAFX Mid US Equity

ODMAX Emerging Markets

PRPFX Specialty/Sector

The Balanced portfolio returns improved as the market improved in 2009 and the 3D scan image looks a bit healthier to me. The index asset allocation was unchanged from the last scan.

Selective Insurance Group 401k (RSP) PSDS Scan 12-31-2009

This plan was not helped by company stock SIGI and the Balanced portfolio is another lifeboat portfolio. The 3 largest holdings are the stable value fund SVF.hpx , the money market fund VMMXX and the bond fund VBMFX. The employee portfolio invested only 2% in company stock and their 3 largest holdings were the stable value fund, the equity income fund PRFDX and a mid cap growth fund RPMGX. The plan trustee is T. Rowe Price.