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.
No comments:
Post a Comment