Hewlett-Packard 401k Plan PSDS Scan 12-31-2010

The Hewlett-Packard 401k Plan made an interesting change in 2010. The Target Date Retirment Funds were renamed to the corresponding Birth Date Fund for each participant. The Target Date Retirment Income Fund was transferred to the Target Date 2010 Fund and then renamed the 1945 Birth Date Fund. The Birth Date Funds are managed based on the year participants were born instead of an assumed retirement date. In the scan I included FFFAX while I try to sort this all out.

The 401k Plan was not helped as much this year by HPQ stock which did not have a good 2010. The Balanced portfolio invested only 1.1% of the portfolio in the stock and the employee portfolio invested 12.2% of that portfolio in the stock. This is a large complicated plan with several options that are not mutual funds.  ALL investment options are participant directed in this plan according to the SEC 11-k report. The Balanced portfolio has a 5yr APR = 5.71% with a very high Sharpe ratio of 2.56 thanks mostly to the GIC. All in all a good plan and stock with an interesting new way of thinking about target date retirement funds.