Shaw Group 401k Plan (hourly) PSDS Scan 12-31-2010

The Shaw Group 401k plan for hourly employees is about the same as their 401k plan I scanned last year. However, in this scan Fidelity Freedom funds were among the options with 5% or more of the plan, FFFFX (6.2%), FFTWX (9.3%) and FFTHX (9.3%). Their largest holding was the stable value fund FMIP2 (40.7%). I took a close look at what's in the 2025 fund FFTWX and found 23 Fidelity funds mostly "series" funds that are well diversified with a bond fund FSIGX the largest holding at 16.34%. I need to update my TechNote on target date funds which are getting better diversified and popular with many employees.

The Balanced portfolio invested very little in target date funds with the 3 largest holdings being the bond fund PTTRX (39.4%), the equity fund WHGMX (11.9%) and the stable value fund FMIP2 (11.3%). That portfolio has a 5yr APR = 6.59% with a Sharpe ratio of 1.30. As you can see in the 2D scan chart that return is better than the employee portfolio return with a less risk. Company stock is very volatile.