Kellogg 401k (SIP) Plan PSDS Scan 12-31-2010

The Kellogg 401k plan like many older company plans has a Master Trust where 401k and pension money are kept. That can complicate the SEC 11-k report data for asset allocation by specific investment option. In this scan a uniform asset allocation portfolio is provided for comparison purposes. The Balanced portfolio has a 5yr APR =5.71% with a Sharpe ratio of 1.42 which is above average. The employees have 12.6% of the participant directed money invested in company stock K and the Balance portfolio has 7.4% of that portfolio in company stock which has a 5yr APR = 6.14% with a positive Sharpe ratio of 0.23. The Kellogg plan is helped by the stock and would be helped by a few more investment categories for better diversification.

Norfolk Southern 401k (T&IP) Plan PSDS Scan 12-31-2010

The Norfolk Southern 401k plan scan is a bit better than last year. The Balanced portfolio is still helped by company stock NSC and has a 5yr APR = 5.56% with a Sharpe ratio of 1.11 with good diversification. It invested 16.6% of the plan in the stock and the employees invested 41.1% in the stock. The three largest holdings of the Balanced portfolio are the stable value fund VRST in the scan, the stock NSC and the bond fund WATFX. A good plan and a very good railroad stock.

Southern Co. 401k (ESP) Plan PSDS Scan 12-31-2010

The Southern Co. 401k plan Balanced portfolio improved over last year helped by company stock SO which had a good 2010. That portfolio invested 16% of the plan in company stock and the employees invested 49.7% of their money in the stock. Thats too much for a retiree in my opinion. This is a small plan with only 5 conservative investment options and company stock. During the year the plan converted the BOA Fund to a short term bond fund SSTBX in the scan.

Polaris 401k (RSP) Plan PSDS Scan 12-31-2010

The Polaris 401k Plan Balanced portfolio continues to improve year-over-year and its 5yr APR = 5.95% is a bit above average with a Sharpe ratio of 1.40 well above average. Company stock PII also continues to improve but is volatile. I like this company but my snowmobile days are sadly over. The employee portfolio is a mixed bag with the ""over 5% of plan" investments mostly good investment choices and at least one that has not done well this century. All in all a good plan and a good but volatile stock,

Coach Inc. 401k (SPSP) Plan PSDS Scan 12-31-2010

The Coach 401k plan Balanced portfolio was helped a little by company stock COH but the 5 year performance was just average. There are good investment options in the plan. The Balanced portfolio 3 largest holdings are the bond fund FBIDX, the stable value fund FMIP in the scan and NBGNX a good equity fund. The employee portfolio 3 largest holdings are company stock, the stable value funds and NBGNX. A good plan but the last 5 years were difficult and company stock has been volatile.

DELL 401k Plan PSDS Scan 12-31-2010

The DELL 401k Plan continues to have to deal with losses in company stock DELL which has a 5yr APR = -17.26%. The Balanced portfolio has no company stock and a 5yr APR = 5.48% with a positive Sharpe ratio of 1.37. The employee portfolio still has over 5% of that portfolio in company stock but their largest holdings are AEPGX, PTTRX and AGTHX and the portfolio has a positive 5yr return. A good 401k plan but not a good company stock the last 6 years.

Best Buy 401k (RSP) Plan PSDS Scan 12-31-2010

The Best Buy 401k Plan Balanced portfolio is down a little from last year and company stock BBY was down -11.63% in 2010. That hurt the employee portfolio much more as BBY is their largest holding. The Balanced portfolio 3 largest holdings are the stable value fund SVF.hpx in the scan, the bond fund PTTRX and the money market fund VMVXX. That portfolio's largest equity holding was STLAX a LIFEPATH Retirement fund and that almost never happens. There is not much more to say.

Jefferies Group 401k (PSP) Plan PSDS Scan 12-31-2010

The Jefferies Group 401k Plan Balanced portfolio improved significantly over last year and now has a 5yr APR = 6.12%. It was only 3.92% last year. Company stock JEF was up in 2010 but the Balanced portfolio invested less than 1% of the portfolio in company stock which is down YTD. It is the largest holding of the employee portfolio that also improved over last year. The Plan has several good investment options including the ubiquitous bond fund PTTRX that has out performed most equities the last 5 years.

NEXEN 401k (SPP) Plan PSDS Scan 12-31-2010

The NEXEN 401k plan has made a few investment option and administrative changes according to the latest SEC 11-k report. The Balanced portfolio has a nice 5yr APR = 6.69% with a Sharpe ratio of 0.97. The employee portfolio was not helped by their largest holding company stock NXY. It was down in 2010 and is down YTD. The 3 largest holdings in the Balanced portfolio are the Schwab stable value fund SVF.cs in the scan, the bond fund VBMFX, and the First Eagle Overseas Fund SGOVX. I owned SGOVX for many years, still own SGENX and like several of the funds in this Plan. Company stock NXY however is too volatile for a retiree in my opinion.

AON Corp. 401k (SP) Plan PSDS Scan 12-31-2010

The AON 401k plan improved slightly over last year and the Balanced portfolio has an above average 5yr APR = 6.97% with a Sharpe ratio of 1.33. The employee has an average 5yr return that would be better if the Plan investment options were expanded to include a few 5-Star US equity funds and more global options. Company stock AON had a good 2010 and is doing well YTD in 2011. All in all a good 401k Plan and good company stock.

Cliffs Natural Resources 401k (RSP) Plan PSDS Scan 12-31-2010

The Cliffs Natural Resources 401k Plan was helped significantly by company stock CLF even though it is very volatile. The Balanced portfolio invested 7.7% of the 401k in the stock and the employee portfolio has 39.2% of that portfolio in the stock. As the 3D scan image shows that produced a 5yr annualized return of 14.04% with a positive 5yr Sharpe ratio of 0.46 for the employees. T.Rowe Price is the trustee and most of their target date retirement funds are in both portfolios. A good plan and a good but volatile company stock.

Quest Diagnostics 401k (SP) Plan PSDS Scan 12-31-2010

Quest Diagnostics 401k Balanced portfolio was up over last year but company stock DGX was down in 2010. The Quest SEC 11-k report stopped breaking down the employee asset allocation beyond the catagory level  in 2009 so in the scan mutual fund investments are uniformly distributed. The Balanced portfolio 3 largest investments were the money market fund FDRXX, the bond fund VBMFX and the stable value fund FMIP2. The largest investment in the employee portfolio was company stock. A pretty good Plan that improved performance a little over last year as the economy improved.

Hess Corp. 401k (ESP) Plan PSDS Scan 12-31-2010

The Hess 401k was helped by company stock HES and the Balanced portfolio invested 3.6% of the portfolio in company stock. The employee portfolio has 38.8% of that portfolio invested in company stock, too much for a retiree in my opinion. The stock is very volatile. However, the employee portfolio does have a 5yr APR = 8.60% with a positive Sharpe ratio of 0.32. Not too bad. Their 3 largest holdings are company stock, the money market fund BRRXX and the 2020 target date fund TRRBX. All in all a good plan with good diversification.

Moody's 401k (PPP) Plan PSDS Scan 12-31-2010

Moody's 401k Plan was not helped by company stock which has an annualized 5yr APR = -14.37%. The Balanced portfolio however is above average with an APR = 6.23%, a Sharpe ratio of 1.31 and most of the Plan's investment options are in the portfolio. The 3 largest holdings are two bond funds PTTRX and FBIDX and the Fidelity stable value fund FMIP2. The employee portfolio has a little money in company stock which is up YTD. The 401k Plan is above average and company stock is not.

Iron Mountain 401k Plan PSDS Scan 12-31-2010

Iron Mountain's 401k Plan improved performance a little over last year but company stock IRM is not in the Balanced portfolio and employees invested less than 1% of Plan in company stock. The top 3 holdings of the Balanced portfolio are the stable value fund SVF.hpx in the scan, the bond fund PTTRX and OAKBX. The employee top 3 holdings are PTTRX, SVF and AGTHX. A small plan with several good investment options but company stock is not one of them.

XTO Energy 401k Plan PSDS Scan 12-31-2010

Last year XTO  Energy was acquired by Exxon Mobile and XTO stock converted to XMO stock at the date of the merger. In the design scan the Balanced portfolio invested 7.0% of the 401k Plan in XOM stock and the employee portfolio has 71.6% of the Plan in the stock. Prior to the merger XTO Energy owned many oil and gas leases and their 401k Plan has two Royalty Trust investment options CRT and HGT that trade on the NYSE. The Balanced portfolio is better diversified than last year but returns are down a little. A good plan with a very good company stock which helped the employee portfolio to an APR = 6.75% with a positive Sharpe ratio of 0.31. However, 71.6% in even a very good stock is too risky for a retirement fund in my opinion.

Pactiv 401k (SIP) Plan PSDS Scan 12-31-2010

Reynolds Group Holdings Limited bought Pactiv Corp. in 2010 and the stock PTV is no longer active. Each share of stock was converted into the right to receive $33.25 in cash per share. The 401k portfolio design scan did NOT include PTV stock in the scan.

The Balanced portfolio largest holding was the bond fund PTTRX (34.8%) which had a higher APR than the equity options. The Balanced portfolio return was 5yr APR = 5.86% with a Sharpe ratio of 1.28. I am bothered a bit by the almost 50% of that portfolio invested in Target Date Retirement funds that are highly correlated by design. They are good funds but diversification is a concern. The employee portfolio invested much less in those funds and had a 5yr APR =4.34% with a small positive Sharpe ratio. All in all a good plan.