Wednesday, November 30, 2011

Blackstone Audio 401k (PCRA) Plan PSDS Scan 12-31-2010



This 401k (PCRA) Plan is by design aggressive and that shows in the 3D scan image this year. The aggressive funds did not have a good 2010 and the income fund options did which jerked the Balanced portfolio back to a lower risk asset allocation. That is what the Sharpe ratio is designed to do and it works.
Year-to-date in 2011 the Balanced portfolio is beating the S&P 500 but the aggressive portfolio is not. Keeping the focus on 5yr performance is the norm for retirement plans but an aggressive portfolio is almost by definition a volatile portfolio and it needs to have solid income options for balance.

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