A Reed Elsevier Roth 401k Rollover Portfolio Scan 12-31-2010

The Reed Elsevier US Salary Investment Plan has a Roth 401k Rollover Elections form on the Web. It caught my attention and here is a portfolio design scan for those Elections or a proxy if they do not yet have 5yr data. In the scan only the Target Date Funds, Income and 2020 are in the scan for the usual reasons, they are highly correlated by design. Many 401k Plans limit participants to one or two TDFs for the same reason. In the scan the US Government 401k (TSP) Target Date Funds for Income & 2020 are proxies.

SSgA Yield Enhanced Fund...................................SSHYX
SSgA Bond Market Index Fund.............................SSBMX
SSgA Target Retirement Income Fund....................L-inc
SSgA Target Retirement 2020 Fund........................L2020
Dodge & Cox International Fund......................DODFX
SSgA S&P 500 Index Fund..............................SVSPX
Domini Social Equity Fund.......................................DSEFX
SSgA Russell 2000 Index Fund................................IWM
Hartford Midcap HLS Fund.....................................HIMCX
Smith Barney Large Cap Growth..............................TLGUX
American Funds Fundamental Investors Fund...........ANCFX
SSgA Emerging Markets Fund.................................SSEMX
Hartford Small Company HLS Fund.........................MDY
SSgA Daily EAFE....................................................EFA
American Funds New Perspectives...........................ANWPX

The Balanced portfolio by rule only contains investment options with a positive 5yr Sharpe ratio and a few funds like DSEFX have 0% invested in them. The Balanced portfolio 5yr APR is 6.62% which is above average but the STD volatility risk is probably too high for some retirees. I found this rollover form an efficient and interesting way to define Roth 401k options for employees.