COSTCO 401k (RP) Plan PSDS Scan 12-31-2009

The Balanced portfolio for the COSTCO 401k plan this year invested 3% in the company stock COST which had a good 2009 but it was not as good as 2004. That reduced the 5yr COST stock APR by a small amount in this years scan. The other investment options in 2009 now have several with positive 5yr Sharpe ratios and they are in the 3D design scan image. The employee portfolio had 30.6% of that portfolio in company stock which significantly increased their 5yr volatility risk STD = 6.91% with little change in their portfolio 5yr APR = 4.03%.

GENZYME 401k Plan PSDS Scan 12-31-2009

GENZYME did not have a good 2009 and the Balanced portfolio did not invest in the stock GENZ this year. The net result is about the same 5yr return as last year APR = 5.15% but with a lot less volatility. The employee portfolio invested 6.8% of the portfolio in the stock and had a smaller 5yr APR = 3.21% but did manage a positive 5yr Sharpe ratio 0f 0.12 and the stock is up strongly YTD in 2010.

Nokia 401k (RSIP) Plan PSDS Scan 12-31-2009

The Nokia plan Balanced portfolio improved over last year and the 3D scan image shows that improvement. Company stock NOK however continues to fall and YTD is down another 22.8%.

That hurt the employee portfolio which invested 9.6% of the portfolio in company stock. There is not much more to say. The employee portfolio did have a positve 5yr return of APR = 3.73%.

TRW Automotive 401k (RSP) PSDS Scan 12-31-2009

This company TRW Automotive had a return of 563% in 2009 and even higher volatility than TXN as the American automobile industry bounced back to life. Yet with an average 5yr return of 98% it only had a 5yr APR = 2.89% because of volatility. The Balanced portfolio invested nothing in the stock and its 2 largest holdings were the stable value fund FMIP2 in the scan and PTTRX. The employee portfolio invested 20.1% of their money in company stock as of 12-31-2009 which reduced their 5yr return and increased their volatility risk compared to the Balanced portfolio. In hindsite it would have been great if employees had bought all that TRW stock in early 2009 as the business began to rebound.

Texas Instruments 401k (SP) Plan PSDS Scan 12-31-2009

Although company stock TXN had a very good 2009 it still does not have a positive 5y Sharpe ratio because of very high volatility. The 2 largest holdings in the Balanced portfolio are BBPAX and the short term investment fund STIF in the scan. The employee portfolio invested 56.7% 0f their money in company stock which produced a 5yr return of 2.03% as volatility killed compounding as it always does.

Union Pacific Fruit Express 401k (RTP) Scan 12-31-2009

This company is a subsidiary of Union Pacific and all four Union Pacific Retirement Thrift Plans have the same trustee Vanguard and the same investment options. The Balanced portfolio in this design scan invested 8% of the plan in company stock UPN which has a 5yr APR = 15.46% and a positive Sharpe ratio of 0.525. The employee portfolio invested 14.2% of the plan in company stock. The Union Pacific Fixed Income Fund is a GIC represented by the index GIC.ekx in the scan. I worked my way through school loading PFE railway cars each summer over 50 years ago.

Johnson & Johnson 401k (SP) PSDS Scan 12-31-2009

The Johnson & Johnson plan trustee is State Street and this year I used their funds for catagory fund options in the SEC 11k report where possible. There are 9 option catagories in the plan

Short Term Investment Funds - STIF

US Gov and Agency Securities - FGOVX (proxy)

Corporate Debt - SBMRX

Common Stocks -

US Large Cap - SVSPX & JNJ

US Mid Cap - MDY (proxy)

US Small Cap - SVSCX

International Stocks - SSAIX

Common Collective Trusts - Daily Liquidity MCDLF

Guaranteed Investment Contracts - GIC.ekx (proxy)

The Balanced portfolio has 6.2% invested in company stock and the employee portfolio has 14.1% in the stock. The Johnson & Johnson plan has a generous matching provision that for each $100 of employee money they provide $50 in cash and $25 of JNJ stock.