This is a small plan but a quite good plan helped by company stock FLO. The Balanced portfolio invested 17.1% of the plan in the stock and the employee portfolio had 17.0% invested in the stock. I found that interesting. The plan trustee is Putnam and their stable value fund SVF.put in the scan was the largest holding in the Balanced portfolio which had a 5yr APR = 6.53% with a Sharpe ratio of 1.15 and low volatility STD = 3.41%.
This deferred compensation 457 plan was created from the Schwab Mutual Fund OneSource Select List posted on the Web. The list has over 100 funds and I selected 12 that have positive 5yr Sharpe ratios for the scan. My focus is on investments for younger employees at Blacktstone Audio where several of my grandchildren work. The 2 largest holdings in the Balanced portfolio are a PIMCO fund PTTDX and a Schwab GNMA fund. The aggressive portfolio allocation is growth focused and includes an emerging market option SSEMX.
This automotive parts company stock ORLY has done well the last 5yrs and it is in the Balanced portfolio at 7.7% of the portfolio. The employee portfolio has invested 39.7% of their money in the stock which is their largest holding by far. The Balanced portfolio largest holding is the stable value fund SVF.hpx in the scan and the portfolio contains 11 investment options as shown in the 3D scan image. All in all a good plan helped by company stock which is up 24% YTD.
A lot has changed since the October 2008 scan of ths plan. The scan now has a stable value fund and markets have fallen around the world especially in Detroit. The Balanced portfolio is now a lifeboat portfolio and has a 5yr APR = 4.96 instead of 8.76%. The employee portfolio has 14.0% invested in company stock BWA and a portfolio 5yr return of only 3.61%. On a positive note company stock had a great 2009 and is up 31.4% YTD in 2010. Things are looking a bit better.
The Rite Aid plan needs a make over. The trustee T. Rowe Price has many good funds but none of them are in the plan and company stock RAD is stll double digit negative. The Balanced portfolio has over 90% of the plan in the GIC and PTTRX. On the plus side the company is stll in business and the plan has improved slightly compared to last year.
The Sigma-Aldrich plan was helped by company stock SIAL and the Balanced portfolio invested 7.3% of the portfolio in the stock. The employee portfolio has 13.6% invested in the stock with a 5yr APR = 4.98% and a positive Sharpe ratio. The Balanced portfolio has 14 of the plan investment options in the portfolio with the stable value fund FMIP2 in the scan the largest holding. The largest holding in the employee portfolio is FCNTX a bit of a surprise if you look at the correlation chart. The Balanced portfolio only put 2.4% of the plan in that fund.
This plan was not helped by company stock LNC which has a 5yr APR = -8.77% and it is not in the Balanced portfolio. The investment options are mostly Delaware funds but the plan has invetsment options from Vanguard, Harbor, American and Dodge & Cox. The Balanced portfolio largest holding is the GIC and it is the largest employee portfolio holding as well. The employee portfolio's second largest holding is company stock LNC at 17.9% of their portfolio and that hurt 5yr performance. There are 12 investment options in the Balanced portfolio which has a 5yr APR = 4.63% with a positive 5yr Sharpe ratio. In the scan several proxies were used for Delaware funds that do not yet have 5yr data.
