Due to the market correction, our target asset allocation plan of splitting 40-40-20 between Domestic Stocks, International Stocks, and Bonds got shifted to a 37-38-25 split over the course of the year as the stock funds under performed the bond funds by a wide margin YTD. We readjusted the portfolio to reach the targeted split of 40-40-20 by moving 20% from our bond funds to the domestic and international stock funds. Also, our company 401K administrators automatically reallocated the funds in the Fidelity Intermediate Term Bond Fund (FTHRX) to the PIMCO Total Returns Fund (PTTRX). Further, when choosing the funds to move from, we avoided moving funds from Vanguard Inflation Protected Securities (VIPSX) as the chances of rising inflation have increased. Below is a consolidated spreadsheet of our holding and performance details of the mutual funds held in our 401K and Individual Retirement Accounts (IRA) as of YTD 10/06/2008:
The total returns YTD as of 07/31/2008 were –26.5%. The performance compare well with the returns of popular domestic indices as many of the indices are down well above 30%. We reduced risk by opting for a 40-40-20 allocations among Domestic, International, and Bonds/Alternatives in the beginning of the year as compared to a 100% domestic stock portfolio and that accounts for the better performance in the down market.
Related Posts:
1. 401K/IRA Account 2007 Performance Summary.
2. 401K/IRA Account – Asset Allocation for 2008 – Part 1.
3. 401K/IRA Account – Asset Allocation for 2008 – Part 2.
4. Retirement Portfolio – 2008 Mid Year Update.
5. Asset Allocation Adjustments to Retirement Portfolio in the face of market correction – 10/08.
6. More Asset Allocation Adjustments to Retirement Portfolio -10/08.
| Symbol | % of Portfolio | Fund Fees | Fund Return 2008 (After Fees) | Comments |
| Dodge & Cox Stock Fund (DODGX) | 6.65 | 0.52 | (30.22) | A Large cap value fund with a history of outperforming the S&P500 index. Has very low turnover ratio. The fund is very big (~70B) and so outperformance may be harder to come by going forward. |
| Fidelity Diversified International Fund (FDIVX) | 19.59 | 0.97 | (32.66) | Diversified large-cap international growth fund. This fund is very big at over 58B. Turnover is at 58%. Has a history of outperforming its related index, the MSCI EAFE. |
| American Beacon Small Cap Value (AVPAX) | 5.19 | 1.06 | (16.30) | A Small-cap value fund with about 1.2B of total assets under management. Turnover at 48%. |
| Hotchkis & Wiley Mid-cap Value (HWMIX) | 2.58 | 1.02 | (27.56) | A mid-cap value fund with about 2.4B of total assets under management. Turnover at 45%.Top 10 holdings account for 38% of assets. |
| Vanguard Institutional Index Fund (VINIX) | 2.90 | 0.05 | (23.89) | Attempts to replicate S&P500 index performance. |
| PIMCO Total Return Fund (PTTRX) | 13.23 | 0.45 | 0.68 | None. |
| Artisan Mid-cap Value (ARTMX) | 2.69 | 1.22 | (29.67) | None. |
| Fidelity Small Cap Stock Fund (FSLCX) | 3.9 | 1.08 | (9.87) | None. |
| Fidelity Low Priced Stock Fund (FLPSX) | 2.3 | 1.08 | (24.83) | None. |
| Calomos Growth A (CVGRX) | 1.46 | 1.44 | (39.88) | A 12B large cap growth fund. The top 10 holdings represent about 27% of assets. |
| Schwab S&P500 Index (SWPIX) | 1.47 | 0.36 | (26.73) | An index fund that tracks the performance of the S&P500 index benchmark. |
| William Blair International Growth (WBIGX) | 1.37 | 1.67 | (44.02) | A 5B large cap international fund with between 10 and 25% exposure to emerging markets. |
| Vanguard Index Trust 500 Index (VFINX) | 6.96 | 0.18 | (26.87) | An index fund that tracks the performance of the S&P500 index benchmark. |
| Vanguard Pacific Stock Index (VPACX) | 6.65 | 0.27 | (31.60) | An index fund that tracks the performance of the MSCI Pacific index benchmark. |
| Vanguard Inflation Protected Securities (VIPSX) | 2.34 | 0.20 | 2.26 | Invests in inflation indexed bonds (primarily US) with maturities between 7 and 20 years. |
| Vanguard Long-Term Bond Index (VBLTX) | 1.11 | 0.18 | (1.74) | An index fund that tracks the performance of a market-weighted bond index with a long-term dollar-weighted average maturity. |
| Vanguard Emerging Market ETF (VWO) | 6.50 | 0.25 | (45.27) | None. |
| Fidelity International Real Estate Stock Fund (FIREX) | 1.04 | 0.96 | (42.24) | None. |
| Fidelity Small Cap Growth Fund (FCPGX) | 3.92 | 1.09 | (34.85) | None. |
| Fidelity Select Technology (FSPTX) | 1.66 | 0.88 | (41.38) | A sector specific fund focused on large cap technology stocks with about 2B in assets under management. Top 10 holdings account for 45% of total assets. |
| Fidelity Select Health Care (FSPHX) | 2.45 | 0.87 | (24.87) | A sector specific fund focused on large cap healthcare stocks with about 2B in assets under management. Top 10 holdings account for 38% of total assets. |
| Pension Plan | 3.95 | 0 | 3.70 | Company Fully Vested Cash Balance Pension Plan. |
| Cash and Money Market | 0.09 | 0 | 0 | None. |
The total returns YTD as of 07/31/2008 were –26.5%. The performance compare well with the returns of popular domestic indices as many of the indices are down well above 30%. We reduced risk by opting for a 40-40-20 allocations among Domestic, International, and Bonds/Alternatives in the beginning of the year as compared to a 100% domestic stock portfolio and that accounts for the better performance in the down market.
Related Posts:
1. 401K/IRA Account 2007 Performance Summary.
2. 401K/IRA Account – Asset Allocation for 2008 – Part 1.
3. 401K/IRA Account – Asset Allocation for 2008 – Part 2.
4. Retirement Portfolio – 2008 Mid Year Update.
5. Asset Allocation Adjustments to Retirement Portfolio in the face of market correction – 10/08.
6. More Asset Allocation Adjustments to Retirement Portfolio -10/08.
No comments :
Post a Comment