We did some minor allocation shifts for 2009. The idea was to shift between funds so as to reach a 40-45-15 split among domestic, international, and bond funds respectively, a slightly more aggressive portfolio compared to our 2008 allocation of 40-40-20 between those asset classes.
Within our bond portfolio, the long-term bond funds had an especially good run the last few months but going forward those results will be hard to replicate. So, we exchanged out of our investment in Fidelity Long Term bond fund and moved the funds over to the Vanguard Pacific Stock Index fund. The TIPS investment in Fidelity Inflation Protected Securities under performed as the dollar rallied. This is not sustainable and so we continue to hold it. Also, about 13% of the investment in PIMCO Total Return Fund was moved to Fidelity Diversified International fund. These maneuvers had the net result of increasing our international stake by 3% while simultaneously decreasing the bond allocation by 3%. We will look into moving an additional 2% from bond funds into international funds in the coming months to reach our target allocation of 40-45-15.
The Madoff scare has made us rethink our investment in some of the smaller mutual funds. We will reassess our investments in the funds outside of Vanguard and Fidelity and make adjustments as we move forward
Below is our updated portfolio:
| Symbol | % of Portfolio | Fund Fees | Fund Return 2008 (After Fees) | Comments |
| Dodge & Cox Stock Fund (DODGX) | 6.70 | 0.52 | (43.31) | 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) | 22.00 | 0.97 | (45.21) | 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) | 4.89 | 1.06 | (31.92) | A Small-cap value fund with about 1.2B of total assets under management. Turnover at 48%. |
| Hotchkis & Wiley Mid-cap Value (HWMIX) | 2.44 | 1.02 | (43.05) | 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) | 2.81 | 0.05 | (36.95) | Attempts to replicate S&P500 index performance. |
| PIMCO Total Return Fund (PTTRX) | 9.43 | 0.45 | 4.93 | None. |
| Artisan Mid-cap Value (ARTMX) | 2.50 | 1.22 | (44.13) | None. |
| Fidelity Small Cap Stock Fund (FSLCX) | 4.53 | 1.08 | (42.91) | None. |
| Fidelity Low Priced Stock Fund (FLPSX) | 3.36 | 1.08 | (36.17) | None. |
| Calomos Growth A (CVGRX) | 1.60 | 1.44 | (51.10) | A 12B large cap growth fund. The top 10 holdings represent about 27% of assets. |
| Schwab S&P500 Index (SWPIX) | 1.63 | 0.36 | (37.52) | An index fund that tracks the performance of the S&P500 index benchmark. |
| William Blair International Growth (WBIGX) | 1.58 | 1.67 | (54.95) | A 5B large cap international fund with between 10 and 25% exposure to emerging markets. |
| Vanguard Index Trust 500 Index (VFINX) | 6.98 | 0.18 | (37.02) | An index fund that tracks the performance of the S&P500 index benchmark. |
| Vanguard Pacific Stock Index (VPACX) | 8.12 | 0.27 | (34.36) | An index fund that tracks the performance of the MSCI Pacific index benchmark. |
| Vanguard Inflation Protected Securities (VIPSX) | 2.40 | 0.20 | (2.85) | Invests in inflation indexed bonds (primarily US) with maturities between 7 and 20 years. |
| Vanguard Emerging Market ETF (VWO) | 6.28 | 0.25 | (55.84) | None. |
| Fidelity International Real Estate Stock Fund (FIREX) | 0.98 | 0.96 | (50.52) | None. |
| Fidelity Small Cap Growth Fund (FCPGX) | 3.61 | 1.09 | (44.93) | None. |
| Fidelity Select Technology (FSPTX) | 1.46 | 0.88 | (51.09) | 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) | 2.28 | 0.87 | (32.44) | 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 | 4.37 | 0 | 6.48 | Company Fully Vested Cash Balance Pension Plan. |
| Cash and Money Market | 0.06 | 0 | 0 | None. |
Related Posts:
1. 401K/IRA Account 2007 Performance Summary - 01/08.
2. 401K/IRA Account – Asset Allocation for 2008 – Part 1.
3. 401K/IRA Account – Asset Allocation for 2008 – Part 2.
4. Retirement Portfolio – Mid Year Update.
5. Asset Allocation Adjustments to Retirement Portfolio in the face of market correction – 10/08.
6. 401K/IRA/Retirement Account 2008 Performance Summary - 01/09.
7. 401K/IRA/Retirement Account 2009 Reallocations - 01/09.
8. 401K & Retirement Accounts Performance - Mid Year 2009 Update - 07/09.
1 Comments::
Great detail in this post and a pretty solid reallocation. I recently did some reallocation on my 401K as I beleive the market is headed for a strong rebound.
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