401K and Retirement Accounts 2011 Performance Summary

We did some minor reallocations on 2/3/2011 – as the market already rallied 4% in the last month, our allocations shifted as well and so we did a few exchanges to get the allocation back to 37-34-29 split among domestic, international, and bond funds respectively. Following are the details of the exchange transactions:

1. Moved the 1.65% in miscellaneous accounts that include our previous company stock and small amounts in certain Fidelity stock funds to Pimco Total Return Fund (PTTRX).
2. Moved about 7% from the ABF Small Cap Value Fund (AVFIX) and about 15% from Artisan Mid-cap Value Fund (ARTMX) to Pimco Total Return Fund (PTTRX). Both those funds had outstanding returns of 26% and 31% respectively and they continued to rally at the beginning of the year. Valuations on the stocks in the funds have also gone up!
3. Moved about 15% from the Fidelity Low Priced Stock Fund (FLPSX) to Fidelity Diversified International Fund (FDIVX). Large Cap International Funds focused on developed markets underperformed last year while their domestic equivalents had a comparatively better show. The divergence is not expected to last.

Below is our updated portfolio:

Symbol	% of Portfolio	Fund Fees	Fund Return 2010 (After Fees)	Comments
ABF Small Cap Value (AVFIX)	4.97	0.82	25.63	A Small-cap value fund with about 1.2B of total assets under management.
Artisan Mid-cap Value (ARTMX)	2.13	1.21	31.57	A mid-cap value fund with about 3.7B of total assets under management.Top 10 holdings account for 30% of assets.
Dodge & Cox Stock Fund (DODGX)	6.83	0.52	12.09	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)	18.22	1.00	7.68	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.
Fidelity Small Cap Stock Fund (FSLCX)	4.91	0.95	22.96	None.
Fidelity Low Priced Stock Fund (FLPSX)	3.40	0.83	20.16	None.
PIMCO Total Return Fund (PTTRX)	17.71	0.52	0.46	None.
Misc.	0.00	0.00	0.00
Calomos Growth A (CVGRX)	4.40	1.22	20.06	A 12B large cap growth fund. The top 10 holdings represent about 27% of assets.
Schwab S&P500 Index (SWPIX)	3.49	0.36	12.86	An index fund that tracks the performance of the S&P500 index benchmark.
William Blair International Growth (WBIGX)	4.11	1.67	17.79	A 5B large cap international fund with between 10 and 25% exposure to emerging markets.
Vanguard Pacific Stock Index (VPACX)	3.97	0.27	12.29	An index fund that tracks the performance of the MSCI Pacific index benchmark.
Vanguard Inflation Protected Securities (VIPSX)	7.89	0.20	3.59	Invests in inflation indexed bonds (primarily US) with maturities between 7 and 20 years.
Vanguard Emerging Market ETF (VWO)	6.70	0.25	17.43	None.
Fidelity International Real Estate Stock Fund (FIREX)	0.84	0.96	6.59	None.
Fidelity Small Cap Growth Fund (FCPGX)	3.63	1.09	26.33	None.
Fidelity Select Technology (FSPTX)	1.49	0.88	26.69	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)	1.43	0.87	16.80	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.
Vanguard Pacific ETF (VPL)	0.95	0.00	11.15
Cash and Money Market	0.27	0	0	None.
Pension Plan	2.68	0	3.70	Company Fully Vested Cash Balance Pension Plan.

For the rest of 2011, our strategy should remain the same - if the market rallies further as the year progresses, we will continue to shift more into bonds and vice-versa.