The market capitulated another 15% in the last four trading days and that has forced us to reallocate our 401K portfolio again to keep our target allocation roughly at 40-40-20. Below is our portfolio after the adjustments to move about 3% out of bonds back into stocks:
The total returns YTD as of 07/31/2008 were –33.5%. The performance compare well with the returns of popular domestic indices as many of the indices are down around 40%. 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 - 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 2008 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.
| Symbol | % of Portfolio | Fund Fees | Fund Return 2008 (After Fees) | Comments |
| Dodge & Cox Stock Fund (DODGX) | 6.45 | 0.52 | (44.45) | 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) | 19.01 | 0.97 | (45.79) | 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) | 4.95 | 1.06 | (30.72) | A Small-cap value fund with about 1.2B of total assets under management. Turnover at 48%. |
| Hotchkis & Wiley Mid-cap Value (HWMIX) | 2.38 | 1.02 | (43.58) | 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) | 2.75 | 0.05 | (37.70) | Attempts to replicate S&P500 index performance. |
| PIMCO Total Return Fund (PTTRX) | 13.55 | 0.45 | (1.74) | None. |
| Artisan Mid-cap Value (ARTMX) | 2.64 | 1.22 | (40.14) | None. |
| Fidelity Small Cap Stock Fund (FSLCX) | 4.70 | 1.08 | (40.42) | None. |
| Fidelity Low Priced Stock Fund (FLPSX) | 3.18 | 1.08 | (37.62) | None. |
| Calomos Growth A (CVGRX) | 1.44 | 1.44 | (46.89) | A 12B large cap growth fund. The top 10 holdings represent about 27% of assets. |
| Schwab S&P500 Index (SWPIX) | 1.41 | 0.36 | (37.60) | An index fund that tracks the performance of the S&P500 index benchmark. |
| William Blair International Growth (WBIGX) | 1.36 | 1.67 | (50.96) | A 5B large cap international fund with between 10 and 25% exposure to emerging markets. |
| Vanguard Index Trust 500 Index (VFINX) | 6.81 | 0.18 | (37.73) | An index fund that tracks the performance of the S&P500 index benchmark. |
| Vanguard Pacific Stock Index (VPACX) | 6.50 | 0.27 | (41.90) | An index fund that tracks the performance of the MSCI Pacific index benchmark. |
| Vanguard Inflation Protected Securities (VIPSX) | 2.47 | 0.20 | (2.79) | Invests in inflation indexed bonds (primarily US) with maturities between 7 and 20 years. |
| Vanguard Long-Term Bond Index (VBLTX) | 0.74 | 0.18 | (6.39) | 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) | 6.44 | 0.25 | (52.44) | None. |
| Fidelity International Real Estate Stock Fund (FIREX) | 1.00 | 0.96 | (50.37) | None. |
| Fidelity Small Cap Growth Fund (FCPGX) | 3.80 | 1.09 | (43.16) | None. |
| Fidelity Select Technology (FSPTX) | 1.63 | 0.88 | (46.25) | 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) | 2.31 | 0.87 | (35.14) | 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 | 4.38 | 0 | 3.70 | Company Fully Vested Cash Balance Pension Plan. |
| Cash and Money Market | 0.10 | 0 | 0 | None. |
The total returns YTD as of 07/31/2008 were –33.5%. The performance compare well with the returns of popular domestic indices as many of the indices are down around 40%. 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 - 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 2008 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.
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