 |
Vanguard ETF: |  |
7.4%* |
|
Diversified Core: | |
8.1%* |
|
Six Core Asset ETFs: | |
7.3%* |
Articles on PTTR
- 401K Investments: Moody's Profit Participantion Plan Offers Good Diversification and Quality Funds
09/14/2011
Moody's is well known for its debt rating service. Through its subsidiaries, it provides credit ratings; credit and economic related research, data, and analytical tools; risk management software; and quantitative credit risk measures, credit portfolio management solutions, training, and financial credentialing and certification services worldwide. Famed investor Warren Buffett is a major shareholder of Moody's common stocks.
As one would expect, Moody's own credit and risk rating expertise should help to design and offer a good retirement investment plan to its employees. In this report, we review Profit Participation Plan of Moody’s Corporation plan and its asset allocation portfolio building capability.
The plan consists of 25 funds. These funds enable participants to gain exposure to 5 major assets: US Equity, Foreign Equity, REITs, Emerging Market Equity, Fixed Income.
Asset Class Ticker Name Conservative Allocation FIRJX Fidelity Income Replacement 2016 LARGE BLEND FUSEX Fidelity Spartan U.S. Equity Index Inv Intermediate-Term Bond FBIDX Fidelity U.S. Bond Index DIVERSIFIED EMERGING MKTS LZEMX Lazard Emerging Markets Equity Instl LARGE GROWTH MLAIX MainStay Large Cap Growth I REAL ESTATE RRRRX DWS RREEF Real Estate Securities Inst MID-CAP VALUE GCMAX Goldman Sachs Mid Cap Value A Retirement Income FFFAX Fidelity Freedom Income Target Date 2000-2010 FFFVX Fidelity Freedom 2005 Target Date 2000-2010 FFFCX Fidelity Freedom 2010 Target Date 2016-2020 FFFDX Fidelity Freedom 2020 Target Date 2026-2030 FFFEX Fidelity Freedom 2030 Target Date 2036-2040 FFFFX Fidelity Freedom 2040 Target Date 2011-2015 FFVFX Fidelity Freedom 2015 Target Date 2021-2025 FFTWX Fidelity Freedom 2025 Target Date 2031-2035 FFTHX Fidelity Freedom 2035 Target Date 2041-2045 FFFGX Fidelity Freedom 2045 Target Date 2050+ FFFHX Fidelity Freedom 2050 MID-CAP BLEND FLPSX Fidelity Low-Priced Stock Mid-Cap Growth FMCSX Fidelity Mid-Cap Stock Foreign Large Growth FDIVX Fidelity Diversified International MID-CAP BLEND FSEMX Fidelity Spartan Extended Mkt Index Inv Foreign Large Blend FSIIX Fidelity Spartan International Index Inv LARGE VALUE EILVX Eaton Vance Large-Cap Value I Intermediate-Term Bond PTTRX PIMCO Total Return Instl As of Sep 13, 2011, this plan investment choice is rated as above average based on MyPlanIQ Plan Rating methodology that measures the effectiveness of a plan's available investment funds. It has the following detailed ratings:
Diversification -- Rated as above average (68%)
Fund Quality -- Rated as average (65%)
Portfolio Building -- Rated as above average (69%)
Overall Rating: above average (67%)The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies. For comparison purpose, we also include the moderate model portfolios of a typical 5 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:
US Equity: SPY or VTI
Foreign Equity: EFA or VEU
REITs: IYR or VNQ or ICF
Emerging Market Equity: EEM or VWO
Fixed Income: AGG or BND
Performance chart (as of Sep 13, 2011)Performance table (as of Sep 13, 2011)
Portfolio Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe Profit Participation Plan of Moody’s Corporation Tactical Asset Allocation Moderate -0% 14% 11% 90% 10% 84% Profit Participation Plan of Moody’s Corporation Strategic Asset Allocation Moderate 2% 27% 4% 20% 4% 19% Five Core Asset ETF Benchmark Tactical Asset Allocation Moderate 6% 61% 10% 76% 9% 64% Five Core Asset ETF Benchmark Strategic Asset Allocation Moderate 2% 27% 5% 22% 4% 15% Currently Commodities, International Bonds and Fixed Income are doing well. Only Fixed Income is available to Profit Participation Plan of Moody’s Corporation participants.
Diversification and proper risk management are the two major key factors in 401k investing. Moody's plan provides a reasonable diversified asset classes for its participants. Participantscan achieve reasonable investment returns by adopting asset allocation strategies that are tailored to their risk profiles.
Symbols: MCO, VTI, VEU, VWO, VNQ, BND, FIRJX, FUSEX, FBIDX, LZEMX, MLAIX, RRRRX, GCMAX, FFFAX, FFFVX, FFFCX, FFFDX, FFFEX, FFFFX, FFVFX, FFTWX, FFTHX, FFFGX, FFFHX, FLPSX, FMCSX, FDIVX, FSEMX, FSIIX, EILVX, PTTR, 401K Investments, Retirement Investing, Portfolio Management, Asset Allocation, Risk Management
- Ford Motor 401K Report On 06/01/2011
06/01/2011
This report reviews Ford Motor 401K plan. We will discuss the investment choices and present the plan rating by MyPlanIQ. Current economic and market conditions are discussed in the context of the investment portfolios in the plan. We will then show how participants in Ford Motor 401K can achieve reasonable investment results using asset allocation strategies.
Plan Review and Rating
Ford Motor Company (Ticker: F) designs, develops, manufactures, and services cars and trucks worldwide. It operates in two sectors, Automotive and Financial Services. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan. Ford is one of the pioneers in automobile industry.
7/1/2010: The available funds are updated based on a user's input (thank you).
Ford Motor 401K's 401K plan consists of 24 funds. These funds enable participants to gain exposure to 4 major assets: US Equity, Foreign Equity, REITs, Fixed Income. The list of minor asset classes covered:
Foreign Large Blend: EFA, VEU, GWL, PFA
Foreign Small/mid Growth: IFSM, VSS, SCHC
Global Real Estate: IFGL, RWX
Inflation-protected Bond: TIP
Intermediate-term Bond: AGG, CIU, BIV, BND
Large Blend: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
Large Growth: IVW, IWZ, JKE, VUG, ELG, QQQQ, RPG, SCHG
Mid-cap Blend: IJH, IWR, JKG, VO, MDY, EMM, PJG, DON, EZM, MVV
Retirement Income:
Small Blend: IJR, IWM, JKJ, VB, DSC, PJM, DES, SAA, UWM, SCHA
Target Date 2016-2020: TZG
Target Date 2026-2030: TZL
Target Date 2036-2040: TZV
Target Date 2050+:
World Stock: IOO, VT
As of May 27, 2011, this plan investment choice is rated as average based on MyPlanIQ Plan Rating methodology that measures the effectiveness of a plan's available investment funds. It has the following detailed ratings:
Diversification -- Rated as above average (77%)
Fund Quality -- Rated as average (55%)
Portfolio Building -- Rated as average (50%)
Overall Rating: average (59%)Current Economic and Market Conditions
We have experienced an uncertain 2010: plenty of worries on whether the US economy will climb out of the great recession and recover.
- The Federal Reserve embarked on Quantitative Easing II (QE2) to stimulate the economy.
- The housing market is still at its low but largely stabilized.
- The unemployment rate is stuck at 9%.
Americans continue to face an uncertain future, given (among others) the high unemployment rate, large federal and local government debts and global trade imbalance. With such an economic backdrop, the stock and debt markets are going to be volatile. Despite this, markets have been resilient and appear positioned to rebound.
In this market it is even more critical to properly diversify and respond market changes. MyPlanIQ offers two asset allocation strategies: strategic and tactical asset allocation strategies (SAA and TAA for participants in Ford Motor 401K).
Strategic Asset Allocation is based on well known modern portfolio theory and its key features include: diversification, proper fund selection and periodically re-balancing.
Tactical Asset Allocation works on a diversified array of assets provided by funds in a plan and adjusts asset mixes based on market conditions such as asset price momentum utilized by TAA.
Portfolio Discussions
The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies. For comparison purpose, we also include the moderate model portfolios of a typical 4 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent:
US Equity: SPY or VTI
Foreign Equity: EFA or VEU
REITs: IYR or VNQ or ICF
Fixed Income: AGG or BND
Performance chart (as of May 27, 2011)Performance table (as of May 27, 2011)
Portfolio Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe Ford Motors 401K Tactical Asset Allocation Moderate 13% 128% 9% 91% 10% 90% Ford Motors 401K Strategic Asset Allocation Moderate 17% 174% 4% 21% 6% 30% Four Core Asset Index Funds REITs Tactical Asset Allocation Moderate 10% 88% 8% 81% 10% 85% Four Core Asset Index Funds REITs Strategic Asset Allocation Moderate 17% 158% 4% 19% 6% 24% Currently are doing well. But these asset classes are not available to Ford Motor 401K participants.
To summarize, Ford Motor 401K plan participants can achieve reasonable investment returns by adopting asset allocation strategies that are tailored to their risk profiles.
Symbols:FORD, EFA, TIP, CASH, STLAX, STLBX, STLCX, STLDX, STLEX, STLFX, VIIIX, FCNTX, FDGRX, VIEIX, NBGIX, RLPIX, IRGTX, PRIDX, VTWSX, VBMFX, PTTRX, VTSMX, VGTSX, VGSIX
Exchange Tickers: (FORD), (EFA), (TIP), (CASH), (STLAX), (STLBX), (STLCX), (STLDX), (STLEX), (STLFX), (VIIIX), (FCNTX), (FDGRX), (VIEIX), (NBGIX), (RLPIX), (IRGTX), (PRIDX), (VTWSX), (VBMFX), (PTTRX), (VTSMX), (VGTSX), (VGSIX) - Oracle Corporation 401(k) Savings and Investment Plan Report On 06/13/2011
06/13/2011
- Adobe Systems Inc 401K Retirement Savings Plan Report On 06222011
06/22/2011