Advanced Micro Devices (AMD) is one of the largest semiconductor companies. It products include microprocessor and graphics ICs.
Advanced Micro Devices Inc (AMD) Retirement Savings Plan is a simple plan that consists of most Vanguard funds and a few selected active managed funds. These funds enable participants to gain exposure to 3 major assets: US Equity, Foreign Equity, Fixed Income.
|SMALL VALUE||PSVIX||Allianz NFJ Small Cap Value Instl|
|Foreign Large Value||BIIEX||Brandes International Equity I|
|Moderate Allocation||DODBX||Dodge & Cox Balanced|
|MID-CAP BLEND||FSLCX||Fidelity Small Cap Stock|
|Foreign Large Blend||GEARX||GMO International Equity Allc Ser R6|
|LARGE GROWTH||HACAX||Harbor Capital Appreciation Instl|
|LARGE VALUE||LAFFX||Lord Abbett Affiliated A|
|LARGE BLEND||FXSIX||Fidelity Spartan 500 Index Institutional|
|Small Growth||VSGIX||Vanguard Small Cap Growth Index Instl|
|US Small Cap||NAESX||Vanguard Small Cap Index Inv|
|SMALL VALUE||VISVX||Vanguard Small Cap Value Index Inv|
|Target Date 2000-2010||VTENX||Vanguard Target Retirement 2010 Inv|
|Target Date 2011-2015||VTXVX||Vanguard Target Retirement 2015 Inv|
|Target Date 2016-2020||VTWNX||Vanguard Target Retirement 2020 Inv|
|Target Date 2021-2025||VTTVX||Vanguard Target Retirement 2025 Inv|
|Target Date 2026-2030||VTHRX||Vanguard Target Retirement 2030 Inv|
|Target Date 2031-2035||VTTHX||Vanguard Target Retirement 2035 Inv|
|Target Date 2036-2040||VFORX||Vanguard Target Retirement 2040 Inv|
|Target Date 2041-2045||VTIVX||Vanguard Target Retirement 2045 Inv|
|Target Date 2046-2050||VFIFX||Vanguard Target Retirement 2050 Inv|
|Target-Date 2051+||VFFVX||Vanguard Target Retirement 2055 Inv|
|Retirement Income||VTINX||Vanguard Target Retirement Income Inv|
|Intermediate-Term Bond||WATFX||Western Asset Core Bond I|
|Asset Class||Number of funds|
|Emerging Market Equity||0|
As of Sep 25, 2013, this plan investment choice is rated as average based on MyPlanIQ Plan Rating methodology that was designed to measure how effective a plan’s available investment funds are . It has the following detailed ratings:
Diversification — Rated as below average (17%)
Fund Quality — Rated as average (52%)
Portfolio Building — Rated as above average (84%)
Overall Rating: average (54%)
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.
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 3 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
Fixed Income: AGG or BND
Performance chart (as of Sep 25, 2013)
Performance table (as of Sep 25, 2013)
|Portfolio Name||1 Week
|1Yr AR||1Yr Sharpe||3Yr AR||3Yr Sharpe||5Yr AR||5Yr Sharpe|
|Advanced Micro Devices Inc (AMD) Retirement Savings Plan Tactical Asset Allocation Moderate||-0.7%||10.1%||11.1%||152.6%||8.2%||118.0%||9.3%||120.3%|
|Advanced Micro Devices Inc (AMD) Retirement Savings Plan Strategic Asset Allocation – Equal Weight Moderate||-0.6%||8.0%||9.5%||149.1%||7.9%||104.1%||7.5%||62.8%|
|Three Core Asset ETF Benchmark Tactical Asset Allocation Moderate||-1.1%||8.4%||10.0%||131.1%||7.1%||99.9%||4.6%||57.9%|
|Three Core Asset ETF Benchmark Strategic Asset Allocation – Equal Weight Moderate||-1.2%||9.0%||11.0%||141.5%||8.2%||66.1%||6.5%||38.3%|
Currently International Equity, US Equity and Balance Fund are doing well. These asset classes are available to Advanced Micro Devices Inc (AMD) Retirement Savings Plan participants.
This plan beats the three asset benchmark by virtue of the US asset class choices. If would be a stronger plan with more fixed income choices and an additional asset class.
To summarize, Advanced Micro Devices Inc (AMD) Retirement Savings Plan participants can achieve the best investment returns by adopting asset allocation strategies that are tailored to their risk profiles.
Advanced Micro Devices Inc (AMD) Retirement Savings Plan would do well by their employees to consider reviewing their existing funds and adding an additional asset class.
MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.