Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. Newmont is one of the largest gold and copper mining companies.
RETIREMENT SAVINGS PLAN OF NEWMONT plan consists of 28 funds. These funds enable participants to gain exposure to 4 major assets: US Equity, Foreign Equity, Emerging Market Equity, Fixed Income.
|DIVERSIFIED EMERGING MKTS||TEDMX||Templeton Developing Markets A|
|LARGE BLEND||VFINX||Vanguard 500 Index Investor|
|LARGE GROWTH||VHCOX||Vanguard Capital Opportunity|
|Small Growth||VEXPX||Vanguard Explorer|
|MID-CAP BLEND||VIEIX||Vanguard Extended Market Idx Instl|
|Foreign Large Blend||VWIGX||Vanguard International Growth|
|Conservative Allocation||VSCGX||Vanguard LifeStrategy Conservative Gr|
|LARGE BLEND||VASGX||Vanguard LifeStrategy Growth|
|Conservative Allocation||VASIX||Vanguard LifeStrategy Income|
|Moderate Allocation||VSMGX||Vanguard LifeStrategy Moderate Growth|
|LARGE GROWTH||VPMCX||Vanguard PRIMECAP|
|SMALL BLEND||NAESX||Vanguard Small Cap Index|
|Target Date 2000-2010||VTOVX||Vanguard Target Retirement 2005|
|Target Date 2000-2010||VTENX||Vanguard Target Retirement 2010|
|Target Date 2011-2015||VTXVX||Vanguard Target Retirement 2015|
|Target Date 2016-2020||VTWNX||Vanguard Target Retirement 2020|
|Target Date 2021-2025||VTTVX||Vanguard Target Retirement 2025|
|Target Date 2026-2030||VTHRX||Vanguard Target Retirement 2030|
|Target Date 2031-2035||VTTHX||Vanguard Target Retirement 2035|
|Target Date 2036-2040||VFORX||Vanguard Target Retirement 2040|
|Target Date 2041-2045||VTIVX||Vanguard Target Retirement 2045|
|Target Date 2050+||VFIFX||Vanguard Target Retirement 2050|
|Retirement Income||VTINX||Vanguard Target Retirement Income|
|Intermediate-Term Bond||VBMFX||Vanguard Total Bond Market Index|
|Foreign Large Blend||VGTSX||Vanguard Total Intl Stock Index|
|Moderate Allocation||VWELX||Vanguard Wellington|
|LARGE VALUE||VWNFX||Vanguard Windsor II|
|Asset Class||Number of funds|
|Emerging Market Equity||1|
As of Mar 2, 2012, 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 above average (70%)
Fund Quality — Rated as average (38%)
Portfolio Building — Rated as average (59%)
Overall Rating: average (56%)
Other than Templeton Developing Markets A, all other funds in the plan are low cost Vanguard funds. The Templeton fund is an emerging market stock fund. Given Templeton’s expertise in emerging market investing, this is an excellent choice.
In the current market and economic environment it is 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 RETIREMENT SAVINGS PLAN OF NEWMONT ).
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 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
Emerging Market Equity: EEM or VWO
Fixed Income: AGG or BND
Performance chart (as of Mar 2, 2012)
Performance table (as of Mar 2, 2012)
|Portfolio Name||1Yr AR||1Yr Sharpe||3Yr AR||3Yr Sharpe||5Yr AR||5Yr Sharpe|
|RETIREMENT SAVINGS PLAN OF NEWMONT Tactical Asset Allocation Moderate||-2%||-21%||9%||87%||7%||59%|
|RETIREMENT SAVINGS PLAN OF NEWMONT Strategic Asset Allocation Moderate||1%||10%||17%||145%||4%||28%|
|Four Core Asset ETF (EM) Benchmark Tactical Asset Allocation Moderate||-0%||-3%||7%||64%||7%||54%|
|Four Core Asset ETF (EM) Benchmark Strategic Asset Allocation Moderate||0%||0%||20%||115%||4%||15%|
Currently Real Estate, US Equity and Emerging Market are doing well. US Equity and Emerging Market available to RETIREMENT SAVINGS PLAN OF NEWMONT participants.
Virtually, the plan delivers similar or slightly better returns as the four core benchmark ETF plan. In essence, this is a reasonable plan for Newmont employees in their 401K retirement investments.
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.