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.

 

Asset Class Ticker Name
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
ROOT CASH CASH
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
REITs 0
Balanced Fund 16
Fixed Income 1
Commodity 0
Sector Fund 0
Foreign Equity 2
Emerging Market Equity 1
US Equity 7
Other 1
Total 28

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.

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
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)

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.

Disclosure:

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.

See also

Retirement Plan Review: Advanced Micro Devices Inc (AMD) Retirement Savings Plan

Retirement Plan Review: More Diversification for Wal-Mart Profit Sharing and 401(k) Plan