LSI is one of the oldest semiconductor companies in Silicon Valley. LSI Corporation designs, develops, and markets storage and networking semiconductors and storage systems. The company, formerly known as LSI Logic Corporation, was founded in 1980 and is headquartered in Milpitas, California.

LSI Corporation 401K Plan consists of 34 funds. These funds enable participants to gain exposure to 4 major assets: US Equity, Foreign Equity, REITs, Fixed Income.

Asset Class Ticker Name
ROOT CASH CASH
EQUITY LSI LSI Corp
LARGE GROWTH FCNKX Fidelity Contrafund K
Foreign Large Growth FDIVX Fidelity Diversified International
LARGE VALUE FEIKX Fidelity Equity-Income K
Target Date 2000-2010 FFFBX Fidelity Freedom 2000
Target Date 2000-2010 FFFVX Fidelity Freedom 2005
Target Date 2000-2010 FFFCX Fidelity Freedom 2010
Target Date 2011-2015 FFVFX Fidelity Freedom 2015
Target Date 2016-2020 FFFDX Fidelity Freedom 2020
Target Date 2021-2025 FFTWX Fidelity Freedom 2025
Target Date 2026-2030 FFFEX Fidelity Freedom 2030
Target Date 2031-2035 FFTHX Fidelity Freedom 2035
Target Date 2036-2040 FFFFX Fidelity Freedom 2040
Target Date 2041-2045 FFFGX Fidelity Freedom 2045
Target Date 2050+ FFFHX Fidelity Freedom 2050
Retirement Income FFFAX Fidelity Freedom Income
LARGE BLEND FGIKX Fidelity Growth & Income K
LARGE GROWTH FGCKX Fidelity Growth Company K
Moderate Allocation FPUKX Fidelity Puritan K
REAL ESTATE FRESX Fidelity Real Estate Investment
Intermediate-Term Bond FTBFX Fidelity Total Bond
Intermediate-Term Bond FBIDX Fidelity U.S. Bond Index
LARGE VALUE ALVIX American Century Large Co Val Inv
LARGE BLEND ANCFX American Funds Fundamental Investors A
MID-CAP VALUE GSMCX Goldman Sachs Mid Cap Value Instl
Mid-Cap Growth MGOYX Munder Mid-Cap Core Growth Y
High Yield Bond PHIYX PIMCO High Yield Instl
SMALL BLEND RSPYX RS Partners Y
LARGE BLEND FSMAX Fidelity Spartan 500 Index Advantage
MID-CAP BLEND FSEMX Fidelity Spartan Extended Mkt Index Inv
Foreign Large Blend FSIVX Fidelity Spartan International Index Adv
Inflation-Protected Bond VIPSX Vanguard Inflation-Protected Secs

 

Asset Class Number of funds
Balanced Fund 13
REITs 1
Fixed Income 4
Commodity 0
Sector Fund 0
Foreign Equity 2
Emerging Market Equity 0
US Equity 12
Other 2
Total 34

As of Mar 21, 2012, this plan investment choice is rated as above 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 (82%)
Fund Quality — Rated as below average (32%)
Portfolio Building — Rated as great (95%)
Overall Rating: above average (72%)

The chart and table below show the historical performance of moderate model portfolios employing strategic and tactical asset allocation strategies  (SAA and TAA). 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 Mar 21, 2012)

 

Performance table (as of Mar 21, 2012)

Currently US Equity, Real Estate and Global Real Estate are doing well. US Equity and Real Estate available to LSI Corporation 401K Plan participants.

The extra REIT asset and various stock style funds in the plan provide important diversification effect for portfolio building. Not only both SAA and TAA portfolios have higher returns than the four core benchmark portfolios, they are also better than the three core benchmark portfolios (the core assets are US Equity, International Equity and Fixed Income):

Portfolio Performance Comparison (as of 3/21/2012)

Portfolio/Fund Name YTD
Return
1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
LSI Corporation 401K Plan Strategic Asset Allocation Moderate 5% 3% 38% 17% 170% 4% 27%
LSI Corporation 401K Plan Tactical Asset Allocation Moderate 4% 6% 65% 17% 138% 10% 90%
Three Core Asset ETF Index Funds Strategic Asset Allocation Moderate 8% 2% 32% 15% 108% 3% 14%
Three Core Asset ETF Index Funds Tactical Asset Allocation Moderate 1% 4% 115% 5% 53% 3% 41%


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.