How Are Various 401(k) Investments Performing? (March 2009)

 

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Copyright 2009 Institute of Management & AdministrationAll Rights Reserved Managing 401(K) Plans

March 2009

HUMAN RESOURCES Vol. 2009 No. 3

322 words


How Are Various 401(k) Investments Performing? (March 2009)

While the stock market still fell in January, the losses were far less than experienced in December 2008. Domestic stock indices fell across the board, but in the single-digit range. The S&P 500 fell the most at a -8.43 percent, but not as far as December's -37.01 percent. It was followed by the Wilshire 5000 Value at -8.17 percent and the Wilshire 5000 Equal at -3.29 percent. Foreign indices dropped the most, with the international MS EAFE falling -10.63 percent as of January 31. Looking at yields over the long term, the barometer by which retirement holdings should be judged, the Wilshire 5000 Equal did well over the past 10- and seven-year periods. But diversification to limit overall risk is clearly needed. Over the 10-, seven-, five-, three-, and one-year periods, five-year Treasuries outperformed five-year GICs and bonds. For the most part, bonds came in second place overall.

Historical Returns (%)--Annualized as of Jan. 31, 2008




Last
Last
Last
Last
Last
Last
Jan. 31
Index
10 Years
7 Years
5 Years
3 Years
12 Months
Month
2008
3-Year GIC Index
4.90
4.30
3.96
4.39
4.79
4.79
0.39
5-Year GIC Index
5.56
5.13
4.76
4.54
4.66
4.64
0.39
2-Year Treasury
4.76
4.22
4.14
6.22
5.30
7.97
-0.46
5-Year Treasury
5.86
6.09
5.5
8.54
9.42
14.16
-1.02
Ryan Labs Cash1
3.61
2.87
3.41
4.14
2.02
2.62
0.01
Ryan Labs Treasury2
5.78
6.44
5.99
8.3
10.07
18.16
-4.31
SB BIG3
5.59
5.29
4.56
5.56
4.06
7.02
-0.87
LB Gov't/Credit
5.43
5.22
4.17
5.15
2.33
5.71
-1.34
S&P 500
-3.04
-3.12
-4.25
-11.79
-38.64
-37.01
-8.43
Wilshire 5000 Value
-1.84
-1.66
-3.78
-12.06
-38.68
-37.27
-8.17
Wilshire 5000 Equal
9.10
6.39
-3.49
-14.81
-44.17
-43.39
-3.29
MS EAFE w/o Income
-2.33
0.17
-3.28
-14.71
-45.9
-45.09
-10.63








Note: All returns are annualized, except this month and last month, which are actual.

(1) Composite of one-month, three-month, and six-month Treasury bills.


(2) Composite of two-year, three-year, five-year, 10-year, and 30-year Treasuries.


(3) The index covers the U.S. investment-grade, fixed-rate bond market.


(Source: Ryan Labs; 212-635-2300)






March 6, 2009

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