Accenture plc (ACN) operates as a management consulting, technology services, and outsourcing company. As a consulting and service provider, Accenture offers human resources and benefit consulting to various corporations. It is of interests to look at Accenture 401K plan offered to Accenture's employees.
The 401K plan consists of 28 funds. These funds enable participants to gain exposure to 5 major assets: US Equity, Foreign Equity, Emerging Market Equity, REITs, Fixed Income.
| Asset Class | Ticker | Name |
|---|---|---|
| Retirement Income | FFFAX | Fidelity Freedom Income |
| Target Date 2016-2020 | FFFDX | Fidelity Freedom 2020 |
| Target Date 2016-2020 | FFFDX | Fidelity Freedom 2020 |
| Target Date 2016-2020 | FFFDX | Fidelity Freedom 2020 |
| Target Date 2016-2020 | FFFDX | Fidelity Freedom 2020 |
| Target Date 2016-2020 | FFFDX | Fidelity Freedom 2020 |
| Target Date 2016-2020 | FFFDX | Fidelity Freedom 2020 |
| LARGE BLEND | MVEIX | Monteagle Select Value Fund |
| Intermediate-Term Bond | PTTRX | PIMCO Total Return Instl |
| Intermediate-Term Bond | VBMFX | Vanguard Total Bond Market Index |
| Inflation-Protected Bond | VIPSX | Vanguard Inflation-Protected Secs |
| LARGE BLEND | VIIIX | Vanguard Institutional Index Instl Pl |
| LARGE BLEND | LLPFX | Longleaf Partners |
| LARGE VALUE | LSVEX | LSV Value Equity |
| MID-CAP VALUE | VMVIX | Vanguard Mid-Cap Value Index Inv |
| SMALL BLEND | NAESX | Vanguard Small Cap Index |
| REAL ESTATE | VGSIX | Vanguard REIT Index |
| LARGE GROWTH | FCNTX | Fidelity Contrafund |
| LARGE GROWTH | FOCPX | Fidelity OTC |
| LARGE GROWTH | HACAX | Harbor Capital Appreciation Instl |
| LARGE GROWTH | MGRIX | Marsico Growth |
| SMALL VALUE | ROFIX | Royce Opportunity Instl |
| WORLD STOCK | RNPFX | American Funds New Perspective R5 |
| Foreign Large Growth | FDIVX | Fidelity Diversified International |
| DIVERSIFIED EMERGING MKTS | VEIEX |
Vanguard Emerging Markets Stock |
| Foreign Large Blend | VGTSX | Vanguard Total Intl Stock Index |
The list of minor asset classes covered:
Diversified Emerging Mkts: EEM, GMM, PXH, DEM, SCHE
Foreign Large Blend: EFA, VEU, GWL, PFA
Inflation-protected Bond: TIP
Intermediate-term Bond: AGG, CIU, BIV, BND
Large Blend: IVV, IYY, IWV, VTI, VV, SPY, DLN, RSP, SCHX
Large Growth: IVW, IWZ, JKE, VUG, ELG, QQQQ, RPG, SCHG
Large Value: IVE, IWW, JKF, VTV, ELV, PWV, RPV, SCHV
Mid-cap Value: IJJ, IWS, JKI, VOE, EMV, PWP, RFV, UVU
Real Estate: IYR, ICF, VNQ
Retirement Income:
Small Blend: IJR, IWM, JKJ, VB, DSC, PJM, DES, SAA, UWM, SCHA
Small Value: IJS, IWN, JKL, VBR, DSV, PWY, RZV, UVT
Target Date 2016-2020: TZG
World Stock: IOO, VT
| Asset Class | Number of funds |
|---|---|
| Balanced Fund | 7 |
| REITs | 1 |
| Fixed Income | 3 |
| Commodity | 0 |
| Sector Fund | 0 |
| Foreign Equity | 3 |
| Emerging Market Equity | 1 |
| US Equity | 11 |
| Other | 2 |
| Total | 28 |
As of Mar 24, 2011, this plan investment choice is rated as above averagebased 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 great (87%) Let's analyze further how the plan can help its participants by using two asset allocation strategies: strategic and tactical asset allocation strategies (SAA and TAA for participants in Accenture 401K). 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 5 asset SIB (Simpler Is Better) plan . This SIB plan has the following candidate index funds and their ETFs equivalent: US Equity: SPY or VTI Performance table (as of Mar 24, 2011)
Fund Quality -- Rated as below average (27%)
Portfolio Building -- Rated as great (86%)
Overall Rating: above average (69%)
Foreign Equity: EFA or VEU
REITs: IYR or VNQ or ICF
Emerging Market Equity: EEM or VWO
Fixed Income: AGG or BND
Performance chart (as of Mar 24, 2011)
| Portfolio Name | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
|---|---|---|---|---|---|---|
| Accenture 401K Tactical Asset Allocation Moderate | 8% | 43% | 12% | 93% | 13% | 84% |
| Accenture 401K Strategic Asset Allocation Moderate | 10% | 80% | 6% | 30% | 7% | 33% |
| Five Core Asset ETF Benchmark Tactical Asset Allocation Moderate | 7% | 42% | 8% | 60% | 10% | 63% |
| Five Core Asset ETF Benchmark Strategic Asset Allocation Moderate | 13% | 76% | 4% | 16% | 6% | 19% |
Accenture's Strategic and Tactical model portfolios beat their counterparts of the Five Core Asset benchmarks respectively. This indicates a solid plan that can be used for many asset allocation styles. To summarize, Accenture 401K participants can achieve the best investment returns by adopting asset allocation strategies that are tailored to their risk profiles. Moreover, they can take advantage of the good fund choices offered by the plan. Symbols:ACN,SPY,VTI,EFA,VEU,EEM,VWO,IYR,VNQ,ICF,AGG,BND,CIU,BIV,GWL,PFA,IVE,IWW,JKF,VTV,ELV,PWV,RPV,SCHV,TZG,IVV,IYY,IWV,VV,DLN,RSP,SCHX,IOO,VT,IVW,IWZ,JKE,VUG,ELG,QQQQ,RPG,SCHG,IJJ,IWS,JKI,VOE,EMV,PWP,RFV,UVU,IJS,IWN,JKL,VBR,DSV,PWY,RZV,UVT,IJR,IWM,JKJ,VB,DSC,PJM,DES,SAA,UWM,SCHA,GMM,PXH,DEM,SCHE,TIP,PTTRX,LSVEX,LLPFX,ROFIX,
Exchange Tickers:(ACN), (SPY), (VTI), (EFA), (VEU), (EEM), (VWO), (IYR), (VNQ), (ICF), (AGG), (BND), (CIU), (BIV), (GWL), (PFA), (IVE), (IWW), (JKF), (VTV), (ELV), (PWV), (RPV), (SCHV), (TZG), (IVV), (IYY), (IWV), (VV), (DLN), (RSP), (SCHX), (IOO), (VT), (IVW), (IWZ), (JKE), (VUG), (ELG), (QQQQ), (RPG), (SCHG), (IJJ), (IWS), (JKI), (VOE), (EMV), (PWP), (RFV), (UVU), (IJS), (IWN), (JKL), (VBR), (DSV), (PWY), (RZV), (UVT), (IJR), (IWM), (JKJ), (VB), (DSC), (PJM), (DES), (SAA), (UWM), (SCHA), (GMM), (PXH), (DEM), (SCHE), (TIP) Disclosure:
comments(0)
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
