UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One) |
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ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the fiscal year ended December 31, 2008 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-2360
A. Full title of the plan and address of the plan, if different from that of the issuer named below:
IBM 401(k) Plus Plan
Director of Compensation and Benefits
IBM
North Castle Drive, M/D 147
Armonk, New York 10504
B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
INTERNATIONAL BUSINESS MACHINES CORPORATION
New Orchard Road
Armonk, New York 10504
IBM 401(k) PLUS PLAN
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Page |
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Financial Statements and Schedule: |
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4 |
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Financial Statements: |
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Statements of Net Assets Available for Benefits at December 31, 2008 and 2007 |
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Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2008 |
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6 |
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7 |
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Supplemental Schedule*: |
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Schedule H, Line 4i - Schedule of Assets (Held at End of Year) |
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29 |
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Exhibit: |
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Exhibit 23 - Consent of Independent Registered Public Accounting Firm |
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* Other schedules required by Section 2520.103-10 of the Department of Labor Rules and Regulations for Reporting and Disclosures under the Employee Retirement Income Security Act of 1974 are omitted because they are not applicable.
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SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized.
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IBM 401(k) Plus Plan |
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Date: June 29, 2009 |
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By: |
/s/ James J. Kavanaugh |
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James J. Kavanaugh |
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Vice President and Controller |
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Report of Independent Registered Public Accounting Firm
To the Members of the International Business Machines Corporation (IBM) Retirement Plans Committee and the Participants of the IBM 401(k) Plus Plan:
In our opinion, the accompanying statements of net assets available for benefits and the related statement of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the IBM 401(k) Plus Plan (the Plan) at December 31, 2008 and 2007, and the changes in net assets available for benefits for the year ended December 31, 2008 in conformity with accounting principles generally accepted in the United States of America. These financial statements are the responsibility of the Plans management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements but is supplementary information required by the Department of Labors Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plans management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
/s/ PricewaterhouseCoopers LLP |
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New York, NY |
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June 29, 2009 |
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IBM 401(k) PLUS PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
AT DECEMBER 31,
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2008 |
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2007 |
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(Dollars in thousands) |
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Assets: |
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Investments: |
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Investments, at fair value (Note 3) |
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$ |
26,024,927 |
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$ |
36,078,252 |
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Participant loans |
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293,132 |
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281,775 |
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Total investments |
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26,318,059 |
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36,360,027 |
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Receivables: |
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Participant contributions |
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32,850 |
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Employer contributions |
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35,084 |
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Income, sales proceeds and other receivables |
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30,805 |
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95,223 |
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Total receivables |
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98,739 |
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95,223 |
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Total assets |
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26,416,798 |
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36,455,250 |
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Liabilities: |
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Payable for collateral deposits |
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1,520,607 |
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3,592,169 |
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Accrued expenses and other liabilities |
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33,939 |
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10,353 |
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Total liabilities |
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1,554,546 |
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3,602,522 |
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Net assets available for benefits |
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24,862,252 |
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32,852,728 |
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Adjustment from fair value to contract value for fully benefit-responsive investment contracts |
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499,119 |
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(134,577 |
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Net assets available for benefits |
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$ |
25,361,371 |
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$ |
32,718,151 |
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The accompanying notes are an integral part of these financial statements.
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IBM 401(k) PLUS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEAR ENDED DECEMBER 31,
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2008 |
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(Dollars in thousands) |
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Additions to net assets attributed to: |
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Investment income: |
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Net change in fair value of investments (Note 3) |
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$ |
(8,991,749 |
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Interest income from investments |
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658,801 |
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Dividends |
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213,741 |
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(8,119,207 |
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Contributions: |
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Participants |
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1,313,337 |
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Employer |
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1,033,990 |
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2,347,327 |
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Transfers from other benefit plans, net |
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112,437 |
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Total additions/(reductions) |
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(5,659,443 |
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Deductions from net assets attributed to: |
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Distributions to participants |
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1,672,199 |
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Administrative expenses |
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25,138 |
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Total deductions |
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1,697,337 |
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Net decrease in net assets during the year |
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(7,356,780 |
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Net assets available for benefits: |
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Beginning of year |
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32,718,151 |
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End of year |
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$ |
25,361,371 |
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The accompanying notes are an integral part of these financial statements.
6
IBM 401(k) PLUS PLAN
NOTE 1 - DESCRIPTION OF THE PLAN
The following description of the International Business Machines Corporation (IBM) 401(k) Plus Plan (formerly called the IBM Savings Plan and herein the Plan) provides only general information. Participants should refer to the Plan prospectus (Summary Plan Description) for a complete description of the Plans provisions.
General
The Plan was established by resolution of IBMs Retirement Plans Committee (the Committee) effective July 1, 1983 and Plan assets are held in trust for the benefit of its participants. The Plan offers all eligible active, full-time and part-time regular and long-term supplemental United States (U.S.) employees of IBM and certain of its domestic related companies and partnerships an opportunity to defer from one to eighty percent of their eligible compensation for before-tax 401(k) and/or Roth 401(k) contributions to any of thirty-two primary investment funds and approximately 200 mutual funds in a mutual fund window. The investment objectives of the primary funds are described in Note 6, Description of Investment Funds. In addition, participants are able to contribute up to ten percent of their eligible compensation on an after-tax basis. (Roth 401(k) and after-tax contributions are not available for employees working in Puerto Rico.) Annual contributions are subject to the legal limits permitted by Internal Revenue Service (IRS) regulations.
Participants are provided the choice to enroll in a disability protection program under which a portion of the participants account is used to pay premiums to purchase term insurance (underwritten by Metropolitan Life Insurance Company), which will pay the amount of their before-tax 401(k) contributions, matching contributions, automatic contributions and/or Special Savings Awards into their accounts in the event the participant becomes disabled while insured.
At December 31, 2008 and 2007, the number of participants with an account balance in the Plan was 214,594 and 218,701, respectively.
The Plan qualifies under Section 401(a) of the Internal Revenue Code of 1986, as amended, and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
Administration
The Plan is administered by the Committee, which appointed certain officials of IBM to assist in administering the Plan. The Committee appointed State Street Bank and Trust Company (SSBT), as Trustee, to safeguard the assets of the funds and State Street Global Advisors (SSGA), the institutional investment management affiliate of SSBT,
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The Vanguard Group and other investment managers to direct investments in the various funds. Starting January 1, 2008, Fidelity Investments Institutional Operations Company, Inc. (Fidelity) is the provider of record keeping and participant services, operator of the IBM Employee Services Center for the Plan in Raleigh, North Carolina and the provider of administrative services related to the mutual fund window. In anticipation of the record keeping responsibilities, Fidelity had access to participant records starting December 29, 2007 with data as of December 28, 2007. Communications services were provided by Fidelity as well as The Vanguard Group.
Contributions
On January 1, 2008, IBM introduced an enhanced plan design called the IBM 401(k) Plus Plan, which provides employer contributions for eligible participants as follows, based upon which, if any, IBM pension formula the employee was eligible for on December 31, 2007:
IBM Pension Plan |
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2008 Automatic |
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2008 IBM Matching |
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Pension Credit Formula |
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4% |
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100% on 6% of eligible compensation |
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Personal Pension Account |
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2% |
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100% on 6% of eligible compensation |
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New Hires on or after 1/1/2005 |
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1% |
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100% on 5% of eligible compensation |
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Under the IBM 401(k) Plus Plan design, some participants who were eligible to participate in the Personal Pension Account may also receive transition credits contributed to the IBM 401(k) Plus Plan, if they had been eligible for transition credits under the IBM Personal Pension Account formula. In addition, a contribution equal to five percent of eligible compensation (referred to as a Special Savings Award) will be added to the accounts of participants who are non-exempt employees at year-end and who participated in the Pension Credit Formula as of December 31, 2007.
Effective January 1, 2008, newly hired employees are automatically enrolled at 5 percent of eligible salary after approximately thirty days of employment with IBM, unless they elect otherwise. After completing one year of service with IBM, they are eligible for the IBM automatic contribution and the IBM matching contribution. The match maximizer feature, which automatically adjusts IBM matching contributions for a participants aggregate eligible 401(k) deferrals for the year, will be calculated on a semi-monthly basis and all participants will be eligible for the feature.
Eligible compensation under the Plan includes regular salary, commissions, overtime, shift premium and similar additional compensation payments for nonscheduled workdays, recurring payments under an employee variable compensation plan, regular IBM Short-Term Disability Income Plan payments, holiday pay and vacation pay, but excludes payments made under any executive incentive compensation plan. Effective
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April 1, 2008, executive incentive compensation is included in eligible compensation and non-recurring compensation, such as awards, deal team payments and significant signing bonuses are not eligible compensation and cannot be deferred under the IBM 401(k) Plus Plan.
In 2008, participants could choose to have their contributions invested entirely in one of, or in any combination of, the following funds or in the mutual fund window funds, in multiples of one percent. These funds and their investment objectives are more fully described in Note 5, Description of Investment Funds.
Life Cycle Funds (14)
Income Plus Life Strategy
Fund
Conservative Life Strategy Fund
Moderate Life Strategy Fund
Aggressive Life Strategy Fund
Target Date 2005 Fund
Target Date 2010 Fund
Target Date 2015 Fund
Target Date 2020 Fund
Target Date 2025 Fund
Target Date 2030 Fund
Target Date 2035 Fund
Target Date 2040 Fund
Target Date 2045 Fund
Target Date 2050 Fund
Core Funds (7)
Stable Value Fund
Inflation Protected Bond Fund
Total Bond Market Fund
Total International Stock Market Index Fund
Total Stock Market Index Fund
Real Estate Investment Trust (REIT) Index Fund
International Real Estate Index Fund
Expanded Choice Funds (11)
Long-Term Corporate Bond Fund
High Yield and Emerging Markets Bond Fund
European Stock Index Fund
Pacific Stock Index Fund
Large Company Index Fund
Large-Cap Value Index Fund
Large-Cap Growth Index Fund
Small/Mid-Cap Stock Index Fund
Small-Cap Value Index Fund
Small-Cap Growth Index Fund
IBM Stock Fund
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The Plan participants also have access to the mutual fund window investment options as described above.
Participants may change their deferral percentage and investment selection for future contributions at any time. The changes will take effect for the next eligible pay cycle if the request is completed before the applicable cutoff date. Also, participants may transfer part or all of existing account balances among funds in the Plan once daily, subject to the Plan restrictions on trading.
IBM is committed to preserving the integrity of the Plan as a long-term savings vehicle for its employees. Frequent, short-term trading that is intended to take advantage of pricing lags in funds can harm long-term investors, or increase trading expense in general. Therefore, the Plan reserves the right to take appropriate action to curb short-term round trip transactions (buying/selling) into the same fund. The Plan restrictions on trading were changed effective January 1, 2008.
Participant Accounts
The Plan record keeper maintains an account in the name of each participant to which each participants contributions and share of the net earnings, losses and expenses, if any, of the various investment funds are recorded. The earnings on the assets held in each of the funds and all proceeds from the sale of such assets are held and reinvested in the respective funds.
Participants may transfer rollover contributions of before-tax and Roth 401(k) amounts from other qualified savings plans or Individual Retirement Accounts into their Plan account. Rollovers must be made in cash within the time limits specified by the IRS; stock or in-kind rollovers are not accepted. These rollovers are limited to active employees on the payroll of IBM (or affiliated companies) who have existing accounts in the Plan. Retirees are not eligible for such rollovers, except that a retiree or separated employee who has an existing account in the Plan may rollover a lump-sum distribution from an IBM-sponsored qualified retirement plan, including the IBM Personal Pension Plan. After-tax amounts may also be directly rolled over into the Plan from another qualified savings plan.
On each valuation date, the unit/share value of each fund is determined by dividing the current investment value of the assets in that fund on that date by the number of units/shares in the fund. The participants investment value of assets equals the market value of assets for all funds except the Stable Value Fund for which the participants investment value of assets equals the contract value of assets. In determining the unit/share value, new contributions that are to be allocated as of the valuation date are excluded from the calculation. On the next day, the cash related to new contributions is transferred into the fund and the number of additional units to be credited to a participants account for each fund, due to new contributions, is equal to the amount of the participants new contributions to the fund divided by the prior nights unit value.
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Contributions (with the exception of after-tax contributions which were introduced in 2004 and Roth 401(k) contributions which were introduced January 1, 2008) made to the Plan as well as interest, dividends or other earnings of the Plan are generally not included in the taxable income of the participant until withdrawal, at which time all earnings and contributions withdrawn generally are taxed as ordinary income to the participant. Additionally, withdrawals by the participant before attaining age 59 1/2 generally are subject to a penalty tax of 10 percent. After-tax contributions made to the Plan are not tax deferred, but are taxable income prior to the participant making the contribution. Any interest, dividends or other earnings on the after-tax contributions are generally not included in the taxable income of the participant until withdrawal, at which time all earnings withdrawn are generally taxed as ordinary income to the participant. Any distribution of earnings on after-tax contributions that are withdrawn by the participant before attaining age 59 1/2 generally are subject to a penalty tax of 10 percent. Roth 401(k) contributions are not deferred, but are taxable income prior to the participant making the contribution. Interest, dividends or other earnings on Roth 401(k) contributions may not be taxable at withdrawal provided the participant has met the applicable rules.
Consistent with provisions established by the IRS, the Plans 2008 limit on employee salary deferrals was $15,500. (The limit for 2009 is $16,500.) Participants who were age 50 or older during 2008 could take advantage of a higher 401(k) contribution limit of $20,500 ($22,000 for 2009). The 2008 maximum annual deferral amount for employees residing in Puerto Rico was limited by local government regulations to the lesser of $8,000 or ten percent of eligible compensation. The Puerto Rico limit for 2009 has increased to $9,000 with no cap on the percent of eligible compensation. Puerto Rico participants who are age 50 or older in 2009 may take advantage of a higher contribution limit of $10,000.
Vesting
Participants in the Plan are at all times fully vested in their account balance, including employee contributions, employer contributions and earnings thereon, if any.
Distributions
Participants who have attained age 59 1/2 may request a distribution of all or part of the value in their account. A maximum of four distributions are allowed each year and the minimum amount of any such distribution shall be the lesser of the participants account balance or $500.
In addition, participants who (1) retire under the prior IBM Retirement Plan provisions of the IBM Personal Pension Plan, or (2) become eligible for benefits under the IBM Long-Term Disability Plan or the IBM Medical Disability Income Plan, or (3) separate from IBM and have attained age 55, may also elect to receive the balance of their account in annual installments over a period not to exceed twenty years. Beginning in 2008, new life expectancy installments may not be elected.
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Withdrawals for financial hardship are permitted provided they are for an immediate and significant financial need, and the distribution is necessary to satisfy that need. Employees are required to fully use the Plan loan program, described below, before requesting a hardship withdrawal. Only an employees contributions are eligible for hardship withdrawal; earnings on before-tax 401(k) and Roth 401(k), and IBM contributions (match, automatic, transition credits and Special Savings Award) are not eligible for withdrawal. Employees must submit evidence of hardship to the record keeper who will determine whether the situation qualifies for a hardship withdrawal based on guidance from IBM. A hardship withdrawal is taxed as ordinary income to the employee and may be subject to the 10 percent additional tax on early distributions.
If the participant dies and is married at the time of death, the participants spouse must be the beneficiary of the participants Plan account, unless the participants spouse has previously given written, notarized consent to designate another person as beneficiary. If the participant marries or remarries, any prior beneficiary designation is canceled and the spouse automatically becomes the beneficiary. If the participant is single, the beneficiary may be anyone previously designated by the participant under the Plan. In the absence of an effective designation under the Plan at the time of death, the proceeds normally will be paid in the following order: the participants spouse, the participants children in equal shares, or to surviving parents equally. If no spouse, child, or parent is living, payments will be made to the executors or administrators of the participants estate.
Upon the death of a participant, an account will be established for the participants beneficiary. If the beneficiary is a spouse or domestic partner, the beneficiarys account may be maintained in the Plan, subject to the Minimum Required Distribution rules. If the beneficiary is neither a spouse nor a domestic partner, the account will be paid to the beneficiary in a lump sum. Beneficiaries may rollover distributions from the Plan.
Participant Loans
Participants may borrow up to one-half of the value of their account balance, not to exceed $50,000, within a twelve month period. Loans will be granted in $1 increments subject to a minimum loan amount of $500. Participants are limited to two simultaneous outstanding Plan loans. Repayment of a loan is made through semi-monthly payroll deductions over a term of one to four years for a general purpose loan or one to ten years for a primary residence loan. The loan bears a fixed rate of interest, set quarterly, for the term of the loan, determined by the plan administrator to be 1.25 points above the prime rate. The interest is credited to the participants account as the semi-monthly repayments of principal and interest are made. Interest rates on outstanding loans at December 31, 2008 and 2007 ranged from 4.25 percent to 11.00 percent and 4.25 percent to 10.75 percent, respectively.
Participants may prepay the entire remaining loan principal at any time. Employees on an approved leave of absence may elect to make scheduled loan payments directly to the Plan. Participants may continue to contribute to the Plan while having an outstanding loan. A loan default is a taxable event to the participant and will be reported as such in the year of the loan default.
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Participants who retire or separate from IBM and have outstanding Plan loans may make coupon payments to continue monthly loan repayments according to their original amortization schedule.
Termination of Service
If the value of a participants account is $1,000 or less, it will be distributed to the participant in a lump-sum payment following the termination of the participants employment with IBM. If the account balance is greater than $1,000 at the time of separation, the participant may defer distribution of the account until age 70 ½.
Termination of the Plan
IBM reserves the right to terminate this Plan at any time by action of the Committee. In that event, each participant or beneficiary receiving or entitled to receive payments under the Plan would receive the balance of the account at such time and in accordance with applicable law and regulations. In the event of a full or partial termination of the Plan, or upon complete discontinuance of contributions under the Plan, the rights of all affected participants in the value of their accounts would be nonforfeitable.
Risks and Uncertainties
The Plan provides for various investment options that include a combination of mutual funds, commingled funds, separately-managed funds, life-cycle funds, equities, fixed income securities, synthetic guaranteed investment contracts (GICs) and derivative contracts. Investment securities are exposed to various risks, such as interest rates, credit and overall market volatility. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is reasonably possible that changes in risks in the near term could materially affect participants account balances and the amounts reported in the statement of net assets available for benefits.
The Plan is potentially exposed to credit loss in the event of non-performance by the companies with whom the investment contracts are placed. However, the Committee does not anticipate non-performance by these companies at this time.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements are prepared under the accrual basis of accounting, except distributions, which are recorded when paid.
The Plan is subject to the provision of Financial Accounting Standards Board (FASB) Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans (FSP AAG INV-1 and SOP 94-4-1). FSP AAG INV-1 and SOP 94-4-1 require
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investment contracts held by a defined-contribution plan to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. Contract value represents the cost plus contributions made under the contracts plus interest at the contract rates less withdrawals and administrative expenses. In particular, FSP AAG INV-1 and SOP 94-4-1 affected the presentation of the amounts related to the Plans participation in the Stable Value Fund. The statements of net assets available for benefits present the fair value of the investment in the Stable Value Fund as well as the adjustment from fair value to contract value for the fully benefit responsive investment contracts within the Stable Value Fund. The statement of changes in net assets available for benefits is prepared on a contract value basis.
Valuation of Investments
The Plans investments are stated at fair value, which is generally the quoted market price on the last business day of the Plan year. Investments in mutual funds, commingled funds and separately-managed funds are valued at the net asset values per share using available inputs to measure fair value by such companies or funds as of the valuation date. IBM common stock is valued daily at the New York Stock Exchange closing price. Fixed income securities traded in the over-the-counter market are valued at the bid prices. Securities in cash portfolios are valued at amortized cost, which includes cost and accrued interest, which approximates fair value. Participant loans are valued at cost plus accrued interest, which approximates fair value.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and changes therein, and disclosures of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.
Security Transactions and Related Investment Income
Security transactions are recorded on a trade-date basis. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis.
The Plan presents in the Statement of Changes in Net Assets Available for Benefits the net change in the fair value of its investments, which consists of realized gains and losses and the unrealized appreciation and depreciation on those investments.
Administrative Expenses and Investment Management Fees
All administrative costs of the Plan are deducted from participants account balances. These costs include (a) brokerage fees and commissions, which are included in the cost of investments and in determining net proceeds on sales of investments, and
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(b) operational expenses required for administration of the Plan including trustee, recordkeeping, participant reports and communications, and service center expenses, which are charged against the funds assets on a pro rata basis throughout the year and are included as part of administrative expenses. Investment management fees, which are paid from the assets of the respective funds, are fees that comprise charges based on a percentage of net asset value and are included as part of administrative expenses.
New Standard to be Implemented
In March 2008, the FASB issued Statement of Financial Accounting Standards (SFAS) No. 161, Disclosures about Derivative Instruments and Hedging Activities an amendment of FASB Statement No. 133. SFAS No. 161 expands the current disclosure requirements of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities, such that entities must now provide enhanced disclosures regarding how and why the entity uses derivatives; how derivatives and related hedged items are accounted for under SFAS No. 133 and how derivatives and related hedged items affect the entitys financial position, financial results and cash flow. Pursuant to the transition provisions of the Statement, the Plan will adopt SFAS No. 161 in fiscal year 2009 and will present the required disclosures in the prescribed format on a prospective basis. SFAS No. 161 does not impact the Plans financial results as it is disclosure-only in nature.
NOTE 3 INVESTMENTS
The following schedules summarize the fair value of investments, levels within the fair value hierarchy, investments 5 percent or more of the Plans net assets and the related net change in the fair value of investments by type of investment.
Fair Value Investments
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2008 |
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2007 |
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(Dollars in thousands) |
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At December 31, 2008 |
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Investments at Fair Value |
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Investment Contracts |
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$ |
7,636,011 |
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$ |
7,470,887 |
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Commingled Trust Funds |
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6,901,355 |
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11,947,595 |
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Separately-Managed Funds IBM |
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6,460,609 |
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10,028,893 |
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Short-Term Investments |
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2,212,698 |
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4,163,175 |
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Mutual Funds |
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1,472,615 |
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886,484 |
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IBM Common Stock |
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1,341,639 |
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1,581,218 |
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Participants Loans Receivable |
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293,132 |
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281,775 |
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Total |
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$ |
26,318,059 |
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$ |
36,360,027 |
|
Fair Value Measurements
Effective January 1, 2008, the Plan adopted SFAS No. 157, Fair Value Measurements for all financial instruments accounted for at fair value in the financial statements on a recurring basis. SFAS No. 157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. SFAS No. 157 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:
· Level 1 Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities;
· Level 2 Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; and
· Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.
The assets fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used maximize the use of observable inputs and minimize the use of unobservable inputs.
15
The following table sets forth by level, within the fair value hierarchy, the Plans assets at fair value, as of December 31, 2008:
(Dollars in Thousands)
Description |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Short-Term Investments |
|
|
|
$ |
2,212,698 |
|
|
|
$ |
2,212,698 |
|
||
Mutual Funds |
|
$ |
1,472,615 |
|
|
|
|
|
1,472,615 |
|
|||
Commingled Trust Funds |
|
|
|
6,901,355 |
|
|
|
6,901,355 |
|
||||
Separately Managed Funds IBM |
|
3,595,357 |
|
2,865,252 |
|
|
|
6,460,609 |
|
||||
Investment Contracts |
|
487,138 |
|
7,148,873 |
|
|
|
7,636,011 |
|
||||
IBM Common Stock |
|
1,341,639 |
|
|
|
|
|
1,341,639 |
|
||||
Participant Loans Receivable |
|
|
|
|
|
293,132 |
|
293,132 |
|
||||
Total Investments Fair Value |
|
$ |
6,896,749 |
|
$ |
19,128,178 |
|
$ |
293,132 |
|
$ |
26,318,059 |
|
The following table presents the change in Level 3 investment for the year ended at December 31, 2008:
(Dollars in Thousands) |
|
Participant Loans |
|
|
|
|
|
|
|
Balance, beginning of year |
|
$ |
281,775 |
|
Purchases, issuances and settlements (net) |
|
11,357 |
|
|
Balance, end of year |
|
$ |
293,132 |
|
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
16
Investments Five Percent or More of Plan Assets
The investments that represent 5 percent or more of the Plans net assets available for benefits at December 31, 2008 and 2007 are as follows:
Investments |
|
2008 |
|
2007 |
|
||
|
|
(Dollars in thousands) |
|
||||
|
|
|
|
|
|
||
Large Company Index Fund (Vanguard) |
|
$ |
2,783,028 |
|
$ |
4,749,351 |
|
Total Stock Market Index Fund (Vanguard) |
|
1,982,789 |
|
3,331,412 |
|
||
Total International Stock Market Index Fund (State Street Global Advisors) |
|
1,915,709 |
|
3,594,879 |
|
||
Investment Contract - Royal Bank of Canada, 4.08% (5.40% - 2007) |
|
1,908,998 |
|
1,867,722 |
|
||
Investment Contract - JPMorgan Chase, 4.08% (5.40% - 2007) |
|
1,908,998 |
|
1,867,722 |
|
||
Investment Contract - Bank of America, 4.08% (5.40% - 2007) |
|
1,908,998 |
|
1,494,177 |
|
||
Investment Contract - State Street Bank and Trust, 4.08% (5.40% - 2007) |
|
1,908,998 |
|
737,170 |
|
||
Small/Mid-Cap Stock Index Fund (State Street Global Advisors) |
|
1,717,133 |
|
3,116,838 |
|
||
IBM Common Stock (State Street Global Advisors) |
|
1,341,639 |
|
1,581,218 |
|
||
Inflation Protected Bond Fund (State Street Global Advisors) |
|
1,320,160 |
|
1,357,969 |
|
||
Net Change in Fair Value of Investments
The following table represents the Net Change in Fair Value of Investments (including gains and losses on investments bought and sold, as well as held during the year):
|
|
2008 |
|
|
|
|
(Dollars in thousands) |
|
|
Investments at fair value: |
|
|
|
|
Commingled Funds |
|
$ |
(2,960,988 |
) |
IBM Common Stock |
|
(359,086 |
) |
|
Mutual Funds |
|
(753,559 |
) |
|
Common Stocknon-employer |
|
(5,179,298 |
) |
|
Fixed Income Securities |
|
261,182 |
|
|
Total |
|
$ |
(8,991,749 |
) |
17
Derivatives
In accordance with the investment strategy of the separately-managed funds and the Stable Value Fund, investment managers execute transactions in various derivative instruments. The use of derivatives is permitted principally to gain or reduce exposure or execute an investment strategy more efficiently. The objective of these derivative instruments is primarily to manage duration and interest rate volatility and credit exposure to achieve a certain performance result, although derivative instruments are also in place to manage currency and cash exposure. These derivative instruments include swaptions, interest rate swaps, options, bond and equity futures and forward contracts. Derivatives may be executed on exchange traded investment instruments or via over the counter (OTC) transactions. When an OTC contract is executed, there is exposure to credit loss in the event of non-performance by the counterparties to these transactions. Therefore, IBM manages this exposure through stringent credit approval guidelines and regularly monitors and reports market and counterparty credit risks associated with these instruments.
Futures are valued based upon their quoted daily price. The primary risks associated with futures are the accuracy of the correlation between the value of bonds or equities and the price of the futures contracts.
Within the fixed income funds, the fund has either sold or purchased credit protection through credit default swaps. The fund has also entered into interest rate swap transactions where a fixed vs a floating rate amount is exchanged. A primary risk for all swap transactions is that the counterparty will default on their net amount due for the transaction.
Market risk arises from the potential for changes in value of financial instruments resulting from fluctuations in interest and foreign exchange rates and in prices of debt and equity securities. The notional (or contractual) amounts used to express the volume of these transactions do not necessarily represent the amounts potentially subject to market risk.
All derivative financial instruments are carried at fair value. The net fair value of derivative financial instruments was a liability of $63 million as of December 31, 2008 and an asset of $13 million as of December 31, 2007.
NOTE 4 INVESTMENT CONTRACTS
The Plan entered into benefit-responsive investment contracts, such as synthetic investment contracts (GICs), (through the Stable Value Fund the Fund) with various third parties, i.e., insurance companies and banks. Fair value generally equals the market price on the last business day of the Plan year. Contract value represents contributions made to investment contracts, plus earnings, less participant withdrawals and administrative expenses. The fair value of the wrap contract for the synthetic GIC is determined using a discounted cash flow model which considers recent rebids as
18
determined by recognized dealers, discount rate and the duration of the underlying portfolio.
A synthetic GIC provides for a fixed return on principal over a specified period of time, e.g., monthly crediting rate, through fully benefit-responsive wrapper contracts issued by third parties, which are backed by underlying assets owned by the Plan. The contract value of the synthetic GIC held by the Stable Value Fund was $8,151 million and $7,372 million at December 31, 2008 and 2007, respectively. The fair value of the synthetic GIC wrapper contract was $16 million and $17 million at December 31, 2008 and 2007, respectively. The adjustment from the sum of the fair value of the underlying assets and the fair value of the synthetic GIC to the contract value of the synthetic GIC was $499 million and ($135) million at December 31, 2008 and 2007, respectively.
Wrap contracts accrue interest using a formula called the crediting rate. Wrap contracts use the crediting rate formula to convert market value changes in the covered assets into income distributions in order to minimize the difference between the market and contract value of the covered assets over time. Using the crediting rate formula, an estimated future market value is calculated by compounding the Funds current market value at the Funds benchmark yield to maturity for a period equal to the Funds benchmark duration. The crediting rate is the discount rate that equates estimated future market value with the Funds current contract value. The crediting rate is most impacted by the change in the annual effective yield to maturity of the underlying securities, but is also affected by differential between the contract value and the market value of the covered investments. The difference is amortized over the duration of the investments. Depending on the change in duration from reset period to reset period, the magnitude of the impact to the crediting rate of the contract contract to market difference is heightened or lessened. Crediting rates are reset quarterly or more often if deemed appropriate. The wrap contracts provide a guarantee that the crediting rate will not fall below 0 percent.
If the Fund experiences significant redemptions when the market value is below the contract value, the Funds yield may be reduced significantly, to a level that is not competitive with other investment options. This may result in additional redemptions, which would tend to lower the crediting rate further. If redemptions continued, the Funds yield could be reduced to zero. If redemptions continued thereafter, the Fund might have insufficient assets to meet redemption requests, at which point the Fund would require payments from the wrap issuer to pay further participant redemptions.
The crediting rate, and hence the Funds return, may be affected by many factors, including purchases and redemptions by participants. The precise impact on the Fund depends on whether the market value of the covered assets is higher or lower than the contract value of those assets. If the market value of the covered assets is higher than their contract value, the crediting rate will ordinarily be higher than the yield of the covered assets. Under these circumstances, cash from new investors will tend to lower the crediting rate and the Funds return, and redemptions by existing participants will tend to increase the crediting rate and the Funds return.
19
The Fund and the wrap contracts purchased by the Fund are designed to pay all participant-initiated transactions at contract value. Participant-initiated transactions are those transactions allowed by the provisions of the Plan (typically this would include withdrawals for benefits, loans, or transfers to non-competing funds within the Plan). However, the wrap contracts limit the ability of the Fund to transact at contract value upon the occurrence of certain events. At this time, the occurrence of any of these events is not probable. These events include:
· The Plans failure to qualify under Section 401(a) or Section 401(k) of the Internal Revenue Code.
· The establishment of a defined contribution plan that competes with the Plan for employee contributions.
· Any substantive modification of the Plan or the administration of the Plan that is not consented to by the wrap issuer.
· Complete or partial termination of the Plan.
· Any change in law, regulation or administrative ruling applicable to the Plan that could have a material adverse effect on the Funds cash flow.
· Merger or consolidation of the Plan with another plan, the transfer of plan assets to another plan, or the sale, spin-off or merger of a subsidiary or division of the plan sponsor.
· Any communication given to participants by the Plan sponsor or any other plan fiduciary that is designed to induce or influence participants not to invest in the Fund or to transfer assets out of the Fund.
· Exclusion of a group of previously eligible employees from eligibility in the Plan.
· Any significant retirement program, group termination, group layoff, facility closing or similar program.
· Any transfer of assets from the Fund directly to a competing option.
· Bankruptcy of the plan sponsor or other plan sponsor events which cause a significant withdrawal from the Plan.
A wrap issuer may terminate a wrap contract at any time. In the event that the market value of the Funds covered assets is below their contract value at the time of such termination, the trustee may elect to keep the wrap contract in place until such time as the market value of the Funds covered assets is equal to their contract value. A wrap issuer may also terminate a wrap contract if the trustees investment management authority over the Fund is limited or terminated as well as if all of the terms of the wrap contract fail to be met.
20
Synthetic investment contracts generally impose conditions on both the Plan and the issuer. If an event of default occurs and is not cured, the non-defaulting party may terminate the contract. The following may cause the Plan to be in default: a breach of material obligation under the contract; a material misrepresentation; or a material amendment to the Plan agreement. The issuer may be in default if it breaches a material obligation under the investment contract; makes a material misrepresentation; is acquired or reorganized. If, in the event of default of an issuer, the Plan were unable to obtain a replacement investment contract, the Plan may experience losses if the value of the Plans assets no longer covered by the contract is below contract value. The Plan may seek to add additional issuers over time to diversify the Plans exposure to such risk, but there is no assurance the Plan may be able to do so. The combination of the default of an issuer and an inability to obtain a replacement agreement could render the Plan unable to achieve its objective of maintaining a stable contract value. The terms of an investment contract generally provide for settlement of payments only upon termination of the contract or total liquidation of the covered investments. Generally, payments will be made pro-rata, based on the percentage of investments covered by each issuer. Contract termination occurs whenever the contract value or market value of the covered investments reaches zero or upon certain events of default. If the contract terminates due to issuer default, the issuer will generally be required to pay to the Plan the excess, if any, of contract value over market value on the date of termination. If the contract terminates when the market value equals zero, the issuer will pay the excess of contract value over market value to the Plan to the extent necessary for the Plan to satisfy outstanding contract value withdrawal requests. Contract termination also may occur by either party upon election and notice.
The investment contracts owned by the Stable Value Fund produced the following returns:
|
|
Year Ended |
|
||
|
|
2008 |
|
2007 |
|
Earned by the Plan |
|
-3.18 |
% |
5.88 |
% |
Credited to participants |
|
4.89 |
% |
5.54 |
% |
NOTE 5 - DESCRIPTION OF INVESTMENT FUNDS
The objectives of the thirty-two investment funds to which participants could contribute funds in 2008 are described below:
Life Cycle Funds
The fourteen life cycle funds reflect a portfolio of diversified investments U.S. stocks, international stocks, real estate equity stocks, and fixed-income investments from the existing core funds noted below, plus a commodities fund (not available to participants as a standalone offering). These funds offer a convenient low-cost way to achieve diversification, professional money management and periodic rebalancing. The funds are
21
structured by the IBM Retirement Fund organization and managed by the underlying funds managers.
Four Life Cycle Funds are Life Strategy Funds that have a preset mix of stock and fixed income investments in order to provide broad diversification at a given risk level. The preset mix of each Life Strategy Fund is not expected to change over time.
x Income Plus Life Strategy Fund - target allocation: 30% stocks*, 70% bonds; seeks returns that modestly outpace inflation on a fairly consistent basis.
x Conservative Life Strategy Fund - target allocation: 50% stocks*, 50% bonds; seeks returns that moderately outpace inflation over the long term.
x Moderate Life Strategy Fund - target allocation: 65% stocks*, 35% bonds; seeks relatively high returns at a moderate risk level.
x Aggressive Life Strategy Fund - target allocation: 85% stocks*, 15% bonds; seeks high returns over the long term.
* Exposure to commodities is considered part of the allocation to stocks.
Ten Life Cycle Funds are Target Date Funds that offer portfolios with levels of risk designed for varying retirement dates or the year in which one expects to start drawing on their retirement assets. The portfolios are offered in five year increments from 2005 to 2050, with the 2030 through 2050 funds providing a significantly higher allocation to stocks. As a fund draws closer to its associated target date, the fund will automatically shift toward a more conservative risk level by reducing its allocation to stocks. Each funds reduction to stocks continues through its target date for another 15 years, until the funds allocation and risk profile matches that of the Income Plus Fund. Target Date funds assume a retirement age of 60.
x Target Date 2005 Fund - designed for investors who have retired or started to draw on their retirement assets on or around the year 2005; seeks returns that moderately outpace inflation over the long term. Target asset allocation between stocks and bonds is 48% stocks, 52% bonds.
x Target Date 2010 Fund - seeks relatively high returns at a moderate risk level. Target asset allocation between stocks and bonds is 58% stocks, 42% bonds.
x Target Date 2015 Fund - seeks relatively high returns at a moderate risk level. Target asset allocation between stocks and bonds is 68% stocks, 32% bonds.
x Target Date 2020 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 78% stocks, 22% bonds.
x Target Date 2025 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 87% stocks, 13% bonds.
x Target Date 2030 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 90% stocks, 10% bonds.
22
x Target Date 2035 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 90% stocks, 10% bonds.
x Target Date 2040 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 90% stocks, 10% bonds.
x Target Date 2045 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 90% stocks, 10% bonds.
x Target Date 2050 Fund - seeks high returns over the long term. Target asset allocation between stocks and bonds is 90% stocks, 10% bonds.
Core Funds - seven funds that provide an opportunity to build a portfolio from a selection of broadly diversified U.S. and international stock funds and from funds that track the fixed-income markets.
x Stable Value Fund - seeks to preserve principal and provide income at a stable rate of interest that is competitive with intermediate-term rates of return. The fund is managed by multiple money managers.
x Inflation Protected Bond Fund - seeks over the long term to provide a rate of return similar to the Barclays Capital U.S. Treasury Inflation Protected Securities (TIPS) Index. The fund is managed by State Street Global Advisors.
x Total Bond Market Fund - seeks to modestly exceed the return of its benchmark index (Barclays Capital Aggregate Bond Index), which consists of more than 5,000 U.S. Treasury, federal agency, mortgage-backed, and corporate securities. The fund is managed by Lehman Brothers Asset Management.
x Total International Stock Market Index Fund - seeks long-term capital growth with a market rate of return for a diversified group of non-U.S. equities in such major markets as Europe and Asia plus the emerging markets of the world. It attempts to match the performance of the MSCI All Country World Ex-USA Investable Market Index. The fund is managed by State Street Global Advisors.
x Total Stock Market Index Fund - seeks long-term growth of capital and income. It attempts to match the performance of the Dow Jones Wilshire 5000 Total Market Index. The fund is managed by The Vanguard Group.
x Real Estate Investment Trust (REIT) Index Fund - seeks a total rate of return approximating the returns of the MSCI U.S. REIT index. Investment consists of U.S. publicly traded real estate equity securities. The fund is managed by Barclays Global Investors.
x International Real Estate Index Fund. - seeks to replicate the returns of the FTSE EPRA/NAREIT Global Rental ex US Index. Investment consists of the international market for securities of companies principally engaged in the real estate industry that derive greater than or equal to 70% of their total revenue from rental revenue of investment properties. The fund is managed by Barclays Global Investors.
23
Extended Choice Funds eleven funds that provide an opportunity to build an investment portfolio with funds that are less broadly diversified, focusing instead on discrete sectors of the stock and bond markets.
x Long-Term Corporate Bond Fund - seeks a high and sustainable level of interest income by investing in a widely diversified group of long-term bonds issued by corporations with strong credit ratings. The fund is managed by Lehman Brothers Asset Management.
x High Yield and Emerging Markets Bond Fund - seeks to modestly exceed the returns of the Barclays Capital U.S. High Yield/Emerging Markets Bond Index. The fund invests in below investment grade U.S. corporate and emerging market dollar bonds and is managed by Pacific Investment Management Company, LLC (PIMCo).
x European Stock Index Fund - seeks long-term growth of capital that corresponds to an index of European stocks. It attempts to match the investment results of the MSCI Europe Index. The fund is managed by The Vanguard Group.
x Pacific Stock Index Fund - seeks long-term growth of capital by attempting to match the performance of the MSCI Pacific Index. The fund is managed by The Vanguard Group.
x Large Company Index Fund - seeks long-term growth of capital and income from dividends by holding all the stocks that make up the Standard & Poors 500 Index. The fund is managed by The Vanguard Group.
x Large-Cap Value Index Fund - seeks long-term growth of capital and income from dividends. The fund holds all the stocks in the Russell 1000 Value Index in approximately the same proportion as those stocks represented in the index. The fund is managed by The Vanguard Group.
x Large-Cap Growth Index Fund - seeks long-term growth of capital by holding all the stocks in the Russell 1000 Growth Index in approximately the same proportion as those stocks represented in the index. The fund is managed by The Vanguard Group.
x Small/Mid-Cap Stock Index Fund - seeks long-term growth of capital with a market rate of return from a diversified group of medium- and small-company stocks. The fund holds stocks in the Russell 3000 index that are not part of the Standard and Poors 500 index and attempts to match the performance of the Russell SmallCap Completeness Index. The fund is managed by State Street Global Advisors.
x Small-Cap Value Index Fund - seeks long-term growth of capital by attempting to match the performance of the Russell 2000 Value Index. The fund is managed by The Vanguard Group.
x Small-Cap Growth Index Fund - seeks long-term growth of capital by attempting to match the performance of the Russell 2000 Growth Index. The fund is managed by The Vanguard Group.
x IBM Stock Fund - invests in IBM common stock and holds a small interest-bearing cash balance of approximately 0.35% for liquidity purposes. The fund is managed by State Street Bank and Trust Company.
24
IBM 401(k) participants also have access to the mutual fund window investments which expands the Plans investment options to include approximately 200 mutual funds, most of which are actively managed. This feature gives more options to participants who are interested in investing in brand-name funds, or in simply having a broader range of investment options from which to choose.
Securities Lending
Security loan transactions are permitted with the objective to add investment return to the portfolio. Certain funds may lend securities held in that fund to unaffiliated broker-dealers registered under the Securities Exchange Act of 1934, or banks organized in the United States of America. At all times, the borrower must maintain cash or equivalent collateral equal in value to at least 102 percent of the value of the domestic securities loaned and 105 percent of the value of international securities loaned. The cash collateral is reinvested to generate income that is credited to the portfolio return. A risk in lending securities is associated with the reinvestment of this cash. When securities are posted as collateral, the funds seek to minimize risk by requiring a daily valuation of the loaned securities, with additional collateral posted each day, if necessary. An additional risk in lending securities is that a borrower may default during a sharp rise in the price of the security that was borrowed, resulting in a deficiency in the collateral posted by the borrower. To mitigate this risk, the loaned securities in the State Street Bank agency program are indemnified against broker default.
The addition of the securities lending provision does not change the investment objectives for the funds. The value of loaned securities in the State Street Bank agency program amounted to $1,478 million and $3,502 million at December 31, 2008 and 2007, respectively. The value of cash collateral obtained and reinvested in short-term investments of $1,521 million ($1,501 million at fair value) and $3,592 million (same at fair value) for December 31, 2008 and 2007, respectively, is reflected as a liability in the Plans financial statements. Securities lending is also permitted in the commingled funds and in funds within the IBM Mutual Fund Window. The prospectus for each fund will disclose if lending is permitted.
NOTE 6 - PLAN TRANSFERS
The transfers listed below represent participant investment account balances attributable to employees transferred to IBM in 2008 primarily as a result of IBM acquisitions:
Significant transfers were:
|
|
(Dollars in Thousands) |
|
|
Cognos, Inc, |
|
$ |
77,027 |
|
Telelogic, AB |
|
20,089 |
|
|
Princeton Softech, Inc. |
|
7,864 |
|
|
Novus Consulting Group |
|
2,509 |
|
|
Arsenal Digital Solutions |
|
1,305 |
|
|
25
In 2008, there were also transfers into the Plan totaling $3,643 thousand related to participant account balances from other companies. Total plan transfers were $112,437 thousand.
NOTE 7 - TAX STATUS
The Trust established under the Plan is qualified under Section 401(a) of the Internal Revenue Code of 1986 and the Trustee intends to continue it as a qualified trust. The Plan received a favorable determination letter from the IRS on September 10, 2004. Subsequent to this determination letter by the IRS, the Plan was amended. The Plan administrator and Counsel continue to believe the Plan is designed and is being operated in compliance with the applicable requirements of the Internal Revenue Code. Accordingly, a provision for federal income taxes has not been made.
NOTE 8 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500 as of:
|
|
12/31 |
|
12/31 |
|
||
|
|
(Dollars in thousands) |
|
||||
Net assets available for benefits per the financial statements |
|
$ |
25,361,371 |
|
$ |
32,718,151 |
|
Plus: |
|
|
|
|
|
||
Adjustment from contract value to fair value for fully benefit-responsive investment contracts held by the Stable Value Fund |
|
(499,119 |
) |
134,577 |
|
||
Less: |
|
|
|
|
|
||
Benefit obligations currently payable |
|
|
|
|
|
||
Net assets available for benefits per the Form 5500 |
|
$ |
24,862,252 |
|
$ |
32,852,728 |
|
26
The following is a reconciliation of investment income per the financial statements to the Form 5500:
|
|
Year Ended |
|
|
|
|
(Dollars in thousands) |
|
|
Total investment income per the financial statements |
|
$ |
(8,119,207 |
) |
Less: |
|
|
|
|
Adjustment from fair value to contract value for fully benefit-responsive investment contracts at December 31, 2007 |
|
134,577 |
|
|
Plus: |
|
|
|
|
Adjustment from fair value to contract value for fully benefit-responsive investment contracts at December 31, 2008 |
|
(499,119 |
) |
|
Total investment income per the Form 5500 |
|
$ |
(8,752,903 |
) |
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500:
|
|
Year Ended |
|
|
|
|
(Dollars in thousands) |
|
|
Benefits paid to participants per the financial statements |
|
$ |
1,672,199 |
|
Less: |
|
|
|
|
Amounts payable at December 31, 2007 |
|
|
|
|
Plus: |
|
|
|
|
Amounts payable at December 31, 2008 |
|
|
|
|
Benefits paid to participants per the Form 5500 |
|
$ |
1,672,199 |
|
NOTE 9 - RELATED-PARTY TRANSACTIONS
At December 31, 2008, a significant portion of the Plans assets were invested in State Street Global Advisors funds. State Street Global Advisors parent company, State Street Bank and Trust Corporation, also acts as the trustee for the Plan and, therefore, these investments qualify as party-in-interest transactions. The Plan also pays a fee to the trustee and the trustee also is a security lending agent. These transactions qualify as party-in-interest transactions as well.
In addition, Fidelity Investments Institutional Operations Company, Inc is the provider of administrative services related to the mutual fund window as well as the investment manager of Fidelity funds within the mutual fund window. Starting January 1, 2008, as
27
disclosed in Note 1, Fidelity also became the provider of record keeping and participant services, and the operator of the IBM Employee Services Center for the IBM 401(k) Plus Plan.
At December 31, 2008 the Plan held 15,941,533 shares of IBM common stock valued at $1,341,639,417. At December 31, 2007, the Plan held 14,627,366 shares of IBM common stock valued at $1,581,218,265.
28
IBM 401(k) PLUS PLAN
Schedule H, line 4i - Schedule of Assets (Held at End of Year)
AT DECEMBER 31, 2008
(a) |
|
(b) Identity of issue, borrower, |
|
(c) Description of |
|
(d) Cost |
|
(e) Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IBM Stock Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Managed by State Street Global Advisors |
|
IBM Common Stock 15,941,533 shares |
|
|
|
$ |
1,341,639,417 |
|
* |
|
Managed by State Street Global Advisors |
|
Short-Term Investments |
|
|
|
3,867,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Administered by Fidelity Investments |
|
Mutual Fund Window |
|
|
|
1,472,614,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commingled Trust Funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed by The Vanguard Group |
|
Large Company Index |
|
|
|
2,783,027,732 |
|
|
|
|
Managed by The Vanguard Group |
|
Total Stock Market Index |
|
|
|
1,982,788,656 |
|
|
|
|
Managed by The Vanguard Group |
|
Large Cap Value Index |
|
|
|
437,140,203 |
|
|
|
|
Managed by The Vanguard Group |
|
Small Cap Value Index |
|
|
|
390,784,258 |
|
|
|
|
Managed by The Vanguard Group |
|
European Stock Index |
|
|
|
342,305,009 |
|
|
* Party-In-Interest
29
(a) |
|
(b) Identity of issue, borrower, |
|
(c) Description of |
|
(d) Cost |
|
(e) Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commingled Trust Funds - continued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed by The Vanguard Group |
|
Large Cap Growth Index |
|
|
|
$ |
329,683,146 |
|
|
|
Managed by The Vanguard Group |
|
Pacific Stock Index |
|
|
|
264,960,085 |
|
|
|
|
Managed by The Vanguard Group |
|
Small Cap Growth Index |
|
|
|
234,009,760 |
|
|
|
|
Managed by Pacific Investment Management Company (PIMCo) |
|
Commodity |
|
|
|
136,656,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Separately-Managed FundsIBM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Managed by State Street Global Advisors |
|
Total International Stock Market Index (refer to Exhibit A - investments) |
|
|
|
1,915,709,399 |
|
|
* |
|
Managed by State Street Global Advisors |
|
Small/Mid Cap Stock Index (refer to Exhibit B - investments) |
|
|
|
1,717,133,495 |
|
|
* |
|
Managed by State Street Global Advisors |
|
Inflation Protected Bond (refer to Exhibit C - investments) |
|
|
|
1,320,159,746 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed by Lehman Brothers Asset Management |
|
Total Bond Market (refer to Exhibit D - investments) |
|
|
|
656,903,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed by Barclays Global Investors |
|
Real Estate Investment Trust (refer to Exhibit E - investments) |
|
|
|
486,400,940 |
|
|
* Party-In-Interest
30
(a) |
|
(b) Identity of issue, borrower, |
|
(c) Description of |
|
(d) Cost |
|
(e) Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
Managed by Lehman Brothers Asset Management |
|
Long-Term Corporate Bond (refer to Exhibit F - investments) |
|
|
|
153,186,877 |
|
|
|
Managed by Pacific Investment Management Company (PIMCo) |
|
High Yield and Emerging Markets Bond (refer to Exhibit G investments) |
|
|
|
109,978,678 |
|
|
|
Managed by Barclays Global Investors |
|
International Real Estate Index (refer to Exhibit H investments) |
|
|
|
101,136,000 |
|
31
(a) |
|
(b) Identity of issue, borrower, |
|
(c) Description of |
|
(d) Cost |
|
(e) Fair value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments |
|
|
|
|
|
|
|
|
* |
|
Managed by State Street Global Advisors |
|
Short-Term Investments purchased with cash collateral from securities lending (refer to Exhibit I - investments) |
|
|
|
$ |
1,501,175,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stable Value FundInvestment Contracts |
|
|
|
|
|
|
|
|
|
|
Underlying assets managed by various investment companies |
|
Synthetic GIC Global Wrapper (the fair value of wrap contract is $16 million, Rate of Interest 4.08%, refer to Exhibit J - investments) |
|
|
|
7,636,011,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-Term Investments |
|
|
|
|
|
|
|
|
* |
|
Managed by State Street Global Advisors |
|
SSGA/Other Short Term Investments |
|
|
|
707,654,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Loans to Participants |
|
Interest rates range: 4.25% - 11.00%, Terms: one to four years |
|
|
|
293,132,445 |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
|
Party-In-Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royal Bank of Canada |
|
|
|
|
|
$ |
1,908,997,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JPMorgan Chase |
|
|
|
|
|
1,908,997,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of America |
|
|
|
|
|
1,908,997,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
State Street Bank and Trust |
|
|
|
|
|
1,908,997,590 |
|
32
EXHIBIT A - Total International Stock Market Index Fund
(Managed by State Street Global Advisors)
IBM 401(K) PLUS PLAN AT DECEMBER 31, 2008
Schedule H, line 4i-Schedule of Assets (Held At End of Year)
(a) |
|
(b) Identity of issue, borrower, |
|
(c) Description of investment including maturity date, |
|
(d) Cost |
|
(e) Fair |
|
|||||
|
|
|
|
|
|
|
|
|
|
(n/a) |
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARGENTINE PESO |
|
|
|
ARGENTINA |
|
844 |
|
|
|
$ |
244 |
|
|
|
BBVA BANCO FRANCES S A |
|
SPONSORED ADR |
|
ARGENTINA |
|
5,288 |
|
|
|
15,970 |
|
|
|
|
CRESUD |
|
ARS1 |
|
ARGENTINA |
|
4 |
|
|
|
4 |
|
|
|
|
GPO FIN GALICIA |
|
B ARSI |
|
ARGENTINA |
|
8 |
|
|
|
2 |
|
|
|
|
PETROBRAS ENER |
|
B ARS1 |
|
ARGENTINA |
|
7 |
|
|
|
4 |
|
|
|
|
TELEC ARGENTINA SA |
|
CL B ARS1 |
|
ARGENTINA |
|
6 |
|
|
|
10 |
|
|
|
|
TELECOM ARGENTINA S.A. |
|
SPONSORED ADR REPSTG CL B SHS |
|
ARGENTINA |
|
39,817 |
|
|
|
302,609 |
|
|
|
|
TRANSPORT GAS SUR |
|
CLASS B ARS1 |
|
ARGENTINA |
|
3 |
|
|
|
1 |
|
|
|
|
AED OIL LIMITED |
|
NPV |
|
AUSTRALIA |
|
22,279 |
|
|
|
15,844 |
|
|
|
|
AGL ENERGY |
|
NPV |
|
AUSTRALIA |
|
82,605 |
|
|
|
878,857 |
|
|
|
|
ALUMINA LIMITED |
|
NPV |
|
AUSTRALIA |
|
278,299 |
|
|
|
269,702 |
|
|
|
|
AMCOR LIMITED |
|
NPV |
|
AUSTRALIA |
|
160,749 |
|
|
|
650,030 |
|
|
|
|
AMP LIMITED |
|
NPV |
|
AUSTRALIA |
|
366,396 |
|
|
|
1,384,546 |
|
|
|
|
ANSELL LTD |
|
NPV |
|
AUSTRALIA |
|
14,880 |
|
|
|
129,990 |
|
|
|
|
ARISTOCRAT LEISURE |
|
NPV(POST RECONSTRUCTION) |
|
AUSTRALIA |
|
59,849 |
|
|
|
161,900 |
|
|
|
|
ARROW ENERGY |
|
NPV |
|
AUSTRALIA |
|
57,567 |
|
|
|
107,564 |
|
|
|
|
ASCIANO GROUP |
|
NPV(STAPLED) |
|
AUSTRALIA |
|
102,899 |
|
|
|
108,329 |
|
|
|
|
ASPEN GROUP |
|
NPV (POST RECON) |
|
AUSTRALIA |
|
142,833 |
|
|
|
43,817 |
|
|
|
|
ASX LIMITED |
|
NPV |
|
AUSTRALIA |
|
31,866 |
|
|
|
739,825 |
|
|
|
|
ASX SPI 200 INDEX FUTURES |
|
MAR09 XSFE |
|
AUSTRALIA |
|
250 |
|
|
|
|
|
|
|
|
AUSENCO |
|
NPV |
|
AUSTRALIA |
|
22,929 |
|
|
|
35,010 |
|
|
|
|
AUST + NZ BANK GRP |
|
NPV |
|
AUSTRALIA |
|
359,041 |
|
|
|
3,827,444 |
|
|
|
|
AUSTAL LIMITED |
|
NPV |
|
AUSTRALIA |
|
3,151 |
|
|
|
4,284 |
|
|
|
|
AUSTEREO GROUP |
|
NPV |
|
AUSTRALIA |
|
51,952 |
|
|
|
45,276 |
|
|
|
|
AUSTRALAND PROPERTY GROUP |
|
NPV STAPLED UNITS |
|
AUSTRALIA |
|
555,977 |
|
|
|
98,845 |
|
|
|
|
AUSTRALIAN DOLLAR |
|
|
|
AUSTRALIA |
|
2,535,312 |
|
|
|
1,767,619 |
|
|
|
|
AUSTRALIAN WEALTH |
|
NPV |
|
AUSTRALIA |
|
183,138 |
|
|
|
140,452 |
|
|
|
|
AWB |
|
NPV (B) |
|
AUSTRALIA |
|
6,450 |
|
|
|
11,422 |
|
|
|
|
AXA ASIA PAC HLDGS |
|
NPV |
|
AUSTRALIA |
|
157,242 |
|
|
|
541,568 |
|
|
|
|
BABCOCK + BROWN JA |
|
NPV(UNITS) |
|
AUSTRALIA |
|
43,156 |
|
|
|
10,230 |
|
|
|
|
BABCOCK + BROWN LTD |
|
NPV |
|
AUSTRALIA |
|
43,682 |
|
|
|
4,721 |
|
|
|
|
BABCOCK + BROWN PO COM STK |
|
NPV |
|
AUSTRALIA |
|
990,939 |
|
|
|
75,997 |
|
|
|
|
BENDIGO AND ADELAIDE BANK LTD |
|
NPV |
|
AUSTRALIA |
|
51,964 |
|
|
|
398,522 |
|
|
|
|
BHP BILLITON LTD |
|
NPV |
|
AUSTRALIA |
|
545,789 |
|
|
|
11,583,151 |
|
|
|
|
BILLABONG INTERNATL |
|
NPV RESTRICTED |
|
AUSTRALIA |
|
31,995 |
|
|
|
175,109 |
|
|
|
|
BLUESCOPE STEEL LTD |
|
NPV |
|
AUSTRALIA |
|
146,482 |
|
|
|
357,445 |
|
|
|
|
BOART LONGYEAR GR |
|
NPV |
|
AUSTRALIA |
|
276,292 |
|
|
|
38,526 |
|
|
|
|
BORAL LIMITED NEW |
|
NPV |
|
AUSTRALIA |
|
108,215 |
|
|
|
348,567 |
|
|
|
|
BRAMBLES LTD |
|
NPV |
|
AUSTRALIA |
|
258,466 |
|
|
|
1,337,102 |
|
|
|
|
CALTEX AUSTRALIA |
|
NPV |
|
AUSTRALIA |
|
25,391 |
|
|
|
127,282 |
|
|
|
|
CENTRO PROPS GP |
|
UNITS NPV(STAPLED) |
|
AUSTRALIA |
|
1,437,514 |
|
|
|
76,170 |
|
|
|
|
CENTRO RETAIL GRP |
|
NPV (STAPLED SEC) |
|
AUSTRALIA |
|
1,557,058 |
|
|
|
72,734 |
|
|
|
|
CFS RETAIL PROP |
|
NPV |
|
AUSTRALIA |
|
277,675 |
|
|
|
362,023 |
|
|
|
|
CHALLENGER DIVERS |
|
NPV |
|
AUSTRALIA |
|
27,694 |
|
|
|
11,488 |
|
|
|
|
CHARTER HALL GROUP |
|
NPV (STAPLED) |
|
AUSTRALIA |
|
1,083,768 |
|
|
|
211,569 |
|
|
|
|
CMNWLTH BK OF AUST |
|
NPV |
|
AUSTRALIA |
|
252,016 |
|
|
|
5,077,889 |
|
|
|
|
COCA COLA AMATIL |
|
NPV(POST RECONSTRUCTION) |
|
AUSTRALIA |
|
103,315 |
|
|
|
661,967 |
|
|
|
|
COCHLEAR LTD |
|
NPV |
|
AUSTRALIA |
|
10,322 |
|
|
|
398,686 |
|
|
|
|
COMPUTERSHARE REG |
|
NPV(POST REC) |
|
AUSTRALIA |
|
88,124 |
|
|
|
479,232 |
|
|
|
|
COUNT FINANCIAL |
|
NPV |
|
AUSTRALIA |
|
20,250 |
|
|
|
14,118 |
|
|
|
|
CROWN LTD |
|
NPV |
|
AUSTRALIA |
|
83,131 |
|
|
|
346,015 |
|
|
|
|
CSL |
|
NPV |
|
AUSTRALIA |
|
111,684 |
|
|
|
2,624,086 |
|
|
|
|
CSR LIMITED |
|
NPV |
|
AUSTRALIA |
|
187,103 |
|
|
|
229,589 |
|
|
|
|
DEXUS PROPERTY GP |
|
NPV (STAPLED) |
|
AUSTRALIA |
|
545,128 |
|
|
|
311,652 |
|
|
|
|
ELDERS LTD |
|
NPV |
|
AUSTRALIA |
|
12 |
|
|
|
5 |
|
|
|
|
FAIRFAX MEDIA LTD |
|
NPV |
|
AUSTRALIA |
|
261,067 |
|
|
|
297,596 |
|
|
|
|
FELIX RESOURCES |
|
NPV |
|
AUSTRALIA |
|
6,329 |
|
|
|
38,831 |
|
|
|
|
FKP |
|
NPV |
|
AUSTRALIA |
|
137,007 |
|
|
|
48,238 |
|
|
|
|
FLEETWOOD CORP LTD |
|
NPV |
|
AUSTRALIA |
|
39,051 |
|
|
|
99,648 |
|
|
|
|
FORTESCUE METAL GROUP |
|
NPV |
|
AUSTRALIA |
|
235,068 |
|
|
|
316,306 |
|
|
|
|
FOSTERS GROUP |
|
NPV |
|
AUSTRALIA |
|
360,937 |
|
|
|
1,384,049 |
|
|
|
|
GLOUCESTER COAL LTD |
|
NPV |
|
AUSTRALIA |
|
29,818 |
|
|
|
80,662 |
|
|
|
|
GOODMAN FIELDER |
|
NPV |
|
AUSTRALIA |
|
256,543 |
|
|
|
237,886 |
|
|
|
|
GOODMAN GROUP |
|
NPV(SAPLED UNITS) |
|
AUSTRALIA |
|
283,084 |
|
|
|
146,051 |
|
|
|
|
GPT GROUP |
|
NPV (UNITS) |
|
AUSTRALIA |
|
409,374 |
|
|
|
262,582 |
|
|
|
|
GUD HLDGS |
|
NPV |
|
AUSTRALIA |
|
33,409 |
|
|
|
139,524 |
|
|
|
|
HARVEY NORMAN HLDG NPV |
|
COM |
|
AUSTRALIA |
|
102,041 |
|
|
|
188,529 |
|
|
|
|
HASTIE GROUP LIMIT |
|
NPV |
|
AUSTRALIA |
|
44,929 |
|
|
|
40,722 |
|
|
|
HFA HOLDING |
|
NPV |
|
AUSTRALIA |
|
1,082,498 |
|
|
|
40,755 |
|
|
|
INCITEC PIVOT |
|
NPV |
|
AUSTRALIA |
|
225,353 |
|
|
|
391,219 |
|
|
|
INSURANCE AUST GRP |
|
NPV |
|
AUSTRALIA |
|
358,484 |
|
|
|
972,247 |
|
|
|
ISOFT GROUP LTD |
|
NPV |
|
AUSTRALIA |
|
96,997 |
|
|
|
41,590 |
|
|
|
LEIGHTON HOLDINGS |
|
NPV |
|
AUSTRALIA |
|
26,967 |
|
|
|
519,858 |
|
|
|
LEND LEASE CORP |
|
NPV |
|
AUSTRALIA |
|
69,585 |
|
|
|
349,305 |
|
|
|
LION NATHAN LTD |
|
NPV(AUST LIST) |
|
AUSTRALIA |
|
56,647 |
|
|
|
324,643 |
|
|
|
MACARTHUR COAL LTD |
|
NPV |
|
AUSTRALIA |
|
7,193 |
|
|
|
15,195 |
|
|
|
MACQUARIE AIRPORTS |
|
NPV STAPLED FULLY PAID |
|
AUSTRALIA |
|
126,574 |
|
|
|
211,794 |
|
|
|
MACQUARIE GP LTD |
|
NPV |
|
AUSTRALIA |
|
51,425 |
|
|
|
1,032,939 |
|
|
|
MACQUARIE INFRASTRUCTURE GRP |
|
NPV (STAPLED) |
|
AUSTRALIA |
|
445,578 |
|
|
|
531,223 |
|
|
|
MACQUARIE OFFICE |
|
UNITS NPV |
|
AUSTRALIA |
|
394,299 |
|
|
|
65,977 |
|
|
|
MACQUARIE OFFICE TRUST |
|
RTS EXP 12JAN09 |
|
AUSTRALIA |
|
394,299 |
|
|
|
10,996 |
|
|
|
METCASH LIMITED |
|
NPV |
|
AUSTRALIA |
|
139,584 |
|
|
|
426,253 |
|
|
|
MINERAL RESS LTD |
|
NPV |
|
AUSTRALIA |
|
19,577 |
|
|
|
30,028 |
|
|
|
MIRVAC GROUP |
|
STAPLED SECS |
|
AUSTRALIA |
|
210,870 |
|
|
|
188,184 |
|
|
|
MYOB LIMITED |
|
NPV (POST REC) |
|
AUSTRALIA |
|
36,597 |
|
|
|
28,322 |
|
|
|
NATL AUSTRALIA BK |
|
NPV |
|
AUSTRALIA |
|
320,540 |
|
|
|
4,664,037 |
|
|
|
NEWCREST MINING |
|
NPV |
|
AUSTRALIA |
|
85,638 |
|
|
|
2,023,463 |
|
|
|
NEXUS ENERGY |
|
NPV |
|
AUSTRALIA |
|
134,192 |
|
|
|
49,586 |
|
|
|
NRW HOLDINGS LTD |
|
NPV |
|
AUSTRALIA |
|
11,661 |
|
|
|
1,748 |
|
|
|
ONESTEEL |
|
NPV |
|
AUSTRALIA |
|
163,504 |
|
|
|
280,428 |
|
|
|
ORICA LTD |
|
NPV |
|
AUSTRALIA |
|
68,486 |
|
|
|
667,523 |
|
|
|
ORIGIN ENERGY |
|
NPV |
|
AUSTRALIA |
|
165,437 |
|
|
|
1,859,324 |
|
|
|
OZ MINERALS LTD |
|
NPV |
|
AUSTRALIA |
|
583,751 |
|
|
|
223,845 |
|
|
|
PACIFIC BRANDS |
|
NPV |
|
AUSTRALIA |
|
2,047 |
|
|
|
614 |
|
|
|
PALADIN ENERGY LTD |
|
NPV |
|
AUSTRALIA |
|
104,376 |
|
|
|
180,472 |
|
|
|
PAPERLINX |
|
NPV |
|
AUSTRALIA |
|
5 |
|
|
|
2 |
|
|
|
PERILYA LIMITED |
|
NPV |
|
AUSTRALIA |
|
616,713 |
|
|
|
73,095 |
|
|
|
PERPETUAL LIMITED |
|
NPV |
|
AUSTRALIA |
|
7,299 |
|
|
|
188,746 |
|
|
|
PHARMAXIS NPV |
|
NPV |
|
AUSTRALIA |
|
50,684 |
|
|
|
42,758 |
|
|
|
PMP LTD |
|
NPV |
|
AUSTRALIA |
|
18,043 |
|
|
|
6,290 |
|
|
|
QANTAS AIRWAYS |
|
NPV |
|
AUSTRALIA |
|
184,112 |
|
|
|
337,594 |
|
|
|
QBE INS GROUP |
|
NPV |
|
AUSTRALIA |
|
161,607 |
|
|
|
2,908,074 |
|
|
|
RIO TINTO LIMITED |
|
NPV |
|
AUSTRALIA |
|
53,399 |
|
|
|
1,414,731 |
|
|
|
RIVERSDALE MINING |
|
NPV |
|
AUSTRALIA |
|
804 |
|
|
|
1,351 |
|
|
|
ROC OIL CO LTD |
|
NPV |
|
AUSTRALIA |
|
59,308 |
|
|
|
20,675 |
|
|
|
SAI GLOBAL LTD |
|
NPV |
|
AUSTRALIA |
|
46,669 |
|
|
|
76,463 |
|
|
|
SALMAT LTD |
|
NPV |
|
AUSTRALIA |
|
14,308 |
|
|
|
31,922 |
|
|
|
SANTOS LTD |
|
NPV |
|
AUSTRALIA |
|
111,188 |
|
|
|
1,152,726 |
|
|
|
SILEX |
|
NPV |
|
AUSTRALIA |
|
19,175 |
|
|
|
39,037 |
|
|
|
SIMS METAL MANAGEMENT LTD |
|
NPV |
|
AUSTRALIA |
|
29,637 |
|
|
|
358,295 |
|
|
|
SONIC HEALTHCARE LTD |
|
NPV |
|
AUSTRALIA |
|
61,122 |
|
|
|
620,463 |
|
|
|
STOCKLAND |
|
NPV |
|
AUSTRALIA |
|
289,899 |
|
|
|
816,555 |
|
|
|
STW COMMUNICATIONS |
|
NPV |
|
AUSTRALIA |
|
6,343 |
|
|
|
3,007 |
|
|
|
SUNCORP METWAY |
|
NPV |
|
AUSTRALIA |
|
176,177 |
|
|
|
1,031,777 |
|
|
|
SUNLAND GROUP LTD |
|
NPV(POST RECONSTRUCTION) |
|
AUSTRALIA |
|
210,868 |
|
|
|
109,528 |
|
|
|
TABCORP HLDGS LTD |
|
NPV |
|
AUSTRALIA |
|
100,810 |
|
|
|
491,290 |
|
|
|
TATTS GROUP LTD |
|
NPV |
|
AUSTRALIA |
|
205,233 |
|
|
|
399,217 |
|
|
|
TELSTRA CORP |
|
NPV |
|
AUSTRALIA |
|
813,515 |
|
|
|
2,172,309 |
|
|
|
THE MAC SERVICES GROUP |
|
NPV |
|
AUSTRALIA |
|
15,215 |
|
|
|
8,805 |
|
|
|
TOLL HLDGS LIMITED |
|
NPV |
|
AUSTRALIA |
|
120,004 |
|
|
|
516,224 |
|
|
|
TRANSURBAN GROUP |
|
STAPLED UNITS NPV |
|
AUSTRALIA |
|
211,866 |
|
|
|
797,650 |
|
|
|
VALAD PROPERTY GP |
|
NPV(STAPLED) |
|
AUSTRALIA |
|
537,743 |
|
|
|
19,870 |
|
|
|
VIRGIN BLUE HLDGS |
|
NPV |
|
AUSTRALIA |
|
176,483 |
|
|
|
36,913 |
|
|
|
WESFARMERS |
|
NPV |
|
AUSTRALIA |
|
122,703 |
|
|
|
1,539,873 |
|
|
|
WESFARMERS LTD |
|
NPV PPS |
|
AUSTRALIA |
|
26,895 |
|
|
|
337,521 |
|
|
|
WESTFIELD GROUP |
|
NPV STAPLED UNITS |
|
AUSTRALIA |
|
327,669 |
|
|
|
2,958,438 |
|
|
|
WESTPAC BKG CORP |
|
NPV |
|
AUSTRALIA |
|
501,454 |
|
|
|
5,932,944 |
|
|
|
WOODSIDE PETROLEUM |
|
NPV |
|
AUSTRALIA |
|
90,919 |
|
|
|
2,326,366 |
|
|
|
WOOLWORTHS LTD |
|
NPV |
|
AUSTRALIA |
|
227,878 |
|
|
|
4,237,236 |
|
|
|
WORLEYPARSONS LIMITED |
|
NPV |
|
AUSTRALIA |
|
28,037 |
|
|
|
276,205 |
|
|
|
WOTIF COM HOLDINGS |
|
NPV |
|
AUSTRALIA |
|
17,667 |
|
|
|
45,328 |
|
|
|
A TECH INDUSTRIES |
|
NPV (BR) |
|
AUSTRIA |
|
4,993 |
|
|
|
46,016 |
|
|
|
ANDRITZ AG |
|
NPV BR (POST SPLIT) |
|
AUSTRIA |
|
7,635 |
|
|
|
192,733 |
|
|
|
AUSTRIAN AIRLINES |
|
NPV |
|
AUSTRIA |
|
27,573 |
|
|
|
153,311 |
|
|
|
BWIN INTERACTIVE ENTERTAINMENT |
|
NPV |
|
AUSTRIA |
|
4,685 |
|
|