The Total View - (Page 31) Investment Options On average, approximately 18 investment options were used in plans serviced by The Principal, a slight increase from 2002. On average, participants allocated their new contributions to four different investment options. 4% 13% 401(k) Plan Assets by Asset Class 5% The Categories The largest percentages of retirement plan assets were directed to domestic stock (43 percent). This is similar to the industry average where 49 percent of participant account balances were allocated to equity investment options.1 The next most popular category was balanced/asset allocation investment options (which includes lifecycle funds) with 16 percent of plan assets. Real estate trailed with the least amount of assets at 4 percent. Of the plans that offered company stock as an investment option, approximately 27 percent of the plan assets were directed to this option. 13% 6% 16% 43% Stable Bond Balanced/Asset Allocation Domestic Stock International Stock Real Estate Other 401(k) Single Investment Participants* by Asset Category Percent of Single Investment Participant Cash/Money Market 21.9% 45.2% 34.9% 30.3% The Age Aspect Equity 2003 2004 2005 2006 50.0% 59.4% 71.0% 33.8% Highly compensated participants tended to invest more aggressively than non-highly compensated participants. As expected, older participants invested more conservatively than younger participants. Those aged 65plus had 22 percent of retirement funds directed to stable value investments, while those under age 35 had 9 percent in stable value. 1 Fixed 20.9% 14.6% 10.0% 6.4% Other 0.2% 0.5% 0.3% 0.7% 2006 Employee Benefit Research Institute/Investment Company Institute database 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% * Percentages in graphs are rounded to the nearest integer percentages in order to increase readability and may not total exactly 100%. 31
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