When we develop a DC plan investment option lineup, we consider the following:

• Match investment structure complexity with expertise of participants through creation of tiers.
• Offer index funds across all major asset classes
• Offer a sufficient number of investment options to meet participant needs while avoiding redundancy.
• Offer asset class options to allow participants to create balanced portfolios.
• Offer lifestyle (asset allocation) funds for those participants who do not wish to create their own balanced portfolios.
• If style portfolios are offered, attempt to offer those that complement each other.
• Minimize participant costs.

We believe that breaking options out into "Tiers," significantly enhances the ability to communicate how participants can construct their own diversified portfolios.