Participants in 401(k) plans shifted the most money into international equity and asset allocation funds in 2006, according to the Hewitt 401(k) Index.
International equity funds had inflows of $1.45 billion for the year. The average 401(k) allocation to international equity funds was 8.1% as of Dec. 31, compared with 2.5% on Dec. 31, 2002. Hewitt attributes the increase to the strong performance of the asset class.
Participant allocations to asset allocation funds increased to 15.7% as of Dec. 31 from 9% a year earlier. Nearly $1.3 billion has been transferred to the funds since the end of 2002.