The Federal Reserve Flow of Funds Table F118 (Private Pension Funds) shows that this sector continues its long-term pattern of selling equity positions and buying mutual funds.

This graph shows the investment behavior of private pension funds over the decade 1995-2004, compared with the recent data for Q3 2005.

	How Are Private Pensions Investing?

The graph reveals a marked flurry of portfolio activity in 1999, with heavy selling of equities in the year preceding the crash of August 2000.

After the crash of 2000, portfolio turnover for private pension funds diminished, although the pattern of selling equities and buying mutual funds continued.

This sector includes both defined benefit and defined contribution plans as well as 401(k) arrangements.