TRACE SYSTEMS, INC 401(K) PLAN ERISA 404 Retirement Plan and Investment Information

Transcription

1 TRACE SYSTEMS, INC 401(K) PLAN ERISA 404 Retirement Plan and Investment Information 01/03/2017 Contract/Plan ID Number This document uses these defined words and phrases: Plan means TRACE SYSTEMS, INC 401(K) PLAN. Plan Fiduciary means the individual(s) holding authority over the operation and administration of the Plan and its retirement funds. The Plan Sponsor is typically the Plan Fiduciary. Contact the Plan Administrator for further details. Plan Sponsor means TRACE SYSTEMS, INC. You means the Plan participant or beneficiary. Plan Administrator is a Plan Fiduciary that has authority over operation and administration of the Plan. You should contact the Plan Administrator if you have any questions about the investment options under the Plan or if you would like paper copies of additional investment information that is available online at principal.com. The Plan Administrator is: TRACE SYSTEMS, INC OLD GALLOW ROAD SUITE 360 VIENNA, VA Information about ERISA Section 404(c) The Employee Retirement Income Security Act (ERISA) provides rules about the investment of retirement funds. The Plan Sponsor chose to qualify the Plan as an ERISA 404(c) plan and intends to comply with ERISA Section 404(c) requirements by providing information for you to make informed investment decisions and by letting you: Direct the investment of individual retirement accounts Choose from at least three diverse investment options Change investment choices at least quarterly This means the Plan Fiduciary should not be liable for any investment losses that result from a participant's investment control. How does this affect you? The Plan Fiduciary makes certain investment options available under the Plan. You decide which of those options works best for you according to your age and circumstances. This means that you are responsible for directing the investment in the account the Plan holds for your benefit (your account). Directing or Transferring Between Investment Options You can direct or transfer retirement funds between the different investment options at least quarterly. The Plan may allow for more frequent transfers. You are not allowed to direct contributions or investment transfers into LargeCap Growth I Separate Account. You are not allowed to direct contributions or investment transfers into Fidelity Advisor Leveraged Co Stock T Fund. You are not allowed to direct contributions or investment transfers into Oppenheimer Equity Income R Fund. You are not allowed to direct contributions or investment transfers into MFS Mass Investors Trust R2 Fund. You are not allowed to direct contributions or investment transfers into Delaware High-Yield Opportunities R Fund. To transfer retirement funds, you can call the automated phone system of the Principal Financial Group at or log in to your account at principal.com. A description of the exercise of voting, tender and similar rights for an investment alternative and any restrictions on these rights is located in the relevant plan document or trustee powers section of the trust agreement. Contact the Plan Administrator to obtain the plan document or the trust agreement, if applicable Plan Information - Page 1 of 2

2 Fees and Expenses An annual Plan administrative expense of 0.10 percent applies to each participant's account balance. One twelfth of this annual amount will be charged on a monthly basis. The dollar amount of the expense can be found by logging in to the secure website at principal.com and on participant statements. Plan administrative expenses typically include items such as recordkeeping, participant website access, participant statements, Plan compliance services and financial professional services. From time to time, Plan expenses may be incurred in the course of normal Plan operation for Plan services such as legal, auditing, third-party administration, consulting, investment advice to the Plan, etc. If allowed by the Plan document, the Plan Fiduciary may direct that these expenses be paid by the Plan. The Plan Fiduciary determines how these expenses are allocated among participants at the time the expenses are paid. These expenses are typically allocated based on participant account balance but may be allocated by dividing the total expense to be deducted by the total number of participants in the Plan. If such expenses are charged to participant accounts, the dollar amount of such expenses will be disclosed on the secure principal.com website and on participant statements (if applicable) for the quarter in which they are paid. The following participant-level services have additional fees. These participant transaction fees will be charged to your account balance for the services you elect to use. Participant transaction fees for the Plan include: Distribution fee: $40.00 Loan Maintenance fee for new loans: $12.00 per quarter Loan Setup fee: $50.00 Qualified Domestic Relations Order processing fee: $ for each Domestic Relations Order processed. The fee is divided equally between the participant and the alternate payee involved unless specified differently within the Domestic Relations Order or the Plan's Administrative Procedures. Enhanced Hardship Withdrawal Service fee: $80.00 The Plan Administrator can provide the following additional information in paper form, without charge and upon request: Copies of prospectuses (or any short-form or summary prospectuses) for the investment options Copies of any financial statements or reports, such as statements of additional information and shareholder reports, and of any other similar materials relating to the Plan's designated investment options A statement of the value of a share or unit of each designated investment option and the date of the valuation A list of the assets comprising the portfolio of each investment option which constitute Plan assets and the value of each asset (or the proportion of the investment which it comprises) The following information about each investment option (including fixed-return investment options) available under the Plan: issuer name, investment objective, principal strategies and risks, turnover rate, performance, and fee and expense information To the extent a group annuity contract under the Plan permits you to select an annuity guaranteed by an insurance company, a statement that the guarantee provided by the insurance company is subject to its long-term financial strength and claims-paying ability To help you make informed investment choices and for more information about the investment options available to you, including investment objectives, performance and fees, please review the enclosed materials or visit principal.com. How your quarterly statements will be delivered This notice is to inform you that statements are provided through The Principal Retirement Service Center at The benefit statement includes any fees deducted on your retirement account and is being delivered electronically based on your continuous access to the website. You have the right to request and receive, free of charge, a paper statement. If you wish to receive a paper benefit statement, please call , 7 am 9 pm (Monday Friday) Central Time. Plan Information - Page 2 of

3 Contract/Plan ID Number Investment Option Summary As of 09/30/2016 This document provides important information to help you compare the investment options available to you under the retirement plan. Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown. For additional information on the investment options, including most recent month-end performance, log in to the Principal Financial Group website at principal.com or call our automated phone system at Additional information available online includes, if applicable, the name of the investment option's issuer; the investment option's objectives or goals; the investment option's principal strategies, including a general description of the types of assets held by the investment option; the portfolio turnover rate; and the investment option's performance data and fee and expense information. In situations where the net and gross total investment expense figures are different, the mutual fund or the underlying fund in which a Separate Account invests has waived/capped a portion of its management fees through the date displayed in the waiver expiration date or contractual cap expiration date column. Differences may also be shown due to the fund family choosing to pay certain expenses that would normally be payable by the fund. Returns displayed are based on total investment expense net. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions. Some or all of the Plan administrative expenses are paid from the total investment expense of one or more of the Plan's investment options. The cumulative effect of fees and expenses can substantially reduce the growth of a participant's or beneficiary's retirement account. Participants and beneficiaries can visit the Employee Benefit Security Administration's website for an example demonstrating the long-term effect of fees and expenses. For a glossary of terms to assist you in understanding the designated investment options, log in to your account at principal.com. Asset Class: Short-Term Fixed Income This asset class is generally composed of short-term, fixed-income investment options that are largely liquid and are designed to not lose much value. These investment options may include stable value, money market, short-term bond, and guaranteed interest accounts. They are considered to be among the least risky forms of investment options. However, they typically have a lower rate of return than equities or longer-term fixed income investment options over long periods of time. Depending on the objectives of the investment options, they may experience price fluctuations and may lose value. Investment Category: Short Term Bond Inv Manager or Sub-Advisor : Lord Abbett & Co, LLC Lord Abbett Short Duration Income R3 Fund 10,17,21 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 Bloomberg Barclays Government/Credit 1-5 Year Index Description: The investment seeks a high level of income consistent with preservation of capital. The fund invests primarily in various types of short duration debt (or fixed income) securities. It pursues its investment objective by investing at least 65% of its net assets in investment grade debt securities including corporate debt securities of U.S. issuers; corporate debt securities of non-u.s. (including emerging market) issuers that are denominated in U.S. dollars; mortgage-backed and other asset-backed securities; and securities issued or guaranteed by the U.S. government, its agencies or government-sponsored enterprises; and inflation-linked investments. Composition (% of Assets) as of 07/31/2016 Fees & Expenses # of Transfers Allowed/Time Period Cash 8.84 Non-U.S. Bonds Total Inv Exp Net % Convertibles 0.07 U.S. Bonds Contractual Cap Expiration Date Investment Category: Short Government Bond Inv Manager or Sub-Advisor : Victory Capital Management Total Inv Exp Gross % 0.90 Total Inv Exp Gross Per $1,000 Invested $9.00 Victory INCORE Fund For Income R Fund 10,17,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /1987 Bloomberg Barclays Government 1-5 Year Index Description: The investment seeks to provide a high level of current income consistent with preservation of shareholders' capital. The fund invests primarily in securities issued by the U.S. government and its agencies or instrumentalities. Under normal circumstances, it primarily invests in 1) Mortgage-backed obligations and collateralized mortgage obligations (CMOs) issued by the Government National Mortgage Association (GNMA), with an average effective maturity ranging from 2 to 10 years, and 2) Obligations issued or guaranteed by the U.S. government or by its agencies or instrumentalities with a dollar-weighted average maturity normally less than 5 years. Composition (% of Assets) as of 06/30/2016 Fees & Expenses # of Transfers Allowed/Time Period Cash 1.83 U.S. Bonds Total Inv Exp Net % /90 day period Contractual Cap Expiration Date Total Inv Exp Gross % 0.95 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 1 of 20

4 Investment Option Summary As of 09/30/2016 Contract/Plan ID Number Asset Class: Fixed Income This asset class is generally composed of investment options that invest in bonds, or debt of a company or government entity (including U.S. and Non- U.S.). It may also include real estate investment options that directly own property. These investment options typically carry more risk than short-term fixed income investment options (including, for real estate investment options, liquidity risk), but less overall risk than equities. All investment options in this category have the potential to lose value. Investment Category: High Yield Bond Inv Manager or Sub-Advisor : Delaware Management Company Delaware High-Yield Opportunities R Fund 5,10,21 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2003 Merrill Lynch U.S. High Yield Master II Index Description: The investment seeks total return and, as a secondary objective, high current income. Under normal circumstances, the fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in fixed income securities rated at the time of purchase lower than BBB- by Standard & Poor's Financial Services LLC, Baa3 by Moody's Investors Services, Inc. (Moody's), or similarly rated by another nationally recognized statistical rating organization (NRSRO). It may also invest in U.S. and foreign government securities and corporate bonds of foreign issuers. The fund may invest up to 40% of its net assets in foreign securities. Cash 1.66 Non-U.S. Bonds Total Inv Exp Net % Convertibles 0.79 Preferred 2.04 Contractual Cap Expiration Date U.S. Bonds Other /28/2016 Inv Manager or Sub-Advisor : JP Morgan / Neuberger Berman Total Inv Exp Gross % 1.37 Total Inv Exp Gross Per $1,000 Invested $13.70 High Yield I Separate Account A,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2004 Bloomberg Barclays US Corp High Yld 2% Issuer Capped Index Merrill Lynch U.S. High Yield Master II Index Description: The investment seeks high current income. The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds (sometimes called "high yield bonds" or "junk bonds") which are rated at the time of each purchase Ba1 or lower by Moody's and BB+ or lower by S&P. It also invests in bank loans (also known as senior floating rate interests) and securities of foreign issuers. Cash 5.58 U.S. Stocks 0.04 Total Inv Exp Net % /30 day period Non-U.S. Bonds Convertibles 0.21 Contractual Cap Expiration Date Preferred 0.23 U.S. Bonds Other 4.64 Total Inv Exp Gross % 1.22 Investment Category: Corporate Bond Inv Manager or Sub-Advisor : Delaware Management Company Total Inv Exp Gross Per $1,000 Invested $12.20 Delaware Corporate Bond R Fund 10,17,21,E (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2003 Bloomberg Barclays US Corporate Investment Grade Index Description: The investment seeks total return. Under normal circumstances, the fund will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in corporate bonds (80% policy). It may also invest up to 20% of its net assets in high yield corporate bonds ("junk bonds"). In addition, the fund may invest up to 40% of its total assets in foreign securities, but the fund's total non-u.s.-dollar currency exposure will be limited, in the aggregate, to no more than 25% of net assets. Cash 1.51 Non-U.S. Bonds Total Inv Exp Net % /20 business day period Convertibles 0.54 Preferred 1.89 Contractual Cap Expiration Date U.S. Bonds Other /28/2016 Total Inv Exp Gross % 1.20 Total Inv Exp Gross Per $1,000 Invested $12.00 Investment Option Summary - Page 2 of

5 Contract/Plan ID Number Investment Option Summary As of 09/30/2016 Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target-Date Retirement Principal Trust(SM) Income Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date Retirement Income Index Morningstar Lifetime Moderate Income Index Description: The investment option seeks current income and, as a secondary objective, capital appreciation. To pursue its goal, this Target Date Fund generally invests in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on investors who have reached their investment time horizon. Cash 7.14 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 6.56 Non-U.S. Bonds 7.48 Contractual Cap Expiration Date Convertibles 0.06 Preferred 0.52 U.S. Bonds Other 0.25 Total Inv Exp Gross % 1.18 Investment Category: Target-Date Total Inv Exp Gross Per $1,000 Invested $11.80 Principal Trust(SM) Target 2010 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2010 Index Morningstar Lifetime Moderate 2010 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 5.99 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 6.18 Contractual Cap Expiration Date Convertibles 0.05 Preferred 0.43 U.S. Bonds Other 0.74 Total Inv Exp Gross % 1.18 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 3 of 20

6 Investment Option Summary As of 09/30/2016 Contract/Plan ID Number Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target-Date 2015 Principal Trust(SM) Target 2015 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2015 Index Morningstar Lifetime Moderate 2015 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 5.02 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 5.51 Contractual Cap Expiration Date Convertibles 0.04 Preferred 0.33 U.S. Bonds Other 0.80 Total Inv Exp Gross % 1.17 Investment Category: Target-Date 2020 Total Inv Exp Gross Per $1,000 Invested $11.70 Principal Trust(SM) Target 2020 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2020 Index Morningstar Lifetime Moderate 2020 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 3.92 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 4.64 Contractual Cap Expiration Date Convertibles 0.04 Preferred 0.25 U.S. Bonds Other 0.85 Total Inv Exp Gross % 1.17 Total Inv Exp Gross Per $1,000 Invested $11.70 Investment Option Summary - Page 4 of

7 Contract/Plan ID Number Investment Option Summary As of 09/30/2016 Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target-Date 2025 Principal Trust(SM) Target 2025 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2025 Index Morningstar Lifetime Moderate 2025 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 3.32 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 3.96 Contractual Cap Expiration Date Convertibles 0.03 Preferred 0.16 U.S. Bonds Other 0.90 Total Inv Exp Gross % 1.17 Investment Category: Target-Date 2030 Total Inv Exp Gross Per $1,000 Invested $11.70 Principal Trust(SM) Target 2030 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2030 Index Morningstar Lifetime Moderate 2030 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 3.10 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 3.13 Contractual Cap Expiration Date Convertibles 0.03 Preferred 0.12 U.S. Bonds Other 0.94 Total Inv Exp Gross % 1.17 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 5 of 20

8 Investment Option Summary As of 09/30/2016 Contract/Plan ID Number Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target-Date 2035 Principal Trust(SM) Target 2035 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2035 Index Morningstar Lifetime Moderate 2035 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 2.89 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 1.87 Contractual Cap Expiration Date Convertibles 0.01 Preferred 0.01 U.S. Bonds Other 1.03 Total Inv Exp Gross % 1.16 Investment Category: Target-Date 2040 Total Inv Exp Gross Per $1,000 Invested $11.60 Principal Trust(SM) Target 2040 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2040 Index Morningstar Lifetime Moderate 2040 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 2.78 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 1.45 Contractual Cap Expiration Date Convertibles 0.01 Preferred 0.01 U.S. Bonds Other 1.06 Total Inv Exp Gross % 1.17 Total Inv Exp Gross Per $1,000 Invested $11.70 Investment Option Summary - Page 6 of

9 Contract/Plan ID Number Investment Option Summary As of 09/30/2016 Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target-Date 2045 Principal Trust(SM) Target 2045 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2045 Index Morningstar Lifetime Moderate 2045 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 2.51 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 1.11 Contractual Cap Expiration Date Convertibles 0.01 Preferred 0.01 U.S. Bonds Other 1.09 Total Inv Exp Gross % 1.18 Investment Category: Target-Date 2050 Total Inv Exp Gross Per $1,000 Invested $11.80 Principal Trust(SM) Target 2050 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2050 Index Morningstar Lifetime Moderate 2050 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 2.54 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 0.87 Contractual Cap Expiration Date Convertibles 0.01 Preferred 0.01 U.S. Bonds 8.33 Other 1.11 Total Inv Exp Gross % 1.18 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 7 of 20

10 Investment Option Summary As of 09/30/2016 Contract/Plan ID Number Asset Class: Balanced/Asset Allocation This asset class is generally composed of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value. Investment Category: Target-Date 2055 Principal Trust(SM) Target 2055 Fund 8,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 S&P Target Date 2055 Index Morningstar Lifetime Moderate 2055 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 2.56 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 0.70 Contractual Cap Expiration Date Convertibles 0.01 Preferred 0.01 U.S. Bonds 6.47 Other 1.12 Total Inv Exp Gross % 1.19 Investment Category: Target-Date Total Inv Exp Gross Per $1,000 Invested $11.90 Principal Trust(SM) Target 2060 Fund 8,9,17,19,20,24,25,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2014 S&P Target Date 2055 Index Morningstar Lifetime Moderate 2055 Index Description: The investment option seeks a total return consisting of long-term growth of capital and current income. To pursue its goal, this Target Date Fund generally invests in affiliated and may invest in nonaffiliated open-ended mutual funds, insurance company separate accounts, and collective trust funds that Principal Trust considers appropriate based on the remaining time horizon of a particular Target Date Fund. Over time, Principal Trust intends to gradually shift the asset allocation targets of each Fund (other than the Principal Trust Income Fund) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a Fund's underlying fund allocation will match that of the Principal Trust Income Fund. Cash 2.97 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Non-U.S. Bonds 0.69 Contractual Cap Expiration Date Convertibles 0.01 Preferred 0.01 U.S. Bonds 6.11 Other 1.29 Total Inv Exp Gross % 1.19 Total Inv Exp Gross Per $1,000 Invested $11.90 Investment Option Summary - Page 8 of

11 Contract/Plan ID Number Investment Option Summary As of 09/30/2016 Asset Class: Large U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in large, well-established, U.S. companies. These investment options typically carry more risk than fixed income investment options but have the potential for higher returns over longer time periods. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Large Value Inv Manager or Sub-Advisor : Edge Asset Management, Inc. Equity Income Separate Account A,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 Russell 1000 Value Index Description: The investment seeks to provide current income and long-term growth of income and capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying equity securities at the time of purchase. The fund usually invests in equity securities of companies with large market capitalizations. The fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. Cash 1.74 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks Contractual Cap Expiration Date Inv Manager or Sub-Advisor : OppenheimerFunds, Inc. Total Inv Exp Gross % 1.09 Total Inv Exp Gross Per $1,000 Invested $10.90 Oppenheimer Equity Income R Fund 2,21 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2001 Russell 1000 Value Index Description: The investment seeks total return. The fund mainly invests in common stocks of U.S. companies that the portfolio manager believes are undervalued. It will invest at least 80% of its net assets, plus borrowings for investment purposes, in equity securities. The fund may invest in equity securities issued by companies of different capitalization ranges, but will typically focus on larger capitalization stocks. The portfolio manager does not intend to invest more than 25% of its net assets in securities of issuers in any single foreign country or more than 5% of its net assets in companies or government issuers in emerging market countries. Cash 0.15 U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks 3.96 Convertibles 3.69 Contractual Cap Expiration Date Preferred 5.89 U.S. Bonds 0.02 Investment Category: Large Blend Inv Manager or Sub-Advisor : Edge Asset Management, Inc. Total Inv Exp Gross % 1.26 Total Inv Exp Gross Per $1,000 Invested $12.60 Capital Appreciation Separate Account A,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2009 Russell 3000 Index Description: The investment seeks to provide long-term growth of capital. The fund invests primarily in equity securities of companies with any market capitalization, but has a greater exposure to large market capitalization companies than small or medium market capitalization companies. It invests in equity securities with value and/or growth characteristics and constructs an investment portfolio that has a "blend" of equity securities with these characteristics. Investing in value equity securities is an investment strategy that emphasizes buying equity securities that appear to be undervalued. Cash 1.29 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 2.96 Contractual Cap Expiration Date Total Inv Exp Gross % 1.03 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 9 of 20

12 Investment Option Summary As of 09/30/2016 Contract/Plan ID Number Asset Class: Large U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in large, well-established, U.S. companies. These investment options typically carry more risk than fixed income investment options but have the potential for higher returns over longer time periods. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Large Blend Inv Manager or Sub-Advisor : MFS Investment Management MFS Mass Investors Trust R2 Fund 21 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2003 Russell 1000 Index Description: The investment seeks capital appreciation. The fund normally invests the fund's assets primarily in equity securities. Equity securities include common stocks and other securities that represent an ownership interest (or right to acquire an ownership interest) in a company or other issuer. While it may invest the fund's assets in companies of any size, the fund primarily invests in companies with large capitalizations. It may invest the fund's assets in foreign securities. Cash 0.91 U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks 7.47 Contractual Cap Expiration Date Investment Category: Large Growth Inv Manager or Sub-Advisor : Principal Global Investors Total Inv Exp Gross % 0.97 Total Inv Exp Gross Per $1,000 Invested $9.70 Blue Chip Separate Account A (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2013 Russell 1000 Growth Index Description: The investment seeks long-term growth of capital. The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with large market capitalizations at the time of each purchase. It invests in foreign securities. The fund invests in growth equity securities; growth orientation emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average. Cash 0.01 U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks Other 0.07 Contractual Cap Expiration Date 12/30/2016 Inv Manager or Sub-Advisor : T. Rowe Price/Brown Advisory 12/30/2016 Total Inv Exp Gross % 1.28 Total Inv Exp Gross Per $1,000 Invested $12.80 LargeCap Growth I Separate Account A,3,18 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2000 Russell 1000 Growth Index Description: The investment seeks long-term growth of capital. The fund normally invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with large market capitalizations at the time of each purchase. It invests in growth equity securities; growth orientation emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average. Cash U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks 4.60 Other 1.95 Contractual Cap Expiration Date 02/28/ /28/2017 Total Inv Exp Gross % 1.20 Total Inv Exp Gross Per $1,000 Invested $12.00 Investment Option Summary - Page 10 of

13 Contract/Plan ID Number Investment Option Summary As of 09/30/2016 Asset Class: Small/Mid U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in small- to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Mid Cap Value Inv Manager or Sub-Advisor : Fidelity Management & Research Fidelity Advisor Leveraged Co Stock T Fund 1 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2000 Russell Midcap Value Index Description: The investment seeks capital appreciation. The fund normally invests at least 80% of assets in stocks. It normally invests primarily in common stocks of leveraged companies (companies that issue lower-quality debt and other companies with leveraged capital structures). The fund potentially invests in lower-quality debt securities (those of less than investment-grade quality, also referred to as high yield debt securities or junk bonds). It invests in domestic and foreign issuers. The fund invests in either "growth" stocks or "value" stocks or both. Composition (% of Assets) as of 07/31/2016 Fees & Expenses # of Transfers Allowed/Time Period Cash 1.92 U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks 5.16 U.S. Bonds 0.71 Contractual Cap Expiration Date Inv Manager or Sub-Advisor : RidgeWorth Funds Total Inv Exp Gross % 1.32 Total Inv Exp Gross Per $1,000 Invested $13.20 RidgeWorth Ceredex Mid-Cap Value Equity A Fund 1,21,E (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2003 Russell Midcap Value Index Description: The investment seeks to provide capital appreciation; current income is a secondary objective. The fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in U.S.-traded equity securities of mid-capitalization companies. The subadvisor considers mid-capitalization companies to be companies with market capitalizations similar to those of companies in the Russell Midcap(R) Index. Cash 1.93 U.S. Stocks Total Inv Exp Net % /90 day period Investment Category: Mid Cap Blend Inv Manager or Sub-Advisor : Principal Global Investors Contractual Cap Expiration Date 08/01/2017 Total Inv Exp Gross % 1.45 Total Inv Exp Gross Per $1,000 Invested $14.50 MidCap S&P 400 Index Separate Account A,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /1999 Standard & Poor's 400 MidCap Stock Index Description: The investment option normally invests the majority of assets in common stocks of companies that compose the S&P MidCap 400 Index. Management attempts to mirror the investment performance of the index by allocating assets in approximately the same weightings as the S&P MidCap 400 Index. Over the long-term, management seeks a very close correlation between the performance of the Separate Account before expenses and that of the S&P MidCap 400 Index. Cash 2.07 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 0.16 Contractual Cap Expiration Date Total Inv Exp Gross % 0.72 Total Inv Exp Gross Per $1,000 Invested $ Investment Option Summary - Page 11 of 20

14 Investment Option Summary As of 09/30/2016 Contract/Plan ID Number Asset Class: Small/Mid U.S. Equity This asset class is generally composed of investment options that invest in stocks, or shares of ownership in small- to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value. Investment Category: Mid Cap Growth Inv Manager or Sub-Advisor : Principal Global Investors MidCap Separate Account A,1,22,23,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /1991 Russell Midcap Index Description: The investment option invests primarily in common stocks and other equity securities of medium capitalization companies. It normally invests the majority of assets in companies with market capitalizations similar to those companies in the Russell MidCap Index. Management's securities selection is based on stocks with value and/or growth characteristics, and management constructs an investment portfolio that has a blend of stocks with these characteristics. It may invest up to 25% of assets in foreign securities. U.S. Stocks Non-U.S. Stocks Total Inv Exp Net % /30 day period Other 0.39 Contractual Cap Expiration Date Investment Category: Small Value Inv Manager or Sub-Advisor : Franklin Advisers, Inc Total Inv Exp Gross % 1.22 Total Inv Exp Gross Per $1,000 Invested $12.20 Franklin Small Cap Value R Fund 1,21 (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /2002 Russell 2000 Value Index Description: The investment seeks long-term total return. The fund normally invests at least 80% of its net assets in investments of small-capitalization (small-cap) companies. Small-cap companies are companies with market capitalizations not exceeding either: 1) the highest market capitalization in the Russell 2000 Index; or 2) the 12-month average of the highest market capitalization in the Russell 2000 Index. It generally invests in equity securities that the fund's investment manager believes are undervalued at the time of purchase and have the potential for capital appreciation. It may invest up to 25% of its total assets in foreign securities. Composition (% of Assets) as of 06/30/2016 Fees & Expenses # of Transfers Allowed/Time Period Cash 9.59 U.S. Stocks Total Inv Exp Net % Non-U.S. Stocks U.S. Bonds 0.62 Contractual Cap Expiration Date Investment Category: Small Blend Inv Manager or Sub-Advisor : Principal Global Investors Total Inv Exp Gross % 1.38 Total Inv Exp Gross Per $1,000 Invested $13.80 SmallCap S&P 600 Index Separate Account A,F (as of 09/30/2016 quarter end) (as of 12/31/2015 year end) /1999 Standard & Poor's 600 Stock Index Description: The investment seeks long-term growth of capital and normally invests the majority of assets in common stocks of companies that compose the S&P SmallCap 600 Index. Management attempts to mirror the investment performance of the index by allocating assets in approximately the same weightings as the S&P 600 Index. Over the long-term, management seeks a very close correlation between the performance of the Separate Account before expenses and that of the S&P 600 Index. Cash 3.32 U.S. Stocks Total Inv Exp Net % /30 day period Non-U.S. Stocks 0.28 Contractual Cap Expiration Date Total Inv Exp Gross % 0.72 Total Inv Exp Gross Per $1,000 Invested $7.20 Investment Option Summary - Page 12 of