Markets Surge, But Participants Not Moved to Trade

The markets may have been heating up in June, but participant transfer volumes were pretty mild, according to the Alight Solutions 401(k) Index.

The gauge, previously (and for more than a decade), was previously referred to as the AonHewitt 401(k) Index, found that June was the lightest trading month this year for defined contribution plan investors, with just 0.013% of balances traded each day, and no days of above normal transfer volumes. A “normal” level of relative transfer activity is when the net daily movement of participants’ balances as a percent of total 401(k) balances within the Alight Solutions 401(k) Index equals between 0.3 times and 1.5 times the average daily net activity of the preceding 12 months.

In June, 39% of inflows ($90 million) went to international funds and 23% ($53 million) went to target date funds, while the outflows were primarily company stock (34%), stable value (28%) and small U.S. equity funds (21%).

Once again, most new contribution flows went to target-date funds (45%), large U.S. equity funds (19%) and international funds (8%).

The Alight Solutions 401(k) Index tracks the 401(k) trading activities of nearly 1.3 million participants representing nearly $160 billion in collective assets.

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