According to the Alight Solutions 401(k) IndexTM, the fourth quarter of 2017 saw moderate trading activity among defined contribution plan investors. There were six days of above normal1 trading activity in the quarter—nearly as many as the previous three quarters combined (seven).
Fourth quarter observations:
- Net transfers for the quarter amounted to 0.51% of balances—the highest level for a quarter in 2017
- 33 out of 63 trading days in the fourth quarter had net trading dollars moving from fixed income to equities
Alight Solutions 401(k) Index™ statistics for Q4 2017 and year end:
|Total transfers as percentage of starting balance:||0.51%||1.45%|
|# Fixed days:||30(48%)||132(53%)|
|# Equity days:||33(52%)||119(47%)|
|# Above normal1 days:||6||13|
Asset classes with most trading inflows in Q4 2017
|Percentage of inflows||Index dollar value
|Large U.S. funds||21%||$192|
Asset classes with most trading outflows in Q4 2017
|Percentage of outflows||Index dollar value
|Stable value funds||33%||$304|
|Target date funds2||16%||$145|
Fourth quarter market observations:
Markets in the fourth quarter showed positive results. Large U.S. equities (represented by the S&P 500 Index), international equities (represented by the MSCI All Country World ex-U.S. Index), and small U.S. equities (represented by the Russell 2000 Index) continued to post positive results in the fourth quarter. U.S. bonds (represented by the Bloomberg Barclays U.S. Aggregate Index) had modest returns.
Returns for common indices
|Bloomberg Barclays U.S. Aggregate Index||0.4%||3.5%|
|S&P 500 Index||6.6%||21.8%|
|Russell 2000 Index||3.3%||14.7%|
|MSCI All Country World ex-U.S. Index (net)||5.0%||27.2%|
Members of the media: please contact MacKenzie Lucas for questions about the Alight Solutions 401(k) Index™.
Learn more about the Alight Solutions 401(k) Index here.
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