July was the lightest trading month for defined contribution plan investors in over five years. Just 0.11% of balances were traded in the month — the lowest level since April 2012 and the second lowest month since 1997 when the Index was started.
July observations:
- On average, 0.012% of balances traded each day
- There was one day of above normal 1 trading
The Alight Solutions 401(k) Index™ statistics for the month ending July 31, 2017:
| Index statistics | July | 2017 YTD |
|---|---|---|
| Total transfers as percentage of starting balance | 0.11% | 0.90% |
| # Fixed days | 9(45%) | 68(47%) |
| # Equity days | 11(55%) | 77(53%) |
| # Above normal1 days | 1 | 3 |
Inflows and outflows during the month:
- The majority of trading inflows went to non-U.S. funds with 46% of inflows going to international funds and 15% to emerging market funds
- Outflows were primarily company stock, stable value, and small U.S. equity funds
Asset classes with most trading inflows in July
| Percentage of inflows | Index dollar value ($ mil) |
|
|---|---|---|
| International funds | 46% | $99 |
| Emerging market funds | 15% | $33 |
| Target date2 funds | 15% | $32 |
Asset classes with most trading outflows in July
| Percentage of outflows | Index dollar value ($ mil) |
|
|---|---|---|
| Company stock | 52% | $111 |
| Stable value funds | 11% | $25 |
| Small U.S. equity funds | 11% | $24 |
July investment portfolios:
- At the end of July, 67.4% of balances were invested in equities, up from 67.0% at the end of June
- 67.3% of new contributions were invested in equities, up from 67.1% in June
Asset classes with largest percentage of total balance at end of July
| Percentage of balance | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds | 25% | $47,749 |
| Large U.S. equity funds | 24% | $44,739 |
| Stable value funds | 11% | $20,807 |
Asset classes with most contributions in July
| Percentage of contributions | Index dollar value ($ mil) |
|
|---|---|---|
| Target date funds | 44% | $430 |
| Large U.S. equity funds | 20% | $191 |
| International funds | 8% | $78 |
July market observations
In July, capital markets saw positive results, as the extended Bull Market continues forward, with strong returns in large U.S. equity funds (represented by the S&P 500 Index) and international funds (represented by the MSCI All Country World ex-U.S. Index).
Returns for common indices
| July | 2017 YTD | |
|---|---|---|
| Bloomberg Barclays U.S. Aggregate Index | 0.4% | 2.7% |
| S&P 500 Index | 2.1% | 11.6% |
| Russell 2000 Index | 0.7% | 5.8% |
| MSCI All Country World ex-U.S. Index (net) | 3.7% | 18.3% |
Members of the media: please contact MacKenzie Lucas for questions about the Alight Solutions 401(k) Index™.
