Alight Solutions 401(k) Index™: October 2017 Observations

November 13, 2017 Shruti Patel

Trading among defined contribution plan investors was moderate in October, according to the Alight Solutions 401(k) IndexTM, with three days of above normal1 trading activity.

October observations:

  • On average, 0.014% of balances traded each day
  • There was a 50/50 split of trading days favoring equities or fixed income

The Alight Solutions 401(k) Index™ statistics for the month of October:

Index statistics October 2017 YTD
Total transfers as percentage of starting balance 0.21% 1.17%
# Fixed days 11(50%) 113(54%)
# Equity days 11(50%) 97(46%)
# Above normal days 3 10

 

Inflows and outflows during the month:

  • Trading inflows went to international, bond, and large U.S. equity funds
  • Outflows were primarily from company stock, premixed and stable value funds

Asset classes with most trading inflows in October

  Percentage of inflows Index dollar value
($ mil)
International funds 46% $174
Bond funds 22% $81
Large U.S. equity funds 14% $52

 

Asset classes with most trading outflows in October

  Percentage of outflows Index dollar value
($ mil)
Company stock funds 40% $153
Target date2 funds 34% $129
Stable value funds 20% $77

 

October investment portfolios:

  • At the end of October, 67.9% of balances were invested in equities, up from 67.6% at the end of September
  • 67.2% of new contributions were invested in equities, up slightly from 67.0% in September

Asset classes with largest percentage of total balance at end of October

  Percentage of balance Index dollar value
($ mil)
Target date funds 27% $53,536
Large U.S. equity funds 23% $46,676
Stable value funds 11% $20,950

 

Asset classes with most contributions in October

  Percentage of contributions Index dollar value
($ mil)
Target date funds 46% $416
Large U.S. equity funds 19% $175
International funds 8% $74

 

October market observations

Capital markets saw positive gains for large U.S. equity funds (represented by the S&P 500 Index), international equities (represented by the MSCI All Country World ex-U.S. Index), small U.S. equity funds (represented by the Russell 2000 Index), and U.S. bonds (represented by the Bloomberg Barclays U.S. Aggregate Index) in October.

Returns for common indices

  October 2017 YTD
Bloomberg Barclays U.S. Aggregate Index 0.1% 3.2%
S&P 500 Index 2.3% 16.9%
Russell 2000 Index 0.9% 11.9%
MSCI All Country World ex-U.S. Index (net) 1.9% 23.4%

 

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.

  1. 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. A “high” relative transfer activity day is when the net daily movement exceeds two times the average daily net activity. A “moderate” relative transfer activity day is when the net daily movement is between 1.5 and two times the average daily net activity of the preceding 12 months.
  2. Target date funds also include the amounts in target risk funds for companies who do not have target date funds. The amount in the target risk funds is less than 10% of the total.

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