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

October 12, 2017 Shruti Patel

Trading among defined contribution plan investors was light in September according to the Alight Solutions 401(k) Index™, with only one day of above normal1 trading activity in the month.

September observations:

  • On average, 0.014% of balances traded each day
  • 16 out of 20 days favored fixed income funds

The Alight Solutions 401(k) Index™ statistics for the month ending September 30, 2017:

Index statistics September 2017 YTD
Total transfers as percentage of starting balance 0.17% 1.04%
# Fixed days 16(80%) 102(54%)
# Equity days 4(20%) 86(46%)
# Above normal days 1 7

 

Inflows and outflows during the month:

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

Asset classes with most trading inflows in September

  Percentage of inflows Index dollar value
($ mil)
International funds 27% $88
Stable value funds 23% $75
Bond funds 18% $57

 

Asset classes with most trading outflows in September

  Percentage of outflows Index dollar value
($ mil)
Company stock funds 49% $160
Large U.S. equity funds 28% $89
Small U.S. equity funds 12% $38

 

September investment portfolios:

  • At the end of September, 67.6% of balances were invested in equities, up from 67.1% at the end of August
  • 67.0% of new contributions were invested in equities, down very slightly from 67.1% in August

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

  Percentage of balance Index dollar value
($ mil)
Target date2 funds 27% $52,844
Large U.S. equity funds 23% $45,597
Stable value funds 11% $21,439

 

Asset classes with most contributions in September

  Percentage of contributions Index dollar value
($ mil)
Target date funds 46% $473
Large U.S. equity funds 19% $196
International funds 8% $84

 

September market observations

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

Returns for common indices

  September 2017 YTD
Bloomberg Barclays U.S. Aggregate Index -0.5% 3.1%
S&P 500 Index 2.1% 14.2%
Russell 2000 Index 6.2% 10.9%
MSCI All Country World ex-U.S. Index (net) 1.9% 21.1%

 

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.

Download a version of this report

 Download now

 

 

 

Previous Flipbook
Dependent verification case study: Brinker International
Dependent verification case study: Brinker International

With health care costs rising, Brinker found it increasingly difficult to offer a competitive and comprehen...

Next Article
2017 Trends & Experience in Defined Contribution Plans
2017 Trends & Experience in Defined Contribution Plans

Our data finds three common ways employers are enhancing their DC plans in 2017: simplifying the savings pr...