According to the Alight Solutions 401(k) Index™, the third quarter saw a moderate uptick in trading activity among defined contribution plan investors. There were five days of above normal1 trading days in the third quarter—more than twice the amount in the first and second quarters combined.
Third quarter 2017 observations:
- Net transfers for the quarter amounted to 0.50% of balances—the highest level for a quarter in 2017
- 43 out of 63 trading days in the third quarter had net trading dollars moving from fixed income to equities
The Alight Solutions 401(k) Index™ statistics for Q3 2017 and year to date as of September 30, 2017:
|Q3 2017||2017 YTD|
|Total transfers as percentage of starting balance:||0.50%||1.04%|
|# Fixed days:||43(68%)||102(54%)|
|# Equity days:||20(32%)||86(46%)|
|# Above normal days:||5||7|
Asset classes with most trading inflows in Q3 2017
|Percentage of inflows||Index dollar value
|Stable value funds||20%||$193|
|Money market funds||18%||$173|
Asset classes with most trading outflows in Q3 2017
|Percentage of outflows||Index dollar value
|Large U.S. equity funds||29%||$275|
|Small U.S. equity funds||15%||$140|
Third quarter market observations:
Markets in the third quarter showed positive results. International funds (represented by the MSCI All Country World ex-U.S. Index), small U.S. equity funds (represented by the Russell 2000 Index), and large U.S. equity funds (represented by the S&P 500 Index) continued to post positive results in the third quarter. U.S. bonds (represented by the Bloomberg Barclays U.S. Aggregate Index) had modest returns.
Returns for common indices
|Q3 2017||2017 YTD|
|Bloomberg Barclays U.S. Aggregate Index||0.9%||3.1%|
|S&P 500 Index||4.5%||14.2%|
|Russell 2000 Index||5.7%||10.9%|
|MSCI All Country World ex-U.S. Index (net)||6.2%||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.
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