As stock markets rebounded in the first quarter of 2019, 401(k) investors moved from equities to fixed income funds. According to the Alight Solutions 401(k) IndexTM, nearly 90% of the days in the quarter saw net trading activity favor fixed income investments. Additionally, there were nine days of above-normal1 trading activity, three days in each month.
First quarter observations:
- Net transfers for the quarter were 0.50% of balances
- 54 out of 61 trading days in the first quarter had net trading dollars moving from equities to fixed income
Alight Solutions 401(k) Index™ statistics for Q1 2019 and year-to-date:
|Index Statistics||Q1 2019||2019 YTD|
|Total transfers as percentage of starting balance||0.50%||0.50%|
|# Fixed days||54 (89%)||54 (89%)|
|# Equity days||7 (11%)||7 (11%)|
|# Above-normal days||9||9|
|Asset classes with most trading inflows in Q1 2019||Percentage of inflows||Index dollar value
|Stable value funds||24%||$225|
|Money market funds||6%||$58|
|Asset classes with most trading outflows in Q1 2019||Percentage of outflows||Index dollar value
|Large U.S. equity funds||51%||$408|
First quarter market observations:
The first quarter of 2019 quelled the impact of the decline experienced during the fourth quarter of 2018. Small U.S. equities (represented by the Russell 2000 Index) gained 14.6%, large U.S. equities (represented by the S&P 500 Index) rose 13.7% and international equities (represented by the MSCI All Country World ex-U.S. Index) were up 10.3%. U.S. bonds (represented by the Bloomberg Barclays U.S. Aggregate Index) also gained 2.9%.
|Returns for common indices||Q1 2019||2019 YTD|
|Bloomberg Barclays U.S. Aggregate Index||2.9%||2.9%|
|S&P 500 Index||13.7%||13.7%|
|Russell 2000 Index||14.6%||14.6%|
|MSCI All Country World ex-U.S. Index (net)||10.3%||10.3%|
Members of the media: please contact Dominic Belmonte for questions about the Alight Solutions 401(k) Index™.
Learn more about the Alight Solutions 401(k) Index™ here.