See-sawing stock prices prompted 401(k) investors to move to fixed income funds in March, according to the Alight Solutions 401(k) Index. There were three trading days of above-normal1 trading activity in March. Among the 21 trading days in March, 20 days saw the net trading activity moving from equities to fixed income funds.
March observations:
- On average, 0.014% of 401(k) balances were traded daily
The Alight Solutions 401(k) Index™ statistics for the month of March 2019:
| Index statistics | March | 2019 YTD |
|---|---|---|
| Total transfers as percentage of starting balance | 0.18% | 0.50% |
| # Fixed days | 20 (95%) | 54 (89%) |
| # Equity days | 1 (5%) | 7 (11%) |
| # Above-normal days | 3 | 9 |
Inflows and outflows during the month:
- Trading inflows mainly went to bond, stable value, and money market funds
- Outflows were primarily from large U.S. equity funds, company stock, and small U.S. equity funds
| Asset classes with most trading inflows in March | Percentage of inflows | Index dollar value ($ mil) |
|---|---|---|
| Bond funds | 61% | $226 |
| Stable value funds | 26% | $96 |
| Money market funds | 6% | $24 |
| Asset classes with most trading outflows in March | Percentage of outflows | Index dollar value ($ mil) |
|---|---|---|
| Large U.S. equity funds | 37% | $137 |
| Company stock | 22% | $82 |
| Small U.S. equity funds | 15% | $54 |
March investment portfolios:
- After reflecting market movements and trading activity, average asset allocation in equities remained unchanged at 67.9% in March
- New contributions in equities remained increased to 68.3% at the end of March from 67.7% at the end of February
| Asset classes with largest percentage of total balance at end of March | Percentage of balance | Index dollar value ($ mil) |
|---|---|---|
| Target date2 funds | 29% | $55,930 |
| Large U.S. equity funds | 25% | $48,159 |
| Stable value funds | 10% | $19,426 |
| Asset classes with most contributions in March | Percentage of contribution | Index dollar value ($ mil) |
|---|---|---|
| Target date funds | 42% | $835 |
| Large U.S. equity funds | 21% | $416 |
| International funds | 8% | $159 |
March market observations:
The capital markets delivered mixed performance during the month of March. The U.S. bond market (represented by the Bloomberg Barclays U.S. Aggregate Index) gained 1.9%. Large U.S. equities (represented by the S&P 500 Index) rose 1.9% and international equities (represented by the MSCIACWI ex-US Index) gained 0.6%. Small U.S. equities (represented by the Russell 2000 Index) fell -2.1%.
| Returns for common indices | March | 2019 YTD |
|---|---|---|
| Bloomberg Barclays U.S. Aggregate Index | 1.9% | 2.9% |
| S&P 500 Index | 1.9% | 13.7% |
| Russell 2000 Index | -2.1% | 14.6% |
| MSCI All Country World ex-U.S. Index (net) | 0.6% | 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.
