The third quarter saw 401(k) investors continue to trade money from equities to fixed income funds, according to the Alight Solutions 401(k) Index™. This marks the seventh consecutive quarter where net trades favored fixed income funds over equity funds.
Third quarter observations:
- Net transfers for the quarter were 0.61% of balances
- 54 out of 64 trading days in the third quarter had net trading dollars moving from equities to fixed income
Alight Solutions 401(k) Index™ statistics for Q3 2019 and year-to-date:
|Index Statistics||Q3 2019||2019 YTD|
|Net transfers as percentage of starting balance||0.61%||1.77%|
|# Fixed days||54 (84%)||161 (86%)|
|# Equity days||10 (16%)||27 (14%)|
|# Above-normal1 days||8||24|
|Asset classes with most trading inflows in Q3 2019||Percentage of inflows||Index dollar value
|Stable value funds||30%||$394|
|Money market funds||16%||$207|
|Asset classes with most trading outflows in Q3 2019||Percentage of outflows||Index dollar value
|Large U.S. equity funds||49%||$643|
|Small U.S. equity funds||8%||$109|
Third quarter market observations:
In the third quarter, equity markets were mixed: U.S. bonds (represented by Bloomberg Barclays U.S. Aggregate Index) gained 2.3% and large U.S. equities (represented by S&P 500 Index) gained 1.7%, while small U.S. equites (represented by Russell 2000 Index) fell 2.4% and international equities (represented by MSCI All Country World ex-U.S. Index) dropped 1.8%.
|Returns for common indices||Q3 2019||2019 YTD|
|Bloomberg Barclays U.S. Aggregate Index||2.3%||8.5%|
|S&P 500 Index||1.7%||20.6%|
|Russell 2000 Index||-2.4%||14.2%|
|MSCI All Country World ex-U.S. Index (net)||-1.8%||11.6%|
Members of the media: please contact Landis Cullen for questions about the Alight Solutions 401(k) Index™.
Learn more about the Alight Solutions 401(k) Index™ here.