Alight Solutions 401(k) Index™: Second Quarter 2017 Observations

July 7, 2017 Dan Moses

Trading activity was light in the second quarter of 2017.

Second quarter 2017 observations:

  • There were two days of above normal trading for the quarter[1]
  • Net transfers for the quarter amounted to 0.39% of balances—the lowest level for a quarter since the fourth quarter of 2015
  • 35 out of 63 trading days in the second quarter had net trading dollars moving from fixed income to equities

 

Asset classes with most trading inflows in Q2 2017

  Percentage of inflows Index dollar value
($ mil)
International funds 55% $391
Target date funds 24% $172
Emerging markets funds 11% $81

 

Asset classes with most trading outflows in Q2 2017

  Percentage of outflows Index dollar value
($ mil)
Company stock 44% $313
Small U.S. equity funds 18% $127
Stable value funds 19% $133

 

The Alight Solutions 401(k) Index™ statistics for Q2 2017 and year to date as of June 30, 2017:

 

 

Index Statistics

  Q2 2017 2017 YTD
Total transfers as percentage of starting balance: 0.39% 0.80%
# Fixed days: 28 (44%) 59 (47%)
# Equity days: 35 (56%) 66 (53%)
# Above normal1 days: 2 2

 

Second quarter market observations:

 

Markets in the second quarter showed positive results, consistent with returns for the year. International funds (represented by the MSCI All Country World ex-U.S. Index) continued to surge during the second quarter and have now returned 14.1% for the year.

 

Returns for common indices

  Q2 2017 2017 YTD
Bloomberg Barclays U.S. Aggregate Index 1.5% 2.3%
S&P 500 Index 3.1% 9.3%
Russell 2000 Index 2.5% 5.0%
MSCI All Country World ex-U.S. Index (net) 5.8% 14.1%

 

Members of the media: please contact MacKenzie Lucas for questions about the Alight Solutions 401(k) Index™.

  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.

 

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