Alight Solutions 401(k) Index™: June 2017 Observations

July 7, 2017 Dan Moses

June was the lightest trading month this year for defined contribution plan investors, according to the Alight Solutions 401(k) Index™.

June observations:

  • On average, 0.013% of balances traded each day
  • There were no days of above normal 1 trading

Inflows and outflows during the month:

  • 39% of inflows went to international funds and 23% went to target date funds
  • Outflows were primarily company stock, stable value, and small U.S. equity funds

 

Asset classes with most trading inflows in June

  Percentage of inflows Index dollar value
($ mil)
International funds 39% $90
Target date2 funds 23% $53
Large U.S. equity funds 20% $47

 

Asset classes with most trading outflows in June

  Percentage of outflows Index dollar value
($ mil)
Company stock 34% $77
Stable value funds 28% $64
Small U.S. equity funds 21% $48
“It’s not uncommon to see lighter than normal trading activity when the market is increasing. With major stock indices reaching record highs in June, it comes as no surprise that few participants made trades.”
Rob Austin Director of Research
Alight Solutions

June investment portfolios:

  • At the end of June, 67.0% of balances were invested in equities, up marginally from 66.9% at the end of May
  • 67.1% of new contributions were invested in equities, down slightly from 67.2% in May

 

Asset classes with largest percentage of total balance at end of June

  Percentage of balance Index dollar value
($ mil)
Target date funds 25% $47,495
Large U.S. equity funds 24% $44,898
Stable value funds 11% $21,779

 

Asset classes with most contributions in June

  Percentage of contributions Index dollar value
($ mil)
Target date funds 45% $503
Large U.S. equity funds 19% $215
International funds 8% $88

 

The Alight Solutions 401(k) Index™ statistics for the period ending June 30, 2017:

Asset classes with most contributions in June

  June
Total transfers as percentage of starting balance 0.12%
# Fixed days 11 (50%)
# Equity days 11 (50%)
# Above normal1 days 0

 

June market observations
In June, capital markets saw primarily positive results, with sluggish fixed income returns and strong U.S. small cap equity returns.

Returns for common indices

  June
Bloomberg Barclays U.S. Aggregate Index -0.1%
S&P 500 Index 0.6%
Russell 2000 Index 3.5%
MSCI All Country World ex-U.S. Index (net) 0.3%

 

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.
  2. Target date funds also include the amounts in target risk funds for companies who do not have target date funds. The amount in the target risk funds is less than 10% of the total.

 

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

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