Alight Solutions 401(k) Index™: First Quarter 2021 Observations

The first quarter of 2021 saw light trading in 401(k) plans, according to the Alight Solutions 401(k) Index^TM. The only day of above-normal¹ activity occurred on January 6 when investors sold large U.S. equities amid events at the U.S. Capitol.
 

First quarter observations:

• Total transfers as a percent of balances in Q1 2021 were 0.46%—the lowest quarterly level since Q3 2018. Last year, 1.59% of balances were traded as stocks tumbled in the first quarter.
• Seventy percent of the trading days saw net trading money flowing from fixed income funds to equities.

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.

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