Alight Solutions 401k Index: June 2019 Observations

Alight Solutions 401(k) Strong investment returns in June prompted 401(k) investors to slowly move money from equity funds to fixed income investments, according to the Alight : June 2019 Observations

Strong investment returns in June prompted 401(k) investors to slowly move money from equity funds to fixed income investments, according to the Alight Solutions 401(k) Index™.

June observations:

On average, 0.017% of 401(k) balances were traded daily
17 of 20 days favored fixed income funds

The Alight Solutions 401(k) Index™ statistics for the month of June 2019:

Index statistics

	June	2019 YTD
Total transfers as percentage of starting balance	0.23%	1.10%
# Fixed days	17 (85%)	107 (86%)
# Equity days	3 (15%)	17 (14%)
# Above normal days	2	16

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, company stock, and small U.S. equity funds

Asset classes with most trading inflows in June

	Percentage of inflows	Index dollar value ($ mil)
Bond funds	40%	$180
Stable value funds	38%	$174
Money market funds	16%	$74

Asset classes with most trading outflows in June

	Percentage of outflows	Index dollar value ($ mil)
Large U.S. equity funds	48%	$217
Company stock	31%	$142
Small U.S. equity funds	15%	$67

June investment portfolios:

After reflecting market movements and trading activity, average asset allocation in equities increased from 67.0% in May to 67.7 % in June
New contributions in equities decreased from 67.9% in May to 67.7% in June

Asset classes with largest percentage of total at end of June

	Percentage of balance	Index dollar value ($ mil)
Target date² funds	29%	$62,063
Large U.S. equity funds	25%	$53,870
Stable value funds	10%	$21,238

Asset classes with most contributions in June

	Percentage of contribution	Index dollar value ($ mil)
Target date funds	48%	$542
Large U.S. equity funds	20%	$223
International funds	7%	$80

June market observations:

The capital markets were strong in June. Large and small U.S. equities (represented by the S&P 500 Index and Russell 2000 Index, respectively) were up 7.1%, while international equities (represented by the MSCI All Country World ex-U.S. Index) increased 6.0%. U.S. bonds (represented by Bloomberg Barclays U.S. Aggregate Index) gained 1.3%.

Returns for common indices

	June	2019 YTD
Bloomberg Barclays U.S. Aggregate Index	1.3%	6.1%
S&P 500 Index	7.1%	18.5%
Russell 2000 Index	7.1%	17.0%
MSCI All Country World ex-U.S. Index (net)	6.0%	13.6%

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.

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.
Target date funds also include the amounts in target risk funds. The amount in the target risk funds is less than 10% of the total.