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Alight Solutions 401(k) Index™: June 2021 Observations

Amid a volatile but rising stock market, 401(k) investors were light traders and content to watch their balances rise, according to the Alight Solutions 401(k) Index. There were no days of above-normal activity.

June observations:        
•    Average net trading activity was 0.009% of 401(k) balances, down from 0.011% in May.  
•    Average asset allocation in equities rose to 70.2%, the highest level in 20 years.
        


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

Index statistics

June

2021 YTD

Total transfers as percentage of starting balance

0.06%

0.59%

# Fixed days

10 (45%)

44 (35%)

# Equity days

12 (55%)

80 (65%)

# Above-normal days

0

2

Inflows and outflows during the month of June:
•    Trading inflows mainly went to bond funds, international funds, and specialty/sector funds.
•    Outflows were primarily from stable value funds, large U.S. equities, and self-directed brokerage windows.

Asset classes with most trading inflows in June

Percentage of inflows 

Index dollar value ($mil) 

Bond

33%

$53

International

27%

$44

Specialty/Sector

20%

$33

Asset classes with most trading outflows in June

Percentage of outflows 

Index dollar value ($mil) 

Stable value

47%

$76

Large U.S. equities

30%

$48

Self-directed brokerage window

9%

$15

June investment portfolios:
•    After reflecting market movements and trading activity, average asset allocation in equities increased from 69.9% in May to 70.2% in June, the highest since May 2001.
•    New contributions to equities remained at 69.2%.

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

Percentage of balance

Index dollar value ($mil)

Target date funds[1]

30%

$80,492

Large U.S. equity funds

26%

$70,020

Stable value funds

8%

$20,885

 

Asset classes with most contributions in June

Percentage of contributions

Index dollar value ($mil)

Target date funds

48%

$526

Large U.S. equity funds

21%

$228

International equity funds

7%

$82

June market returns:

Returns for common indices

June

2021 YTD

Bloomberg Barclays U.S. Aggregate Index

0.70%

-1.60%

S&P 500 Index

2.33%

15.25%

Russell 2000 Index

1.94%

17.54%

MSCI All Country World ex-U.S. Index (net)

-0.65%

9.16%

[1] 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.

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

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